Airbnb City Guide: The Best Places To Invest in Oakland, California

Airbnb Rules and Regulations in Oakland, California

In 2024, Oakland implements regulations for short-term rentals. Hosts are required to obtain a business license and a Short-Term Residential Rental Permit before listing their property. The city has capped the number of nights a non-owner-occupied property can be rented to 90 days per year, while owner-occupied rentals have no such limit. All hosts must collect and remit a 14% Transient Occupancy Tax on behalf of their guests.

To ensure guest safety, hosts are obligated to provide working smoke detectors, carbon monoxide alarms, and fire extinguishers in their rentals. Oakland has also introduced a "Good Neighbor Policy," requiring hosts to provide guests with a list of house rules and local ordinances to minimize disturbances in residential areas. Zoning restrictions limit the concentration of short-term rentals in certain neighborhoods to preserve community character.

Failure to adhere to these regulations may result in significant fines and the revocation of rental permits. Despite the strict regulatory environment, Oakland's Airbnb market remains active, with hosts adapting to the evolving landscape while providing unique accommodations for visitors to the city.

Oakland Airbnb Market Data:

• Average Revenue – $25.1K per year
• Average Daily Rate – $ 174.9 per night
• Average Occupancy Rate – 52%
• Average RevPAR – $91.7
• Average Home Prices – $780,188

1. Top Place to Invest in Oakland, California - Shafter

Nestled in the heart of North Oakland, Shafter is a vibrant and diverse neighborhood that offers a unique blend of historic charm and modern convenience. With its proximity to public transportation, thriving food scene, and rich cultural heritage, Shafter has become an increasingly attractive destination for residents and investors.

Shafter Airbnb Market Data:

• Average Revenue – $41.4K per year
• Average Daily Rate – $233.5 per night
• Average Occupancy Rate – 69%
• Average RevPAR – $167.9

Convenience - 8/10

Shafter boasts an impressive level of convenience, with easy access to public transportation and major highways. The MacArthur BART station is just a short walk away, connecting residents to downtown Oakland, San Francisco, and beyond. The neighborhood's central location also makes it a breeze to navigate the city by car or bike, with ample parking options and bike-friendly streets.

Tourist Attractions - 6/10

While Shafter may not be a top tourist destination, it does offer a handful of notable attractions. The historic Temescal Creek Park provides a tranquil escape from the bustling city, while the nearby Temescal Alley is home to a charming collection of artisanal shops and cafes. The neighborhood's proximity to other popular Oakland destinations, such as Rockridge and Piedmont Avenue, adds to its appeal.

Things to Do - 7/10

Shafter's diverse culinary scene is a major draw for residents and visitors alike. From trendy coffee shops and craft breweries to authentic ethnic eateries, there's no shortage of delicious options to explore. The neighborhood also hosts a weekly farmers market, showcasing the best of local produce and artisanal goods. For those seeking outdoor activities, the nearby Claremont Canyon Regional Preserve offers hiking trails with stunning views of the Bay Area.

Average Home Prices - 7/10

According to Zillow, the typical home value in Shafter, Oakland, as of 2024, is $1,244,950. This represents a 3.4% decrease over the past year, indicating a slight cooling of the market. Despite this recent dip, Shafter remains a relatively affordable option compared to some of the pricier neighborhoods in the area, making it an attractive prospect for investors seeking long-term appreciation potential.

Proximity to Work-Related Travel - 8/10

Shafter's central location makes it an ideal base for those who frequently travel for work. The neighborhood is just a short drive from the Oakland International Airport and the city's major hospitals, including Alta Bates Summit Medical Center and Kaiser Permanente Oakland Medical Center. The nearby Oakland Convention Center and Oracle Arena are also easily accessible, making Shafter a convenient choice for business travelers and event attendees.

X-Factor - 9/10

What sets Shafter apart is its strong sense of community and rich cultural heritage. The neighborhood's diverse population has fostered a vibrant arts scene, with numerous galleries, studios, and performance spaces showcasing local talent. Shafter's historic architecture, featuring a mix of Victorian and Craftsman-style homes, adds to its unique character and charm. The neighborhood's tight-knit community is evident in the numerous local events and festivals held throughout the year, bringing residents together to celebrate their shared love for the area.

