Airbnb City Guide: The Best Places To Invest in Lincoln, Nebraska

Airbnb Rules and Regulations in Lincoln, Nebraska

As of 2024, short-term rental operators in Lincoln must adhere to a set of regulations to legally run their Airbnb businesses. The city requires hosts to obtain a short-term rental license, which costs $250 per unit and must be renewed annually. Zoning district regulations determine where short-term rentals are permitted, with specific standards for AG, AGR, R-1 through R-8, and several business districts. Occupancy is limited to two people per sleeping area, with a maximum of 12 guests per rental.

In certain residential zones, there are caps on the percentage of multifamily units that can be licensed as short-term rentals. Hosts must also collect and remit the Hotel Occupation Tax to the Finance Department. While Airbnb collects state-administered sales and lodging taxes on behalf of hosts, it does not collect locally administered occupation taxes, which remain the responsibility of the host. Failure to comply with these regulations may result in city enforcement actions.

Lincoln Airbnb Market Data:

• Average Revenue – $51.3K per year
• Average Daily Rate – $357.9 per night
• Average Occupancy Rate – 44%
• Average RevPAR – $159.3
• Average Home Prices – $270,193

1. Top Place to Invest in Lincoln, Nebraska - Downtown Lincoln

Downtown Lincoln is the heart of Nebraska's capital city, offering a vibrant mix of history, culture, and modern amenities. This bustling area is an attractive destination for both residents and visitors alike, making it an ideal location for establishing a new Airbnb rental.

Downtown Lincoln Airbnb Market Data:

• Average Revenue – $54.6K per year
• Average Daily Rate – $363.6 per night
• Average Occupancy Rate – 44%
• Average RevPAR – $163.7

Convenience - 8/10

Downtown Lincoln offers excellent convenience, with a wide range of shops, restaurants, and services within walking distance. The area is well-connected by public transportation, making it easy for residents and visitors to navigate the city without a car.

Tourist Attractions - 7/10

The downtown area boasts several notable tourist attractions, including the Nebraska State Capitol, the Haymarket District, and the University of Nebraska-Lincoln campus. These landmarks draw visitors from around the region, providing a steady stream of potential guests for Airbnb and STR properties.

Things to Do - 9/10

From exploring the Haymarket District's unique shops and restaurants to attending live performances at the Lied Center for Performing Arts, there's no shortage of things to do in Downtown Lincoln. The area also hosts numerous local festivals and events, attracting even more visitors.

Average Home Prices - 6/10

According to Zillow, the median home price in Downtown Lincoln as of April 2024 is $325,000, which represents a 3.2% appreciation rate over the past year. While this price point is relatively affordable compared to other major cities, it may be considered high for the local market. The modest appreciation rate indicates a stable but not rapidly growing market.

Proximity to Work-Related Travel - 8/10

Downtown Lincoln is conveniently located near several major employers, including the State Capitol, the University of Nebraska-Lincoln, and Bryan Health. The area is also within easy reach of the Lincoln Airport and the Lancaster Event Center, making it an ideal base for business travelers and convention attendees.

X-Factor - 7/10

Downtown Lincoln presents a solid investment opportunity for those interested in the short-term rental market. Its convenience, work-related proximity, and unique character make it an attractive destination for both visitors and residents. However, investors should be aware of the challenges posed by parking, traffic congestion, and the need for more diverse attractions and amenities. With careful property selection and management, Downtown Lincoln can offer a profitable and rewarding investment experience.

2. Top Place to Invest in Lincoln, Nebraska - Wilderness Ridge

Nestled in the southeastern part of Lincoln, Wilderness Ridge is a picturesque neighborhood that perfectly blends natural beauty and modern living. This tranquil area is an attractive option for short-term rental investors seeking a unique and desirable location.

Wilderness Ridge Airbnb Market Data:

• Average Revenue – $36.1K per year
• Average Daily Rate – $339.1 per night
• Average Occupancy Rate – 41%
• Average RevPAR – $137.6

Convenience - 6/10

While Wilderness Ridge is not as centrally located as Downtown Lincoln, it still offers a fair level of convenience. The neighborhood has a few shops and restaurants within its boundaries, but residents may need to travel a bit further for more extensive options.

