Wondering what the best Airbnb property type is for your next investment? The answer depends on your market, your budget, and what the numbers say. We’ll help you connect the dots.

The Best Type of Property for Airbnb by the Numbers 

There’s no one-size-fits-all best Airbnb property type. What performs best depends on your market, your budget, and your strategy.

Houses and villas tend to earn the most, averaging $130 in revenue per available rental (RevPAR) globally, significantly more than apartments and condos at $80 RevPAR.

Yield matters as much as revenue. AirDNA data shows a 3-bedroom condo can deliver similar ROI to a 5-bedroom home, depending on price and performance.

If you’re investing in an Airbnb, one of the first and most important questions you’ll face is: What kind of property should I buy?

A spacious house? A city apartment? Something more offbeat like a tiny home or glamping tent? The options are endless . . . and so are the opinions.

The truth is, there isn’t one "best" property for everyone. What performs best depends on where you're investing, who you're hosting, and what your goals are.

That said, some property types consistently rise to the top.

In this guide, we’ll dig into the latest AirDNA data to show you which types of listings earn the most, book the most often, and are growing the fastest. Then we’ll help you figure out which one’s right for you.

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What’s the Best Type of Property for Airbnb?

There’s no one-size-fits-all answer, but if your goal is to maximize income and occupancy, houses and villas consistently come out on top, according to AirDNA data. These listings earn an average of $130 per night in Revenue Per Available Rental (RevPAR)—a key metric that combines nightly rate and occupancy to show how much a property actually earns, on average, each night that it’s available.

That puts houses and villas well ahead of apartments and condos, which earn just $80 in RevPAR, despite making up a slightly larger share of global Airbnb listings. 

Keep in mind that these earnings are just averages, and what you can expect in your market will likely diverge from these values. We dive deeper into the data and show you how to find accurate RevPAR averages down to the neighborhood level using the AirDNA app a little bit later.

Houses/villas also tend to be listed as entire places, which now make up 84.2% of all Airbnb listings worldwide. In the U.S. specifically, houses and apartments that are offered as entire-place rentals make up an even higher share of listings at 89%. Private rooms account for 11% of Airbnb properties while shared rooms make up a meager 0.2% in the U.S.

In other words, the combination of full-property access and residential space isn’t just the most profitable. It’s also the most common.

If you’re thinking, “Well, of course houses earn more. They’re just bigger,” that’s a fair assumption. However, size isn’t the only factor. To make a fair comparison, AirDNA looked at listings with the same number of bedrooms, specifically 3-bedroom properties.

Even then, houses still come out ahead. Just how much of an advantage they have over apartments, condos, and lofts changes, though, depending on where the vacation rental is operating.

In coastal vacation markets, for example, 3-bedroom houses earn $503 per night on average, while 3-bedroom apartments earn just $324. That’s a 55% difference in nightly rate, even when both listings offer the same number of rooms. The real estate type, not just the size, is what’s driving the higher earnings.

This is a notable shift from 2023. Two years ago, apartments had a pricing edge in certain markets, especially in mountain and lake destinations. However, guest preferences have evolved. In 2025, more travelers are prioritizing space, privacy, and amenities, especially for group trips, longer stays, and remote work. These shifts are giving houses and villas the upper hand, even in markets where apartments used to outperform.

If your goal is to earn the most and appeal to the widest range of guests, an entire house or villa is hard to beat. They’re in high demand, consistently booked, and command higher nightly rates, especially with families, groups, and longer-stay travelers.

However, maximizing revenue isn’t everyone’s top priority. The best property type for you might depend on your budget, your market, how quickly you want to get started, or how much time you’re willing to spend managing the property. 

Purchase price is also an important consideration, and apartments can be a lower up-front investment than a home. RevPAR only gives you a look at the average nightly earnings, but yield is another important metric that takes into account the property value. There are cases where an apartment will have a higher yield than a house even with lower nightly earnings. 

In other words, what performs best on paper might not be the best fit in practice. Let’s walk through the key factors that shape the right Airbnb investment for your goals.

