Downey, CA Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

42 / 100

Downey presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.

Downey Short-Term Rental Market Overview

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.

Key Market Statistics

According to Rabbu market data, the Downey short-term rental market shows:

Key Airbnb and short-term rental market statistics.
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.

Why Investors Consider Downey

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

  • 75% year-over-year listing growth signals strong investor and traveler interest in the market
  • Proximity to Downtown LA, Disneyland, and major employment centers drives diverse demand
  • 4-bedroom properties generate $63,800 in average annual revenue, creating a clear upside for larger units
  • Workspace and self check-in amenities in 65–70% of listings suggest a healthy extended-stay and business traveler segment
  • ADR of $158 sits well below the California state average of $551, offering room for niche positioning and rate optimization

Expert Market Assessment

"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

Understanding Downey's ROI Score: 42/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

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%

What This Means for Investors

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.

Short-Term Rental Regulations in Downey

Understanding local STR regulations is essential before investing in Downey. Here's the current regulatory landscape:

Permit Requirements

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.

Key Restrictions

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.

Tax Obligations

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.

Short-Term Rental Financing for Downey

Financing an Airbnb investment in Downey requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Downey Lender →

Future Outlook & Long-Term Forecast

"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

Frequently asked questions about Airbnb in Downey, CA

What is the average Airbnb occupancy rate in Downey?
The average occupancy rate for Airbnb listings in Downey is currently 37%, which trails the California state average of 43%. Occupancy varies significantly by property size — 4-bedroom units lead at 47%, while 2-bedroom listings average just 12%. These figures reflect trailing performance across active listings and individual results will depend on pricing, listing quality, and guest experience.
How much do Airbnb hosts make in Downey?
Based on the trailing 12 months of booking data, the average Airbnb host in Downey earns approximately $2,026 per month, or about $24,321 annually. Larger properties significantly outperform: 4-bedroom listings average $5,316 per month ($63,800 annually), while 1-bedroom units bring in around $1,371 per month. Actual earnings depend on factors like location within Downey, amenities offered, and how effectively the listing is managed.
Is Downey a good market for Airbnb investment?
Downey earns a Rabbu ROI Score of 42 out of 100, categorized as a 'Competitive Opportunity.' The market shows above-average growth (listings are up 75% year-over-year) and average occupancy stability, but high property values relative to rental revenue mean the revenue-to-price ratio is below average. Investors who target larger properties and optimize their listings can still find solid returns, but the market rewards careful deal selection over broad-based investing.
What is the average daily rate (ADR) for Airbnb in Downey?
The average daily rate across all active Airbnb listings in Downey is $158, well below the California state average of $551. ADR scales meaningfully with property size: 1-bedroom listings average $92 per night, while 4-bedroom properties command $354 per night. This pricing dynamic makes larger properties considerably more attractive on a per-night revenue basis.
Are short-term rentals legal in Downey?
Short-term rental regulations vary and can change frequently. The City of Downey and the State of California may require permits, business licenses, or registration for STR operations. We recommend contacting Downey's local planning department and reviewing any applicable HOA restrictions before listing a property to ensure full compliance.
When is peak season for Airbnb in Downey?
Peak season in Downey runs from June through August, with July being the strongest month at an average revenue of $2,745 per listing. August follows closely at $2,641. The slowest months are January ($1,570) and February ($1,745), creating a roughly 75% spread between peak and off-peak earnings. Investors should budget for this seasonal swing when projecting cash flow.
How many Airbnbs are there in Downey?
As of April 2026, there are 63 active Airbnb listings in Downey. The market is growing quickly, with a 75% year-over-year increase in active listings. The supply is heavily concentrated in 1-bedroom units (40 listings), with only 8 two-bedroom, 6 three-bedroom, and 5 four-bedroom properties — suggesting potential opportunity in the larger-property segment.
How is Airbnb revenue calculated in Downey?
The annual and monthly revenue figures for Downey are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the remainder up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

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.

What this data includes

  • Regularly updated active Airbnb and STR listing counts by market and property size
  • Average daily rate, occupancy, and RevPAN metrics across property configurations
  • Monthly and annual revenue trends based on trailing 12-month booking data
  • Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
  • Data compiled from Rabbu proprietary analytics and third-party providers for consistency

Sources and disclaimers

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.

Next Steps

Ready to invest in Downey's short-term rental market? Take action with these resources:

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