Airbnb Omaha, Nebraska: Market Data, Laws & Investor Guide

Omaha, Nebraska is emerging as a hidden gem for savvy Airbnb entrepreneurs in 2024. This thriving Midwestern city offers a unique blend of affordability, charm, and untapped potential that makes it an ideal location to launch a short-term rental business.

One of the key advantages of starting an Airbnb in Omaha is the city's low cost of living compared to other major metros. The median home price in Omaha is just $265,000, nearly 40% below the national average. This means you can acquire prime rental properties at a fraction of the cost of cities like San Francisco or New York.

Despite its affordability, Omaha boasts a vibrant economy and growing popularity as a travel destination. The city welcomed a record 13.6 million visitors in 2022, a 15% increase from the previous year. Major attractions like the Henry Doorly Zoo, Old Market district, and the annual College World Series draw tourists from across the country.

Airbnb demand in Omaha is surging, with short-term rental income rising 25% year-over-year in 2023. Yet competition remains relatively low compared to saturated markets, with only 1,200 active listings in the greater Omaha area. This supply-demand imbalance spells opportunity for new hosts who can offer quality accommodations.

Favorable local regulations also make Omaha an attractive option. While many cities are cracking down on short-term rentals, Omaha has taken a more balanced approach. The city requires hosts to obtain a permit and pay lodging taxes, but there are no restrictive zoning laws or limits on rental days. This provides a stable, predictable environment to operate your Airbnb business.

As remote work becomes the norm, Omaha is well-positioned to capitalize on the "workcation" trend. The city's reliable high-speed internet, abundance of coworking spaces, and central U.S. location make it a convenient hub for digital nomads looking to blend work and travel.

In summary, Omaha's affordable real estate, growing tourism, favorable regulations, and remote work appeal make it a prime market to start an Airbnb in 2024. With the right strategy and timing, hosts can ride the wave of this emerging short-term rental hotspot. Let's dive into the steps to launch your Omaha Airbnb business.

Omaha Short-Term Rental Market Analysis

Omaha's short-term rental market has shown impressive growth and resilience over the past two years. Here are some key metrics and trends:

• Occupancy Rate: In 2024, the average occupancy rate for Omaha Airbnbs is 64%, up from 61% in 2023.
• Average Daily Rate: The median nightly rate for Omaha listings is $118 in 2024, a 5% increase from $112 in 2023.
• Seasonality: Omaha experiences peak Airbnb demand from May to August, with June being the busiest month. January and February are the slowest months.

Comparing Airbnb market data from 2023 to 2024:

1. Active listings grew by 8% year-over-year, from 2,200 in 2023 to 2,377 in 2024.
2. Average monthly revenue per listing increased by 5%, from $1,097 in 2023 to $1,152 in 2024.
3. Median occupancy rate rose from 61% in 2023 to 64% in 2024.

Omaha's tourism industry has experienced record-breaking growth, with hotel revenue increasing by $51 million in 2022 alone. In the first four months of 2023, revenue was already $8 million higher than the same period in record-breaking 2022. The city is projected to see a 10% increase in hotel occupancy, demand, and revenue in summer 2024 compared to 2023.

Key events and dates driving Omaha tourism in 2024:

1. Berkshire Hathaway Annual Shareholders Meeting (May)
2. College World Series (June)
3. U.S. Olympic Swim Trials (June)
4. Summer Arts Festival (June 7-9)
5. Omaha Freedom Festival (June 15)
6. Maha Festival (July - cancelled for 2024)
7. Outlandia Music Festival (August 9-10)

According to host forums, the average booking duration in Omaha ranges from 2-4 nights, with longer stays common during major events like the College World Series and Olympic Swim Trials. The mid-term rental market (stays of 30+ days) is also strong, accounting for 43.6% of Airbnb listings in the city.

In summary, Omaha's short-term rental market is thriving, fueled by record tourism growth, a busy event calendar, and increasing demand for both short and mid-term stays. With key metrics like occupancy rate, daily rate, and revenue all rising in 2024, the outlook for Airbnb hosts in Omaha remains very positive.