2. Top Place to Invest in Oakland, California - Mosswood

Mosswood, a hidden gem in the heart of Oakland, California, is a neighborhood that seamlessly blends urban convenience with a laid-back, bohemian vibe. This up-and-coming area has been attracting the attention of savvy investors and young professionals alike, thanks to its prime location, vibrant culture, and promising real estate market.

Mosswood Airbnb Market Data:

• Average Revenue – $40.2K per year
• Average Daily Rate – $230.3 per night
• Average Occupancy Rate – 58%
• Average RevPAR – $129.3

Convenience - 8/10

One of Mosswood's greatest strengths is its convenience. The neighborhood is well-connected to the rest of Oakland and beyond, with easy access to public transportation, including the MacArthur BART station. Residents can also enjoy the benefits of being just a short drive away from downtown Oakland and major highways like I-580 and I-980.

Tourist Attractions - 6/10

While Mosswood may not be a top tourist destination in itself, it is surrounded by a variety of attractions that draw visitors to the area. The nearby Temescal district is known for its trendy shops, restaurants, and cafes, while the historic Grand Lake Theater is just a short drive away. The neighborhood's proximity to other popular Oakland destinations, such as Lake Merritt and Jack London Square, adds to its appeal.

Things to Do - 7/10

Mosswood offers a diverse range of activities for residents and visitors alike. The neighborhood's namesake, Mosswood Park, is a popular spot for picnics, sports, and community events. The park also features a community garden and a bustling farmers market on weekends. Foodies will appreciate the neighborhood's growing selection of restaurants and bars, ranging from casual eateries to upscale dining options.

Average Home Prices - 8/10

According to Zillow, the typical home value in Mosswood, Oakland, as of 2024 is $987,500. This represents a modest 1.8% appreciation over the past year, indicating a stable and growing real estate market. While prices in Mosswood are slightly higher than the Oakland average, the neighborhood's prime location and potential for future growth make it an attractive option for investors seeking to enter the Airbnb business.

Proximity to Work-Related Travel - 7/10

Mosswood's central location makes it a convenient base for those who travel frequently for work. The neighborhood is just a 20-minute drive from Oakland International Airport and is well-connected to major business districts in Oakland and beyond. While there are no major convention centers or sports venues within the neighborhood itself, the nearby Oracle Arena and Oakland Convention Center are easily accessible via public transportation or a short drive.

X-Factor - 9/10

What sets Mosswood apart is its unique blend of urban energy and community spirit. The neighborhood has a thriving arts scene, with several galleries and studios showcasing local talent. Mosswood's diverse population has fostered a welcoming and inclusive atmosphere, with residents from all walks of life coming together to create a vibrant and dynamic community. The neighborhood's historic homes and tree-lined streets add to its charm, making it an attractive option for those seeking a balance of city living and small-town warmth.

3. Top Place to Invest in Oakland, California - North Oakland

North Oakland, a vibrant and eclectic neighborhood, has emerged as a top destination for investors seeking to capitalize on the growing demand for short-term rentals in the Bay Area. With its rich history, diverse culture, and prime location, North Oakland offers a unique opportunity for those looking to invest in the short-term rental market.

North Oakland Airbnb Market Data:

• Average Revenue – $30K per year
• Average Daily Rate – $196.1 per night
• Average Occupancy Rate – 56%
• Average RevPAR – $111.8

Convenience - 9/10

One of North Oakland's greatest assets is its exceptional convenience. The neighborhood is well-served by public transportation, with the MacArthur BART station providing easy access to San Francisco, Berkeley, and other parts of the East Bay. The area is also conveniently located near major highways, making exploring the rest of the city and beyond a breeze.

Tourist Attractions - 7/10

While North Oakland may not be a primary tourist destination, it boasts a variety of attractions that appeal to visitors seeking an authentic Oakland experience. The historic Temescal district, with its trendy shops, artisanal eateries, and weekly farmers market, is a major draw for both locals and tourists. The nearby Rockridge neighborhood also offers a charming selection of boutiques, cafes, and restaurants.

Things to Do - 8/10

North Oakland offers a plethora of activities for residents and visitors alike. The area is home to several parks, including the sprawling Mosswood Park, which features a community garden, basketball courts, and ample space for picnics and outdoor gatherings. The neighborhood also boasts a thriving arts scene, with numerous galleries, studios, and performance venues showcasing local talent.

