Airbnb Income by City: What Real Investors Are Actually Earning in 202

Key Takeaways

City matters as much as the property itself when it comes to Airbnb income. Markets like Scottsdale, Nashville, and Gatlinburg consistently outperform the national average, but occupancy rates, local regulations, and seasonal demand swings can flip those numbers fast. Knowing what investors in your target market are actually earning helps you buy smarter and set realistic income expectations before you close.

Annual Airbnb revenue varies widely by city, from around $18,000 in slower markets to over $80,000 in high-demand destinations.
Occupancy rate and average daily rate together determine your gross revenue, and both shift significantly by location.
Regulations, HOA rules, and permitting costs can quietly erode income in otherwise strong markets.
Seasonal demand concentration (think ski towns or beach markets) creates cash flow peaks and valleys you need to plan around.
A free income estimate for your specific property and city gives you a much more accurate baseline than national averages.

Why Your City Shapes Your Airbnb Income More Than Your Property Does

When Matt and I were evaluating our first short-term rental properties, we kept making the same mistake most new investors make: comparing price-per-square-foot and renovation costs without anchoring those numbers to what guests in that specific city were actually willing to pay per night. A beautifully designed three-bedroom home in a mid-tier market might gross $28,000 a year. That same property in Scottsdale or Chattanooga might pull $65,000. Same square footage, same furniture budget, completely different return. City-level data from platforms like AirDNA and tools like PriceLabs show that your market's baseline average daily rate and occupancy are the two biggest levers on your gross revenue, and both are largely determined before you ever list a single night.

A Look at Real Airbnb Revenue Numbers Across Popular Markets

These figures come from AirDNA's 2024 market data and represent median annual revenue for entire-home listings. They are not guarantees, and your property's specific setup, pricing strategy, and management quality will move you above or below these numbers. But they give you a useful starting baseline when comparing cities.

High-performing destination markets

Gatlinburg and Pigeon Forge in Tennessee consistently rank among the top short-term rental markets in the country. Median annual revenue for a two-bedroom cabin in the Smokies runs between $55,000 and $80,000, with peak weeks around fall foliage and Christmas commanding nightly rates well above $300. Scottsdale, Arizona follows a similar pattern, driven by spring training, golf snowbirds, and bachelorette party bookings. Median annual revenue there for a three-bedroom home sits around $60,000 to $75,000, though summer occupancy drops sharply because of the heat. That seasonal dip is a real tradeoff you need to model into your cash flow projections before buying.

Mid-tier markets with strong year-round demand

Nashville, Savannah, and Asheville land in a middle tier that often surprises investors. These cities draw consistent leisure and event-driven bookings across twelve months, which smooths out the peaks and valleys you see in pure seasonal markets. Nashville median annual revenue for a two-bedroom property was around $42,000 to $55,000 in 2024 (AirDNA). Asheville runs slightly lower at $38,000 to $50,000 for comparable properties, but appreciation potential in the Blue Ridge market has attracted significant investor interest. Savannah is worth watching because the historic district's charm drives strong average daily rates even for smaller properties, a one-bedroom there often outperforms a two-bedroom in a less visually distinctive market.

Coastal markets: high rates, high competition

Beach destinations like 30A in Florida, the Outer Banks in North Carolina, and Myrtle Beach attract investors for obvious reasons, but the supply of listings is also high. 30A properties can generate $70,000 to $120,000 annually for larger homes, but acquisition costs in Rosemary Beach or Seaside have risen significantly, which compresses your cash-on-cash return even when gross revenue looks great. Outer Banks properties in the $800,000 to $1.2 million purchase range often gross $60,000 to $90,000, but carrying costs, HOA fees, flood insurance, and property management cut deeply into net income. Always model net income, not just gross revenue, before you make an offer.