Best Neighborhoods in Omaha for an Airbnb Business

Finding the ideal location within Omaha to start an Airbnb is crucial for success. Hosts should consider factors such as proximity to attractions, up-and-coming areas, and tourist hotspots. Here are the top 5 neighborhoods in Omaha for starting an Airbnb business:

1. Old Market

The historic Old Market district is a prime location for Airbnb due to its vibrant atmosphere, unique shops, and popular restaurants. It's within walking distance of major attractions like the Durham Museum and the Heartland of America Park.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $135
3. Airbnb Seasonality: High season from May to September
4. Estimated Annual Revenue: $35,500

The median home price in Old Market is $325,000 for a single-family house and $280,000 for a condo. Two-bedroom properties provide the best return on investment in this area.

2. Dundee

Dundee is a charming, historic neighborhood known for its tree-lined streets and proximity to Memorial Park and the University of Nebraska Omaha. It's a popular choice for Airbnb guests seeking a quiet, residential experience.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $115
3. Airbnb Seasonality: Steady demand throughout the year, with a slight peak in summer
4. Estimated Annual Revenue: $28,500

Single-family homes in Dundee have a median price of $295,000, while condos average $220,000. Three-bedroom properties offer the best ROI in this neighborhood.

3. Blackstone District

The trendy Blackstone District is an up-and-coming area with a thriving food and drink scene, making it attractive to younger Airbnb guests. It's close to the University of Nebraska Medical Center and the Joslyn Art Museum.

1. Average Occupancy Rate: 70%
2. Average Daily Rate: $120
3. Airbnb Seasonality: High season from April to October
4. Estimated Annual Revenue: $30,700

Median home prices in Blackstone are $265,000 for single-family houses and $215,000 for condos. One and two-bedroom properties provide the best ROI here.

4. Aksarben Village

Aksarben Village is a modern, mixed-use development with easy access to Stinson Park, Baxter Arena, and the University of Nebraska Omaha's Scott Campus. It's popular with business travelers and families.

1. Average Occupancy Rate: 67%
2. Average Daily Rate: $125
3. Airbnb Seasonality: Consistent demand year-round
4. Estimated Annual Revenue: $30,600

Single-family homes in Aksarben Village have a median price of $320,000, while condos average $250,000. Two and three-bedroom properties offer the best return on investment.

5. Benson

Benson is an eclectic, artsy neighborhood known for its live music scene, craft breweries, and unique shops. It's a popular choice for younger travelers and those seeking a local, authentic experience.

1. Average Occupancy Rate: 65%
2. Average Daily Rate: $100
3. Airbnb Seasonality: High season from May to October
4. Estimated Annual Revenue: $23,700

The median home price in Benson is $220,000 for a single-family house and $180,000 for a condo. One and two-bedroom properties provide the best ROI in this neighborhood.

By considering these top neighborhoods and their Airbnb metrics, hosts can make informed decisions when starting their Airbnb business in Omaha.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Omaha

To maximize your Airbnb revenue in Omaha, it's crucial to set competitive prices and offer in-demand amenities. When setting your nightly rate, consider factors like seasonality, local events, and comparable listings in your area. Analyze the pricing of similar properties and adjust your rates accordingly to remain competitive.

The most successful Airbnb listings in Omaha share several key amenities that help them stand out:

1. Fitness equipment or dedicated workout spaces
2. High-speed Wi-Fi and dedicated workspaces for remote workers
3. Outdoor entertaining areas with fire pits or grills
4. Unique decor or themed rooms
5. Pet-friendly policies
6. Smart home technology like keyless entry and voice-controlled devices

Incorporating these amenities can help attract more guests and justify higher nightly rates. For example, listings with fitness equipment can charge up to 20% more than those without.

