Last updated: October 2024
Welcome to our latest exploration into the dynamic world of Airbnb rentals! The United States is home to a diverse array of big cities, each offering unique investment opportunities for short-term rentals (STRs). In this article, we focus on the top six markets with populations over 500,000, ranked by gross yield. These cities not only provide strong investment potential but also offer rich cultural experiences, vibrant communities, and numerous tourist attractions.
Whether you’re a seasoned real estate mogul or a budding entrepreneur, this article will illuminate the potential of these urban gems, offering a blend of financial savvy and local charm. Join us as we uncover the secrets to maximizing your investment in some of America’s most vibrant cities!”
Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a vacation rental calculator, an Airbnb fee calculator, rental regulation information, and a sophisticated deal analyzer (Airbnb ROI calculator). Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.
1. Detroit, Michigan
Detroit, MI, known as the Motor City, has a rich history in the automotive industry and a vibrant arts scene, with attractions like the Detroit Institute of Arts and the Motown Museum.
Detroit has experienced a slight decrease in home values by -0.90%, with the average home price now at $68,379. The city maintains a competitive edge with an average daily rate (ADR) of $118.00 and an occupancy rate of 53%, leading to an annual revenue of $21,392 from 1,222 active listings. The average gross yield is an impressive 26.07%, complemented by a cap rate of 15.64%.
Discover more about investing in Detroit through Chalet Intel. It includes a vacation rental calculator, regulation overview, an Airbnb fee calculator, and much more.
2. Cleveland, Ohio
Cleveland, OH, located on the shores of Lake Erie, boasts attractions like the Rock and Roll Hall of Fame and a thriving theater district.
Cleveland has seen a notable increase in home values by 5.80%, with the average price reaching $100,734. With an ADR of $107.00 and an occupancy rate of 59%, the annual revenue is $21,992 from 2,126 active rentals. The gross yield is 18.19%, and the cap rate is 10.91%.
To delve deeper into Cleveland’s investment potential, check out Chalet Intel. It includes tools for in-depth market analysis, a vacation rental calculator, and investment strategies.
3. Memphis, Tennessee
Memphis, TN, is renowned for its rich musical heritage, including landmarks like Graceland and Beale Street, attracting music lovers from around the world.
Memphis has experienced a slight drop in home values by -4.50%, with the average home price now at $144,347. The city’s ADR is $123.00, with an occupancy rate of 57%, resulting in an annual revenue of $26,176 from 1,755 active listings. The gross yield is 15.11%, and the cap rate is 9.07%.
For more comprehensive insights into Memphis as a rental market, explore Chalet Intel. Our platform provides detailed data, a vacation rental calculator, an Airbnb fee calculator, and investment guidance.
Top 200 Airbnb Rental Markets
Instantly compare top 200 short-term (Airbnb) rental markets in the US
4. Milwaukee, Wisconsin
Milwaukee, WI, known for its brewing traditions and cultural festivals, offers attractions like the Milwaukee Art Museum and the historic Third Ward.
Milwaukee has seen a significant increase in home values by 8.40%, with the average price at $191,149. The city’s ADR is $123.00, with an occupancy rate of 58%, resulting in an annual revenue of $25,962 from 1,462 active listings. The gross yield is 11.32%, and the cap rate is 6.79%.
For more comprehensive insights into Milwaukee as a rental market, explore the free Milwaukee Airbnb Investor Guide and Milwaukee Rental Regulations.
5. Buffalo, New York
Buffalo, NY, is known for its vibrant arts scene, historic architecture, and proximity to Niagara Falls, making it a popular destination for tourists.
Buffalo has seen a notable increase in home values by 7.50%, with the average price reaching $211,615. The city boasts an ADR of $130.00 and an occupancy rate of 60%, leading to an annual revenue of $28,253 from 1,164 active listings. The gross yield is 11.13%, and the cap rate is 6.68%.
Explore more about investing in Buffalo through Chalet Intel. Our platform offers comprehensive data, tools for making informed investment decisions, a vacation rental calculator, and an Airbnb fee calculator.
6. Tulsa, Oklahoma
Tulsa, OK, offers a vibrant arts scene, historic districts, and cultural events, making it an attractive destination for a diverse range of visitors.
Tulsa has seen a notable increase in home values by 5.10%, with the average price at $194,784. The city’s ADR is $116.00, with an occupancy rate of 62%, leading to an annual revenue of $25,740 from 1,076 active rentals. The gross yield is 11.01%, with a cap rate of 6.61%.
For further details on this market, explore the free Tulsa Airbnb Investor Guide and Tulsa Rental Regulations.
