Finding reliable Airbnb rental data is one of the essential steps to launching a vacation rental business if you want to succeed in this space.
But how does one find the real estate data? Where should investors like you go for vacation rental dataset and analytics? In this blog, we will discuss the most efficient way to find Airbnb rental data along with other real estate investment tools that will increase your confidence in your real estate investing game.
Table of Contents
- Why Invest in Airbnb Rental Properties?
- Why Airbnb Rental Analysis Is Important
- Important Airbnb Data and Other Metrics to Keep an Eye on
- How to Find Airbnb Rental Data: The “Old School” Way
- The Efficient Way to Find Accurate and Updated Airbnb Rental Data
- How to Interpret Airbnb Rental Data
Successful vacation rental investors share one thing in common; they use historical and actual market information and relevant datasets to make the best possible investment decisions.
As a real estate investor interested in starting a rental property business, you must figure out where to outsource a reliable short-term rental dataset. You also need to learn how to read and interpret Airbnb analytics and use an application programming interface (API) to your advantage.
More than just getting more listings and bookings, the success of your Airbnb business will largely depend on how you use historical data and Airbnb analytics. Even if there’s a significant demand for vacation rentals in your chosen location, you won’t get your desired bookings and revenue if you don’t use Airbnb rental data.
Related: How to Use Airbnb Predictive Analytics to Earn a High ROI
Why Invest in Airbnb Rental Properties?
Airbnb is considered one of the most successful and in-demand innovations in the hospitality industry, which led to its status as a global phenomenon. For those unfamiliar with Airbnb, it’s a platform that lets people rent out spare rooms or properties as short term rentals for tourists and visitors.
While still a relatively young short-term rental company, Airbnb already counts over 150 million active users worldwide and more than half a billion guests in Airbnb homes annually. Here are some noteworthy numbers concerning the vacation rental home-sharing platform:
- There are over four million hosts and seven million Airbnb listings globally.
- At least 100,000 cities have active Airbnb listings.
- Over 150 million individuals use the platform for booking accommodations and experiences.
- Six (6) guests check into an Airbnb rental listing every second.
- The short term rental company has listings in over 200 countries.
- The average nightly rate for an Airbnb stay in North America is $163.
- Guests stay for an average of 4.3 nights for each booking.
- The average Airbnb host earns around $13,800 yearly.
- At least 60% of platform users are millennials.
- As a vacation rental platform, it is presently worth $113 billion.
- Airbnb currently has an estimated market share of a little over 25% of the vacation rental industry.
The above statistics make investing in a rental property and listing it on Airbnb an ideal business venture among many real estate investors. However, like any other business, exhaustive research and analysis need to be done to see if it truly is worth investing in. For this reason, gathering the most relevant data is crucial.
Related: How to Buy an Airbnb Investment Property
Why Airbnb Rental Analysis Is Important
There are several reasons why you should never ever skip the entire data-gathering process. But the main reason real estate market analysis is crucial is it allows people to invest and buy safely and confidently.
The other reasons are:
- Identifying which city to invest in
- Finding out the different challenges that can potentially hinder your success and harm an investment
- Knowing the demographic aspects of the market to help determine the area’s evolution
- Determining a property’s appreciation rate and profitability
There are also a few types of data analysis for investment properties. The first one is the state-level analysis, which shows how a specific state performs overall in the rental property market. The second is the city-level analysis, which many investors use to determine which specific town or city is worth investing in.
Once an investor already has a specific city in mind, the third type of analysis takes place, which is neighborhood analysis. It helps them determine which parts of the city will help them achieve their investment goals. In this case, it will help you identify which neighborhoods are ideal for Airbnb rental properties.
Lastly, there’s the investment property analysis, which focuses on a specific property and its characteristics. Once you are satisfied with all the details of the subject property, all parties involved can now proceed with the inspections, the offer, and the closing.
To put it simply, real estate analysis allows you to obtain a bird’s eye view of the market, as well as a better understanding of its present conditions and future potential.
Related: How to Research an Airbnb Market and Quickly Find a Good Place to Buy Rental Property
Important Airbnb Data and Other Metrics to Keep an Eye on
Savvy and experienced investors know which markets to invest in because they keep themselves updated with relevant market information, trends, and behavior.
