Airbnb Rental Arbitrage Calculator
Enter an address and bedrooms, then the landlord's rent. See the profit after rent and running costs, the cash to start, the payback and which months fall short.
Example: a 3-bedroom near downtown Nashville covers up to $4,830 of rent and utilities a month at the 75th percentile, $3,422 at the median. Next, enter the landlord's rent, deposit and furnishing.
Free, no signup · 20M+ listings · 15+ years of rental data
How the calculator works: the arbitrage spreadsheet, row by row
| Figure | How it's worked out |
|---|---|
| Rent the home covers | Revenue − Airbnb's 15.5% host fee − operating costs, in the average month |
| Monthly profit | Rent the home covers − the rent |
| Break-even occupancy | The share of nights to book for revenue to cover the rent and every cost, at your nightly rate |
| Cash to start | First month's rent + security deposit + furnishing + other setup |
| Cash-on-cash return | A year's profit ÷ (deposit + furnishing + setup) |
| Payback | (Deposit + furnishing + setup) ÷ monthly profit |
| Reserve for the slow months | The deepest run of back-to-back months that fall short of the rent and costs |
Revenue is AirROI's estimate for the address from the 50 comparable listings nearby, and the month-by-month split is theirs too. The costs start at the same defaults as the free Airbnb calculator's ledger: cleaning at the comparable listings' median cleaning fee for each stay, guest supplies at 3% of revenue, utilities at 6%, repairs at 5%, short-term rental insurance at 2% and software and other costs at 1%. You enter the rent, the deposit and the setup costs, and every figure stays editable.
The fee line starts at 15.5%, the single host-only fee hosts outside the European Economic Area and Switzerland pay from September 2026, and hosts there from October (16% in Brazil and Mexico). A host still on the older split fee pays about 3%, with the guest paying a service fee on top, and can type that rate into the fee line.
Cleaning and supplies follow bookings, so a slow month pays less of them; utilities, repairs and insurance are the same every month. Property tax, the building's insurance, HOA dues and any mortgage are the landlord's, so a lease leaves them out. It is the arithmetic of an arbitrage spreadsheet, with the revenue, cleaning and seasonality filled in. For the estimate itself, see how the estimate works.
Worked example: a 3-bedroom near downtown Nashville
The example home covers up to $4,830 a month of rent and utilities at the 75th percentile and $3,422 at the median, both above HUD's $3,290 Fair Market Rent for a 3-bedroom in its ZIP code.
- HUD rent, ZIP code 37219
- $3,290
- Profit a month, 75th percentile
- +$1,540
- Profit a month, median year
- +$132
- Break-even occupancy (51% booked)
- 49%
| Median year | A month |
|---|---|
| Revenue (the median year ÷ 12) | $6,193 |
| Airbnb host fee (15.5%) | −$960 |
| Cleaning (comparable listings' median fee, each stay) | −$1,129 |
| Guest supplies, software and other (4%) | −$248 |
| Repairs and upkeep (5%) | −$310 |
| Short-term rental insurance (2%) | −$124 |
| Left for rent and utilities | $3,422 |
The median year for the 3-bedroom, 2-bath home for 8 near downtown Nashville grosses $74,321 (cleaning fees included), self-managed. Utilities, at 6% of revenue ($372 a month), stay with the rent here, because HUD's rents include them. In the worksheet, enter the landlord's rent and keep utilities on their own line, or set it to zero if the lease includes them.
The Nashville example is a point near downtown (ZIP code 37219), not a parcel. Before signing a lease, check that the home's zone still takes new not-owner-occupied permits: Metro issues them in the downtown code and listed mixed-use, office and commercial zones, not in AR2A, R, RS or RM residential zones.
Against the rent
HUD's FY2027 Small Area Fair Market Rent for a 3-bedroom in ZIP code 37219 is $3,290: the 40th-percentile rent, utilities included, that recent movers pay for a standard unit. At the 75th percentile, what a well-run 3-bedroom here reaches, the year grosses $102,283 and that rent leaves +$1,540 a month. The median year clears +$132.
The median year breaks even at $5,980 of revenue a month, about 49% occupancy against the 51% the median books (see break-even occupancy). The free Airbnb calculator has the Nashville example's comparable listings, range and months.