Average Home Prices - 7/10

According to Zillow, the typical home value in North Oakland as of 2024 is $1,187,900. This represents a modest 2.1% appreciation over the past year, indicating a stable and growing real estate market. While prices in North Oakland are higher than the city average, the neighborhood's prime location, amenities, and potential for future growth make it an attractive option for investors.

Proximity to Work-Related Travel - 8/10

North Oakland's central location makes it an ideal base for those who frequently travel for work. The neighborhood is just a short drive from Oakland International Airport and is well-connected to major business districts in Oakland, San Francisco, and the Silicon Valley. The nearby Alta Bates Summit Medical Center and Kaiser Permanente Oakland Medical Center are also easily accessible for medical professionals.

X-Factor - 9/10

Its unique blend of diversity, creativity, and community spirit sets North Oakland apart. The neighborhood is known for its vibrant arts scene, with numerous murals, public art installations, and cultural events throughout the year. North Oakland's diverse population has fostered a welcoming and inclusive atmosphere, with residents from all backgrounds coming together to create a dynamic and thriving community. The area's historic architecture, ranging from Victorian and Craftsman homes to modern lofts and apartments, adds to its distinctive character and charm.

4. Top Place to Invest in Oakland, California - Ralph Bunche/McClymonds

Nestled in the heart of West Oakland, the Ralph Bunche/McClymonds neighborhood is a hidden gem that has been garnering attention from savvy investors in recent years. With its rich history, affordable housing options, and proximity to downtown Oakland, this up-and-coming area presents a unique opportunity for those looking to invest in the Airbnb market.

Ralph Bunche/McClymonds Airbnb Market Data:

• Average Revenue – $37.9K per year
• Average Daily Rate – $135.7 per night
• Average Occupancy Rate – 84%
• Average RevPAR – $114

Convenience - 6/10

While Ralph Bunche/McClymonds may not have the same level of convenience as some other Oakland neighborhoods, it still offers decent access to public transportation and major highways. The West Oakland BART station is located just outside the neighborhood, providing a direct connection to San Francisco and other parts of the East Bay. However, the area's walkability and access to amenities are somewhat limited compared to more established neighborhoods.

Tourist Attractions - 4/10

Ralph Bunche/McClymonds is primarily a residential neighborhood and does not boast many tourist attractions of its own. However, its proximity to other popular Oakland destinations, such as Jack London Square and the historic 16th Street Station, may appeal to some visitors seeking a more authentic, off-the-beaten-path experience.

Things to Do - 5/10

While Ralph Bunche/McClymonds may not have the same abundance of activities as some other Oakland neighborhoods, it still offers a few notable options for residents and visitors alike. The neighborhood is home to several parks, including Lowell Park and McClymonds Mini Park, which provide spaces for outdoor recreation and community gatherings. The area also has a growing number of local businesses, including cafes, restaurants, and art galleries, that contribute to its unique character.

Average Home Prices - 9/10

According to Zillow, the typical home value in Ralph Bunche/McClymonds as of 2024 is $687,500. This represents a significant 5.2% appreciation over the past year, indicating a rapidly growing real estate market. Despite this growth, prices in Ralph Bunche/McClymonds remain significantly lower than the Oakland average, making it an attractive option for investors seeking affordable properties with strong potential for future appreciation.

Proximity to Work-Related Travel - 7/10

Ralph Bunche/McClymonds' location in West Oakland provides relatively easy access to major employment centers in the city and beyond. The neighborhood is just a short drive from downtown Oakland, where many businesses and government offices are located. The nearby West Oakland BART station also provides a convenient connection to San Francisco and other parts of the Bay Area.

X-Factor - 8/10

What sets Ralph Bunche/McClymonds apart is its strong sense of community and rich cultural heritage. The neighborhood has a long history of activism and resilience, with residents coming together to advocate for social justice and neighborhood improvement. This spirit of community is evident in the numerous murals, public art installations, and community gardens that can be found throughout the area. As the neighborhood continues to evolve and attract new investment, it has the potential to become a vibrant and sought-after destination for both residents and visitors alike.

