Boston is the cultural hub of Massachusetts. Its city streets boast an array of eclectic restaurants where diners can experience unique and delicious cuisine worldwide. Brightly lit sports stadiums stand next to star-studded concert venues while historic landmarks remind inhabitants of the rich history of the Revolutionary and Colonial War era. Boston has it all, making this vibrant, fast-paced city the perfect place to invest in an Airbnb short-term rental. But which neighborhood will give investors the highest profit? Keep reading to find out.
Why invest in Boston’s hot Airbnb markets?
As one of the fastest-growing short-term rental industries worldwide, Boston is home to several prestigious universities, including Harvard and MIT, and several businesses that lend a hand to the city’s thriving economy.
1. Great Economy
Boston has established a powerhouse economy, and it’s easy to see why. Home to some of the world’s most renowned universities, including Harvard, MIT, and Boston University, the city has a constant influx of innovative thinkers, students, and professionals eager to advance their careers. In addition to a thriving education sector, Boston is also a hub for the healthcare, finance, and technology industries. Top companies such as Biogen, Fidelity Investments, and General Electric have established their headquarters in Boston. With a diverse range of companies and industries, it’s no surprise that Boston’s economy continues to grow exponentially, making this city a prime location for a successful short-term rental property investment.
2. Tourist Spot
A unique blend of old-world charm and contemporary sophistication, the city offers a fascinating mix of cultural landmarks, modern attractions, and world-renowned cuisine; there’s never a dull moment in Beantown. Whether walking the Freedom Trail, exploring charming neighborhoods like the North End, or indulging in world-class seafood, Boston offers something for everyone. According to the Boston.gov website, approximately 22.7 million people visit the city each year. With millions of tourists annually, Airbnb investors can anticipate high occupancy rates year-round.
3. Rental Prices
According to NeighborhoodScout, 67.4% of Boston residents are renters. Paired with the city’s booming tourism lends its hand to a high demand for rental properties and a lucrative short-term rental market investors can cash in on. In fact, hosts can expect an occupancy rate of 86% and an average daily rate of $282 for operating a 2-bedroom property in Boston, Massachusetts.
The Top 5 Neighborhoods for Boston Rentals
The beating heart of Boston’s downtown exudes frenetic energy. Tourism brings $3.1 billion in annual buying power for Boston’s dynamic downtown area. Visitors can discover endless activities in the city’s colorful districts, including downtown crossing, the ladder district, and the financial district. With $800 million in planned investments in new mixed-use developments, this metropolis continues to expand rapidly, seeing more than 60 new retailers and restaurants open in the past three years. That’s on top of the $2.4 billion the city’s invested in renovations, upgrades, and new construction in the last 10 years. From the billions of dollars generated from tourism to additional initiatives to accelerate the city’s growth, Boston’s downtown is a goldmine for investors looking to capitalize on the Airbnb market.
- Total Number of Airbnb Listings: 120
- Best bedroom size: 3 bedrooms
- Median property price (3-bedroom): $749,000
- Airbnb Annual revenue: $99,432
- Gross rental yield: 13.28%
2. South Boston
South Boston is an urban neighborhood steeped in tradition. Home to Dorchester Heights, it’s the place where George Washington’s army set up cannons to force the British out of Boston in 1776. Tourists can explore the vibrant art community by visiting Fort Point Channel Historic District or enjoy a day in the sand at one of South Boston’s beaches.
If you decided to invest in a property in South Boston based on the median listing price of $999k, here’s a breakdown of the potential earnings investors can anticipate:
- Cap Rate: 4.15%
- Operating expenses: $27,139
- Net operating income: $41,458
This neighborhood is the mecca of university life. Visitors can stroll across Harvard’s iconic grassy yard to visit the school’s classic neoclassical Widener Library, sip a latte at one of the campuses’ quaint cafes, or get lost in a literary classic at one of the many bookstores. Thousands of hopeful applicants flock to the city each year to tour their university of choice, making Allston-Brighton a highly-desirable location for your next short-term rental.
- Distance from Boston: 3 miles
- Total Number of Airbnb Listings: 472
- Best bedroom size: 2 bedrooms
- Median property price (2-bedroom): $889,000
- Airbnb Annual revenue: $70,338
- Gross rental yield: 7.91%
4. Barnstable Town
Located off the stunning coast of Cape Cod, Barnstable Town offers visitors everything from gorgeous beaches to a lively downtown area filled with shops, restaurants, and galleries. The city provides an abundance of available outdoor activities such as whale watching, kayaking, and hiking, making Barnstable Town the perfect vacation spot for tourists looking to unwind. Tourists are conveniently located near popular Cape Cod destinations like Hyannis and Provincetown. Investors should look to this popular destination for their next Airbnb investment property.
- Distance from Boston: 60 miles
- Total Number of Airbnb Listings: 452
- Best bedroom size: 3 bedrooms
- Median property price (3 bedroom): $630,000
- Airbnb Annual revenue: $73,069
- Gross rental yield: 11.59%
From its diverse crowds, picturesque harbor, and delicious seafood joints, it’s no secret why Provincetown is a fan favorite among tourists. Thousands of visitors worldwide flock to the city to enjoy popular festivals and events like the Provincetown Carnival to the International Film Festival.
- Distance from Boston: 116 miles
- Total Number of Airbnb Listings: 495
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): $625,000
- Airbnb Annual revenue: $67,435
- Gross rental yield: 10.79%
Looking to turn a mega profit for your Boston short-term rental?
Get the capital to transform your Boston property into a lucrative Airbnb rental tourists love. At EMCAP Lending, we provide renovation, construction, and commercial bridge loans from the ground up. With our payment plans, you only have to pay interest on the money you withdraw. If you’re ready to boost investments on your next Florida Airbnb property, we use a hassle-free process that eliminates long approval times. Prequalify online today – receive cash in as little as 2 days.
Jara, Magdalena. “The 10 Most Profitable Places for Airbnb Investment in Boston, MA.” Airbtics | Airbnb Analytics, Feb. 2023, airbtics.com/best-places-to-Airbnb-in-Boston-ma.
“Buying an Airbnb Vacation Rental in Boston.” Hostaway, www.hostaway.com/Buying-an-Airbnb-Vacation-Rental-in-Boston/#:~:text=Boston%20Tax%20Laws-,Why%20Consider%20Boston%20Short%2DTerm%20Rentals%3F,in%20comparison%20to%20traditional%20rentals.
Downtown Boston Business – Business Listings in Downtown Boston. www.downtownboston.org/doing-business-in-downtown-boston.