As an investor, you must know how to evaluate a particular market to see whether it is valuable as an Airbnb investment location or not. This is where Airbnb rental data comes into play.
Defining Airbnb Rental Data
By definition, Airbnb data simply pertains to all the relevant data and historical information about Airbnb properties and markets. Such type of information on hand is quite helpful for conducting short term rental property analysis. The data includes, but is not limited to, the following key performance drivers:
- Median property price
- Monthly rental income
- Cash on cash return
- Cap rate
- Daily rate
- Occupancy rate
Additionally, you also need to find out the local regulations and legislation on short term rental properties, as well as Airbnb rental comps. Not all areas are friendly to vacation rentals, so you need to check the local short term rental regulations first before you make any moves.
Data gathering and Airbnb data analytics are crucial parts of the process of launching an Airbnb business. It means that performing due diligence will be quite an overwhelming—and usually exhausting—task that you need to do.
Important Metrics Investors Should Keep an Eye on
Folks considering investing in Airbnb properties should keep an eye out for the following metrics:
Median Property Price
A median property price or value typically gives investors an idea of how affordable properties are in a certain location.
According to Mashvisor’s February 2023 data, the median price for properties by state is $464,781 (North Carolina). Hawaii, which comes as no surprise, reports the highest median price at $1,111,461, while North Dakota shows the lowest median price at $275,194.
The above information is important because it is a more accurate representation of a market’s housing affordability compared to an average property price. It helps alert buyers to overpriced properties in a market and points them to inexpensive properties with excellent income-generating potential.
Airbnb Monthly Rental Income
An Airbnb business feasibility study would not be complete without knowing how much potential income a property can generate. An Airbnb monthly rental income based on Airbnb comps gives investors a general idea of how much they can make in a month if they choose to list on Airbnb.
Airbnb Cash on Cash Return
There are two ways to determine the return on investment of a property. The first—and most ideal—one is the cash on cash return rate. The cash on cash return metric basically tells you how much money you can potentially earn on a property for every dollar you’ve invested in it.
It simply means your revenue is based on how much money you can make in a year against the total amount of cash you put into the property.
Cash on cash return is a very important metric to watch out for because, on top of the cash investment, it also takes into account debt services and the financing option used to purchase the property.
Airbnb Cap Rate
The other metric investors use to determine property profitability is the cap rate. Generally, the cap rate is somewhat similar to cash on cash return. The only difference is that instead of the total cash invested in the property, the net operating income is divided by the property’s current market value.
One thing investors should know about cap rates is the higher the cap rate, the higher the risk. The logic here is that higher cap rates indicate higher returns, which also indicate greater risks.
It is why higher cap rates are most likely found in riskier markets and why larger and more stable markets like Arizona and DC show lower Airbnb cap rates of 2.10% and 2.06%, respectively. In contrast, states like North Dakota and Alaska report higher Airbnb cap rates of 5.18% and 4.57%, respectively.
Airbnb Daily Rate
Investors can easily determine the going Airbnb daily rates in a certain neighborhood with the use of rental comps. Knowing how much similar vacation rental properties in your area are going for gives you an idea of how much you can charge for a nightly stay.
You can easily set competitive prices that will still give you a decent income to help cover your overhead costs and make a profit. Staying within the market’s price range will most likely bring up your bookings, which leads to a higher occupancy rate for you. The higher the occupancy rate, the better the revenue.
So, make sure to set reasonable nightly rates to make your property in demand in your market. You don’t want to set it too low or you might as well just give it for free. Nor do you want to set too high a price that’s way out of reach of potential guests. Stay within the market’s range and you’ll be alright.
Airbnb Occupancy Rate
One of the downsides of owning an Airbnb or traditional rental property is that its operating and maintenance costs are generally the same whether they’re occupied or not.
For short term rentals like those on Airbnb listings, the higher the occupancy rate, the bigger their income is. Markets with very low Airbnb occupancy rates are not conducive to this type of real estate investment strategy. It means you should look at a different location if you expect to earn substantially on your investment.
The abovementioned metrics are used by thousands of investors for their investment property analysis to determine a vacation rental property’s profitability in a specific market.
How to Find Airbnb Rental Data: The “Old School” Way
Back when technology wasn’t as easily accessible, real estate investors needed to do things the hard way to gather important information and data about particular markets they were considering.
The old-school and conventional process involves plenty of going to places to get the proper documents and talking to the right people.
