As the world continues to become more interconnected, short-term (Airbnb) rentals have become increasingly popular, particularly in South Bend, IN.
With its vibrant culture, impressive scenery, and world-renowned universities, South Bend has become a top destination for tourists and business travelers alike.

Market Overview
To understand the dynamics of the short-term rental market in South Bend, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 33.70% of inventory. This is followed by 1 and 3-bedroom homes at 25.25% and 17.23% of the total inventory, respectively.

Homes Appreciation
AS of July 2025, according o Zillow, homes in South Bend experienced an appreciation of 5.66%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in South Bend have depreciated by 5.66%. The median home value in South Bend is $180,100 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, South Bend boasts a significant Airbnb rental market, with approximately 684 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $353. The Average Daily Rate is the highest for 5 bedroom homes $369 followed by 4 bedrooms and 3 bedrooms at $332 and $269 respectively.

Occupancy Rate
Chalet data reveals an occupancy rate of 55% for Airbnb rentals in South Bend. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in South Bend ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 28.74% in South Bend. This figure suggests that short-term rentals in the city offer a favorable return on investment. South Bend is ranked #3 by return on investment on Airbnb rentals in the United States.

Annual Revenue
According to Chalet, short-term rentals in South Bend earn an average of $22,409 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in South Bend is 0.94%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.