Tourist Attractions - 5/10

Wilderness Ridge itself is not a major tourist destination, but it does offer some appealing features for visitors. The Wilderness Ridge Golf Club is a popular attraction for golf enthusiasts, and the nearby Holmes Lake Park provides opportunities for outdoor recreation.

Things to Do - 6/10

The Wilderness Ridge area offers a range of activities for residents and visitors, primarily focused on outdoor pursuits. In addition to golfing and enjoying the park, people can explore the nearby MoPac Trail or visit the Lincoln Children's Zoo, which is just a short drive away.

Average Home Prices - 7/10

According to Zillow data for 2024, the average home price in Wilderness Ridge is $450,000. This represents a 2.8% appreciation rate over the past year, indicating a stable real estate market. While prices are higher than the Lincoln average, the area's unique features and desirability make it a promising investment opportunity for Airbnb and STR investors.

Proximity to Work-Related Travel - 5/10

Wilderness Ridge is not as conveniently located for work-related travel as some other areas of Lincoln. It is a bit further from major employers like hospitals and the University of Nebraska-Lincoln. However, it is still within a reasonable driving distance of these destinations.

X-Factor - 8/10

What makes Wilderness Ridge stand out is its stunning natural beauty and peaceful atmosphere. The neighborhood's proximity to Holmes Lake Park and the Wilderness Ridge Golf Club creates a serene and inviting environment that can be highly appealing to Airbnb and STR guests seeking a relaxing getaway.

3. Top Place to Invest in Lincoln, Nebraska - Fallbrook

Fallbrook, located in the northern part of Lincoln, is a charming and well-established neighborhood with a family-friendly atmosphere and easy access to the city's amenities. This attractive area presents a promising opportunity for Airbnb and short-term rental investors looking for a stable and growing market.

Fallbrook Airbnb Market Data:

• Average Revenue – $41.2K per year
• Average Daily Rate – $277.3 per night
• Average Occupancy Rate – 48%
• Average RevPAR – $134.8

Convenience - 7/10

Fallbrook offers good convenience, with several shops, restaurants, and services located within the neighborhood. Residents can easily access major highways, making traveling to other parts of the city convenient.

Tourist Attractions - 4/10

While Fallbrook itself is not a major tourist destination, it is located near some of Lincoln's attractions. The Lincoln Children's Museum and the Haymarket District are just a short drive away, providing options for visitors staying in the area.

Things to Do - 6/10

Fallbrook offers a range of activities for residents and visitors, primarily focused on outdoor recreation. The neighborhood has several parks, including Fallbrook Park and Bicentennial Park, which provide hiking, biking, and picnicking opportunities. The nearby Oak Lake Park also offers fishing and boating.

Average Home Prices - 8/10

According to Zillow data for 2024, the average home price in Fallbrook is $350,000. This represents a 3.5% appreciation rate over the past year, indicating a strong and growing real estate market. The neighborhood's attractive prices and stable growth make it an appealing option for Airbnb and STR investors.

Proximity to Work-Related Travel - 6/10

Fallbrook is located a moderate distance from major work-related destinations in Lincoln. It is about a 15-minute drive from the University of Nebraska-Lincoln and about 20 minutes from the city's main hospitals. While not as convenient as some other areas, it is within reasonable commuting distance.

X-Factor - 7/10

What sets Fallbrook apart is its strong sense of community and family-friendly atmosphere. The neighborhood's well-maintained homes, safe streets, and good schools make it an attractive option for families. This unique character can be appealing to Airbnb and STR guests seeking a comfortable and welcoming environment for their stay in Lincoln.

4. Top Place to Invest in Lincoln, Nebraska - Sunset Acres

Located in the southwestern part of Lincoln, Sunset Acres is a quiet and well-established neighborhood that offers a peaceful retreat from the hustle and bustle of the city. This charming area presents a unique opportunity for Airbnb and short-term rental investors seeking a niche market.

