Key Takeaways:
- Airbnb investment can beat traditional rentals when done strategically.
- Occupancy rates, location, and property type are the big revenue drivers.
- Regulations and market saturation are the biggest risks.
- Property managers often make the difference between success and burnout.
- mogul offers a way to invest in vacation rental properties without unclogging guest sinks.
Is Airbnb a Good Investment in 2025?
Last updated: September 2025
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Is Airbnb a good investment in 2025? That depends on how you like your real estate served. If you want predictable checks and zero drama, stick with traditional rentals. If you like higher upside, the thrill of seasonality, and the chance to play host to the world’s travelers, Airbnb investing can be a smart play. But make no mistake, this isn’t “set it and forget it.” Running an Airbnb rental property is closer to running a boutique hotel than being a landlord.
Calculate now: Airbnb Rental Estimate Calculator
In recent years, the short-term rental market has soared, with Airbnb leading the charge in transforming how we think about accommodations. This surge presents a golden opportunity for investors looking to capitalize on a lucrative sector. But owning and managing an Airbnb property isn't the only way to enter this market. Fractional investment through platforms like mogul might just be the smarter, more accessible route to maximizing your returns.
What Makes Airbnb Investing Different
Airbnb investing breaks the mold of conventional rental property. Traditional tenants sign a lease, pay monthly, and (hopefully) don’t call you at 2 a.m. Short-term rentals flip that script. You’re charging by the night, adjusting rates in real time, and competing with thousands of other Airbnb listings.
Why do real estate investors care? Because in high-demand areas, Airbnb income can smoke traditional rental properties. Hosts in strong markets report earning 20–50% more than they would with a tenant on a 12-month lease. Plus, you’re not stuck charging the same rent all year. When a music festival comes to town, you can cash in.
That’s also why mogul is shaking things up. Instead of playing landlord and entertainer, you can invest fractionally in vacation rental properties and let the experts handle the guest drama. Think of it as Airbnb returns without the late-night key handoffs.
How Airbnb Rental Property Works
An Airbnb property doesn’t sell itself. To compete in the short-term rental industry, you need more than four walls and Wi-Fi. Think furnished spaces, pro-level photos, and an Airbnb listing that makes guests stop scrolling.
Your income depends on the occupancy rate and pricing strategy. Good Airbnb hosts track seasonality and adjust nightly rates accordingly. In thriving markets, 70–80% occupancy isn’t unusual. But don’t forget, the expenses keep rolling even when your calendar doesn’t. Here’s what you’re juggling:
- Airbnb fees that take a cut of every booking
- Ongoing costs like cleaning, utilities, and restocking essentials
- Property maintenance and repairs
- Property taxes and insurance that don’t take vacations
Short-Term Rentals Versus Traditional Rentals
Short-term rentals deliver higher nightly rates but require hustle. Let’s put numbers on it. A property that rents long-term for $2,000 a month might make $24,000 annually. On Airbnb, that same property at $150 a night with 65% occupancy pulls in about $35,000.
Sounds good, right? But here’s the other side:
- Frequent guest turnover means more cleaning and wear and tear
- Constant guest communication eats time (and patience)
- Income swings with seasonal demand
It’s a trade-off. Traditional rentals are the steady paycheck. Airbnb rentals are the bonus-heavy commission job.
Airbnb Income Potential and Occupancy Rate
How much can you actually make? The numbers depend on location and property type. In 2024, casual hosts renting out spare rooms averaged around $14,000 a year. Investors running entire vacation rental properties in hot markets hit $40,000 to $80,000 annually, with some topping six figures.
Your occupancy rate is the driver. Here’s how it plays out:
- Beach condos might hit 90% occupancy in summer, then dip below 40% in off-season
- Urban listings average steadier 70–80% occupancy thanks to business travel and year-round demand
- Unique stays like cabins, lofts, or tiny homes often earn premium rates despite lower occupancy
Is Buying an Airbnb a Good Investment
Buying an Airbnb in 2025 is a mix of opportunity and risk. Travel is strong, remote workers are booking long stays, and secondary markets are heating up. But competition is fierce, and local laws are tightening.
For real estate investors, the formula looks like this:
- Do market research on occupancy rates, comparable listings, and nightly pricing
- Factor in ongoing costs and Airbnb fees before calling it profitable
- Check local regulations and zoning laws, because one city council meeting can change the math overnight
If owning property feels like too much, mogul fractional investing offers another route. You can invest in vacation rental properties and capture returns without taking on the grind of being an Airbnb property manager.
What Market Research Tells Us About the Airbnb Market
The short-term rental market is still expanding, with industry analysts predicting 10–12% growth through 2025. Drivers include business-leisure travelers, long stays from remote workers, and families looking for alternatives to hotels.
Recent trends show:
- Tourist towns that boomed during the pandemic are stabilizing
- Urban Airbnb markets are rebounding as international travel returns
- Secondary cities are seeing Airbnb listings increase as investors chase affordability and demand
Market trends look good, but Airbnb investors should be selective. Oversupplied markets with flat demand eat into Airbnb revenue fast.
