Best Places in Faro, Portugal to Invest in Airbnbs, Short-Term Rentals in 2025

Last updated: March 31, 2025

Discover the most lucrative short-term rental markets in Faro, Portugal with AirROI's comprehensive investment guide. Whether you’re an experienced property investor or just starting your Airbnb journey, through detailed analysis of key metrics across premier global, our data-driven insights reveal where smart money is flowing in the short-term rental space. Using advanced market analytics and real performance data, we’ve identified investment hotspots that combine strong rental demand, favorable regulations, and optimal revenue potential.

Read on to explore the top-performing short-term rental markets that should be on every investor’s radar in 2025.

Top Short-Term Rental Cities in Faro, Portugal

Rank:#1Market:AlbufeiraCountry:PortugalProperties:4,918Monthly Revenue:$2666.50Daily Rate:$276.12Occupancy:47.09%Regulation:High
Rank:#2Market:LagosCountry:PortugalProperties:3,380Monthly Revenue:$2096.93Daily Rate:$180.56Occupancy:51.85%Regulation:High
Rank:#3Market:LouléCountry:PortugalProperties:2,688Monthly Revenue:$2318.40Daily Rate:$261.24Occupancy:44.27%Regulation:High
Rank:#4Market:PortimãoCountry:PortugalProperties:2,358Monthly Revenue:$1601.41Daily Rate:$167.59Occupancy:46.92%Regulation:High
Rank:#5Market:TaviraCountry:PortugalProperties:1,407Monthly Revenue:$1571.81Daily Rate:$164.83Occupancy:45.51%Regulation:High
Rank:#6Market:AljezurCountry:PortugalProperties:1,069Monthly Revenue:$1685.46Daily Rate:$159.72Occupancy:47.46%Regulation:High
Rank:#7Market:Lagoa e CarvoeiroCountry:PortugalProperties:1,067Monthly Revenue:$2423.78Daily Rate:$242.83Occupancy:50.22%Regulation:High
Rank:#8Market:FaroCountry:PortugalProperties:1,008Monthly Revenue:$1667.89Daily Rate:$140.08Occupancy:48.25%Regulation:High
Rank:#9Market:Vila do BispoCountry:PortugalProperties:927Monthly Revenue:$1927.45Daily Rate:$167.01Occupancy:49.71%Regulation:High
Rank:#10Market:Armação de PêraCountry:PortugalProperties:514Monthly Revenue:$1603.52Daily Rate:$172.11Occupancy:46.81%Regulation:High
Rank:#11Market:OlhãoCountry:PortugalProperties:475Monthly Revenue:$1826.97Daily Rate:$143.37Occupancy:52.02%Regulation:High
Rank:#12Market:Vila Real de Santo AntónioCountry:PortugalProperties:405Monthly Revenue:$1219.27Daily Rate:$140.39Occupancy:41.86%Regulation:High
Rank:#13Market:Moncarapacho e FusetaCountry:PortugalProperties:337Monthly Revenue:$1554.88Daily Rate:$167.53Occupancy:46.11%Regulation:High
Rank:#14Market:PorchesCountry:PortugalProperties:323Monthly Revenue:$1944.38Daily Rate:$190.14Occupancy:50.57%Regulation:High
Rank:#15Market:Alcantarilha e PêraCountry:PortugalProperties:200Monthly Revenue:$1812.54Daily Rate:$229.08Occupancy:44.57%Regulation:High
Rank:#16Market:FerragudoCountry:PortugalProperties:200Monthly Revenue:$2378.84Daily Rate:$256.33Occupancy:47.93%Regulation:High
Rank:#17Market:Castro MarimCountry:PortugalProperties:184Monthly Revenue:$1442.61Daily Rate:$171.90Occupancy:40.12%Regulation:High
Rank:#18Market:SilvesCountry:PortugalProperties:175Monthly Revenue:$2026.73Daily Rate:$216.60Occupancy:45.62%Regulation:High
Rank:#19Market:Estômbar e ParchalCountry:PortugalProperties:149Monthly Revenue:$1723.47Daily Rate:$269.11Occupancy:42.88%Regulation:High
Rank:#20Market:QuelfesCountry:PortugalProperties:130Monthly Revenue:$1402.24Daily Rate:$156.27Occupancy:46.60%Regulation:High
Rank:#21Market:São Brás de AlportelCountry:PortugalProperties:109Monthly Revenue:$2302.26Daily Rate:$257.04Occupancy:45.66%Regulation:High
Rank:#22Market:MonchiqueCountry:PortugalProperties:102Monthly Revenue:$1483.60Daily Rate:$138.82Occupancy:44.47%Regulation:High
Rank:#23Market:São Bartolomeu de MessinesCountry:PortugalProperties:80Monthly Revenue:$1427.80Daily Rate:$197.63Occupancy:44.88%Regulation:High
Rank:#24Market:Algoz e TunesCountry:PortugalProperties:62Monthly Revenue:$2012.54Daily Rate:$213.37Occupancy:45.43%Regulation:High
Rank:#25Market:PechãoCountry:PortugalProperties:32Monthly Revenue:$1480.76Daily Rate:$139.68Occupancy:45.26%Regulation:High

Our Methodology

At AirROI, we leverage advanced technology to process and analyze the world’s most comprehensive short-term rental dataset, helping investors make data-driven decisions.

Data Collection

  • Real-time data aggregation from tens of millions of listings globally
  • Comprehensive tracking of market-specific performance metrics
  • Local regulatory tracking

Data Processing

  • AI-powered analysis of booking patterns
  • Advanced machine learning for trend identification
  • Forward-looking market forecasting
  • Cross-market performance benchmarking

Key Metrics We Track

  • Occupancy rates and seasonal patterns
  • Revenue performance (ADR, RevPAR)
  • Market demand indicators
  • Investment metrics (ROI, operating costs)
  • Regulatory compliance requirements

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