Mashvisor's 100 Best Cities For Airbnb list is released. Thoughts?

Question

Short-term rental data specialist Mashvisor released its list of Best 100 Cities for Airbnb Rental Income and considered some key metrics in its decision-making. I glanced at the list and realized my scrolling finger should get ready to rumble.

These three cities from the rental income of $3,000-$4,000 list were on my list of markets to check out and helped validate my research even more:

#20 Richmond, Virginia: Airbnb rental income $3,247

#32 Round Rock, Texas: Airbnb rental income $3,418

#53 Henderson, Nevada: Airbnb rental income $3,909

It is broken up by rental income segments ($2,000-$3,000; $3,000-$4,000, etc.), so some numbers overlap, but there are some excellent data points to consider.

What are your thoughts on the list? It is slightly confusing how it is broken up, but they provided some interesting data points. They also have their own algorithm that calculates some of these things.

We talked about this: AirBNB's Fall Report, How one UK STR has a 2-year waitlist, and more in this week's edition of BiggerStays, the weekly BiggerPockets short-term rental newsletter. You can sign up below!
https://www.biggerpockets.com/blog/short-term-rental-investi...

Michael Baum · Answer

I am not pissing on this post @Quinn Olivarez. What we are pointing out is that this is a view of the market that changes constantly. The hot markets for STRs last month are different from the month before.

We are dissecting the info. We are saying that you can't take these kinds of lists as gospel. There are places high on the list that I wouldn't drop a dime in and places that no one posts about that are great.

The bottom line is this is a list based on simple metrics. Each investor has to drill down on an area based on a lot of other metrics including things specific to each person.

The mods aren't trying to stifle anything. The mods haven't posted in this thread at all so I don't know what you are talking about on that point.

@John Underwood, @Jay Hinrichs and I aren't moderators. We are just forum members who contribute a ton.

I think it is important to point out that these sorts of lists that they can make you aware of new areas, but they are not the end all be all of decision making.

James R. · Answer

I agree. Why not make the list The Top 500 Cities. Same fluff.

For example:

Milwaukee, WI

• Airbnb Rental Income: $3,452
• Airbnb Daily Rate: $128
• Airbnb Occupancy Rate: 59%
• Airbnb Cash on Cash Return: 4.22%
• Median Property Price: $476,223
• Property Price per Square Foot: $269
• Days on Market: 49

I own 2 STRs in this city and the occupancy rate overall is about 20% according to AirDNA. Both properties are in sought-after upscale neighborhoods and fetch only ca. $1,500-2,000/month. There are zero zoning restrictions, so the market is beyond saturated. I would not start another STR there. The mortgages are paid on my two properties, so cashflow is pretty easy at this point, but to start now at today's interest rates...no, thank you.

John Underwood · Answer

This list is just one of many data points that can help identify areas.

This is a 500 ft view, you still have to drill down into neighborhoods, streets and specific houses that will work well as a STR or Vacation rental (not just an airbnb).

I look for higher end vacation rental properties above and beyond what people call airbnb's.

A room in someone's house can be an "airbnb" after all.

I love the new Vrbo commercial with Nick Saban. It is awesome.

Jay Hinrichs · Answer

Vegas has pretty tight restrictions on STR it would be interesting to see how many homes are actually available to purchase there. However Property tax's some of the lowest in the coutnry and property maintenance same thing if you buy a stucco home with a tile roof.

No real major weather threats like many markets IE hail storms wind storms etc.. can get windy but thats common..

Garrett Brown · Answer

@Quinn Olivarez I completely agree that these types of posts are great for discussions, and that is why I make them. I didn't take it as pissing on my post, but I do hear you, though, as I have seen a few instances of this. I love hearing everyone's POVs on topics, especially as I try to expand myself and find new intriguing markets. I hope new members feel encouraged to participate here! I'm in the Houston market as well. Let me know if you have any STR deals coming, especially in The Woodlands/Conroe area!

Quinn Olivarez · Answer

I do not understand why veteran forum posters piss all over these posts. Biggerpockets is a nexus within the REI community. Posts like this are what drive forum engagement, bc they can be dissected from various POVs. So why are mods trying to stifle that discussion? Do you think less experienced investors and forum posters will want to participate when mods behave this way?

Garrett Brown · Answer

@Michael Baum , there will be a new one to cover next week I'm sure lol. The interesting thing about these lists is the vast difference in each STR data company's numbers. Investors have to dive further into the actual OTAs so they can learn true numbers. The lists are just talking points overall and I agree they should never be taken as a definitive answer to what market to invest in.

Mashvisor's 100 Best Cities For Airbnb list is released. Thoughts?

Mashvisor's 100 Best Cities For Airbnb list is released. Thoughts?

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