Well, after seeing hundreds of established rental properties sell over the last few months, we decided to look through the data and share our insights with you.
Here are a couple of things we looked at:
- Overall STR Market Trends
- What is a good return?
- Which cities have the highest return?
- Do off-market properties have a better return?
A Quick Disclaimer on the Data
We don’t participate in transactions of these properties, so the actual ROI numbers are estimates based on the list price. The actual sale price may be higher or lower, which would cause the ROI vary. Still, we expect that these estimates should be able to act as a baseline understanding for what makes a good deal.
This report is meant for Informational purposes only and is not intended to provide Investment or other professional advice. Bnb Buyer LLC does not make any guarantee regarding the accuracy or completeness of this information. We recommend you consult a professional prior to making any Investment decisions.
STR Market at a Glance
Total value of properties listed on Bnb Buyer in the last 6 months:
$253,168,778
What is a good return on an Airbnb?
Most properties have between a 6-12% ROI. Properties with an ROI greater than 12% are in the top 23% of all properties.
Which cities are best for Airbnb investment?
Hot Springs, AR has the highest average return on investment. Home prices in Hot Springs were typically between $400k and $600k. Other top cities include Sedona, Savannah, Gatlinburg, and Tybee Island.
Do off-market properties have a better return?
We found that MLS properties generally have a lower return than properties sold by owner.
Bnb Buyer sends out both on-market and off-market properties to help our subscribers find the best properties.
How This Data Can Help You as a STR Investor
Hopefully this report has given you an idea on what types of returns are normal. We know that a 10-12% ROI isn’t too shabby, but that 12%+ is definitely doable.
There are some things that increase the likelihood of finding a better deal (certain markets, lower price points, off-market) in general. That said, there is a lot of variability here. There could be an on-market listing in Panama City Beach for $2.5M that spits off a 20% ROI.
A good deal can come from anywhere. If you’re trying to maximize your ROI as a STR investor, you need to be paying attention to multiple markets, at various price points, and have a good flow of both MLS and off-market deals.
The easiest way to cast a wide net and monitor so many properties is to subscribe to the free Bnb Buyer newsletter. You’ll get an email twice a week with a handful of STR properties from all over the country. We monitor over 100 markets and send the best deals to you.