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

Are you looking for a promising city to launch your Airbnb business in 2024? Look no further than Lincoln, Nebraska! This charming Midwestern city offers a perfect blend of affordability, growth potential, and tourist appeal that makes it an ideal location for starting a short-term rental.

Lincoln, the capital city of Nebraska, has been experiencing steady growth in recent years. The city's population has increased by 12.3% since 2010, reaching an estimated 289,102 residents in 2020. This growth trend is expected to continue, with projections showing Lincoln's population could surpass 300,000 by 2024. A growing population means a larger pool of potential guests for your Airbnb.

Moreover, Lincoln boasts a thriving tourism industry. In 2019, the city welcomed over 2.1 million visitors, generating $335 million in travel spending. According to the Lincoln Convention and Visitors Bureau, hotel occupancy rates in Lincoln reached 61.3% in June 2021, up from just 31.5% in June 2020. As travel continues to rebound, the demand for short-term rentals in Lincoln is poised to soar.

Another compelling reason to start your Airbnb in Lincoln is the city's affordability. The cost of living in Lincoln is 6.6% lower than the national average, with housing costs being particularly affordable at 16.1% below the U.S. average. This means you can acquire a rental property at a lower cost compared to many other cities, allowing for a higher return on investment.

Lincoln also offers diverse attractions that draw visitors year-round. From exploring the Capitol building and Sunken Gardens to attending Huskers football games and the annual Lincoln Marathon, there's always something happening in this vibrant city. Your Airbnb can cater to the steady stream of tourists, business travelers, and event attendees.

In conclusion, Lincoln, Nebraska's growing population, rebounding tourism, affordability, and variety of attractions make it a prime location to start your Airbnb business in 2024. With the right property and marketing strategy, you can capitalize on this opportunity and build a thriving short-term rental business in this gem of a city.

Lincoln Short-Term Rental Market Analysis

To make an informed decision about starting an Airbnb business in Lincoln, Nebraska, it's crucial to analyze the city's short-term rental market. Let's dive into the key metrics and trends that shape Lincoln's Airbnb landscape.

Lincoln Airbnb Occupancy Rate

According to data from AirDNA, Lincoln's Airbnb occupancy rates have shown resilience and growth:

• In 2022, the average occupancy rate was 64%, up from 58% in 2021
• As of August 2024, the year-to-date occupancy rate stands at 68%, indicating a positive trend

Lincoln Airbnb Nightly Rate

Lincoln's Airbnb nightly rates have remained competitive and stable over the past two years:

1. In 2022, the average daily rate (ADR) was $105, a slight increase from $102 in 2021
2. As of August 2024, the ADR is $110, suggesting a steady upward trajectory

Lincoln Airbnb Seasonality

Lincoln experiences a relatively stable demand for short-term rentals throughout the year, with some notable peaks:

1. Peak months: May, June, July, and October
2. The demand is driven by a mix of leisure travelers, business visitors, and event attendees
3. Football season (September to November) brings a surge in bookings from Huskers fans

Lincoln, Nebraska Short-Term Rental Growth Rate

Lincoln's short-term rental market benefits from the city's overall growth and thriving tourism industry:

1. Lincoln's population grew by 12.3% between 2010 and 2020, and is projected to exceed 300,000 by 2024
2. In 2019, Lincoln welcomed over 2.1 million visitors, generating $335 million in travel spending
3. Hotel occupancy rates reached 61.3% in June 2021, up from 31.5% in June 2020, indicating a strong recovery in the travel sector

Lincoln, Nebraska Key Local Events and Festivals

Lincoln hosts a variety of annual events and festivals that attract visitors and drive up Airbnb bookings:

1. Lincoln Marathon (May)
2. Cornhusker State Games (July)
3. Lancaster County Super Fair (August)
4. Lincoln Calling Music Festival (September)
5. Huskers Football home games (September to November)

Lincoln Mid-Term Rental Market

Lincoln's mid-term rental market, which caters to stays of 30 days or longer, is relatively strong:

1. According to local property managers and Airbnb hosts, mid-term rentals account for approximately 20% of the market
2. Typical mid-term renters include traveling professionals, relocating families, and students seeking temporary housing
3. The average length of stay for mid-term rentals is around 2-3 months

In conclusion, Lincoln's short-term rental market demonstrates strong fundamentals, with growing occupancy rates, stable nightly prices, and a diverse mix of demand drivers. The city's population growth, thriving tourism industry, and annual events provide a solid foundation for a successful Airbnb business in Lincoln, Nebraska.