Markets Where Regulations Quietly Eat Your Income

Some of the most attractive cities on paper have become significantly harder for short-term rental investors in the last two years. New York City's Local Law 18, which took effect in September 2023, essentially ended most whole-home Airbnb listings in the five boroughs (New York City Mayor's Office of Special Enforcement). San Francisco, Los Angeles, and Boston have similar host registration requirements, occupancy caps, and in some cases outright neighborhood-level bans. We are not saying avoid regulated markets entirely, but you need to factor permitting costs, registration fees, and potential business license requirements into your pro forma before you buy. A property generating $55,000 in gross revenue that requires $4,000 in annual fees and carries a real risk of regulatory shutdown is a very different investment than one in a property-rights-friendly market like Gatlinburg or Scottsdale. Check your target city's short-term rental ordinance directly through the municipal government website before you close.

How to Use City-Level Data Without Getting Fooled by Averages

The trap most investors fall into is treating citywide averages as predictive of their specific property. A city median of $45,000 annual revenue might include a mix of studio apartments pulling $22,000 and five-bedroom lake houses pulling $90,000. Those numbers average out to something that neither property actually earns. PriceLabs and AirDNA both let you filter by property type, bedroom count, and specific neighborhood, which gets you much closer to a comparable set. When we evaluate a new property, we look at actuals for the 20 to 30 listings most similar to ours in that specific zip code, not the city aggregate. You can also pull Vrbo listing data manually for markets where VRBO has stronger penetration than Airbnb, which matters in family-friendly beach and mountain markets. For a deeper look at how these city numbers fit into the bigger picture of what short-term rental investors are actually earning, the average airbnb income breakdown covers national benchmarks, expense ratios, and net income ranges you can use to stress-test your pro forma.

Frequently Asked Questions

What city has the highest Airbnb income on average?

According to AirDNA's 2024 data, markets like Gatlinburg, Scottsdale, and 30A Florida consistently rank among the highest for median annual revenue. That said, acquisition cost relative to revenue, not just gross income, is what determines whether a market is actually a good investment for you.

How much does an Airbnb host earn per month on average?

National median monthly Airbnb income for entire-home listings is roughly $2,500 to $3,500, but that number is not very useful on its own. A host in a top destination market can earn $6,000 to $8,000 per month in peak season and $800 in an off-peak month, so monthly averages hide a lot of variance.

Does city size affect Airbnb income?

Not in a direct way. Mid-size destination cities like Asheville and Savannah often outperform major metros like Atlanta or Dallas because tourist demand is concentrated and supply of short-term rentals, while growing, has not caught up. Major metros tend to have high competition, stricter regulation, and more price-sensitive guests.

What is a realistic occupancy rate for an Airbnb in a strong market?

In a well-managed listing in a strong destination market, 65 to 75 percent annual occupancy is realistic. Some properties in peak markets hit 80 percent or above, but those usually have exceptional pricing strategies using tools like PriceLabs and strong review histories that boost search ranking on Airbnb and Vrbo.

How do I know if a city's Airbnb regulations will hurt my income?

Check the city's official municipal code or short-term rental permit page directly. Many cities post their STR ordinances on .gov domains. You can also contact the city's planning or zoning department. Do this before you make an offer, not after you close, because regulations have changed quickly in many markets since 2022.

Is Vrbo or Airbnb better for certain cities?

It depends on the market and guest demographic. Vrbo tends to attract family groups booking larger properties for longer stays, which makes it stronger in beach and mountain markets. Airbnb has better urban penetration and attracts solo and couple travelers. Listing on both platforms is almost always the right move for maximizing occupancy.

How much does professional property management affect income by city?

In competitive markets, professional management tends to pay for itself through better pricing, higher review scores, and lower vacancy. A well-managed property in Nashville might gross 20 to 30 percent more than a self-managed listing with inconsistent availability and slower guest communication, which more than offsets a standard management fee.

Get a Real Income Estimate for Your Property's Market

City averages are a useful starting point, but they will not tell you what your specific property, in your specific neighborhood, with your specific bedroom count, is likely to earn. As property owners ourselves, we know how much a realistic income projection matters before you commit to a market or a management strategy. We built our free income estimator to give you a property-level number, not a citywide guess, so you can make a more informed decision. See what your property could earn. Get a free income estimate.