As the world continues to become more interconnected, short-term (Airbnb) rentals have become increasingly popular, particularly in South Bend, IN.
With its vibrant culture, impressive scenery, and world-renowned universities, South Bend has become a top destination for tourists and business travelers alike.
Market Overview
To understand the dynamics of the short-term rental market in South Bend, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 33.70% of inventory. This is followed by 1 and 3-bedroom homes at 25.25% and 17.23% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according o Zillow, homes in South Bend experienced an appreciation of 5.66%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in South Bend have depreciated by 5.66%. The median home value in South Bend is $180,100 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, South Bend boasts a significant Airbnb rental market, with approximately 684 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $353. The Average Daily Rate is the highest for 5 bedroom homes $369 followed by 4 bedrooms and 3 bedrooms at $332 and $269 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 55% for Airbnb rentals in South Bend. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in South Bend ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 28.74% in South Bend. This figure suggests that short-term rentals in the city offer a favorable return on investment. South Bend is ranked #3 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in South Bend earn an average of $22,409 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in South Bend is 0.94%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
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Regulations
South Bend’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
Demographics and Climate
South Bend, IN has a population of approximately 101,860 people, according to the most recent U.S. Census Bureau data. The median household income in South Bend is $41,640, which is slightly below the national median income. The city experiences a humid continental climate, characterized by cold, snowy winters and hot, humid summers.
Top Places for Airbnb in South Bend
South Bend’s top submarkets for Airbnb investments include areas like ZIP code 46614, which has the highest gross yield at 21% and an annual revenue of $47,622. In contrast, ZIP code 46615 offers more extensive opportunities with 123 full-time listings, but a lower gross yield of 18%.
Hosts
The market is dominated by property management firms. The largest host is Evolve with 4.85% of the total inventory and an average review of 4.95⭐️s .
Sports and Education
South Bend is home to several sports teams, including the South Bend Cubs, a minor league baseball team affiliated with the Chicago Cubs, and the South Bend Roller Girls, a women’s roller derby league. The city is also home to two prominent colleges: the University of Notre Dame, a private Catholic research university, and Indiana University South Bend, a regional campus of Indiana University.
Crime Rates
Like many cities in the United States, South Bend has a crime rate that is higher than the national average. According to recent data from the FBI, the city’s overall crime rate is 53% higher than the national average. However, it is worth noting that crime rates have been declining in recent years, with the city reporting a 15% decrease in overall crime from 2019 to 2020.
Guests
The majority of the guests come from outside of Indiana. 10.00% of all guests are from Chicago followed by Indianapolis with 2.45%.
Tourism
South Bend is a popular tourist destination, attracting visitors from across the United States and beyond. In 2019, the city welcomed approximately 1.3 million visitors, according to data from Visit South Bend Mishawaka. The majority of visitors to South Bend come from within Indiana, with Chicago, Indianapolis, and Detroit also serving as major source markets.
Tourist Attractions and Peak Season
South Bend is home to several popular tourist attractions, including the University of Notre Dame, the Studebaker National Museum, and the Morris Performing Arts Center. The city’s beautiful parks and outdoor spaces, such as the South Bend Riverwalk and the Potawatomi Zoo, are also major draws for tourists. The peak season for tourism in South Bend typically falls between May and September, with the summer months being the busiest.
Conclusion
Overall, the short-term rental market in South Bend, IN is a dynamic and growing industry. With strong demand for short-term rentals, increasing home values, and favorable regulations, it is an attractive destination for investors looking to enter the market.
