The Most Profitable Airbnb Hosting Destinations
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
Airbnb hosting offers more than just an opportunity to earn extra cash; it's a strategic move for savvy homeowners looking to optimize their personal finances. This venture taps into the growing trend of the sharing economy, where your property can work for you, transforming unused spaces into profitable assets.
With the right approach, hosting can supplement your income, helping you achieve financial goals faster, be it paying off a mortgage, funding retirement savings, or setting aside money for a special vacation. It's a practical way to leverage your home's potential and navigate the financial landscape with an entrepreneurial spirit.
In this article
10 most profitable Airbnb hosting destinations
When it comes to Airbnb hosting, certain U.S. cities stand out not just for their visitor appeal but for the lucrative opportunities they offer to property owners. The personal finance experts at Wealth of Geeks have conducted an in-depth study to pinpoint where Airbnb hosts can make the most profit. By analyzing the average nightly Airbnb rates alongside median weekly wages, using data from the U.S. Bureau of Labor Statistics, they've identified the hotspots for hosting success. Notably, the list is dominated by warm-weather destinations, with Arizona cities making a significant showing. Here’s a closer look at the findings:
1. Scottsdale, Arizona
Scottsdale emerges as the premier location for Airbnb hosts, with an average nightly charge of $449. This represents a substantial 55.9% of the city's median weekly income. The allure of Scottsdale is not just its lucrative hosting opportunities but also its high average weekly income of $804, the most substantial among the cities surveyed.
Best For Fast Claims
- Up to $250,000 emergency medical coverage for international trips
- Real-time travel care
- Quick claims processing & reimbursements for eligible claims
2. Tempe, Arizona
Tempe, Arizona, shines as a desert gem in the Airbnb hosting world, securing a joint second-place ranking for profitability. With an enticing nightly rate averaging $402, hosts in Tempe can expect to earn an impressive 50% of the average weekly wage from just a single night's stay. This remarkable earning potential makes Tempe an appealing option for those looking to dive into the short-term rental market.
2. Charleston, South Carolina
Sharing the second spot with Tempe, Charleston, South Carolina, offers its own unique allure to Airbnb hosts. The historic charm of Charleston, combined with an average nightly Airbnb rate of $345, allows hosts to capture 50% of the average weekly wage in just one booking. This blend of cultural richness and financial opportunity positions Charleston as a prime location for individuals exploring the Airbnb hosting venture.
3. Phoenix, Arizona
With an average nightly rate of $385, equating to 47.9% of the local weekly wage, Phoenix offers more than just a warm climate. Its numerous tourist attractions contribute to its high placement, showcasing the potential for hosts to benefit from the city's 19.5 million annual visitors.
4. Las Vegas, Nevada
Stepping beyond the neon lights and casino buzz, Las Vegas secures the fourth position, proving itself as more than just a gambler's paradise. With an enticing average Airbnb nightly rate of $312, hosts in this vibrant city can tap into 43.1% of Nevada's median weekly wage, showcasing the diverse appeal of Las Vegas as a prime location for short-term rentals
5. Glendale, Arizona
Completing the top five, Glendale stands out not just for its sunny disposition but also for its robust Airbnb market. With an average rate of $344 per night, Airbnb hosts in Glendale can earn 42.8% of Arizona's average weekly wage, highlighting the city's strong potential for short-term rental profitability. Glendale is more than just a suburb of Phoenix; it's a destination in its own right, home to the State Farm Stadium and a host of other attractions like the Westgate Entertainment District, historic downtown, and numerous sporting events.
6. Gilbert, Arizona
Nestled in the heart of Arizona, Gilbert emerges as a sought-after location for Airbnb hosts, with an average nightly rate of $329. This rate translates into 40.9% of the median weekly wage in the area, making Gilbert a lucrative choice for those considering entering the Airbnb market. The town offers a blend of suburban tranquility and access to urban amenities, along with unique attractions that draw visitors, such as the Riparian Preserve at Water Ranch and the vibrant downtown area.
7. Chandler, Arizona
Close on Gilbert's heels, Chandler offers an attractive proposition for Airbnb hosts, boasting an average nightly rate of $322. This represents 40% of the local median weekly income, positioning Chandler as a competitive location for short-term rentals. The city is known for its rich cultural heritage, sprawling parks, and a variety of entertainment options, making it a desirable destination for visitors and a profitable one for hosts.
