Based on a new study from Clever Real Estate in collaboration with Rabbu.com, Tampa is the best U.S. city to invest in short-term rentals, while San Jose, California, is the riskiest short-term rental market in America.
The study analyzed metrics such as median home prices, occupancy rates, and changes in property values to rank Airbnb investment markets across the U.S.
Tampa stands out with a 71.6% property value increase over the past five years — 55% higher than the median city in the study. The metro area boasts 16,020 property listings, triple the median, a 44.8% Airbnb occupancy rate, and $52,705 average annual Airbnb revenue.
The top 10 U.S. cities to invest in short-term rentals
- Tampa, FL
- Orlando, FL
- Jacksonville, FL
- Boston, MA
- Miami, FL
- Buffalo, NY
- Columbus, OH
- Chicago, IL
- Providence, RI
- Kansas City, MO
Meanwhile, San Jose is the worst short-term rental city, with a median home sale price of $1,447,955, more than four times the average. San Jose has just 1,296 listed properties, a whopping 76% less than the median, leading to the lowest Rabbu return on investment score in the nation.
The 10 worst short-term rental markets in the U.S.
- San Jose, CA
- Birmingham, AL
- San Antonio, TX
- Houston, TX
- Sacramento, CA
- Raleigh, NC
- Riverside, CA
- San Francisco, CA
- Oklahoma City, OK
- Pittsburgh, PA
Additionally, Clever surveyed 1,000 Americans and found that 76% have a positive view of Airbnbs. About 60% say short-term rentals are nicer than hotels, and 67% say they’re more comfortable.
However, nearly all respondents (96%) saw downsides to short-term rentals, including misleading property descriptions, a lack of on-site help, and safety concerns.
Only 44% see Airbnbs as safer than hotels, a concern likely amplified by increasing crime rates.
Emir Dukic, founder of Rabbu commented, “We continue to observe growing interest from our user base in investing in short-term rentals and vacation homes, despite current interest rates. Although returns are somewhat compressed compared to previous years, the best properties in our top markets consistently generate double-digit returns.”