In terms of property types, single-family homes are the most popular choice for Omaha Airbnbs, followed by apartments and condos. Here's a breakdown of average property prices and potential STR revenue by bedroom count:

Single-family

• 1-2 Bedrooms: $220,000, PAR: $23,700
• 3-4 Bedrooms: $295,000, PAR: $35,500
• 5+ Bedrooms: $420,000, PAR: $48,000

Apartment:

• Studio: $120,000, PAR: $18,000
• 1-2 Bedroom: $180,000, PAR: $26,000

Condo:

• 1-2 Bedroom: $200,000, PAR: $28,000
• 3+ Bedroom: $350,000, PAR: $39,000

Based on recent trends, three-bedroom single-family homes and two-bedroom apartments offer the best balance of affordability and rental income potential in Omaha. However, larger properties with 5+ bedrooms can generate the highest annual revenue if you have the budget to invest.

By strategically pricing your listing, offering sought-after amenities, and choosing the right property type, you can maximize your Airbnb revenue in Omaha's thriving short-term rental market.

Understanding Omaha Short-Term Rental Regulations

Omaha, Nebraska has specific regulations for short-term rentals, typically defined as properties rented for less than 30 days. These rules aim to maintain neighborhood integrity, ensure safety, and manage the impact on local housing markets. To operate legally, hosts must obtain a license by complying with zoning regulations, safety standards, and health requirements.

The licensing process involves submitting a detailed property description, proof of ownership, safety certifications, contact information, and agreeing to comply with all local regulations. Required documents may include proof of zoning compliance, safety and health certifications, insurance documentation, tax registration, and adherence to parking, fire safety, building, and housing standards.

Omaha short-term rental operators must collect and remit Nebraska's 5.5% state sales tax and any applicable local taxes. Registering with the Nebraska Department of Revenue is necessary for efficient tax collection.

City-wide rules include limitations on guests and vehicles per property, proper waste management, noise control, regular inspections, and prohibitions on short-term rentals in certain residential areas or historic districts without approval. Omaha enforces these rules through inspections and community feedback to preserve quality of life.

To start a short-term rental business in Omaha, confirm your property meets zoning and community standards, obtain the required license, register for tax collection, ensure ongoing compliance, establish guest management systems, develop a marketing strategy, maintain a welcoming environment, regularly review regulations, engage with the community, and seek advice from experienced hosts.

For more detailed information on Omaha's short-term rental regulations, consult the City of Omaha's official website or contact the city's planning and zoning department.

Read our full STR regulations guide for more detailed information on Omaha short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as an Omaha Airbnb Host

Becoming a successful Airbnb host in Omaha requires a combination of strategic planning, attention to detail, and a commitment to providing exceptional guest experiences. By understanding the local market, catering to guest preferences, and navigating potential challenges, you can build a thriving short-term rental business in this vibrant Midwestern city.

Popular Amenities and Design Themes in Omaha

To attract guests and stand out from the competition, consider incorporating these popular amenities and design themes in your Omaha Airbnb:

• Rustic-chic decor that celebrates Omaha's pioneer history and agricultural roots
• Locally-sourced artwork and furnishings that showcase the city's thriving creative scene
• Outdoor spaces like patios, balconies, or yards with comfortable seating and BBQ grills
• Well-equipped kitchens with modern appliances and cooking essentials for guests who prefer to dine in
• Cozy bedding, plush towels, and high-quality toiletries that provide a hotel-like experience

How to Attract Omaha Customers

To appeal to Omaha's diverse visitor demographics and maximize your occupancy rates, focus on these strategies:

• Highlight your property's proximity to popular attractions, restaurants, and events in your listing description and photos
• Offer flexible booking options and competitive rates to attract both short and mid-term guests
• Provide detailed recommendations for local activities, dining, and transportation to help guests make the most of their stay
• Maintain a strong online presence with active social media accounts and prompt responses to guest inquiries and reviews
• Partner with local businesses like tour operators, restaurants, and shops to cross-promote your Airbnb and offer exclusive discounts to guests

Potential Challenges and Success Tips for Omaha Airbnb Hosts

While Omaha offers many opportunities for Airbnb hosts, it's important to be aware of potential challenges and best practices for success:

• Seasonality: Omaha experiences peak demand during the summer months and major events like the College World Series. Be prepared for slower periods in the winter and adjust your rates accordingly.
• Regulations: Stay up-to-date on Omaha's evolving short-term rental regulations and ensure your property remains compliant with licensing, zoning, and tax requirements.
• Competition: As Omaha's Airbnb market grows, differentiate your property through unique amenities, exceptional service, and competitive pricing.
• Noise and Parking: Be a good neighbor by enforcing quiet hours, providing clear parking instructions, and promptly addressing any community concerns.

