The top Airbnb cities in the country performed well in 2021, but rural America also earned more than $3.5 billion in bookings last year.
Rural America Airbnb Hosts Earned Over $3.5 Billion in Bookings in 2021
Don’t let the word “rural” catch you off guard. Just because urban areas make for popular tourist destinations doesn’t mean rural territories don’t offer anything as vacation spots.
The proof is in the numbers. Airbnb locations outside urban centers made a total of more than $3.5 billion in revenue in 2021. Since the pandemic started, around 8,100 cities globally have received their first Airbnb bookings. More than 1,300 of these locations are in the US. And while the pandemic temporarily halted almost all Airbnb businesses in its first few months, these businesses have since adapted to the changing times and conditions.
2020 might have been a bad year for almost everyone, businesses included. But 2021 was the make-or-break year for most of us, especially Airbnb owners who were left hanging with all the strict travel regulations in place. Surprisingly enough, the pandemic changed the way people chose to travel. And we’re not just talking about safety measures. We’re talking about location choices of where to go for vacations and trips.
The pandemic somehow changed people’s behaviors and consequently, their choices. Last year saw a huge spike in non-urban and mostly rural bookings in the US alone. This travel revolution has benefited small rural towns, such as Walnut IA and Hurley NM. This change in travel choices and behavior was brought about by pandemic-induced lifestyle changes. People became untethered from office cubicles and gained the freedom to work remotely. It provided them with the flexibility to travel where they want to go and stay there for longer periods.
Rural destinations became their preferred travel destination because they allowed them to enjoy life away from the noise of the city and experience new surroundings. It also gave them the chance to be away from huge crowds and minimize the risk of contracting the dreaded COVID-19 virus. And lastly, many urban dwellers also took the opportunity to relocate from the city to the less populated areas where they can acquire larger properties that offer more space.
Related: The State of the US Real Estate Housing Market in 2022 (So Far)
Rural America Defined
Most of us have a preconceived notion of the term “rural.” Mostly, it involves pictures of sprawling farmland and rolling hills. What it gives us is pretty much just an abstract concept and not a concrete definition of the word.
According to the US Census Bureau, the term rural covers any population, territory, or housing outside urban areas. It doesn’t mean, however, that just because it’s outside urban areas that it’s automatically located in far-flung places. In fact, most rural populations are clustered around urban areas. This makes sense since most rural areas produce food and other similar goods for urban centers.
In recent years, improvements in our transportation system have created a more distributed rural residential population near urban centers. It has led to decentralization in urban centers and an outward spread into more rural territories. Still, it does not mean that these rural areas are all farmlands. They are merely non-urban locations. Some may be suburban, while others may be completely rural.
Related: Rural Homes: Good Real Estate Investment Opportunities?
Empowering Rural Hosts
What this new travel trend has brought is empowerment to Airbnb hosts from rural locations. Starting a rental property business, especially a vacation rental property, is mostly a hit-and-miss for rural property owners. They don’t have the means to go toe-to-toe with what most urban centers have to offer visitors and in-migrants. Before the pandemic, a bigger chunk of the local tourist count opted to visit other urban centers, with only a few choosing non-urban destinations.
Now, because of the pandemic-induced lifestyle changes, the number of people going to rural spots has continued to increase. In fact, Airbnb bookings have been made in 72,000 smaller cities and towns this summer, according to Airbnb. This shift in travel behavior has given investment property owners in rural locations a much-needed boost in their businesses.
As the trend gains momentum, real estate investors are becoming more and more confident in acquiring income properties for sale in rural areas.
Pandemic-induced lifestyle changes have brought more people to rural areas, helping boost Airbnb bookings in such locations.
10 of the Top Airbnb Cities in Rural America
This list of the top rural Airbnb locations in the US is ranked from the highest cash on cash return to the lowest. We use cash on cash return to determine a property’s profitability because it factors in the method of financing used to acquire the property.
