Florida ranked best state in U.S. for short-term rental owners

Florida is the best state in the U.S. to invest in short-term rental properties, with the Sunshine State having four cities that were listed in the top 5 major markets according to a new ranking by Clever Real Estate analysis company.

Tampa, Orlando and Jacksonville are the top three short-term rental markets, respectively, in the Clever ranking of major U.S. cities. Boston came in fourth, followed by Miami in fifth. The rankings were determined by using data from Airbnb rental services.

To determine the best Airbnb cities of 2024, Clever Real Estate partnered with Rabbu.com — a Charlotte, North Carolina-based short-term rental investment platform — to formulate the list for the 50 biggest metro areas in the U.S. Other factors — such as median home sale prices, return on investment, occupancy rates, annual average revenue generated by the rentals, change in property values and other elements — were used to determine the ranking.

There was also a survey conducted that queried about 1,000 Americans on their short-term rental experiences.

For the three Florida cities that topped the list for best short-term rentals, the findings on the list concluded, “All three enjoy strong demand and an above-average number of properties suitable for Airbnbs.”

Tampa in particular had a higher percentage of properties that were suitable for Airbnbs. “Of the property listings evaluated in Tampa, 2.06% indicated they are suitable to be Airbnbs, 160% higher than the median city in our study (0.79%).”

Tampa short-term rental owners also enjoyed an average of $52,705 in annual revenue generated by renting the 16,020 Airbnbs listed in that city, which boasted a 44% occupancy rate.

Orlando owners of short-term rentals saw average annual revenue at $42,338. But the Central Florida tourist hub had fewer rentals than Tampa, at 11,025, with a 46% occupancy rate.

Jacksonville Airbnb owners pulled in an average of $46,878 in annual revenue. But the First Coast city had only 7,807 listings, with a 44% occupancy rate.

Miami had the most Airbnb listings in Florida, with 40,504. But the South Florida metropolis had a 41% occupancy rate, with Airbnb owners generating $62,957 in annual revenue on average.

There were no other Florida cities on the list.