Best Neighborhoods in Lincoln for an Airbnb Business

When starting an Airbnb business in Lincoln, Nebraska, choosing the right neighborhood is crucial for success. Consider factors such as proximity to attractions, tourist hotspots, and up-and-coming areas. Here are the top 5 neighborhoods in Lincoln to start your Airbnb venture:

1. Downtown Lincoln

Downtown Lincoln is the heart of the city, offering a vibrant atmosphere and easy access to popular attractions like the Haymarket District, Pinnacle Bank Arena, and the State Capitol.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $120
3. Airbnb Seasonality: High demand during summer months and Huskers football season
4. Estimated Annual Revenue: $29,800

According to Zillow, the median home value in Downtown Lincoln is $314,900 as of August 2024. For the best return on investment, consider investing in a 2-bedroom property, as it caters to both couples and small families.

2. Haymarket District

The historic Haymarket District is a popular destination for tourists and locals alike, known for its unique shops, restaurants, and entertainment venues.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $135
3. Airbnb Seasonality: Consistent demand throughout the year, with peaks during events and festivals
4. Estimated Annual Revenue: $35,500

Mashvisor reports that the median property price in the Haymarket District is $350,000 as of August 2024. A 1-bedroom or studio apartment can provide excellent returns due to the area's popularity among solo travelers and couples.

3. University Place

University Place is a charming neighborhood near the University of Nebraska-Lincoln, making it an ideal location for hosting students, parents, and visiting faculty.

1. Average Occupancy Rate: 65%
2. Average Daily Rate: $95
3. Airbnb Seasonality: High demand during academic year and graduation seasons
4. Estimated Annual Revenue: $22,500

According to Zillow, the median home value in University Place is $280,000 as of August 2024. Investing in a 3-bedroom property can accommodate larger groups and families visiting the university.

4. Wilderness Ridge

Wilderness Ridge is an upscale neighborhood known for its golf course, natural beauty, and proximity to shopping and dining options.

• Average Occupancy Rate: 60%
• Average Daily Rate: $150
• Airbnb Seasonality: Higher demand during summer months and golf season
• Estimated Annual Revenue: $32,900

Mashvisor indicates that the median property price in Wilderness Ridge is $400,000 as of August 2024. A 2-bedroom or 3-bedroom property can attract golf enthusiasts and families looking for a luxurious stay.

5. College View

College View is a diverse neighborhood near Union College, offering a mix of residential and commercial areas with easy access to parks and recreational facilities.

• Average Occupancy Rate: 62%
• Average Daily Rate: $90
• Airbnb Seasonality: Steady demand throughout the year, with slight increases during college events
• Estimated Annual Revenue: $20,400

According to Zillow, the median home value in College View is $250,000 as of August 2024. A 2-bedroom property can cater to visiting families and college-related guests while providing a good return on investment.

When selecting a neighborhood for your Airbnb business in Lincoln, consider your target audience, budget, and the unique features each area offers. By analyzing data-driven insights and understanding local dynamics, you can make an informed decision that sets your Airbnb venture up for success.

Best Lincoln Investment Property Types and Maximizing Your STR Revenue

To maximize your short-term rental revenue in Lincoln, Nebraska, it's essential to choose the right investment property type and offer amenities that appeal to your target guests. Let's explore the best real estate investment options and top-performing Airbnb amenities in the city.

Best Real Estate Property Investment in Lincoln

Based on recent trends and data from the last few years, the following property types are most popular for short-term rental use in Lincoln:

Single-Family Homes: Average property price: $350,000

Potential STR revenue:

• 2-bedroom: $28,000 annually
• 3-bedroom: $35,000 annually
• 4-bedroom: $42,000 annually

Townhouses: Average property price: $280,000

Potential STR revenue:

• 2-bedroom: $25,000 annually
• 3-bedroom: $32,000 annually

Condominiums: Average property price: $220,000

Potential STR revenue:

• Studio: $18,000 annually
• 1-bedroom: $22,000 annually
• 2-bedroom: $28,000 annually

Apartments: Average property price: $180,000

Potential STR revenue:

• Studio: $15,000 annually
• 1-bedroom: $20,000 annually
• 2-bedroom: $25,000 annually

