One Market Made $29K. One Lost $20K.

_{Written By: Rob Abasolo}
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Airbnb is profitable in 10 of the 15 major markets AirROI just analyzed. The other 5 aren't, and the real number is probably worse than that.

The Mortgage Is the Variable

AirROI ran the math using a 30-year fixed rate of 6.75% with 20% down. They don't say what kind of loan that rate assumes, just "national average." That number matches what a primary residence gets right now, not an investment property.

Investment property rates are running higher: 7.3% to 7.8% on a conventional loan, 6.4% to 8% on a DSCR loan, as of this month. Plug either of those into the same 15 markets and some of those 10 "profitable" markets stop penciling.

Best Market, Worst Market

Here's what AirROI's own 15-market analysis actually found, still using their 6.75% rate assumption. Broken Bow, Oklahoma came out on top: Plus $29,446 a year after the mortgage. Pocono Township, Pennsylvania wasn't far behind at plus $29,138. Denver came in at negative $19,939. Austin and Miami also landed in the red. Best market to worst market, that's a $49,000 swing, using a rate that's likely lower than what an actual investor would pay.

What This Means

Running an STR costs 3 to 4 times what a long-term rental costs to operate. Cleaning, turnover, utilities, and platform fees usually eat 35% to 50% of an STR's own gross revenue, before the mortgage even enters the picture. That's why the loan assumption matters so much here: A rate that's off by half a point doesn't just shrink the margin, it can flip a market from profitable to underwater.

Before you buy in any of these markets, run your own numbers with the rate you'd actually qualify for, not the national average for someone buying a house to live in.

FIND OUT WHAT RATE YOU QUALIFY FOR →

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