The figures are self-managed. The worksheet's manager switch adds a co-host or manager at 20% of revenue: about $1,705 a month at the 75th percentile and $1,239 at the median, so at HUD's rent this lease works self-managed, and with a co-host it needs a lower rent.
Month by month at HUD's rent
| Month | Left for rent and utilities | Profit after the rent |
|---|---|---|
| January | $1,888 | −$1,402 |
| February | $1,928 | −$1,362 |
| March | $3,635 | +$345 |
| April | $3,848 | +$558 |
| May | $4,808 | +$1,518 |
| June | $3,839 | +$549 |
| July | $3,346 | +$56 |
| August | $3,015 | −$275 |
| September | $3,311 | +$21 |
| October | $4,979 | +$1,689 |
| November | $3,671 | +$381 |
| December | $2,805 | −$485 |
Four months fall short of the rent and costs: January by $1,402, February by $1,362, December by $485 and August by $275. December through February back to back need a $3,249 reserve, the figure the worksheet shows as the reserve for the slow months.
The same home at three downtown rents
| ZIP code | HUD 3-bedroom rent | Median year, a month | Slow-month reserve | 75th percentile, a month |
|---|---|---|---|---|
| 37219 (the example) | $3,290 | +$132 | $3,249 | +$1,540 |
| 37201 | $3,000 | +$422 | $2,379 | +$1,830 |
| 37203 | $2,750 | +$672 | $1,684 | +$2,080 |
HUD's figure is a 40th-percentile benchmark, and a landlord who allows hosting may ask more. Each $100 of rent above it takes $100 a month off the profit and adds about 1.3 points to the break-even occupancy.
Cash to start and payback
| At HUD's rent | Amount |
|---|---|
| First month's rent | $3,290 |
| Security deposit (one month) | $3,290 |
| Metro Nashville permit fee | $313 |
| Cash to start, before furnishing | $6,893 |
| Slow-month reserve (December through February) | $3,249 |
| Cash to have, before furnishing | $10,142 |
The worksheet counts the first month, the deposit and setup costs such as the permit as the cash to start. Keep the slow-month reserve aside as well, and furnishing a 3-bedroom comes on top.
Payback is the deposit, furnishing and setup divided by the monthly profit. With $10,000 of furnishing, it is about 9 months at the 75th percentile and about 103 months in the median year, when the profit is +$132 a month. The worksheet works out the payback and the cash-on-cash return from your own deposit, furnishing and setup.
What landlords and cities require
Rental arbitrage needs two permissions: the landlord's, in writing, and, where the city requires one, its permit or registration. Some cities don't let a tenant rent out a whole home for short stays at all.
| City | A tenant renting out a whole home | The landlord | Other rules |
|---|---|---|---|
| Nashville | Allowed if the owner authorizes you (notarized form) and the zone takes new not-owner-occupied permits: listed mixed-use, office, commercial and downtown zones, never AR2A, R, RS or RM residential zones | The owner signs a notarized Owner Authorization Form for someone else to apply or operate; an apartment needs the complex owner's or manager's written consent | $313 permit fee; occupants up to twice the sleeping rooms plus four; operating without a permit is a $50 fine a day and a one-year wait for one |
| New York City | Not allowed for stays under 30 days: the host must live in the unit, with at most two guests | The lease must not prohibit short-term rentals; rent-controlled, rent-stabilized and NYCHA units can't register | Hosts register with the Office of Special Enforcement ($145 application fee) |
| Los Angeles | Only in the host's primary residence, where they live more than six months a year | A renter needs the landlord's written, notarized approval; units under the Rent Stabilization Ordinance are excluded | Up to 120 days a year under standard home-sharing |
Airbnb asks hosts to read their lease and check with their landlord, and notes that in many cities you must register, get a permit or obtain a license before you list. Nashville's code has the applicant confirm that hosting won't break a lease, and the permit is issued to the property's owner, so a landlord's signature is part of the application, not an afterthought.
Buildings in Airbnb's Airbnb-friendly program let residents host under the building's rules, such as a limit on nights a year, and building management may take a share of hosting earnings that varies by building. Add that share to the worksheet's percentage costs, and check the night limit against the occupancy the numbers need.
