Hillsborough, NC Airbnb Market Data, Statistics, and Occupancy Rates

Hillsborough Short-Term Rental Market Overview

Hillsborough, NC is a small but growing short-term rental market with 39 active Airbnb listings and an average annual revenue of $25,082 per property. The market's ADR of $254 sits just below the North Carolina state average of $262, while listing supply has surged 162% year over year — a sign of rising investor interest in this historic town near the Triangle region. With above-average occupancy stability and relatively modest competition, Hillsborough offers a niche opportunity for investors willing to source deals selectively.

Key Market Statistics

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

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Hillsborough

Hillsborough attracts STR investors because of its stable occupancy patterns, proximity to major Triangle-area employers and universities, and a still-emerging competitive landscape where selective deal sourcing can pay off.

Expert Market Assessment

"Hillsborough represents a moderate opportunity — the ROI score of 53 out of 100 reflects a market where investor interest is strong but revenue-to-price ratios lag behind peers, largely because average home values sit at $756,096 against annual revenues of roughly $25,000. Seasonality is relatively mild, with revenue ranging from $1,439 in January to $2,503 in November, indicating a roughly 74% spread between the slowest and strongest months. The market rewards larger properties disproportionately: 3-bedroom listings pull in $40,057 annually versus $18,905 for 1-bedrooms. Investors who target the right property size and price point can carve out a viable position, but the math requires discipline."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Hillsborough

Average revenue by month in Hillsborough

Revenue in Hillsborough follows a moderate seasonal curve, peaking in November at $2,503 and bottoming out in January at $1,439 — a spread of about $1,064. The fall months (October through December) and midsummer (May, July) are the strongest performers, while the first quarter consistently lags, making cash reserve planning important for winter months.

Active Airbnb listings by property size in Hillsborough

One-bedroom listings dominate the Hillsborough supply with 18 of the 39 total active listings, followed by 10 two-bedroom and just 7 three-bedroom properties. The relative scarcity of 3-bedroom homes — combined with their significantly higher revenue — may signal an underserved niche for investors willing to acquire larger properties.

Average daily rate (ADR) by property size in Hillsborough

ADR scales sharply with size in Hillsborough: 1-bedroom listings average $133 per night, 2-bedrooms come in at $153, and 3-bedroom properties command $269 — more than double the 1-bedroom rate. The jump from 2 to 3 bedrooms is especially steep, suggesting strong guest demand for larger homes in this market.

Average RevPAN by property size in Hillsborough

Three-bedroom properties deliver the strongest RevPAN at $77 per available night, nearly doubling the $40 and $42 figures for 1- and 2-bedroom listings respectively. This gap persists even though occupancy rates are similar across sizes, making the 3-bedroom category the clear efficiency leader for revenue generation.

Average occupancy rates by property size in Hillsborough

Occupancy rates are tightly clustered across property sizes, ranging from 28% for 2-bedroom listings to 30% for 1-bedrooms, with 3-bedrooms at 29%. This consistency means revenue differences between sizes are driven almost entirely by rate premiums rather than booking frequency, which simplifies the investment thesis around larger properties.

Average monthly revenue by property size in Hillsborough

Three-bedroom listings lead monthly revenue at $3,338, outpacing 2-bedrooms ($1,975) by nearly 69% and 1-bedrooms ($1,575) by more than double. For investors focused on monthly cash flow, the 3-bedroom segment clearly offers the strongest income potential in Hillsborough.

Average annual revenue by property size in Hillsborough

On an annual basis, 3-bedroom properties generate approximately $40,057 — more than twice the $18,905 earned by 1-bedroom listings and roughly 69% more than the $23,701 from 2-bedrooms. Given the significant revenue premium, investors targeting Hillsborough should strongly consider the 3-bedroom category, provided acquisition costs align with return expectations.

Most common amenities for Airbnb listings in Hillsborough

Parking (97%), kitchens (90%), and backyards (77%) are near-universal among Hillsborough listings, reflecting the market's suburban and rural character where guests expect car-friendly, home-like stays. Differentiating amenities like hot tubs (15%) and pools (18%) remain relatively uncommon, presenting an opportunity for hosts to stand out and potentially command higher nightly rates.

Understanding Hillsborough's ROI Score: 53/100

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

What This Means for Investors

Hillsborough's ROI score of 53 out of 100 lands in the 'Competitive Opportunity' band, meaning the market has real potential but demands careful deal selection. The below-average revenue-to-price ratio — driven by home values averaging $756,096 against annual revenues around $25,000 — is the primary drag on the score, though above-average occupancy stability and balanced supply-demand dynamics provide a foundation of consistency. Pairing this data with thorough local regulatory research and targeting higher-earning 3-bedroom properties can help investors tilt the math in their favor.