The Best Property Type for Airbnb in Different Types of Markets

The performance of different Airbnb property types isn’t one-size-fits-all. It’s shaped by the type of market you’re investing in. Whether you’re buying in a vacation town, a suburban area, or a dense urban core, the best-performing listing type can vary.

While AirDNA data shows that houses and villas outperform apartments in every major U.S. market type, just how much they outperform them depends on the market:

Small cities and rural areas – Houses earn 64% more than apartments.

Coastal vacation destinations – Houses earn 49% more.

Suburban areas near large cities – Houses earn 49% more.

Urban city centers – Houses earn just 20% more.

In other words, the smaller or more leisure-focused the market, the bigger the upside for houses. That makes sense because guests in these areas are often families or groups prioritizing space, privacy, and amenities.

However, in major cities, apartments can still be a great choice. The earnings gap narrows, plus short-term rental apartments are often more accessible due to lower prices, smaller footprints, and local regulations that favor multi-family buildings. They also appeal to a steady stream of travelers who value walkability, proximity to business districts, and ease of access over square footage.

While houses tend to win on revenue, apartments may win on practicality, depending on your market.

Why Unique Stays Are Still Profitable Airbnb Investment Properties

Treehouses. Glamping tents. Tiny homes. These kinds of listings can are quick to get booked and they’re growing fast.

According to AirDNA’s 2025 data, unique Airbnbs now make up 7.2% of Airbnb listings globally. In the U.S. specifically, they account for 4% of listings.

Don’t be fooled into thinking that unique properties aren’t carving out a meaningful niche in the Airbnb landscape just because they account for less than 10% of listings globally. That 10% translates into a monthly average of over 275,000 listings.

On top of that, some categories of unique properties are seeing double-digit growth year over year:

Unique stays can absolutely succeed, but only in the right markets and with the right setup. They tend to do best in rural or destination areas where the experience itself is the draw. If you're building on land you already own, or you want to offer something memorable and branded, they can be a smart long-term play.

That said, they come with tradeoffs. Some guests aren't looking for composting toilets or off-grid vibes, and zoning laws can be tricky. They also tend to be more seasonal and can require higher upfront investment (setting up electricity and plumbing for a treehouse, for instance, is no small feat!). With that in mind, a traditional house or apartment may be the best property type for your Airbnb business if your goal is steady income and broad guest appeal.

How to Choose the Best Airbnb Investment Property

Choosing the right Airbnb property type for your goals requires you to weigh what performs well in your market and what fits your strategy. Here’s how to make that call. 

The best Airbnb property type really depends on where you're investing.

Different markets attract different types of guests which means the top-performing listings can vary a lot. A large house might be perfect in a beach town, while a smaller apartment could do better in a walkable city center.

The smartest investors don’t just look at the city as a whole. They zoom in on submarkets. A submarket is a smaller slice of a larger area, like a specific neighborhood, tourist corridor, or stretch of rural countryside. Performance can vary a lot between them. 

The map feature within AirDNA helps you visualize how larger markets get broken out into smaller ones and how Airbnb performance can vary even between adjacent neighborhoods. Take Atlanta, for instance. We color code submarkets by performance—the darker the purple, the better the Market Score. The Marietta and Roswell submarkets are right next to each other, but Marietta has a 91 Market Score (out of 100), while Roswell’s is just 68.

AirDNA’s Best Places to Invest report can help you spot high-performing pockets based on real-time demand, revenue, and competition. Just remember: traveler trends shift, so it's worth revisiting the data regularly.

Gain insights into the revenue and occupancy trends in your market.

Even if a house offers stronger long-term returns, it might not fit your budget or your runway. Apartments, condos, or even smaller unique stays (like tiny homes) can offer a more affordable entry point and a quicker path to hosting.

When comparing options, calculate not just the purchase price but the total startup costs: 

Short-term rental readiness (kitchens, bathrooms, bedding)

Utilities, maintenance, and platform fees

You will also want to weigh how quickly you want to launch. If you're aiming for faster cash flow or a lower-risk trial, a turnkey apartment may be a smarter short-term choice, especially in a high-demand city.

