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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Downey presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.
Downey, CA sits in the heart of the Los Angeles metro — a market where investor interest is surging (active listings grew 75% year-over-year) yet revenue metrics remain modest relative to sky-high home values. With an average annual revenue of $24,321 against an average home value of $1,120,511, the revenue-to-price ratio runs below average, meaning deal sourcing and property selection matter more here than in less competitive markets. That said, the market's proximity to major LA attractions, corporate corridors, and a growing supply signal that demand exists for well-positioned short-term rentals.
According to Rabbu market data, the Downey short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 63 |
| Average Daily Rate (ADR) | vs. $551 state avg. | $158 |
| Average Occupancy Rate | vs. 43% state avg. | 37% |
| RevPAN | ADR * Occupancy Rate | $58 |
| Average Monthly Revenue | Historical 12-month average | $2,026 |
| Average Annual Revenue | Historical 12-month average | $24,321 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.
Investors look at Downey for its position within the broader LA metro demand ecosystem, where diverse traveler profiles — from families visiting nearby theme parks to professionals on extended stays — support year-round bookings.
Key investment factors
"Downey presents a competitive but nuanced opportunity for STR investors. The ROI score of 42 out of 100 reflects a below-average revenue-to-price ratio — unsurprising given Southern California property values — paired with average occupancy stability and supply/demand dynamics. Seasonality is notable: July revenue ($2,745) nearly doubles January ($1,570), so investors should plan for meaningful cash-flow swings between summer peaks and winter lulls. Selective deal sourcing, particularly targeting larger properties that command higher RevPAN, will be essential for generating returns that justify Downey's elevated entry costs."
— Rabbu Market Analysis Team
Revenue peaks sharply in July ($2,745) and August ($2,641), while January marks the low point at $1,570 — a spread of nearly 75% that signals pronounced summer-driven seasonality. Spring months like March ($2,140) and June ($2,308) offer a secondary lift, giving investors roughly five months of above-average performance to anchor annual returns.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$1,570 |
| February |
|
$1,745 |
| March |
|
$2,140 |
| April |
|
$1,925 |
| May |
|
$1,957 |
| June |
|
$2,308 |
| July |
|
$2,745 |
| August |
|
$2,641 |
| September |
|
$1,852 |
| October |
|
$1,884 |
| November |
|
$1,748 |
| December |
|
$1,801 |
One-bedroom units dominate Downey's supply with 40 of the 63 active listings (63%), while only 5 four-bedroom and 6 three-bedroom properties are listed. This heavy concentration at the smaller end could signal less competition — and therefore more opportunity — for investors willing to acquire or convert larger homes.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
40 |
| 2 bedrooms |
|
8 |
| 3 bedrooms |
|
6 |
| 4 bedrooms |
|
5 |
ADR scales steeply with size, from $92 for 1-bedroom listings to $354 for 4-bedroom properties — nearly a 4x premium. The jump from 2-bedroom ($213) to 3-bedroom ($277) is proportionally smaller, suggesting that 4-bedroom units capture the strongest pricing power relative to incremental space.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$92 |
| 2 bedrooms |
|
$213 |
| 3 bedrooms |
|
$277 |
| 4 bedrooms |
|
$354 |
Four-bedroom properties lead decisively with a RevPAN of $164, more than quadruple the 1-bedroom figure of $38 and far ahead of 3-bedrooms at $68. Notably, 2-bedroom listings post the lowest RevPAN at just $25, reflecting their weak 12% occupancy rate — a size segment that appears oversupplied or underperforming relative to demand.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$38 |
| 2 bedrooms |
|
$25 |
| 3 bedrooms |
|
$68 |
| 4 bedrooms |
|
$164 |
Four-bedroom properties maintain the highest occupancy at 47%, followed by 1-bedrooms at 41%, while 2-bedroom listings lag significantly at just 12%. This wide disparity suggests that travelers in Downey skew toward either solo/couple stays or larger group accommodations, with 2-bedroom units caught in an awkward middle ground.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
41% |
| 2 bedrooms |
|
12% |
| 3 bedrooms |
|
25% |
| 4 bedrooms |
|
47% |
