How to Find Profitable Airbnb Markets & Properties (Rob + Kai’s Proven System)

Ever looked at an Airbnb host with a fully booked listing in a new booming area and thought to yourself, "How do they do it?"‍

How do investors sidestep the money pits and consistently pick markets and properties that print cash?

We're answering that exact question. Read on to learn the smart systems insiders use, from Kai’s famous "Golden Triangle method" for finding hidden markets to a step-by-step property vetting process using AirDNA. Let’s get started.

Step 1: Using Kai Andrew’s Golden Triangle

Most new hosts chase cute towns. The pros chase connected ones.

Kai’s Golden Triangle method is simple but super effective:

A winning Airbnb market usually sits inside a triangle formed by three things:

👉 A major city (for steady weekend traffic)
👉 A major attraction (national park, ski resort, coastline, etc.)
👉 And a transport hub (airport or easy highway access)‍

Market missing all three? Expect tumbleweeds.

Hit two? The market deserves a deeper look.

Hit all three? That’s a flashing green light. You’ve found prime Airbnb territory. 

Don't just aim for the center of the triangle. The edges often hide the best opportunities.

Think Candler, NC instead of Asheville. You get the same incredible mountain views, with fewer regulations and a better potential return on investment (ROI).

💡 Don’t follow trends, follow the triangle.

Step 2: Measure Foot Traffic

Got your triangle? Time to confirm people are actually visiting the area with foot traffic data. This step is optional, but very helpful to get another thumbs up that you’re looking in the right direction. 

AI tools like ChatGPT can give you a general idea of foot traffic. But if you want accuracy, look here:

✅ Traffic & government studies (DOT reports, tourism data, local visitor stats)
✅ Local business activity (hotels, restaurants, new construction, or event spaces nearby)
✅ Short-term rental metrics (occupancy rates, ADRs)

Bring these together, and you get a clear picture of a market’s health.

Step 3: Analyzing An Airbnb Market with AirDNA 

Now, let's see if the numbers hold up. Before you fall in love with a property, pull up AirDNA.

Here’s your quick checklist of things to look for:

✅ Active Rentals

• Under 100: Could mean low demand or tight regulations.
• Over 2,000: The Market might be oversaturated.
• Somewhere in between: Usually indicates a healthy, growing market.

✅ Average Daily Rate (ADR):

• Look for markets averaging at least $125–$150/night. ADRs that are too low can attract the wrong guests.

✅ Occupancy Rate:

• 65%+ market average is Rob's gold standard. Most hosts only break even at 40-50% occupancy. If the market average is 65%, a great host can often achieve 80%+.

💡Remember, occupancy alone isn’t everything. If your listing is truly unique or you’re addressing a major gap in the market, you can be highly profitable even with a lower occupancy.

Step 4: Getting specific and analyzing your property

Now that you’ve confirmed the market is strong, it’s time to analyze your competitors based on the property you want to invest in. 

Filtering Out Bad Data

AirDNA pulls data from every Airbnb listing, including inactive and low-quality ones. To get a clean dataset, apply these three filters:

✔️ 250+ available days (ensures it's a full-time rental, not a one-off host).

✔️ 20+ reviews (filters out listings that aren’t getting booked regularly.).

✔️ Recent, consistent reviews (manually check that the host is active and guests are happy).

Once those filters are in place, your dataset instantly becomes more accurate (and way smaller). No ghost listings, no outdated info.

Creating a “Comp Set” (Rob’s Secret Weapon)

With your filters applied, it’s time to group the good stuff.

Let’s build a Comp Set—a custom collection of similar, high-quality properties.

Here’s how to do it:

• Match the basics: same bed/bath count, same property type (house, cabin, etc.).
• Focus on entire place listings only.
• Sort by revenue to see what the top performers are earning.
• Save your top 8–12 best comps in a new AirDNA comp set so you can look at them again later.

This comp set shows you what’s actually working in that market and who your competitors are. Comps will tell you what it takes to win, where you land, and how much you should invest in a market.

💡 Love a sweet discount? Don't forget to use our link to get 5% OFF AirDNA.