Different property types demand different levels of involvement. Entire homes tend to bring in higher revenue, but they also come with higher expectations for cleanliness, maintenance, and responsiveness.

If you’re managing your short-term rental remotely or working part-time, you might prefer a more hands-off listing, such as:

A co-hosted private room or multi-unit setup

If you’re ready to scale, however, houses offer more pricing flexibility, more space to stand out, and more appeal to families, groups, and long-stay travelers.

Understand your local short-term rental regulations 

Before you make any investment, check your market’s short-term rental regulations. These vary widely, and some cities limit STRs to certain property types or require specific licensing for entire homes.

Tax obligations (occupancy taxes, income reporting)

HOA or condo board restrictions, if applicable

Compliance isn’t optional. Understanding what’s allowed in your market can prevent costly surprises and ensures your investment is viable long-term.

Consider working with a local real estate expert

If you’re new to Airbnb investing or unfamiliar with the area, working with a short-term rental real estate agent can help you:

Compare different property types and ROI potential

How to Choose the Best Airbnb Property Type Using AirNDA

We’ve already said it: there’s no single answer to what the best Airbnb property type is. It really depends on your market, your budget, and your goals.

Here’s the good news: AirDNA can help you figure it out.

Instead of guessing, you can use real data to see what performs best where you want to invest. With filters, local comp sets, and performance insights, AirDNA makes it way easier to choose the right property type for your Airbnb strategy.

If you already know where you’re thinking of investing, plug that market into the search bar on AirDNA. For example, let’s look at Orlando, Florida, the largest short-term rental market in the U.S. by both listing count and total revenue.

The Market Overview page gives you a big-picture snapshot: average daily rate (ADR), occupancy, and revenue averaged over the last 12 months across all STRs in the area.

From there, use the filters to explore how performance varies by:

Listing type (entire place, private room, shared room)

Property type (house, apartment, B&B, unique)

These filters help you answer key questions like:

What is the best size house for Airbnb? Do larger homes really perform better?

Is there substantial demand for private rooms or shared spaces?

How do houses stack up against apartments in this market?

Will investing in a property with an additional bathroom really affect my bottom line?

3. Layer on performance and amenity filters

Once you know your likely property size (maybe you’re capped at 1–2 bedrooms), explore performance by price tier and amenities. This helps you identify ways to boost your earnings through operational choices, even with smaller square footage.

For example, if you can earn 25% more by moving your property from the economy price tier to midscale, then you might be able to recoup an extra investment in high-quality furnishings. The same goes for investing in a hot tub or opening your home to pets.

4. Balance earnings with costs by checking yield on for-sale properties

Of course, revenue is only half the picture. The For-Sale tab helps you explore yield: how much return you can expect based on the purchase price.

Navigate to the For-Sale properties tab for your market of interest from the left-hand navigation menu. We automatically generate revenue projections for every property that is currently for sale, based on how similar, active short-term rentals in the area are performing. You can sort these projections by yield to see which current investment opportunities offer the highest returns. 

Yield divides gross earnings by the property purchase and multiplies the result by 100. You can consider a 10% yield as a middle-of-the-road return on your investment (ROI).

Just don’t forget to filter out properties that aren’t zoned for short-term rental use.

 Discover your next profitable short-term rental with real market revenue projections.

5. Compare high-yield listings across property types

Some of the highest-yielding listings in Orlando include:

A 5-bedroom home generating $129K/year with 38% yield

A 3-bedroom condo generating $66K/year with 36% yield

These are very different setups, but nearly identical ROI. This shows that there’s no single best Airbnb property type without considering price point and expenses.

6. Upgrade to Advanced Insights (Advanced Tier)

Want to dig deeper? The Advanced Insights tab (for Advanced Tier users) gives you broader control over how you view the data—by neighborhood, property type, rating, host type, and more.