That being said, here are the top Airbnb cities in rural America today:
1. Linton, IN
- Median Property Price: $232,500
- Average Price per Square Foot: $113
- Days on Market: 17
- Monthly Airbnb Rental Income: $2,515
- Airbnb Cash on Cash Return: 9.99%
- Airbnb Cap Rate: 10.46%
- Airbnb Daily Rate: $146
- Airbnb Occupancy Rate: 53%
- Walk Score: 69
2. Morehead, KY
- Median Property Price: $232,222
- Average Price per Square Foot: $118
- Days on Market: 74
- Monthly Airbnb Rental Income: $2,209
- Airbnb Cash on Cash Return: 9.97%
- Airbnb Cap Rate: 10.54%
- Airbnb Daily Rate: $139
- Airbnb Occupancy Rate: 46%
- Walk Score: 0
3. Coventry, CT
- Median Property Price: $419,519
- Average Price per Square Foot: $190
- Days on Market: 58
- Monthly Airbnb Rental Income: $3,914
- Airbnb Cash on Cash Return: 9.95%
- Airbnb Cap Rate: 10.27%
- Airbnb Daily Rate: $185
- Airbnb Occupancy Rate: 64%
- Walk Score: 17
4. Hampden, ME
- Median Property Price: $399,770
- Average Price per Square Foot: $136
- Days on Market: 34
- Monthly Airbnb Rental Income: $2,268
- Airbnb Cash on Cash Return: 9.92%
- Airbnb Cap Rate: 10.49%
- Airbnb Daily Rate: $115
- Airbnb Occupancy Rate: 69%
- Walk Score: 35
5. Pottstown, PA
- Median Property Price: $313,982
- Average Price per Square Foot: $163
- Days on Market: 46
- Monthly Airbnb Rental Income: $3,470
- Airbnb Cash on Cash Return: 9.91%
- Airbnb Cap Rate: 10.34%
- Airbnb Daily Rate: $133
- Airbnb Occupancy Rate: 66%
- Walk Score: 55
6. Eureka, IL
- Median Property Price: $202,240
- Average Price per Square Foot: $103
- Days on Market: 14
- Monthly Airbnb Rental Income: $2,287
- Airbnb Cash on Cash Return: 9.89%
- Airbnb Cap Rate: 10.51%
- Airbnb Daily Rate: $117
- Airbnb Occupancy Rate: 70%
- Walk Score: 57
7. Pascagoula, MS
- Median Property Price: $191,940
- Average Price per Square Foot: $101
- Days on Market: 80
- Monthly Airbnb Rental Income: $1,669
- Airbnb Cash on Cash Return: 9.85%
- Airbnb Cap Rate: 10.67%
- Airbnb Daily Rate: $92
- Airbnb Occupancy Rate: 49%
- Walk Score: 57
8. New Scotland, NY
- Median Property Price: $403,450
- Average Price per Square Foot: $183
- Days on Market: 203
- Monthly Airbnb Rental Income: $2,286
- Airbnb Cash on Cash Return: 9.85%
- Airbnb Cap Rate: 10.42%
- Airbnb Daily Rate: $172
- Airbnb Occupancy Rate: 60%
- Walk Score: 14
9. Durham, CT
- Median Property Price: $659,080
- Average Price per Square Foot: $202
- Days on Market: 181
- Monthly Airbnb Rental Income: $6,063
- Airbnb Cash on Cash Return: 9.73%
- Airbnb Cap Rate: 9.92%
- Airbnb Daily Rate: $252
- Airbnb Occupancy Rate: 62%
- Walk Score: 38
10. Colchester, CT
- Median Property Price: $399,787
- Average Price per Square Foot: $189
- Days on Market: 44
- Monthly Airbnb Rental Income: $3,468
- Airbnb Cash on Cash Return: 9.68%
- Airbnb Cap Rate: 10.09%
- Airbnb Daily Rate: $195
- Airbnb Occupancy Rate: 66%
- Walk Score: 54
Related: The Pros and Cons of Investing in a Rural Property
Wrapping It Up
Given this new trend, you can no longer limit the top Airbnb cities to urban centers only. The increasing popularity of rural destinations and their attractive profit potential make them worth considering for investments. As more people continue to discover and enjoy rural America, investors are also getting more confident in purchasing investment properties in non-urban areas.
If you’re a real estate investor seriously considering investing in rural properties, you need to have the right data and investment tools before making any final decisions. A website like Mashvisor can help you in both aspects.
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