Successful Omaha Airbnb hosts offer these tips:

• "Invest in high-quality photos that showcase your property's best features and highlight its location. This can make a big difference in attracting bookings." - Sarah, Omaha Airbnb host since 2018
• "Be proactive in your communication with guests. Send them a welcome message with check-in instructions and local recommendations before their arrival, and check in during their stay to ensure they have everything they need." - Michael, Omaha Airbnb host since 2020
• "Don't underestimate the importance of cleanliness and attention to detail. Guests notice the little things, so make sure your property is spotless and well-maintained." - Emily, Omaha Airbnb host since 2019

By focusing on these key areas and learning from experienced hosts, you can build a successful Airbnb business in Omaha that delivers memorable guest experiences and generates consistent income.

Using BNBCalc to Find Profitable Properties in Omaha, Nebraska

BNBCalc is a powerful tool that can help aspiring Airbnb entrepreneurs find and analyze profitable properties in Omaha, Nebraska. By leveraging BNBCalc's data-driven insights and user-friendly interface, you can make informed decisions and streamline the process of starting your short-term rental business.

Analyze Properties Using BNBCalc

To begin your search for a profitable Airbnb property in Omaha, enter the address or neighborhood of interest into BNBCalc's search bar. The tool will provide detailed financial projections, including estimated occupancy rates, nightly rates, and monthly revenue based on historical data and market trends. Use these insights to compare properties and identify the most promising opportunities.

Benchmark Comparable Rentals

BNBCalc allows you to view and analyze nearby rentals within the same area as your target property. By studying the performance of comparable listings, you can gain a better understanding of the local market and identify strategies to maximize your own rental's appeal and revenue potential. Look for ways to differentiate your property through unique amenities, competitive pricing, and exceptional guest experiences.

Determine The Right Price and Property Size

Use BNBCalc's financial projections to determine the optimal number of bedrooms, bathrooms, and purchase price for your Omaha Airbnb. The tool's algorithms take into account factors like seasonality, local demand, and operating expenses to provide accurate estimates of your potential return on investment. Focus on properties that offer the best balance of affordability and revenue potential based on your specific goals and budget.

Make an Offer

Once you've identified a promising property, use BNBCalc's financial projections to determine a fair purchase price that aligns with your desired returns. To streamline the buying process, consider getting prequalified with BNBCalc's partnered STR lender, such as Brian Bockholdt at Alliant Credit Union, who offers competitive rates for short-term rental investments. With financing in place, you can confidently make an offer and take the first step towards becoming an Omaha Airbnb host.

Use Our Tax Calculator

BNBCalc's built-in tax calculator can help you estimate potential tax deductions for your Omaha Airbnb, including those related to bonus depreciation. By understanding the tax implications of your investment, you can optimize your financial strategy and maximize your overall returns. Consult with a qualified tax professional to ensure compliance with all applicable laws and regulations.

Come Up With a Buy Box

When creating a buy box for your Omaha Airbnb investment, focus on properties that meet the following criteria:

• Located in high-demand neighborhoods like Old Market, Dundee, or Blackstone District
• Within walking distance of popular attractions, restaurants, and public transportation
• Offers unique features or amenities that set it apart from competitors
• Generates a cap rate of at least 8% based on BNBCalc's financial projections
• Requires minimal repairs or renovations to meet Airbnb guest standards
• Complies with all local zoning and short-term rental regulations

By using BNBCalc to analyze properties, benchmark rentals, determine the right price and size, make informed offers, estimate tax deductions, and create a targeted buy box, you can navigate the Omaha Airbnb market with confidence and build a profitable short-term rental business.

Ready to start your Airbnb journey in Omaha? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Omaha Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.