5. Top Place to Invest in Oakland, California - Fairview Park

Fairview Park, a charming and tranquil neighborhood in the heart of Oakland, has been attracting the attention of astute investors looking to capitalize on the growing demand for short-term rentals in the Bay Area. Fairview Park offers a unique investment opportunity for those seeking to enter the Airbnb market with its picturesque streets, proximity to nature, and easy access to the city's main attractions.

Fairview Park Airbnb Market Data:

• Average Revenue – $25.4K per year
• Average Daily Rate – $172.9 per night
• Average Occupancy Rate – 66%
• Average RevPAR – $115

Convenience - 7/10

Fairview Park offers a moderate level of convenience for residents and visitors alike. While the neighborhood is primarily residential, it is just a short drive from downtown Oakland and other major commercial districts. Public transportation options are somewhat limited, but the nearby MacArthur BART station provides a convenient connection to San Francisco and other parts of the East Bay.

Tourist Attractions - 5/10

As a primarily residential neighborhood, Fairview Park does not have many tourist attractions of its own. However, its proximity to other popular Oakland destinations, such as Lake Merritt and the Oakland Museum of California, may appeal to visitors seeking a quieter, more laid-back experience. The neighborhood's scenic streets and well-maintained homes also provide a pleasant backdrop for leisurely walks and bike rides.

Things to Do - 6/10

While Fairview Park may not have the same abundance of activities as some other Oakland neighborhoods, it still offers a few notable options for residents and visitors. The nearby Dimond Park provides ample space for outdoor recreation, including hiking trails, picnic areas, and a playground. The neighborhood also has a small but growing number of local businesses, including cafes and specialty shops, that contribute to its unique character.

Average Home Prices - 8/10

According to Zillow, the typical home value in Fairview Park as of 2024 is $1,087,500. This represents a modest 2.8% appreciation over the past year, indicating a stable and growing real estate market. While prices in Fairview Park are higher than the Oakland average, the neighborhood's desirable location, safety, and charm make it an attractive option for investors seeking properties with strong potential for long-term appreciation.

Proximity to Work-Related Travel - 6/10

Fairview Park's location in the heart of Oakland provides relatively easy access to major employment centers in the city and beyond. The neighborhood is just a short drive from downtown Oakland, where many businesses and government offices are located. However, its distance from major highways and limited public transportation options may be a drawback for some travelers.

X-Factor - 8/10

What sets Fairview Park apart is its strong sense of community and small-town charm. The neighborhood's tree-lined streets, well-maintained homes, and friendly residents create a welcoming and peaceful atmosphere that is rare to find in a bustling city like Oakland. This unique character, combined with the neighborhood's proximity to nature and urban amenities, makes it an attractive option for visitors seeking a more authentic and immersive experience. As the demand for short-term rentals in Oakland continues to grow, Fairview Park's distinctive appeal and strong community spirit may help it stand out in an increasingly competitive market.

6. Top Place to Invest in Oakland, California - Bushrod

Nestled in the heart of North Oakland, Bushrod is a hidden gem that has been making waves in the real estate market. This small, three-block-wide micro-neighborhood has recently gained attention as a hotspot for investment opportunities, particularly for those interested in entering the short-term rental market.

Bushrod Airbnb Market Data:

• Average Revenue – $28.2K per year
• Average Daily Rate – $179.7 per night
• Average Occupancy Rate – 68%
• Average RevPAR – $110.7

Convenience - 7/10

While Bushrod may not have an abundance of amenities within its borders, its location provides easy access to the rest of Oakland and beyond. The MacArthur BART station is just a short distance away, connecting residents to San Francisco and other parts of the East Bay. The neighborhood's proximity to major highways also makes it convenient for those who prefer to drive.

Tourist Attractions - 4/10

Bushrod itself is primarily a residential area and does not boast many tourist attractions. However, its central location puts it within reach of various Oakland destinations, such as the trendy Temescal district and the historic Grand Lake Theater. While visitors may not flock to Bushrod specifically, its proximity to other areas of interest adds to its appeal.

Things to Do - 5/10

As a small, tight-knit community, Bushrod offers limited activities within its boundaries. The neighborhood park provides a space for outdoor recreation and community gatherings, while a handful of local businesses, including a beloved barbershop, contribute to the area's charm. Residents can easily access a wider variety of dining, shopping, and entertainment options in the surrounding neighborhoods.