Best Airbnb Amenities in Lincoln, Nebraska

By analyzing the top-performing Airbnb listings in Lincoln, we've identified the following amenities that can help maximize your short-term rental revenue:

• Self check-in: Offer guests the convenience of self check-in using a lockbox or smart lock, allowing for flexible arrival times and reduced host interaction.
• Enhanced cleaning protocols: Implement and highlight rigorous cleaning and sanitization practices to provide guests with peace of mind during their stay.
• High-speed internet: Provide reliable, high-speed Wi-Fi to cater to remote workers and guests who need to stay connected during their visit.
• Well-equipped kitchen: Offer a fully-stocked kitchen with modern appliances, cookware, and dining essentials to attract guests who prefer to cook their own meals.
• Outdoor space: Properties with a private patio, balcony, or backyard are highly sought-after, especially during the warmer months.
• Unique decor and local touches: Incorporate unique design elements and local artwork to create a memorable and authentic experience for your guests.
• Convenient location: Highlight your property's proximity to popular attractions, restaurants, and public transportation to appeal to a wide range of guests.
• Flexible cancellation policy: Offer a flexible or moderate cancellation policy to attract guests who value the ability to change their plans if needed.
• Thoughtful amenities: Provide extra amenities such as complimentary toiletries, a welcome basket, or local guidebooks to enhance the guest experience.
• Family-friendly features: For properties targeting families, include amenities such as a crib, high chair, toys, or board games to make their stay more comfortable and enjoyable.

By investing in the right property type and incorporating these top-performing amenities, you can maximize your short-term rental revenue and create a standout Airbnb listing in Lincoln, Nebraska.

Understanding Lincoln Short-Term Rental Regulations

As short-term rentals like Airbnb and Vrbo have gained popularity in Lincoln, Nebraska, the city has implemented regulations for operating STRs within city limits. As of June 2021, hosts must obtain a short-term rental license through the Building and Safety Department. Before applying, it's crucial to review Lincoln's STR ordinances to ensure your property is eligible, considering factors such as zoning restrictions, occupancy limits, building safety codes, and parking requirements.

All STR operators in Lincoln must acquire a license, which costs $250 per rental unit and must be renewed annually. Each unit requires a separate license. To apply, submit the completed application, fee, and necessary documentation to the Building and Safety Department. Operating an unlicensed STR can result in fines and legal action.

In addition to licensing, STRs in Lincoln are subject to lodging taxes totaling 12% of the nightly rate. Hosts must collect these taxes from guests and remit them to the proper authorities. Failure to properly collect and pay taxes can lead to fines, penalties, and legal action.

Lincoln also has citywide rules for STRs, including occupancy limits, restrictions on events and gatherings, quiet hours, parking requirements, and maintaining the property in a safe and clean condition. Low-density residential zones have additional restrictions, including a 5-year sunset clause on STR licenses.

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

Keys to Success as a Lincoln Airbnb Host

Starting an Airbnb business in Lincoln, Nebraska, can be a rewarding venture, but it requires careful planning and execution to succeed. In this section, we'll explore popular design themes, strategies for attracting customers, and potential challenges and guidelines for running a successful Airbnb in Lincoln.

Popular Design Themes in Lincoln

By analyzing the top-performing Airbnb listings in Lincoln, we've identified the following common design themes and layouts that contribute to their success:

• Modern Farmhouse: Incorporate rustic elements like reclaimed wood, mixed with modern furnishings and clean lines to create a cozy, yet stylish atmosphere.
• Mid-Century Modern: Embrace the retro charm of the 1950s and 60s with iconic furniture pieces, bold colors, and geometric patterns.
• Industrial Chic: Combine exposed brick, concrete floors, and metal accents with comfortable, modern furnishings to create a trendy, urban vibe.
• Bohemian Eclectic: Mix and match colors, patterns, and textures to create a free-spirited, artsy ambiance that appeals to creative travelers.
• Minimalist Scandinavian: Opt for a clean, uncluttered look with neutral colors, natural materials, and functional, stylish furniture.

To maximize revenue, focus on creating a cohesive, well-designed space that reflects your target audience's preferences and provides a memorable, comfortable stay.

