Is Airbnb still profitable in 2026?
Yes, but selectively: a well-bought US short-term rental nets roughly 8–15% cash-on-cash in 2026, versus 3–6% for the same property as a long-term rental. Profitability now depends on buying right, professional operations, and surviving local regulation — not on listing anything anywhere.
Profit profile: STR vs long-term rental on the same $400K property
| Metric | Short-term rental | Long-term rental |
|---|---|---|
| Gross revenue/year | $44,000–52,000 | $30,000–33,000 |
| Operating costs | 45–55% of gross | 30–38% of gross |
| Net operating income | $22,000–28,000 | $19,000–23,000 |
| Cash-on-cash (20% down) | 8–15% | 3–6% |
| Main risk | Regulation + seasonality | Vacancy + tenant quality |
How to read this table
- Gross revenue/year sits at the top of the table ($44,000–52,000) — $30,000–33,000. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Cash-on-cash (20% down) anchors the bottom (8–15%) — 3–6%. Treat this as the conservative case you should still be profitable at.
- The gap between the top and bottom row is roughly 6500×. That spread is why a single blended average is close to useless here — pick the row that matches your setup instead of averaging the column.
- Most rows are ranges, not single figures. The low end usually reflects a weaker month, a softer audience geography, or an unoptimised setup; the high end reflects a well-run, well-targeted operation of the same size.
- With 5 reference points in the "profit profile: str vs long-term rental on the same $400k property" table, the fastest way to use this page is to find the closest row, take its short-term rental, then stress-test it ±30% before you build a plan on it.
Context
The easy-money era (2020–2022) ended when supply surged and cities from New York to Honolulu capped or banned non-owner-occupied STRs. What remains is a real business: the winners buy in supply-constrained leisure markets, price dynamically, and hold occupancy near 65% at premium ADR. The losers pay 2021 prices in saturated metros and discover the city council has opinions. Run the downside case — forced conversion to a 12-month lease — before every purchase; if the deal dies as a long-term rental, the deal is the risk.
What moves this number
Financing terms
Rate, down payment and amortisation drive cash-on-cash return more than purchase price does. The same building can cash-flow or bleed depending on the loan.
True operating expense ratio
Management, insurance, tax, maintenance, vacancy and capital reserve typically consume 35–50% of gross rent. Models that skip reserves overstate returns badly.
Vacancy and turnover
One 45-day vacancy plus a turn can erase a year of thin cash flow. Underwrite 5–8% vacancy even in tight markets.
Local regulation
Rent rules, short-term rental caps and licensing requirements change the achievable revenue of an identical property between neighbouring cities.
Methodology
Ranges combine RevenueLab calculator defaults, 2026 host-reported expense stacks (platform fees, turnovers, utilities, supplies, management at 0–25%), and public STR market data. They are educational estimates, not investment advice — verify with zip-code comps and local rules.
Assumptions and caveats
- Returns exclude appreciation and principal paydown unless a row states otherwise.
- Local tax, insurance and regulation can move these figures by several points in either direction.
- This page was last reviewed on 2026-08-29. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
Is Airbnb still profitable in 2026?
Yes, but selectively: a well-bought US short-term rental nets roughly 8–15% cash-on-cash in 2026, versus 3–6% for the same property as a long-term rental. Profitability now depends on buying right, professional operations, and surviving local regulation — not on listing anything anywhere.
Which option pays the most in the profit profile: str vs long-term rental on the same $400k property table?
Gross revenue/year, at $44,000–52,000 ($30,000–33,000). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
Cash-on-cash (20% down) at 8–15% (3–6%). Plan your costs so the low end still works, then treat anything above it as upside.
Why do the numbers vary so much?
The spread between the highest and lowest row is about 6500×. Financing terms and true operating expense ratio explain most of that gap — see the drivers section above for the full list.
Where do these numbers come from?
Ranges combine RevenueLab calculator defaults, 2026 host-reported expense stacks (platform fees, turnovers, utilities, supplies, management at 0–25%), and public STR market data. They are educational estimates, not investment advice — verify with zip-code comps and local rules.
How can I estimate my own number instead of using a benchmark?
Use the Airbnb Revenue Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
- Airbnb Revenue Calculator
- Airbnb Occupancy Rate Calculator
- RevPAR Calculator
- Rental Property Cashflow Calculator
Related reading
More answers in this category
- What is a good cap rate for rental property?
- How much profit should you make on a rental property?
- How much does an Airbnb make per month?
- How much money do you need to buy a rental property?
Looking for a calculator?
Search every free tool on RevenueLab — or describe your problem and Rex will pick one.
Last updated 2026-08-29.