According to Chalet Data, South Bend has quietly become one of the nation’s most lucrative short-term rental markets, with gross yields that put it in the 99th percentile of US cities. The city’s best-performing neighborhoods cluster around the urban core and university corridors, where guest demand is powered by Notre Dame, event tourism, and a tight supply of active listings. Across the top four neighborhoods, gross yields range from 27.6% down to 12.5%, while entry prices stretch from just $141,000 to over $520,000.

Home values are up 7.1% year-over-year, and occupancy has surged 62% citywide, even as the number of full-time listings has fallen. That supply squeeze is pushing up both rates and revenues, making South Bend’s short-term rental math hard to match anywhere in the Midwest.

The Best South Bend Neighborhoods for Airbnb, Ranked by Yield

Data as of July 11, 2026. Annual revenue is calculated for each listing as ADR × occupancy × 365 on trailing 12-month data, gross before expenses. The table reports the median listing’s revenue, alongside median ADR and median occupancy (multiplying ADR by occupancy will not reproduce the revenue figure).

Gross yield divides median revenue by median home value (Zillow ZHVI). See methodology for details. Active-operator revenue filters to hosts with sustained booking activity and is the best underwriting benchmark for buyers.

1. Howardpark: Top-tier yield in a rapidly appreciating pocket

Howardpark leads South Bend’s short-term rental scene by pairing a 27.6% gross yield with the city’s fastest home price growth, up 13.5% in the past year. This neighborhood sits just east of downtown and draws steady demand from visitors attending events at the nearby parks, riverfront, and cultural venues.

Median occupancy lands at 35%, peaking at 55% in July when ADR hits $338. January drops to zero occupancy, so this is a market where summer and event weekends drive the bulk of bookings.

Annual revenue for the median listing is $91,961, and active operators are clearing nearly $89,500. The typical property is a mid-size home, and with only 37 active full-time listings, the supply side remains tight. The payback period here is just under 3.7 years of gross active-operator revenue, an unusually fast path for a market with home values above $330,000.

Howardpark’s yield sits in the 99th percentile nationally, and its ADR of $317 is well above the US median. For a closer look at seasonality and pricing trends, the Howardpark analytics page breaks down every metric.

Who this market is ideal for: Buyers seeking high returns in a walkable, appreciating neighborhood with strong summer and event-driven demand.

2. Northeast: Consistent demand and a balanced entry price

Price-conscious investors will note Northeast South Bend’s combination of high yield and accessible home values, with a median gross yield of 18.5% that places this neighborhood in the 95th percentile nationwide. For a detailed look at property types and revenue breakdowns, the Northeast analytics dashboard gives the full picture.

Summer and fall shape the revenue calendar, as July occupancy soars to 64% (ADR $252) and fall alone contributes 36% of annual revenue, reflecting the draw of university events and autumn leisure travel. By contrast, January’s occupancy drops to just 6%, underscoring the need to plan for pronounced seasonality in cash flow management.

Revenue potential remains robust, with active operators earning $46,489 annually and 3-bedroom homes, by far the most common, delivering $36,716 per year at a $306 ADR. The roughly 5.8-year payback period signals that while home values are rising (+3.8% YoY), buyers can still expect relatively swift capital recovery compared to most US markets.

A recent supply squeeze, with listings down 18% but occupancy up 29% and ADR up 25% year-over-year, has tightened competition and helped boost returns for committed hosts.

Who this market is ideal for: Buyers looking for a stable, mid-priced entry point with strong fall and summer booking cycles and a well-established guest base.

3. Near Westside Neighborhood Org: High occupancy and low entry cost

Seasonal demand swings shape the investment landscape in Near Westside Neighborhood Org, where July’s occupancy peaks at 59% and March drops to 26%. For more on the bedroom mix and seasonality, see the Near Westside analytics page.

This pronounced summer surge, paired with a 13% year-over-year occupancy jump and a 22% rise in ADR for June 2026, signals that operators are capturing more revenue during high-travel periods while benefiting from a tightening supply as listings fell 11% over the year. The area’s strong fall revenue share (35%) also helps smooth out seasonal troughs, offering a buffer against winter and spring lulls.

With a median home value of $140,921, well below the US median, and a gross yield in the 89th percentile nationally, the neighborhood appeals to investors seeking a low entry point and strong returns. Most properties are 1-bedrooms, making up 42 of the 49 active full-time listings, and these units generate $15,014 annually at an $81 ADR.

While the 7.2-year payback is longer than some local peers, steady occupancy and rising rates suggest that patient investors can secure reliable cash flow, especially as smaller units remain in high demand.

Who this market is ideal for: Investors prioritizing affordability and high occupancy, especially those focused on smaller units and steady cash flow.

4. Harterheights: Premium pricing near the university

Price dynamics in Harterheights set it apart, with an average daily rate of $445 that nearly doubles the US median and home values reaching $523,514, up 8.3% year-over-year. The area’s gross yield of 12.5% places it in the 79th percentile of US markets, but occupancy lags at 29% compared to the national median of 45%. Harterheights’ analytics page provides further insight into how revenue varies by season and property type.

This limited occupancy is shaped by a sharply seasonal booking pattern, where September peaks at 60% occupancy and $532 ADR, and January drops to 0%, underscoring the influence of Notre Dame events and the academic calendar.

Momentum in the latest year reveals that occupancy surged by 78% and ADR jumped 109% in June, even as the number of listings fell by 2%, signaling robust demand for high-end stays during key periods.

With only 38 full-time listings, competition remains low, but the payback period stretches to about 8.4 years, longer than other local options, requiring investors to underwrite with an eye toward event-driven spikes and off-season lulls.

Who this market is ideal for: Buyers targeting premium properties with high nightly rates and a calendar built around university-driven demand.

How to read these rankings before you buy

Gross yield offers a top-level view of potential return, but it doesn’t capture expenses, management costs, or the impact of seasonality on cash flow. The headline annual revenue averages all listings, while the active-operator benchmark filters for hosts with real, sustained booking activity, this is the number serious buyers should use for underwriting.

Remember, multiplying the table’s ADR by occupancy won’t match the listed revenue, as each metric is calculated independently at the median. Always verify property-level performance and local regulations before making an offer, as neighborhood averages can mask wide variation between streets and property types.

How to Act on This

South Bend’s short-term rental market is defined by sharp seasonality, a supply squeeze, and event-driven spikes in demand. Buyers should pay close attention to the neighborhood’s booking calendar, as many areas see the bulk of revenue concentrated in summer and fall, especially around Notre Dame events. Entry prices range widely, so match your budget to the property type and seasonality profile that fits your goals.

Regulation is governed by South Bend’s municipal code (see Article 14), which requires hosts to comply with local zoning and obtain necessary permits. Operators must also collect Indiana’s County Innkeeper’s Tax in addition to state sales tax. Rules can change, so verify current requirements with the city before closing. For tailored guidance and off-market opportunities, connect with a local STR agent who knows the nuances of South Bend’s neighborhoods and regulations.