Monthly revenue climbs steadily with property size, from $1,371 for 1-bedrooms to $5,316 for 4-bedroom listings — nearly four times the smallest units. Three-bedroom properties ($2,827) outperform 2-bedrooms ($2,531) despite having fewer listings, reinforcing the advantage of targeting larger configurations in this market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$1,371 |
| 2 bedrooms |
|
$2,531 |
| 3 bedrooms |
|
$2,827 |
| 4 bedrooms |
|
$5,316 |
Four-bedroom properties stand out with an average annual revenue of $63,800, roughly double the 3-bedroom figure of $33,927 and nearly four times the 1-bedroom total of $16,461. For investors evaluating return potential against acquisition costs, the larger-unit premium in Downey is substantial enough to warrant targeting homes with more bedrooms.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$16,461 |
| 2 bedrooms |
|
$30,379 |
| 3 bedrooms |
|
$33,927 |
| 4 bedrooms |
|
$63,800 |
Parking leads the amenity list at 97% prevalence — a near-necessity in car-dependent Southern California — followed by kitchen (86%) and washer (71%). The strong presence of workspace (70%) and self check-in (65%) suggests that guests in Downey expect a comfortable, independent-stay experience, while differentiators like pools (25%) and hot tubs (10%) remain relatively uncommon and could offer competitive advantages.
| Amenity | Trend | Value |
|---|---|---|
| Parking |
|
97% |
| Kitchen |
|
86% |
| Washer |
|
71% |
| Workspace |
|
70% |
| Dryer |
|
68% |
| Self Check-in |
|
65% |
| Backyard |
|
52% |
| Outdoor Furniture |
|
43% |
| Patio or Balcony |
|
43% |
| BBQ Grill |
|
40% |
| Pets |
|
33% |
| Pool |
|
25% |
| Hot Tub |
|
10% |
| EV Charger |
|
3% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Downey Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Below average | 40% |
| Occupancy Stability | Average | 30% |
| Market Growth Trend | Above average | 15% |
| Supply/Demand Balance | Average | 15% |
Downey's ROI score of 42 out of 100 places it in the 'Competitive Opportunity' band, indicating that while demand and growth trends are encouraging, the below-average revenue-to-price ratio makes it essential to source deals carefully. Occupancy stability and supply/demand balance both register as average, and the above-average market growth trend (75% listing increase) confirms rising investor activity. Pairing this score with thorough local regulatory research and a focus on higher-RevPAN property sizes will help investors identify the opportunities within this market that pencil out.
Understanding local STR regulations is essential before investing in Downey. Here's the current regulatory landscape:
The City of Downey and the State of California may require short-term rental operators to obtain permits, a business license, or register their property before listing it. Investors should verify current requirements directly with Downey's planning or community development department before purchasing.
Common restrictions in Southern California STR markets include occupancy limits, minimum-stay requirements, noise and nuisance ordinances, designated parking provisions, and potential caps on the number of permits issued. HOA rules can impose additional limitations, so it's important to review CC&Rs for any property under consideration.
Short-term rental hosts in California are typically subject to Transient Occupancy Tax (TOT), and may also owe state and local sales taxes on rental income. Platforms like Airbnb often collect and remit some of these taxes on behalf of hosts, but operators should confirm their full obligations with a local tax advisor.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Downey can provide current regulatory guidance.
Financing an Airbnb investment in Downey requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Downey's STR market is expected to continue expanding as listing growth outpaces many comparable Southern California submarkets. Summer months should remain the revenue peak, with July and August likely commanding ADRs 5–10% above the annual average, while winter months may hover closer to $1,500–$1,800 in monthly revenue. Occupancy could stabilize in the 35–40% range market-wide as new supply absorbs, though larger properties — especially 4-bedrooms — have room to outperform if priced strategically. Investors should treat these as estimates rather than guarantees, given the pace of new entrants and evolving local regulations."
— Rabbu Market Analysis Team
Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.
Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages as of April 2026 and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.
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