From going to local civil registry offices to setting appointments with real estate agents, the entire process of data gathering and doing data analytics the traditional way is exhausting. It can also be very time-consuming and costly, especially when you’re from out of town.
It is especially harder for individuals who want to look for investment properties beyond their backyards. Out-of-state investments back then only typically involved the most financially affluent investors who could easily afford to make several out-of-town trips to check out a prospective investment property.
Those who aren’t as financially well-off were forced to settle for whatever options left in their area.
Since Airbnb’s launch in 2008, technology has become a handy tool for investors to gather essential information on different markets and connect with real estate professionals online.
It made out-of-town investing a lot easier and more accessible to regular people who have been wondering how to invest in real estate, specifically Airbnb properties.
However, back then, Airbnb rental data still proved to be a challenge despite the available 21st-century technology. Airbnb was—and still is—a relatively new company; market information wasn’t as accurate and accessible before as it is today.
It meant that, though the research process can already be done online, there’s not enough information to go by. Investors still found it hard to conduct an Airbnb analysis due to a lack of available data.
The Efficient Way to Find Accurate and Updated Airbnb Rental Data
It is very important to any investor that you obtain as much information as you can before purchasing a rental house, or any real estate investment property, for that matter. It would be totally irresponsible to make a huge purchase without gathering sizable market information for proper data analytics.
Market research is one of the first things investors like you should do before making the jump. It helps you get a better understanding of how viable a project is and if the location is right for them.
Real estate market research helps you understand the market, know how much properties are worth in the area, what rates you can charge on the property, and other vital information. Everything you gather will help you find the right investment property that will meet all of your goals, preferences, and budget.
That being said, real estate websites and platforms make data analytics a lot easier for investors like you. Online and downloadable apps help many investors perform investment property analysis through data analytics and APIs. All you need to do is go online or download an app of your choice to access a wealth of real estate information.
However, you should also know that not all online platforms and downloadable apps provide the same data quality. While all of them utilize APIs for data gathering, the quality of market data you get from each of them is different. At this point, if you want to increase your chances of investment success, you need to go with the best site or platform.
Why Mashvisor Is the Most Efficient Way to Find Airbnb Rental Data
Given that there’s a lot of research and analysis involved in real estate investing, where should you turn to for the most accurate data and most efficient data analysis tools?
Mashvisor is an online real estate marketplace designed to make real estate investing easier by providing investors with the most up-to-date data on numerous markets all over the US. It also comes with several practical real estate investing tools that help investors find investment properties and perform Airbnb investment analysis. Some of its most noteworthy tools are:
The Property Search tool makes finding investment property a breeze, no matter where you are in the country.
All you need to do is type in the location you’re considering in the search bar (city, neighborhood, or zip code), and you will be given a list of available properties that are listed on the MLS. You can even streamline your search according to your needs using the different filters available on the platform.
Real Estate Heatmap
The heatmap tool, on the other hand, gives investors a better idea of the market condition on a neighborhood level. It is color-coded to indicate which neighborhoods are white-hot, ice-cold, and everything in between.
The heatmap can be used to see how a particular neighborhood performs under the following filters:
- Traditional Cash on Cash Return. This filter will let you see which neighborhoods have the highest (green) to the lowest (red) cash on cash returns for long term rental properties.
- Airbnb Cash on Cash Return. This filter, on the other hand, lets you see which neighborhoods have the highest (green) to the lowest (red) cash on cash returns for short term rental properties.
- Airbnb Rental Income. This particular filter shows you areas that have the highest (green) rental income for short term rentals to the ones that have the lowest revenue (red).
- Traditional Rental Income. This filter highlights the best neighborhoods (green) for long term rentals as far as rental income goes, as well as those that have the lowest income (red).
- Listing Price. This filter identifies areas that have the most expensive properties (green) down to the most affordable properties (red).
- Airbnb Occupancy Rate. Lastly, this filter lets you spot neighborhoods with the highest (green) occupancy rates for vacation rentals and those that have the lowest rates (red).
Investment Property Calculator
One of the advantages of Mashvisor is that its investment property calculator does not just function as a simple calculator. It also allows users to locate the most ideal properties, analyze the data, and determine the right investment strategy.
Related: How Much Can I Make on Airbnb Calculator? The Complete Guide
Is Mashvisor Worth It?
