Introduction
Cincinnati, Ohio, is a city with a rich history, diverse culture, and a burgeoning short-term rental market. If you’re considering investing in an Airbnb property in this vibrant city, you’ve come to the right place. In this blog post, we will delve into the dynamics of the short-term rental market in Cincinnati, highlighting key data points and essential information for potential hosts. Whether you’re interested in Airbnb, vacation rentals, or short-term rentals, this guide has got you covered.
Market Overview
Before we get into the nitty-gritty details, let’s take a broad view of the Cincinnati short-term rental market:
- Homes Depreciation: According to Zillow, homes in Cincinnati have depreciated by 6.00% recently, which might be an attractive factor for potential investors.
- Median Home Value: Zillow reports that the median home value in Cincinnati stands at $225,274, offering investors an affordable entry point into the market.
- Active Short-Term Rentals: Chalet data shows there are currently 2,100 active short-term rentals in Cincinnati, indicating a thriving market with ample opportunities.
- Average Daily Rate: The average daily rate for short-term rentals in Cincinnati is $195, making it a competitive market with room for profit.
- Occupancy Rate: Chalet also reveals that the occupancy rate in Cincinnati is at 50%, which suggests that demand for short-term rentals remains steady.
- Annual Revenue: The annual revenue for short-term rentals in Cincinnati averages $35,600, a promising figure for potential hosts.
- Supply Growth: Notably, there has been a significant increase of 16.70% in the supply of short-term rentals in Cincinnati when compared to Q4 of 2022, demonstrating the market’s growth potential.
- Gross Yield: The average gross yield in Cincinnati is 15.80%, making it an attractive prospect for investors seeking a good return on investment.
- Property Tax: According to SmartAsset, the average property tax in Cincinnati is 1.49%, which is essential to factor into your financial planning as a host.
Top 100 Airbnb Rental Markets
Instantly compare top 100 short-term (Airbnb) rental markets in the US
Understanding the Local Context
To make an informed decision about entering the Cincinnati short-term rental market, it’s crucial to consider the local context. Let’s answer some important questions about Cincinnati:
- Median Household Income: The median household income in Cincinnati, as of my last knowledge update in 2022, was approximately $35,000. However, it’s essential to verify this figure with the most recent data.
- Climate: Cincinnati experiences a temperate climate with four distinct seasons, including hot summers and cold winters. This climate diversity can impact the demand for short-term rentals throughout the year.
- Population Size: As of my last update in 2022, Cincinnati had a population of around 300,000 people, but this number may have changed. It’s recommended to check the latest census data for the most accurate population figure.
- Sports Teams: Cincinnati is home to professional sports teams, including the Cincinnati Bengals (NFL) and the Cincinnati Reds (MLB), which can attract sports enthusiasts and boost rental demand during game seasons.
- Colleges: Cincinnati boasts several colleges and universities, including the University of Cincinnati and Xavier University, making it a potential market for parents visiting their college-bound children.
- Crime Rate: Cincinnati’s crime rate varies by neighborhood, so it’s advisable to research the specific area you’re interested in for your short-term rental. Data can change, so consult the latest statistics for accurate information.
Attracting Visitors
Understanding the sources of visitors and the total number of visitors is vital for short-term rental success. Cincinnati draws visitors from nearby states and regions, making it an attractive destination for various reasons:
- Visitor Origins: Cincinnati attracts visitors from neighboring states like Indiana, Kentucky, and West Virginia, as well as travelers from further afield who come to explore the city’s unique offerings.
- Total Visitors: While specific numbers fluctuate, Cincinnati typically welcomes millions of visitors each year, with the Cincinnati Zoo, Great American Ball Park, and the Cincinnati Museum Center being popular attractions.
Peak Season and Tourist Attractions
Knowing when the peak season hits and the city’s main tourist attractions can help you optimize your rental property’s occupancy and pricing:
- Peak Season: Cincinnati’s peak tourist season is during the summer, from May to August, thanks to the pleasant weather and various festivals and events.
- Tourist Attractions: Cincinnati offers a range of attractions, including the Cincinnati Zoo, the Cincinnati Art Museum, the Cincinnati Reds Hall of Fame, and the beautiful Cincinnati Botanical Garden.
Conclusion
Cincinnati’s short-term rental market is on the rise, offering investors a potentially lucrative opportunity. With a healthy supply of active rentals, attractive rental rates, and a diverse visitor base, Cincinnati’s appeal as a destination city cannot be overlooked. However, it’s essential to conduct thorough research, stay updated on market trends, and consider the local context before diving into this market. By leveraging the insights provided in this blog post, you can make informed decisions that will help you succeed as an Airbnb host or short-term rental property investor in Cincinnati, Ohio.