Short-Term Rental Regulations in Hillsborough

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

Permit Requirements

Short-term rental operators in Hillsborough, NC may be required to obtain a permit or register their property with local authorities before listing. Investors should verify current permit requirements directly with the Town of Hillsborough and Orange County, as regulations in North Carolina can vary by municipality.

Key Restrictions

Common restrictions that may apply include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. HOA rules can also impose additional limitations on short-term rentals, so investors should review any applicable covenants before purchasing a property.

Tax Obligations

North Carolina requires short-term rental operators to collect and remit state sales tax and local occupancy taxes, though platforms like Airbnb often handle a portion of this collection automatically. Investors should confirm their specific obligations with the North Carolina Department of Revenue and the Town of Hillsborough.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Hillsborough can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Hillsborough's STR market is likely to see continued supply growth as investor awareness catches up with the area's proximity to Durham and Chapel Hill. Occupancy rates, currently around 30%, may face modest pressure from the rapid influx of new listings, though the market's demonstrated stability suggests demand has a solid floor. Revenue is expected to remain seasonal, with fall months like October and November continuing to outperform winter, and ADR could nudge up by 1–3% if hosts differentiate through property upgrades and premium amenities. Investors entering now should plan for a ramp-up period as the market absorbs new supply."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Hillsborough, NC

What is the average Airbnb occupancy rate in Hillsborough?

The average Airbnb occupancy rate in Hillsborough is currently 30%, which falls slightly below the North Carolina state average of 34%. Occupancy is relatively consistent across property sizes, ranging from 28% for 2-bedroom listings to 30% for 1-bedroom units. While these figures are on the lower side, the market's occupancy stability has been rated above average, suggesting reliable — if not exceptional — booking patterns throughout the year.

How much do Airbnb hosts make in Hillsborough?

Airbnb hosts in Hillsborough earn an average of $2,090 per month, which translates to roughly $25,082 per year based on trailing 12-month booking data. Earnings vary significantly by property size: 1-bedroom listings average $18,905 annually, 2-bedrooms bring in about $23,701, and 3-bedroom properties lead the market at approximately $40,057 per year. Revenue peaks in the fall months, with November averaging $2,503.

Is Hillsborough a good market for Airbnb investment?

Hillsborough scores a 53 out of 100 on Rabbu's ROI Score, placing it in the 'Competitive Opportunity' category. The market has above-average occupancy stability and balanced supply-demand dynamics, but its revenue-to-price ratio is below average given home values around $756,096. Investors who focus on 3-bedroom properties — which generate nearly double the RevPAN of smaller units — and source deals below the market average price can find workable returns, though this market requires more selective deal sourcing than some peers.

What is the average daily rate (ADR) for Airbnb in Hillsborough?

The average daily rate for Airbnb listings in Hillsborough is $254, just under the North Carolina state average of $262. ADR varies by property size: 1-bedroom listings average $133 per night, 2-bedrooms average $153, and 3-bedroom properties command $269 per night. The premium for larger properties is significant and reflects guest willingness to pay more for added space in this market.

Are short-term rentals legal in Hillsborough?

Short-term rentals are currently operating in Hillsborough, NC, with 39 active Airbnb listings in the market. However, local regulations can change, and operators may need to obtain permits or comply with zoning, occupancy, and tax requirements. Investors should verify the latest rules directly with the Town of Hillsborough and Orange County before purchasing a property.

When is peak season for Airbnb in Hillsborough?

Peak season for Airbnb in Hillsborough runs primarily through the fall, with November ($2,503) and October ($2,327) delivering the highest average monthly revenues. Summer months like May ($2,285) and July ($2,289) also perform well. The slowest period is winter, with January averaging $1,439 — about 42% less than the November peak. This seasonal pattern likely reflects leaf-peeping tourism and event-driven travel in the Triangle region.

How many Airbnbs are there in Hillsborough?

There are currently 39 active Airbnb listings in Hillsborough as of April 2026. The supply is dominated by 1-bedroom properties (18 listings), followed by 2-bedroom units (10) and 3-bedroom homes (7). Notably, the market has experienced 162% year-over-year growth in active listings, indicating rapidly increasing investor and host interest.

How is Airbnb revenue calculated in Hillsborough?

The annual and monthly revenue figures for Hillsborough are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results 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 draws on its own historical performance. Individual results can vary based on property quality, pricing strategy, and how actively the listing is managed.

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 for the Hillsborough market
• Average daily rate, occupancy, and RevPAN trends by property size
• Monthly and annual revenue estimates based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to inform property positioning

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 and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations can change; always verify current requirements before investing.