AirROI's rental arbitrage guide walks through finding a market with AirROI data, running the numbers and writing a lease whose hosting clause leaves no doubt.
Best cities for rental arbitrage, and how to pick one
Gatlinburg, Gulf Shores and Destin top AirROI's comparison of nine US arbitrage markets: a 2-bedroom there brought in about twice the typical rent or more. The best cities pair that gap with rules that let a tenant host and a shallow slow season.
| 2-bedroom market | Revenue a month | Typical rent | Revenue ÷ rent | Tenant hosting (AirROI's read) |
|---|---|---|---|---|
| Gatlinburg, TN | $3,382 | $1,500 | 2.25× | Generally allowed |
| Gulf Shores, AL | $2,896 | $1,400 | 2.07× | Generally allowed |
| Destin, FL | $3,266 | $1,700 | 1.92× | Landlord dependent |
| Nashville, TN | $2,882 | $1,800 | 1.60× | Restricted by zone |
| Scottsdale, AZ | $2,854 | $1,900 | 1.50× | Generally allowed |
| Kissimmee, FL | $2,084 | $1,800 | 1.16× | Landlord dependent |
| Myrtle Beach, SC | $1,469 | $1,400 | 1.05× | Landlord dependent |
| Austin, TX | $1,753 | $1,700 | 1.03× | Restricted |
| San Antonio, TX | $1,305 | $1,350 | 0.97× | Landlord dependent |
How to screen a city
1. The rules
Whether the city permits a whole home the host doesn't live in, and where. Nashville does in listed zones; New York City and Los Angeles don't.
2. Rent against revenue
Run an address for the rent its median year covers, then compare the landlord's rent. HUD's Small Area Fair Market Rents give a ZIP-level benchmark in metro areas.
3. The slow season
The deeper the slowest months, the bigger the reserve. In the Nashville example, January, February and December bring in 17% of the year's revenue.
4. Buildings that allow it
Airbnb-friendly apartment buildings let residents host under building rules, such as a yearly night limit and a share of earnings.
The comparison works from market-wide figures; an address sets its own rent ceiling, so run the ones you're offered. Nashville's market data has the city's revenue, occupancy and seasonality, and every market has a page like it. For the rent side, HUD's Fair Market Rents are free to look up by ZIP code.
Rental arbitrage calculator FAQ
Take the average month's revenue, subtract Airbnb's 15.5% host fee and your operating costs, then subtract the rent: what's left is the monthly profit. The calculator estimates an address's revenue from 50 comparable listings nearby, starts the cost lines where the free Airbnb calculator does, and adds the payback and the short months once you enter the rent.
Enough nights that revenue after Airbnb's fee pays the rent and every cost. Divide the rent plus fixed costs by the share of revenue left after the fee, cleaning and supplies, then by a fully booked month's revenue. The 3-bedroom near downtown Nashville example needs about 49% at HUD's $3,290 rent, against the 51% the median books.
Yes, where the lease and the city allow it: the landlord's written permission and the city's permit or registration. Nashville permits homes the owner doesn't live in only in certain commercial, mixed-use and downtown zones, with the owner's notarized consent. New York City doesn't allow whole-home stays under 30 days, and Los Angeles limits home-sharing to the host's primary residence.
About $10,142 before furnishing for a 3-bedroom near downtown Nashville at HUD's $3,290 rent: the first month, a one-month deposit and the $313 city permit ($6,893), plus $3,249 set aside for the slow months. Furnishing comes on top, and the worksheet totals your own figures.
There's no Excel file: the worksheet is the spreadsheet, rows filled in. Revenue from nearby comparables, Airbnb's 15.5% host fee, cleaning per stay, supplies 3%, software 1%, utilities 6%, repairs 5%, insurance 2%, then rent, profit, break-even occupancy, cash to start, payback and the slow-month reserve. Its link reopens the same address, mode and rent.
Gatlinburg, Gulf Shores and Destin led AirROI's 2026 comparison of nine US markets, where a 2-bedroom's revenue ran about twice the typical rent or more, while in Myrtle Beach, Austin and San Antonio revenue roughly matched it. Beyond that gap, look for rules that let a tenant host a whole home and a shallow slow season, then test an address.
What would your lease clear?
Address and bedrooms, then the rent. No signup.