Occupancy and ADR by bedroom count or price tier

Which property types dominate in your submarket

Whether luxury or economy listings perform best

What role guest ratings and host size play in success

After running the numbers, the answer usually becomes clear.

What feels like a complicated decision (house or apartment, studio or 3-bed, unique or traditional?) starts to make sense once you’ve seen how different properties actually perform in your market.

That’s because the most profitable real estate investment isn’t just about what works in general. It’s about what works for you.

AirDNA’s powerful yet easy-to-use tools make hosting and investing a breeze. This means having every insight you need, all in one place, always up-to-date.

What is the best type of property for Airbnb?

If your goal is to earn the most and stay consistently booked, an entire home that’s a house or villa is your best bet. They bring in the highest average RevPAR globally ($130) thanks to strong demand, especially from families, groups, and long-stay travelers. The exact property specs (size, location, amenities) that perform best and the resulting revenue depends on your specific market, though—questions which you can answer with the AirDNA app.

What kind of Airbnbs make the most money?

If we’re looking at real estate types, houses and villas consistently make the most money on Airbnb. In 2025, they earned a global average of $130 in Revenue Per Available Rental (RevPAR), well above the $80 in RevPAR from apartments and condos. Even when size is controlled, houses and villas still come out ahead. For example, 3-bedroom houses in coastal vacation markets earned 55% more per night than 3-bedroom apartments. That extra income isn’t just about square footage. It reflects stronger guest demand for full homes, especially for longer stays, families, and group trips.

Are houses always a better investment than apartments?

Not always. While houses outperform across all U.S. market types, the gap varies. In rural or coastal areas, the advantage is big. In urban centers, where apartments are more common and regulations often favor them, a well-located condo can still be a smart, lower-maintenance choice.

What’s the best investment property for Airbnb?

The best Airbnb investment property is the one that fits your market, your budget, and your goals. A high-yield condo might beat a large home if it’s in the right location and easier to manage. Tools like AirDNA help you compare real-world performance so you’re not guessing.

Do unique stays like tiny homes and treehouses perform well?

Yes, in the right setting. Unique stays now make up 7.2% of global Airbnb listings and 4% in the U.S., with categories like glamping tents and tiny homes seeing double-digit growth. They work best in destination or off-grid areas, but they also come with more seasonality and setup costs.

How can I figure out what type of Airbnb works best in my market?

Use AirDNA to filter by listing type, size, amenities, and more. You can compare earnings, occupancy, and even yield on for-sale properties to see what’s actually performing well in your target area—no guesswork required.

Explore what properties earn the most and how to choose the right one based on your market, budget, and goals.

How to Identify the Best Type of Property for Airbnb

Key Takeaways
Entire homes are the most popular type of rental property because they offer higher rental prices and consistent occupancy rates, but unique stays like tiny homes and treehouses show rapid growth.
Property performance varies, with entire properties leading in listings. Occupancy rates and profitability are influenced by location, type of property, and guest demand.
Choosing the right property involves assessing location, understanding market trends, and considering guest preferences, with tools like MarketMinder and Rentalizer providing essential insights for informed investment decisions.

Many real estate investors are looking to get in on the thriving vacation rental market. Airbnb investments have emerged as a popular way for investors to diversify their portfolios. 

However, getting started with an Airbnb investment and identifying the best property can be a daunting task. With so many options–including private rooms, villas, treehouses, and yurts–the decision is not always clear-cut. 

You must align your vacation rental business objectives with the desires of prospective guests to select the best type of property for Airbnb. We have everything you need to know when making this important decision. 

Try Our Vacation Rental Pricing Tool

Use Smart Rates™ to optimize your pricing strategy.

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What are the Types of Properties on Airbnb?

Airbnb offers various property types that fit different guest preferences and investment strategies. 

Listing Property Types

Entire Home: Entire homes are popular for individuals, families, and groups seeking privacy and space. They often command higher rental prices and can offer a more consistent occupancy rate.

Private Room: These listings offer a room within a host's home. They're a great option for budget-conscious travelers and can provide a more personal, homey experience. Private rooms can attract a steady stream of Airbnb guests, especially in high-demand urban areas.