How to Attract More Lincoln Customers

To increase bookings for your Lincoln Airbnb, consider the following tips:

• Optimize your listing title and description, highlighting your property's unique features, amenities, and proximity to popular attractions.
• Invest in high-quality photos that showcase your space in the best possible light, and consider hiring a professional photographer.
• Offer competitive pricing based on your property's features, location, and seasonal demand.
• Encourage guests to leave reviews by providing exceptional service and following up after their stay.
• Leverage social media platforms like Instagram and Facebook to promote your listing and engage with potential guests.
• Offer special promotions or discounts during slower periods to attract more bookings.
• Partner with local businesses, such as restaurants or tour operators, to cross-promote and offer exclusive deals to your guests.

Potential Challenges and Guidelines to Success for Lincoln Airbnb Hosts

While operating an Airbnb in Lincoln can be lucrative, hosts may face certain challenges:

• Seasonality: Demand may fluctuate throughout the year, with slower periods during the winter months.
• Competition: As the short-term rental market grows, hosts must work harder to differentiate their listings and provide exceptional experiences.
• Regulations: Staying compliant with local laws, licensing requirements, and tax obligations is crucial to avoid fines and legal issues.

To overcome these challenges and run a successful Airbnb, consider the following guidelines:

1. Prioritize guest communication and respond promptly to inquiries and concerns.
2. Maintain a high standard of cleanliness and regularly update your amenities to meet guest expectations.
3. Be proactive in your maintenance and repair schedule to avoid disruptions during guest stays.
4. Stay informed about local events, attractions, and recommendations to provide a personalized experience for your guests.
5. Foster positive relationships with neighbors and the local community to minimize potential conflicts and maintain a good reputation.

By understanding the local market, creating an inviting space, and prioritizing guest satisfaction, you can build a thriving Airbnb business in Lincoln, Nebraska.

Using BNBCalc to Find Profitable Properties in Lincoln, Nebraska

Investing in a short-term rental property can be a lucrative venture, but it's crucial to make informed decisions based on data and insights. BNBCalc is a powerful tool that can help aspiring Airbnb business owners in Lincoln, Nebraska, find and analyze profitable properties. In this section, we'll walk you through the steps to leverage BNBCalc in your investment journey.

Analyze Properties Using BNBCalc

Start by entering the address of the property you're interested in on the BNBCalc website. The tool will provide you with a comprehensive analysis, including estimated rental income, occupancy rates, and expenses. This information will help you determine the potential profitability of the property and make an informed decision.

Benchmark Comparable Rentals

BNBCalc allows you to compare your property to other nearby rentals in the area. By analyzing the performance of similar listings, you can gain insights into pricing strategies, amenities, and design choices that can help you maximize your rental income and stay competitive in the market.

Determine The Right Price and Property Size

Use BNBCalc's data-driven insights to determine the optimal number of bedrooms, bathrooms, and purchase price for your Airbnb investment. The tool takes into account factors like location, seasonality, and market trends to provide personalized recommendations that can help you maximize your revenue potential.

Make an Offer

Once you've identified a promising property and analyzed its potential returns using BNBCalc, it's time to make an offer. BNBCalc has partnered with STR lenders to help investors get prequalified for financing. We recommend working with Brian Bockholdt at Alliant Credit Union, who offers some of the lowest rates in the industry.

Use Our Tax Calculator

BNBCalc's tax calculator can help you estimate potential tax deductions from bonus depreciation. By understanding the tax implications of your investment, you can make more informed decisions and optimize your financial strategy. The tool takes into account factors like property type, purchase price, and rental income to provide personalized tax insights.

Come Up With a Buy Box

When searching for a profitable Airbnb investment in Lincoln, Nebraska, it's essential to have a clear buy box that outlines your specific investment criteria. Consider factors such as:

1. Location: Look for properties in popular neighborhoods, close to attractions, and with easy access to public transportation.
2. Property Type: Determine which property types (e.g., single-family homes, condos, or apartments) align with your investment goals and target audience.
3. Price Range: Set a realistic budget based on your financial situation and the potential returns of the property.
4. Rental Income Potential: Use BNBCalc's data to ensure the property can generate sufficient rental income to cover expenses and provide a healthy return on investment.
5. Occupancy Rates: Look for properties in areas with high occupancy rates to minimize vacancy risk and maximize your revenue potential.

By having a well-defined buy box, you can streamline your investment process and focus on properties that meet your specific criteria, increasing your chances of success as an Airbnb business owner in Lincoln, Nebraska.

Ready to start your Airbnb journey in Lincoln? 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 Lincoln 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.