Asheville, North Carolina, nestled in the Blue Ridge Mountains, has become a sought-after destination for tourists seeking a blend of natural beauty, vibrant arts, and culinary delights. This surge in tourism has opened opportunities for property owners to capitalize on short-term rentals through platforms like Airbnb. This guide delves into the legal framework, profitability metrics, and prime neighborhoods for Airbnb hosting in Asheville as of 2025.
Understanding Asheville’s Short-Term Rental Regulations
Before listing a property on Airbnb in Asheville, it’s crucial to navigate the city’s regulatory landscape:
- Short-Term Rentals (STRs): The city permits short-term rentals exclusively within designated resort zoning districts. This means that new short-term rental properties—specifically those rented for less than 30 days—are largely banned within city limits. Source: Airbtics
- Homestays: While whole-home STRs are restricted, “homestays” are allowed under specific conditions. These involve renting out a portion of your primary residence while you are present. Source: Airbtics
- Buncombe County: Properties within the Asheville city limits are subject to the city’s short-term rental regulations, which require a permit for whole-unit rentals in most cases. Homestays, where the long-term resident is present during the rental, are allowed in more areas but still require a permit. Source: BNB Calc
Staying updated with local ordinances is essential, as regulations may evolve. Regularly consult the City of Asheville for the latest information.
Profitability Metrics: What Hosts Can Expect
Asheville’s dynamic economy and tourist attractions contribute to a robust short-term rental market. Here’s an overview of key profitability indicators:
- Average Daily Rate (ADR): Approximately $229, reflecting the average rental revenue earned for an occupied room per day. Source: AirDNA
- Occupancy Rate: Around 54%, indicating moderate demand with booking opportunities. Source: AirDNA
- Annual Revenue: Average annual revenue stands at $25,307. Source: AirDNA
- Peak Revenue Months: June, July, and May are identified as the months with the highest average earnings, indicating peak season in Asheville. Source: AirROI
These figures underscore the potential for profitable Airbnb hosting in Asheville, especially when properties are well-managed and strategically located.
Top Neighborhoods for Airbnb Hosting in Asheville
Choosing the right neighborhood is pivotal for maximizing occupancy and revenue. Here are some of Asheville’s most promising areas for Airbnb investments:
1. Downtown Asheville
- Highlights: The heart of Asheville, known for its vibrant arts scene, shopping, and dining options.
- Ideal For: Tourists seeking proximity to major attractions and an authentic Asheville experience. Source: The Broke Backpacker
2. West Asheville
- Highlights: A residential area featuring beautiful homes, parks, and a family-friendly environment.
- Ideal For: Families and guests seeking a relaxed, neighborhood feel with convenient transportation options. Source: The Broke Backpacker
3. River Arts District (RAD)
- Highlights: A unique area featuring local artisans, galleries, and craft shops.
- Ideal For: Travelers interested in arts, crafts, and a more cultural experience. Source: The Broke Backpacker
4. Montford Area Historic District
- Highlights: A serene community offering historic homes and a quiet atmosphere.
- Ideal For: Guests seeking a peaceful retreat with luxury amenities. Source: The Broke Backpacker
5. Biltmore Village
- Highlights: A resort community known for its upscale accommodations and proximity to the Biltmore Estate.
- Ideal For: Families and groups looking for spacious accommodations with resort amenities. Source: The Broke Backpacker
Conclusion: Navigating Airbnb Hosting in Asheville
Asheville’s appeal as a travel destination presents lucrative opportunities for Airbnb hosts. By adhering to local regulations, understanding market dynamics, and selecting prime neighborhoods, hosts can optimize their rental income. Continuous engagement with community guidelines and market trends will ensure sustained success in Asheville’s short-term rental landscape.
