Introduction
Lake Arrowhead, California, nestled in the picturesque San Bernardino Mountains, is not just a haven for outdoor enthusiasts but also a burgeoning hub for the short-term rental market. Whether you’re a homeowner looking to capitalize on the charm of this mountain paradise or a traveler seeking an unforgettable getaway, Lake Arrowhead’s Airbnb scene has plenty to offer. In this comprehensive guide, we’ll explore the ins and outs of the short-term rental market in Lake Arrowhead, from property statistics to local attractions and insights that will make your experience here all the more enjoyable.
Supply
AS of July 2025, the most popular homes are 2-bedroom homes, comprising 36% of inventory. This is followed by 1 and 3-bedroom homes at 25.29% and 19.44% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Lake Arrowhead experienced an depreciation of –4.05. This data indicates a significant decrease in property values.
Median Home Value
As of January of 2025, Homes in Lake Arrowhead have depreciated by -4.05%. The median home value in Lake Arrowhead is $567,200 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Lake Arrowhead boasts a significant Airbnb rental market, with approximately 1,250 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
AS of July 2025, the median ADR for the market is $340. The Average Daily Rate is the highest for 4 bedroom homes $430 followed by 3-bedrooms at $337.
Occupancy Rate
Chalet data reveals an occupancy rate of 55% for Airbnb rentals in Lake Arrowhead. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Lake Arrowhead ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 11.27% in Lake Arrowhead. This figure suggests that short-term rentals in the city offer a favorable return on investment. Lake Arrowhead is ranked #43 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Lake Arrowhead earn an average of $45,304 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Regulations
Lake Arrowhead’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