Shared Room: Shared rooms cater to the most budget-sensitive travelers. While not as lucrative as entire vacation homes or private rooms, they can be a good entry point for new hosts.

Real Estate Types

House: Houses can range from modest dwellings to luxury estates. They offer versatility in catering to guests' needs, from large group accommodations to cozy family retreats.

Apartment: Apartments, particularly in urban areas, appeal to many types of travelers, from business professionals to small families. They can offer the convenience of location and amenities.

Condo: Condos are common in urban settings. They often come with added benefits like security, maintenance, and access to shared facilities like gyms and pools.

Villa: Villas are often associated with luxury and exclusivity. They can generate higher monthly rental income, especially in sought-after vacation destinations.

Unique Stays: This growing category includes unconventional properties like tiny houses, yurts, glamping tents, treehouses, and container-style vacation homes. 

Aspiring Airbnb hosts should consider the appeal of different property types to different guest segments. What type of property you choose can significantly influence success based on location, target market, and investment goals.

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How Do Different Property Types Perform?

AirDNA data shows that the majority Airbnb listings are entire properties, which make up 83.9% of listings. Private rooms represent 15.7% of supply, appealing to those seeking a more budget-friendly and personal stay. Shared rooms are the least common at 0.4%.

Property performance also varies based on the number of bedrooms and how expensive it is to rent. The occupancy rate represents the percentage of time your property is rented out compared to the total available time. Listings with more rooms have lower occupancy rates (54%) compared to studio listings (60%). This holds true regardless of the price tier, i.e. how expensive the unit is relative to others in the same market with the same bedroom count. 

 Boost Your Rental Revenue

Looking through the lens of pricing, data indicates that luxury properties have a lower average occupancy rate of 52% in comparison to budget properties. The least expensive rental properties are occupied 59% of the year because they are accessible to more people and they target guests that are budget conscious.

Market-Informed Pricing Decisions

AirDNA’s vacation rental pricing tool uses data-driven recommendations to propose the best daily rates.

Try here for free
Unique Stays Are a Top Investment Property Type

It is important to note that the size of a market does not determine its profitability. Unique stays comprise only 3.4% of all listings, yet they are part of an expanding market.

Farm stays represent the largest subcategory within unique stays at 52k listings, followed by tiny homes (47k), camper/RV units (21k), and tents (13k). 

According to AirDNA research, the fastest growing unique stay Airbnb properties in 2023 were:

Riad*: +149.4%
Tower: +135.9%
Shipping container: +106.2%
Dome House: +47.2%
Barn: +40.0%
Cave: +38.4%

*A riad or riyad is a traditional Moroccan and Andalusi interior garden or courtyard associated with house and palace architecture.

For Airbnb investors and future Airbnb hosts, these statistics underscore the importance of aligning property offerings with guest demand.The smartest real estate investing decisions are data-driven and strategically sound to capitalize on the prevailing market trends.

Learn about Dynamic Pricing
Try AirDNA for free

How to Choose the Best Investment Property

A key component of Airbnb investing is making informed decisions that align with your investment goals and market trends. 

Gross Rental Yield Insights

Gross rental yield is calculated by comparing the annual rental income to the property's purchase price. The gross rental yield is an important metric that helps real estate investors determine the potential returns of different rental properties in a given real estate market. 

Compared to the long-term rental market, the short-term rental sector often presents a higher yield potential. However, it's important to weigh other factors such as location, property type, management, maintenance costs against the gross rental yield. These factors can affect the overall profitability.

Customize Your Experience

Your pricing strategy should be as unique as your rental property.

Connect your Airbnb
Location-Based Analysis

Property type and real estate type can impact occupancy rates. What type of Airbnb property performs best is often dependent on the location. Typically, we see higher occupancy levels in apartment/condo listings. This is especially true in coastal destinations, where they enjoy a 62.6% occupancy rate over houses and villas (58.3%). Interestingly, houses and villas enjoy a slightly higher occupancy rate than apartment/condo listings in small city and rural areas.

