How Much Does It Cost to Start a Airbnb & Vacation Rental Business?
Last updated: March 2026
National Average
Low
$11,000
Medium
$30,000
High
$90,000
Start a short-term vacation rental business listing properties on Airbnb, VRBO, and direct booking platforms.
Time to Launch
1-3 months
Profit Margins
20-45%
Break-Even Timeline
6-18 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Airbnb & Vacation Rental Business in Nationally
Budget:
$15,000
$8,000
$500
$500
$2,000
$600
$1,500
$800
Options
Employees:
One-Time Costs
$28,900
Monthly Costs
$0
First Year Total
$28,900
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $9,350 | $25,500 | $76,500 | $50 | 7.0% |
| West Virginia | $9,460 | $25,800 | $77,400 | $100 | 6.0% |
| Alabama | $9,680 | $26,400 | $79,200 | $200 | 4.0% |
| Arkansas | $9,790 | $26,700 | $80,100 | $45 | 6.5% |
| Oklahoma | $9,790 | $26,700 | $80,100 | $100 | 4.5% |
| Kansas | $9,900 | $27,000 | $81,000 | $160 | 6.5% |
| Indiana | $10,010 | $27,300 | $81,900 | $95 | 7.0% |
| Iowa | $10,010 | $27,300 | $81,900 | $50 | 6.0% |
| Michigan | $10,010 | $27,300 | $81,900 | $50 | 6.0% |
| Nebraska | $10,010 | $27,300 | $81,900 | $105 | 5.5% |
| Ohio | $10,010 | $27,300 | $81,900 | $99 | 5.8% |
| Kentucky | $10,120 | $27,600 | $82,800 | $40 | 6.0% |
| Louisiana | $10,120 | $27,600 | $82,800 | $100 | 4.5% |
| Missouri | $10,120 | $27,600 | $82,800 | $50 | 4.2% |
| Tennessee | $10,120 | $27,600 | $82,800 | $300 | 7.0% |
| Texas | $10,120 | $27,600 | $82,800 | $300 | 6.3% |
| Georgia | $10,340 | $28,200 | $84,600 | $100 | 4.0% |
| Illinois | $10,450 | $28,500 | $85,500 | $150 | 6.3% |
| New Mexico | $10,450 | $28,500 | $85,500 | $50 | 5.1% |
| Wisconsin | $10,450 | $28,500 | $85,500 | $130 | 5.0% |
| North Carolina | $10,560 | $28,800 | $86,400 | $125 | 4.8% |
| South Carolina | $10,560 | $28,800 | $86,400 | $110 | 6.0% |
| South Dakota | $10,670 | $29,100 | $87,300 | $150 | 4.5% |
| Minnesota | $10,780 | $29,400 | $88,200 | $155 | 6.9% |
| North Dakota | $10,890 | $29,700 | $89,100 | $135 | 5.0% |
| Wyoming | $11,000 | $30,000 | $90,000 | $100 | 4.0% |
| Nevada | $11,220 | $30,600 | $91,800 | $425 | 6.8% |
| Arizona | $11,330 | $30,900 | $92,700 | $50 | 5.6% |
| Florida | $11,330 | $30,900 | $92,700 | $125 | 6.0% |
| Idaho | $11,330 | $30,900 | $92,700 | $100 | 6.0% |
| Pennsylvania | $11,330 | $30,900 | $92,700 | $125 | 6.0% |
| Delaware | $11,440 | $31,200 | $93,600 | $110 | 0.0% |
| Virginia | $11,440 | $31,200 | $93,600 | $100 | 4.3% |
| Colorado | $11,660 | $31,800 | $95,400 | $50 | 2.9% |
| Montana | $11,660 | $31,800 | $95,400 | $70 | 0.0% |
| Utah | $11,660 | $31,800 | $95,400 | $54 | 4.8% |
| Oregon | $12,320 | $33,600 | $100,800 | $100 | 0.0% |
| Vermont | $12,320 | $33,600 | $100,800 | $125 | 6.0% |
| Maine | $12,540 | $34,200 | $102,600 | $175 | 5.5% |
| Rhode Island | $12,760 | $34,800 | $104,400 | $150 | 7.0% |
| New Hampshire | $12,870 | $35,100 | $105,300 | $102 | 0.0% |
| Washington | $12,980 | $35,400 | $106,200 | $200 | 6.5% |
| Connecticut | $13,090 | $35,700 | $107,100 | $120 | 6.3% |
| New Jersey | $13,750 | $37,500 | $112,500 | $125 | 6.6% |
| Alaska | $13,970 | $38,100 | $114,300 | $250 | 0.0% |
| Maryland | $14,190 | $38,700 | $116,100 | $100 | 6.0% |
| California | $14,850 | $40,500 | $121,500 | $70 | 7.3% |
| New York | $15,290 | $41,700 | $125,100 | $200 | 4.0% |
| Massachusetts | $16,500 | $45,000 | $135,000 | $500 | 6.3% |
| Hawaii | $21,230 | $57,900 | $173,700 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$25,500
- West Virginia$25,800
- Alabama$26,400
- Arkansas$26,700
- Oklahoma$26,700
5 Most Expensive States
- Hawaii$57,900
- Massachusetts$45,000
- New York$41,700
- California$40,500
- Maryland$38,700
Frequently Asked Questions
Starting an Airbnb rental business requires $15,000–$40,000 for a dedicated property, primarily covering furnishing ($3,000–$8,000), STR permits and insurance ($1,000–$2,500), photography, smart home devices, and deposits. Rental arbitrage (leasing and subletting with landlord permission) can start for $5,000–$10,000.
Earnings vary dramatically by location. A 2-bedroom apartment in a tourist market might earn $3,000–$6,000/month at 65–80% occupancy. Rural and suburban locations earn $1,500–$3,000/month. Use AirDNA or Mashvisor to research comparable property revenue in your target market before investing.
Rental arbitrage involves leasing a property from a landlord and subletting it short-term on Airbnb with the landlord's permission. You pay monthly rent ($1,500–$3,000) and earn short-term rental income ($3,000–$6,000+). The spread is your profit. Startup costs are lower, but you need landlord consent — most leases prohibit subletting.
No — many cities heavily restrict or ban short-term rentals. New York City, San Francisco, and Barcelona have near-prohibitions. Most cities require permits ($100–$500/year), limit nights per year (90 days in some jurisdictions), or require owner occupancy. Always verify local STR ordinances and HOA rules before purchasing.