Although we only highlighted a few of Mashvisor’s popular features, it offers several other things that will catch your attention.
For one, its regularly updated database gives investors the confidence that they will get the most accurate and realistic ROI projections. Performing a real estate market analysis or a more in-depth investment property analysis will give you market-accurate projections.
Two, Mashvisor shows investors how a traditional rental strategy stacks up against a vacation rental strategy with a side-by-side comparison.
Let’s say you have a property in mind and want to find out how much it can make as a traditional or Airbnb rental. The real estate website lets you see how it will perform in the market using data based on actual traditional and Airbnb rentals.
It makes Mashvisor a great tool for locating the right investment property that lines up with any investor’s goals.
Three, Mashvisor offers very affordable subscription plans compared to others with fewer features. Investors get more bang for their buck when they sign up for one of the real estate website’s three tiers.
Get started on your 7-day free trial with Mashvisor today to access reliable Airbnb rental data and get you on your way to a thriving real estate investing career.
How to Interpret Airbnb Rental Data
As an investor in real estate, you need to ensure that you have all the necessary information you need to make the wisest possible investment decision. It includes market-specific information, such as real estate comps.
But the thing is, data gathering—no matter how essential it is—is only one part of the equation. One important aspect of real estate investing is interpreting real estate data.
Comparing Two Markets and Reading Into Their Data
Let’s take a look at the Airbnb rental data from two markets and see how they stack against each other.
According to Mashvisor’s latest data, this is what the short-term rental market looked like in Tampa, FL, in February 2023:
- Median Property Price: $595,260
- Average Price per Square Foot: $420
- Days on Market: 100
- Number of Airbnb Listings: 3,181
- Monthly Airbnb Rental Income: $2,623
- Airbnb Cash on Cash Return: 2.32%
- Airbnb Cap Rate: 2.36%
- Airbnb Daily Rate: $163
- Airbnb Occupancy Rate: 46%
For our other example, let’s check out what the vacation rental data is like for the Airbnb market in State College, PA, from the same report:
- Median Property Price: $499,673
- Average Price per Square Foot: $410
- Days on Market: 203
- Number of Airbnb Listings: 357
- Monthly Airbnb Rental Income: $4,542
- Airbnb Cash on Cash Return: 5.73%
- Airbnb Cap Rate: 5.80%
- Airbnb Daily Rate: $563
- Airbnb Occupancy Rate: 35%
Based on the data for the two markets above, Airbnb investors will do better in State College than in Tampa.
Tampa’s performance in the short term rental market isn’t bad, with a healthy monthly income of $2,623 and cash on cash return rate of 2.36%. However, the median property price indicates that it will take a longer time for an investor to break even and start making a profit. This is already considering that property prices have slightly gone down in Tampa.
On the other hand, since the median property price in State College is lower, and thus more affordable, breaking even won’t take as long here. A very good cash on cash return rate of 5.73% and a higher rental income of $4,542 help speed up the investment payback.
Wrapping It Up
Investing in short term rental properties can be very lucrative for investors. However, just because vacation rental data shows how profitable Airbnb rentals are doesn’t mean it’s like that in all locations. Each location has different stats, depending on economic factors and real estate market conditions.
For this reason, acquiring accurate vacation rental data is very important. Having the right real estate market information and data on hand can help you avoid low-performing vacation rental markets. It can point you to markets where the return on investment on an Airbnb property is much more profitable.
Having access to reliable and accurate Airbnb rental data and information also makes performing due diligence a lot easier. It allows you to perform rental market data analysis faster and a lot more efficiently.
As an investor, it’s to your advantage that you have access to such types of information. Having the right tool alongside you will also increase your chances of investment success. This is where a real estate website like Mashvisor comes into play.
Mashvisor has helped thousands of real estate investors find the right investment properties with its relevant data and handy investment tools.
It collects data from highly reliable sources like Zillow, Realtor.com, the MLS, and Airbnb itself to give you relevant information all the time. The database is updated regularly so you only work with the most recent numbers for a more realistic ROI projection.
Don’t miss out on what thousands of investors already know. Give Mashvisor a go and get high-quality Airbnb rental data like other successful Airbnb owners.
Learn about how Mashvisor can give you access to accurate Airbnb rental data and locate the best deals in the most profitable markets by scheduling a demo now.