Sunset Acres Airbnb Market Data:

• Average Revenue – $39.3K per year
• Average Daily Rate – $300.7 per night
• Average Occupancy Rate – 42%
• Average RevPAR – $129.8

Convenience - 5/10

Sunset Acres offers moderate convenience, with a few shops and restaurants located within the neighborhood. However, residents may need to travel a bit further for more extensive shopping and dining options. The area is not as well-connected by public transportation as some other parts of the city.

Tourist Attractions - 3/10

Sunset Acres itself is not a significant tourist destination, as it is primarily a residential area. However, it is located relatively close to some of Lincoln's attractions, such as the Sunken Gardens and the Lincoln Children's Zoo, which are both within a 15-minute drive.

Things to Do - 5/10

The Sunset Acres area offers a limited range of activities, mainly focused on outdoor recreation. The neighborhood has a few small parks, such as Sunset Park and Williamsburg Park, which provide walking, jogging, and picnicking opportunities. Residents can also access the nearby Wilderness Park for hiking and nature walks.

Average Home Prices - 7/10

According to Zillow data for 2024, the average home price in Sunset Acres is $280,000. This represents a 2.5% appreciation rate over the past year, indicating a stable real estate market. The neighborhood's relatively affordable prices and steady growth make it an attractive option for Airbnb and STR investors looking for a lower-cost entry point.

Proximity to Work-Related Travel - 4/10

Sunset Acres is located a considerable distance from major work-related destinations in Lincoln. It is about a 25-minute drive from the University of Nebraska-Lincoln and about 30 minutes from the city's main hospitals. This may not be the most convenient location for guests traveling for work-related purposes.

X-Factor - 6/10

Sunset Acres's quiet, residential character and proximity to natural areas like Wilderness Park make it unique. The neighborhood's peaceful atmosphere and outdoor recreation access can appeal to Airbnb and STR guests seeking a more low-key and nature-oriented experience in Lincoln.

5. Top Place to Invest in Lincoln, Nebraska - Indian Village

Nestled in the heart of Lincoln, Indian Village is a historic and charming neighborhood that offers a unique blend of character and convenience. This vibrant area presents an exciting opportunity for short-term rental investors looking to tap into a niche market with a strong sense of community.

Indian Village Airbnb Market Data:

• Average Revenue – $67.2K per year
• Average Daily Rate – $563.7 per night
• Average Occupancy Rate – 37%
• Average RevPAR – $208.1

Convenience - 8/10

Indian Village boasts excellent convenience, with a variety of shops, restaurants, and services located within walking distance. The neighborhood is well-connected by public transportation, making it easy for residents and visitors to explore the city without relying on a car.

Tourist Attractions - 6/10

While Indian Village itself is not a major tourist destination, it is located near several of Lincoln's top attractions. The Historic Haymarket District, with its unique shops and restaurants, is just a short drive away, as is the University of Nebraska-Lincoln campus.

Things to Do - 7/10

Indian Village offers a range of activities for residents and visitors, focusing on the neighborhood's rich history and community events. The area hosts several annual festivals, such as the Indian Village Art Walk, which showcases local artists and craftspeople. Residents can also enjoy the nearby Antelope Park, which features walking trails, a playground, and a golf course.

Average Home Prices - 7/10

According to Zillow data for 2024, the average home price in Indian Village is $320,000. This represents a 3.8% appreciation rate over the past year, indicating a strong and growing real estate market. The neighborhood's unique character and convenient location make it an attractive option for Airbnb and STR investors.

Proximity to Work-Related Travel - 7/10

Indian Village is located a moderate distance from major work-related destinations in Lincoln. It is about a 10-minute drive from the University of Nebraska-Lincoln and about 15 minutes from the city's main hospitals. The neighborhood's central location makes it a convenient choice for guests traveling for work-related purposes, making it a decent corporate rental location.

X-Factor - 9/10

What sets Indian Village apart is its strong sense of community and historic charm. The neighborhood features a mix of well-preserved historic homes and newer construction, creating a unique and visually appealing atmosphere. The area's active neighborhood association and regular community events foster a tight-knit and welcoming environment that can be highly appealing to Airbnb and STR guests seeking an authentic and immersive experience in Lincoln.