Nearly 40% of homeowners have or would consider renting out part of their primary home as a short-term rental, according to a new survey from realtor.com® and Censuswide, a research consulting firm. But the potential rental income matters when homeowners are deciding whether to take this step.
Realtor.com® announced last week a new estimating tool to help property owners to gauge their potential income if they decide to list their home as a short-term rental. The tool is available in the “My Home” dashboard on realtor.com® and is based on a seven-day rental estimate that uses Airbnb data from similar listings in the ZIP code. Actual earnings would depend on local laws, availability, rental price and demand in the area. Homeowners can gather earnings estimates for hosting using one room or their entire house.
“Short-term rentals are a great way to help with some of the costs of homeownership,” says Mausam Bhatt, chief product officer at realtor.com®. “Renting out their house for a couple days or weeks out of the year when it's not in use could generate extra income that can be put toward the mortgage, maintenance or even help cover the cost of a vacation.”
Thirty-four percent of homeowners surveyed by realtor.com® and Censuswide say they’d consider renting out their property to save money for a future home purchase, while 21% say they’d use the extra income to pay their current mortgage.
Best Places to Host a Short-Term Rental
Earlier this year, AirDNA, a rental data analytics firm, released its list of the top places to invest in a short-term rental. The site analyzed property-level performance data of Airbnb and VRBO properties, which factors in rental demand, revenue growth, an area’s short-term rental regulations and “investability,” which it defines as the expected income of a property relative to the cost of buying it. The following locations are the short-term rental markets that topped AirDNA’s list for 2023:
- Fairbanks, Alaska
Average daily rate: $198
Average annual revenue: $49,000
- Evansville, Ind.
Average daily rate: $129
Average annual revenue: $27,000
- Rockford, Ill.
Average daily rate: $175
Average annual revenue: $39,000
- Springfield, Ill.
Average daily rate: $133
Average annual revenue: $29,000
- Burdett, N.Y.
Average daily rate: $345
Average annual revenue: $77,000
- Williamstown, Ky.
Average daily rate: $238
Average annual revenue: $56,000
- New Haven, Conn.
Average daily rate: $207
Average annual revenue: $48,000
- Ellsworth, Maine
Average daily rate: $290
Average annual revenue: $67,000
- Cheboygan, Mich.
Average daily rate: $304
Average annual revenue: $69,000
- North Woodstock, N.H.
Average daily rate: $293
Average annual revenue: $63,000