8. Virginia Beach, Virginia
With an average Airbnb nightly rate of $332, Virginia Beach stands out on the East Coast, offering hosts the chance to earn 38.7% of the average weekly wage. The city's appeal lies in its stunning coastline, vibrant boardwalk, and the plethora of outdoor activities available, from surfing to hiking in First Landing State Park. These attractions make Virginia Beach a popular choice for vacationers and a promising market for Airbnb hosts.
9. North Charleston, South Carolina
North Charleston presents an appealing option for Airbnb hosts, with an average nightly rate of $254, equating to 36.7% of the median weekly wage. As a hub of industry and culture, the city offers a mix of historical sites, parks, and artistic venues. Its strategic location, affordability, and growing appeal as a tourist and business destination underscore the potential for profitable Airbnb ventures.
10. Mesa, Arizona
Rounding out the top ten, Mesa captures the essence of Arizona's allure with an average nightly rate of $292, translating to 36.3% of the median weekly income. As the third-largest city in Arizona, Mesa attracts visitors with its array of outdoor adventures, from hiking in the Superstition Mountains to exploring the ancient petroglyphs at Mesa Grande Cultural Park. The city's blend of natural beauty and cultural richness makes it a hidden gem for Airbnb hosts looking to capitalize on Arizona's booming tourism industry.
Best For Fast Claims
- Up to $250,000 emergency medical coverage for international trips
- Real-time travel care
- Quick claims processing & reimbursements for eligible claims
How to be an Airbnb host
To start generating passive income through Airbnb, here's a practical and straightforward guide to becoming a successful host:
Prepare your space for guests
Begin by deciding which part of your home you want to list – this could be a spare room, a guest house, or your entire home if you're away frequently. Ensure the space is clean, well-maintained, and appealing to a wide range of guests. Investing in quality furnishings and making minor upgrades can significantly enhance your listing's attractiveness.
Create your listing on Airbnb
Sign up on the Airbnb platform and create a listing for your space. Be thorough and honest in your description, highlighting all the amenities and features. Use high-quality photos to showcase your space in the best light possible. Remember, your listing is how potential guests get their first impression, so make it count.
Set your price
Pricing your space competitively is key. Research other Airbnb listings in your area to get an idea of the market rates. Consider your costs, the demand for rentals in your region, and any unique aspects of your property. Airbnb also offers pricing tools that adjust your rates based on demand and seasonality.
Manage your bookings efficiently
Utilize Airbnb’s platform to manage your bookings. You can set your availability, minimum stay requirements, and booking preferences. Being responsive to booking inquiries and communicating clearly with your guests from the start can set the tone for a positive experience.
Deliver a great guest experience
A successful Airbnb host goes beyond just providing a place to stay. Ensure your space is clean before guests arrive and consider offering a small welcome gift or local recommendations to make their stay special. Being available to answer questions or assist during their stay can significantly impact their satisfaction and lead to positive reviews.
Gather and learn from feedback
After your guests depart, encourage them to leave a review and take the time to respond to their feedback. Reviews are crucial for building your reputation on Airbnb. Constructive feedback can also provide insights into how you can improve your hosting experience.
Optimize and repeat
Use the experience and feedback from your initial guests to refine your listing, adjust your pricing strategy, and improve your hosting practices. Success on Airbnb often comes from continuous improvement and adapting to the needs of your guests.
Pros and cons of Airbnb hosting
Pros
- Potential for high earnings, especially in profitable cities.
- Flexibility in hosting schedules.
- Opportunity to meet people from around the world.
Cons
- Possible regulatory challenges and restrictions.
- Need for ongoing property maintenance and management.
- Risk of property damage or issues with guests.
Best For Fast Claims
- Up to $250,000 emergency medical coverage for international trips
- Real-time travel care
- Quick claims processing & reimbursements for eligible claims
The bottom line
With careful management and strategic planning, Airbnb hosting can offer a significant source of income, allowing homeowners to capitalize on their property's potential. As the gig economy continues to evolve, Airbnb hosting stands out as a flexible and rewarding option for many.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Share this article