How Location and Property Type Affect Returns
Location is everything in real estate, and it’s doubly true for short-term rentals. A property in a sleepy suburb won’t book, no matter how nice the kitchen. High-demand areas near tourist attractions, convention centers, or seasonal hotspots keep occupancy rates high.
Property type also drives Airbnb income:
- Family homes near theme parks pull in vacation rental traffic
- Compact apartments in downtown cores attract business travelers
- Unique entire properties (treehouses, tiny homes, cabins) command premium prices because they offer an experience, not just a bed
- Multi-unit buildings allow multiple Airbnb listings under one roof, creating efficiency in cleaning and management
- Creative spaces with Instagram appeal are now outperforming standard rental properties
mogul makes it possible to tap into these high-demand locations without needing to scout properties or manage them yourself. You get the exposure to prime Airbnb markets while someone else deals with cleaning fees and tenant signs.
Managing Risks in Airbnb Investment Property
Airbnb investing carries risks you can’t ignore. Local laws and Airbnb regulations can change quickly. New York’s 2023 crackdown on Airbnb rentals proved how fast the math can shift.
Other risks include:
- Market saturation in popular destinations
- Property damage or bad guests that cut into cash flow
- Seasonal demand swings that leave calendars empty
- Ongoing costs and fixed costs like mortgages that never pause
Hidden Costs Airbnb Investors Forget
It’s not just property taxes and mortgages that eat into Airbnb income. Many investors underestimate the hidden costs of running short-term rentals.
Think higher utility bills from guests blasting AC, Wi-Fi upgrades to keep remote workers happy, or replacing linens after every few stays. Seasonal demand also forces hosts to spend more on marketing to attract guests in slower months.
Even property management companies add another 20–30% cut. Ignoring these factors can turn profitable investments into cash flow headaches fast.
The Role of Property Management
Managing an Airbnb is a grind. Between guest communication, cleaning, and maintenance, it can take 10–20 hours a week per property. That’s why many investors hire a property management company.
A good Airbnb property manager handles:
- Guest communication and reviews
- Pricing optimization and market research
- Cleaning and property maintenance
- Managing guest turnover efficiently
Some property owners try to self-manage but quickly realize guest communication is a full-time job. A single missed message can drop ratings and sink occupancy rate.
Professional managers use advanced property management tools that automate pricing, guest messaging, and scheduling. The best even handles market research to keep nightly rates competitive. While it costs more, most Airbnb investors see better overall revenue with management than without.
Or skip the property manager altogether. With mogul, the property management is built in, giving you access to the short-term rental industry upside, minus the headaches.
The Future of Airbnb Investing
The Airbnb market in 2025 is competitive but growing. Airbnb listings are climbing in urban centers, while suburban and secondary markets are becoming investor favorites. Travelers want flexibility, and Airbnb hosts who adapt win.
Zoning laws and Airbnb regulations will keep shaping the market. Cities from Barcelona to New York are tightening restrictions, while smaller towns are welcoming hosts to boost tourism. Market trends show a divide: investor-friendly locations are thriving, while restrictive cities are pushing hosts out. Real estate investors who track these shifts and diversify across markets are the ones staying profitable long term.
For investors who want exposure without the hassle, mogul fractional investing is an option. You gain access to vacation rental properties backed by blockchain technology, complete with professional management and secure asset protection.
Making the Call on Airbnb Investment
So, is Airbnb a good investment in 2025? For some investors, yes. For others, not so much. Airbnb investing can outperform traditional rental properties, but it requires constant attention, sharp market research, and a willingness to play in a hospitality-style business.
If you’re energized by guest communication, adjusting prices, and watching occupancy rates rise, direct ownership might be your lane. If you’d rather capture the upside of the short-term rental market without the grind, mogul fractional investing delivers a smarter way in.
With mogul, those listings aren’t just something you scroll through; they’re opportunities you can actually own a piece of, without ever touching a set of spare keys.
Either way, the vacation rental industry isn’t slowing down. The only question is how you want to play it. Explore current listings on mogul and see what’s possible.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Frequently Asked Questions (FAQs)
What Is the 90-Day Rule for Airbnb?
The 90-day rule, common in cities like London, restricts entire Airbnb listings to 90 nights a year to keep properties from turning into unregulated hotels.
What Is the 80/20 Rule for Airbnb Properties?
The 80/20 rule suggests 20% of your hosting efforts, like optimizing your Airbnb listing and guest communication, drive 80% of your Airbnb income.
Can Owning an Airbnb Be Profitable?
Yes, especially in high-demand areas with strong occupancy rates. Profitability depends on factors like property management, Airbnb fees, local regulations, and market research.
What Is the Downside of Owning an Airbnb?
Downsides include high ongoing costs, seasonal demand swings, stricter Airbnb regulations, and time-consuming property management. Many investors outsource to a property management company or use a real estate investment platform like mogul to invest without the headaches.