Step 5: The "Back-of-the-Napkin" Airbnb Profitability Test

You don’t need a degree in finance to analyze deals—you can do it in minutes with Rob’s quick formula.

ADR × Occupancy × 30 = Estimated Monthly Revenue

Example:

$200 ADR × 0.75 occupancy × 30 nights = $4,500/month gross.‍

You've got your income, but what will it cost to run this Airbnb?

Let's subtract your major costs:

• Mortgage
• Utilities
• Cleaning & Maintenance
• Platform Fees (~15%)

What's left? If you’re still clearing 20–25% profit, you’re in the green.

If not, either buy cheaper or create more value through design, amenities or a resort-level backyard experience.

💡You make your money when you buy a property. So make sure you’re getting a healthy profit margin. 

Use our free Airbnb Profitability Worksheet if you want to record all expenses in detail and get an in-depth, accurate estimate for your property. 

Step 6: Calculate Your Target Return

This is the part where you might start getting excited.  That’s a good thing, but to keep emotions out of the deal, create a “Target Return on Cost” (ROC) rule for yourself. 

Here’s an example: “If I spend $400K all-in, I want at least 15% annual return on my investment.  That’s $60K a year or $5K a month gross.”

Calculate the gross for the property. If the numbers don’t hit your target, walk away.

Step 7: Find Your Edge & Know Your Guest

Airbnbs are super competitive. Once the math checks out, it’s time to find your advantage, your edge.

Use your AirDNA comp set and Airbnb searches to see what dominates the market—then plan to one-up them in some way.

That starts with understanding your target guest.

• Who are they? (Families, couples, solo adventurers?)
• Why are they visiting?
• What does their ultimate dream Airbnb stay look like?
• Read competitor reviews for clues on what guests want but aren't getting.

Find the gaps no one else is serving. Family-forward market where everyone already has a pool? Get a pool, but add an awesome outdoor play area for the kids, too.

Step 8: Avoid These Red Flags

Before you buy, watch for these real estate and STR red flags:

❌ Oversaturation: Too many listings chasing the same few guests leads to price wars.‍

❌ Weak neighboring towns: Shared tourism flow is key. A strong town surrounded by dead ones is not a good sign. 

❌ Flat growth: Look at the AirDNA rental growth chart. If it shows  <4% YoY growth, be careful. 9-10% is healthy.

❌ Poor access and roads: Guests won’t book what they can’t reach. (Or they will, and they’ll leave a horrible review.)

❌ "No Regulation" zones: Sounds great until a sudden ban hits. Choose markets with clear, established rules.

❌ Overhyped markets: If everyone’s already talking about it, you might be too late.

❌ Buying outside clusters: Use AirDNA's map. Buy near dense listing clusters where people actually want to stay.

Step 9: Go See It & Trust Your Gut

The math part is over (finally!) Now turn to your instincts.

Visit the area. Does the town have that “it” factor?

Good roads, new breweries, maybe a climbing gym or trendy coffee shop? Are people developing and investing here? Are contractors and cleaners easy to find?

How are the vibes?

This gut check, combined with your data, gives you the confidence to take the leap.

Step 10: Turn Data into Action

Yep, we left the hardest step for last.

Data analysis is important. But the magic isn’t in the data—it’s in what you do with it.

Once you’ve verified your triangle, checked the numbers, and ruled out the red flags, there’s only one thing left: Take the shot. 

Ready to Go Deeper?

This guide only scratches the surface of what Rob and Kai teach inside Host Camp. When you join, you’ll get:

🎯 How to Analyze with AirDNA (Mini Course): A beginner-friendly AirDNA crash course.

📍 Kai’s Land Hacker Program: Master the Golden Triangle and advanced market analysis.

🧠 Host Camp Masterclass: Learn to distinguish good data from bad and predict revenue accurately.

📈 Monthly Market Reports: Our team’s detailed breakdowns of untapped STR markets  (with actual high-potential properties you can invest in).

Monthly 1-on-1 Calls with Coaches: Get personalized guidance on your deals.

👉 Join Host Camp for $1 and get everything you need to stand out and dominate the competition.

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