Location also affects your average daily rates (ADR), or the average rental income per paid occupied room in a given period. Narrowing the analysis to 3 bedroom listings, AirDNA data indicates that houses and villas enjoy a 5% higher ADR than apartment/condo listings in coastal destinations. 

On the flip side, apartment/condo listings net 20% higher ADRs than houses and villas in mountain or lake destinations.

Consider pros and cons of each short-term rental property’s location, such as proximity to tourist attractions, national parks, or business centers. Where their accommodations are in relation to where they want to go in the area and how easy it is to get around with or without public transportation can significantly impact guest bookings and satisfaction. 

Get nightly rate recommendations

Additional Considerations When Choosing an Airbnb Rental

Selecting the perfect Airbnb rental goes beyond just the type and location of the property. Understanding the finer details can make or break your success in the Airbnb marketplace.

Review Short-term Rental Laws and Regulations

Before diving in, familiarize yourself with the local laws and regulations. Many cities have specific zoning laws, licensing requirements, and tax considerations for short-term rentals. Compliance is non-negotiable, and understanding these rules will prevent costly fines and ensure your rental operates legally.

Calculate Your Budget and Expenses

Calculate the initial investment and ongoing expenses. This includes the purchase price, any renovation costs, furnishings, and regular maintenance. Don’t forget to factor in the operational costs like cleaning fees, utilities, and Airbnb’s service fees. Ensure your budget aligns with your financial goals and the realistic income potential of the property.

Automate your pricing

Analyze Properties for Sale

Do your homework on the properties available. Look for real estate that fits your budget and has the potential for high occupancy rates and good returns. Consider the specific attributes that make a property a viable Airbnb investment property, such as location, standout amenities, and local demand.

Work with a Real Estate Agent

A knowledgeable real estate agent can be invaluable for investors who are new to the Airbnb business. They can provide insights into the local real estate market, help navigate the purchase process, and find properties that meet your specific criteria.

Tools to Help You Find The Best Airbnb Rental Property

Short-term rental tools provide valuable insights into the performance of rental properties, streamlining your search for a profitable Airbnb property. These powerful data-backed tools are a must-have for any modern property investor. 

MarketMinder

Market Minder tracks the daily property performance data and rental analytics of 10 million short-term rentals in over 80,000+ markets around the world, displaying property-level data on an interactive map. With a fully filterable dashboard, vivid graphs, and sliders, the tool is designed to be accessible to hosts who are just starting out on Airbnb and powerful enough to support professional vacation rental managers. 

Airbnb Analytics Dashboard

For current hosts looking to optimize their listings, Airbnb offers an analytics dashboard. This feature tracks listing performance, offering insights into number of listing views, nightly rates, and guest demographics. Dashboard analytics helps hosts to make informed adjustments to improve their rental’s appeal. 

Rentalizer

Rentalizer™ uses data from over 10 million Airbnb and Vrbo listings to accurately predict earning potential for any property in the world. Enter any address and Rentalizer will provide a personalized projection that includes annual revenue, average daily rate, occupancy rate, seasonality's impact on profits, and a competitive analysis of neighboring competition.

Incorporating these tools and considerations into your strategy can lead to a smarter Airbnb investment property, potentially increasing your chances of success in the competitive world of short-term rentals.

Host Confidently

Know exactly how much to charge based on your vacation rental pricing strategy.

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Whatever You Do, Decide with Data 

Choosing the best Airbnb property is really about matching what you want with what the short-term real estate market needs. With the right approach and tools, selecting the best Airbnb investment property can transform your real estate venture into a thriving and profitable business.

Tools like AirDNA help you pick a property that's not just a good real estate investment, but also right on the money with current trends and guest preferences. It's about making a smart move in a market that's always changing. So, when you're ready to take that step, let the facts lead the way.

Discover how to pick the perfect Airbnb property for investment success with expert tips and data-driven strategies.

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The Best Type of Property for Airbnb by the Numbers

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