Real Estate Investment: Which Cities in US Are Best for Short-Term Rentals Like Airbnb?

Posted by Staff Reporter ( on Mar 21, 2016 06:40 AM EDT
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Airbnb'S Value Estimated At $10 Billion After New Round Of Investmentsmore big
SAN ANSELMO, CA - APRIL 21: The Airbnb app is displayed on a smartphone on April 21, 2014 in San Anselmo, California. Online home-rental marketplace Airbnb Inc. is about to receive more than $450 million in investments from a group led by private-equity firm TPG. The new investments will value the startup at $10 billion, significantly higher than some publicly traded hotel chains. (Photo : Justin Sullivan/Getty Images)

More homeowners are realizing the importance of investing in real estate as a means of adding extra income. However, a real estate investment, much like any other kind of investment, also has its own risks. If you are keen on entering the short-term rental market such as listing your property on Airbnb, which cities in the U.S. pose the less risk for investors?

Real estate investments are a great way of expanding your portfolio and adding extra income to your monthly budget. As previously discussed here on Realty Today, the increase in the demand for rental homes has led to an increase in investors on the real estate market.

As more people, especially those on a vacation, are leaning towards renting homes on a short-term basis, many are now considering of entering the short-term rental market.

However, as with any other investments, the short-term rental market such as Airbnb has its pros and cons. According to, one must take note of the city and its policies on short-term rentals.

If you are still looking for the best place to invest in a home to put out on the short-term rental market, the best cities with policies on short-term rentals are in Galveston, Texas and Savannah, GA.

The publication noted that these two cities scored the highest with 97 out of 100 possible points while taking into account their regulations for short-term rentals. These two cities in the U.S. received the highest scores because of their specific regulations on short-term rentals without having any significant restrictions.

Louisville, KY and San Diego are next at the top of the list. At the bottom of the list are Atlanta, Denver, Santa Barbara and Los Angeles, CA.

"These cities all either have laws on the books that largely ban short-term rentals or construe their existing laws in ways that make [short-term rentals] impossible, in practical terms," the report said.

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