Average Home Prices - 8/10

According to Zillow, the median home price in Bushrod as of February 2024 is $906,000, representing an 8.5% decrease compared to the previous year. This dip in prices, coupled with the neighborhood's growing popularity, presents an attractive opportunity for investors looking to capitalize on the short-term rental market. Despite the recent decline, Bushrod's home prices remain competitive within the Oakland market.

Proximity to Work-Related Travel - 6/10

Bushrod's location in North Oakland provides reasonable access to major employment centers, hospitals, and convention venues. The nearby MacArthur BART station offers a convenient connection to downtown Oakland and San Francisco, while the neighborhood's proximity to I-580 and I-980 makes it accessible for those traveling by car. However, the lack of major business hubs within Bushrod itself may be a drawback for some investors.

X-Factor - 9/10

What sets Bushrod apart is its strong sense of community and the growing interest it has garnered from homebuyers and investors alike. The neighborhood's small size and residential character create a tight-knit atmosphere that appeals to those seeking a more intimate, community-oriented experience. As the demand for short-term rentals in Oakland continues to rise, Bushrod's unique charm and central location position it as an attractive option for investors looking to tap into this market.

7. Top Place to Invest in Oakland, California - Piedmont Avenue

Piedmont Avenue, a vibrant and eclectic neighborhood in the heart of Oakland, has emerged as a top destination for savvy investors looking to capitalize on the growing demand for short-term rentals in the Bay Area. This bustling enclave, known for its diverse array of shops, restaurants, and entertainment options, offers a unique opportunity for those seeking to enter the lucrative Airbnb market.

Piedmont Avenue Airbnb Market Data:

• Average Revenue – $25.7K per year
• Average Daily Rate – $178.4 per night
• Average Occupancy Rate – 49%
• Average RevPAR – $85.6

Convenience - 9/10

One of Piedmont Avenue's greatest strengths is its exceptional convenience. The neighborhood is well-served by public transportation, with multiple AC Transit bus lines running through the area and connecting it to other parts of Oakland and beyond. The nearby MacArthur BART station provides easy access to San Francisco and other East Bay cities, making it an ideal location for travelers and commuters alike.

Tourist Attractions - 7/10

While Piedmont Avenue may not have major tourist attractions in the traditional sense, it offers a wealth of unique experiences that appeal to visitors seeking an authentic taste of Oakland. The neighborhood is home to a diverse collection of independent shops, galleries, and boutiques showcasing the work of local artisans and designers. The historic Piedmont Theatre, a beloved landmark dating back to the 1920s, adds charm and cultural appeal to the area.

Things to Do - 8/10

Piedmont Avenue is a hub of activity, offering an array of things to do for both residents and visitors. The neighborhood boasts an impressive selection of restaurants, cafes, and bars, catering to a wide range of tastes and preferences. From casual eateries to upscale dining establishments, there's no shortage of culinary delights to explore. The area also hosts regular events, such as the monthly Art Walk, which showcases the work of local artists and brings the community together.

Average Home Prices - 7/10

According to Zillow, the median home price in the Piedmont Avenue neighborhood as of February 2024 is $1,195,000. This represents a modest 2.3% appreciation compared to the previous year, indicating a stable and growing real estate market. While prices in this area are higher than the Oakland average, the neighborhood's prime location, amenities, and strong rental demand make it an attractive option for investors seeking long-term returns.

Proximity to Work-Related Travel - 8/10

Piedmont Avenue's central location makes it an ideal base for corporate rentals, targeting those who frequently travel for work. The neighborhood is just a short drive from downtown Oakland, where many major businesses and government offices are located. The nearby Alta Bates Summit Medical Center is easily accessible for medical professionals, while the Oakland Convention Center and Oracle Arena are just a few minutes away, making it convenient for event attendees and sports enthusiasts.

X-Factor - 9/10

What sets Piedmont Avenue apart is its unique blend of urban sophistication and small-town charm. The neighborhood's tree-lined streets, historic architecture, and independent businesses create a welcoming and vibrant atmosphere that appeals to both residents and visitors. The strong sense of community, evident in the numerous local events and initiatives, adds to the area's desirability. As the demand for authentic, immersive experiences continues to grow in the short-term rental market, Piedmont Avenue's distinctive character and prime location make it a top contender for investors seeking to capitalize on this trend.