Best Property Types for Airbnb Profits

by Lyndsey Johnson, MiCP

Investing in short-term rentals through platforms like Airbnb can be highly profitable if you choose the right type of property. The right property not only generates high returns but also attracts consistent bookings, minimizes vacancies, and offers a competitive edge in your target market. This blog will walk you through the best types of properties for Airbnb investments and what to consider when selecting the ideal space for short-term guests.

1. Vacation Homes in Tourist Hotspots

Ideal for: Travelers looking for seasonal getaways

Properties in popular vacation destinations—like beach towns, mountain resorts, or lakefront properties—perform exceptionally well. Tourists often prefer the comfort of a home rather than a hotel, especially for extended stays. The key here is seasonal demand, so it’s essential to analyze peak periods and local tourism trends to maximize occupancy.

Example locations:

  • Beachfront condos in Florida or California
  • Ski chalets in Colorado
  • Lake cabins in the Midwest

Why they work:
Tourists are willing to pay premium prices for proximity to attractions, views, and local activities. Well-designed spaces with a cozy or luxurious feel (like a fireplace or hot tub) enhance the appeal.

2. Urban Apartments in Major Cities

Ideal for: Business travelers, couples, and weekend visitors

Airbnb apartments in bustling cities like New York, Chicago, and Los Angeles attract a steady flow of bookings throughout the year. Many travelers prefer the privacy and convenience of apartments, especially those offering proximity to public transport, shopping, and dining.

What to look for:

  • Studio or one-bedroom apartments perform well for solo travelers and couples.
  • In-unit amenities like Wi-Fi, a washer/dryer, and a kitchen can set your listing apart from others.

Pro tip: Consider adding self-check-in features, such as a smart lock, to attract business travelers who prioritize convenience.

3. Suburban Homes Near Attractions or Airports

Ideal for: Families, group travelers, and long-term stays

Larger suburban homes offer more space, making them ideal for families or groups traveling together. These properties are especially attractive if located near airports, convention centers, or theme parks, such as those near Orlando or Anaheim.

Key features to offer:

  • Multiple bedrooms and bathrooms
  • Family-friendly amenities (cribs, high chairs, etc.)
  • Pet-friendly options to attract a broader range of guests

This type of property can also appeal to travelers staying for longer durations, such as visiting professionals or families relocating to the area temporarily.

4. Unique or Themed Properties

Ideal for: Guests seeking one-of-a-kind experiences

Airbnb travelers often look for unique properties that offer more than just a place to sleep. Unusual homes—such as treehouses, yurts, tiny homes, or converted barns—stand out in the crowded Airbnb market. Themed properties are also trending, such as homes decorated with quirky interiors or based on popular TV shows.

Why they succeed:
These listings attract attention on the Airbnb platform, are shared more frequently on social media, and generate higher daily rates due to their uniqueness. Travelers are often willing to pay extra for an unforgettable experience.

5. Multi-Unit Properties (Duplexes and Triplexes)

Ideal for: Investors looking to scale their Airbnb business

Owning a duplex or triplex allows you to rent multiple units simultaneously, increasing your overall revenue potential. You can also live in one unit while renting the others, giving you a chance to reduce personal housing costs while running your Airbnb business.

Advantages:

  • Easier property management since everything is centralized in one location.
  • Flexibility to offer different unit sizes to attract a variety of guests.

Multi-unit properties provide a stable income stream since you can rotate bookings across units and minimize vacancy.

6. Condos in Tourist-Friendly Communities

Ideal for: Low-maintenance investments in prime areas

Condos within communities that offer shared amenities—like pools, gyms, and tennis courts—are popular with vacationers. These properties require less maintenance since many services (like landscaping) are handled by the homeowner’s association (HOA).

Things to consider:

  • Check HOA rules, as some may limit or ban short-term rentals.
  • Choose condos in areas with a strong tourism economy to ensure a steady flow of guests.

7. Rural Retreats and Farmhouses

Ideal for: Travelers looking for peace, nature, or remote work escapes

Rural properties are increasingly in demand as more people seek relaxation away from cities. Farmhouses, cottages, or log cabins with scenic views attract both vacationers and remote workers looking for temporary change. Providing Wi-Fi, workspaces, and outdoor activities like hiking trails can boost bookings for this type of property.

Best areas for rural rentals:

  • Countryside retreats in the Appalachian region
  • Farmhouses near wine regions
  • Log cabins in national park areas

How to Choose the Right Property

The success of your Airbnb investment depends heavily on location, amenities, and market demand. Here are a few tips to ensure your investment works for you:

  1. Research occupancy rates and local regulations: Some cities or areas may have restrictions on short-term rentals.
  2. Understand your target audience: Knowing whether you’re targeting vacationers, business travelers, or families will help you pick the right property type and location.
  3. Focus on guest experience: Modern decor, thoughtful amenities, and excellent communication will result in good reviews and higher bookings.

By selecting the right type of property and strategically managing your listing, your Airbnb investment can become a profitable and rewarding venture. Whether you choose a city apartment, vacation home, or unique getaway, the key is aligning your offering with guest expectations and market trends.

Happy investing!