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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Middletown presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.
Middletown, CA is a small, nature-oriented market in Northern California's Lake County with just 20 active Airbnb listings and an average annual revenue of $16,735 per property. While the average daily rate of $308 sits well below California's $551 state average, home values averaging $465,956 keep acquisition costs relatively moderate for the state. The market saw 60% year-over-year growth in active listings, signaling rising investor interest — though occupancy at 28% lags the 43% state average, suggesting that selective deal sourcing and strong operational execution are essential here.
According to Rabbu market data, the Middletown short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 20 |
| Average Daily Rate (ADR) | vs. $551 state avg. | $308 |
| Average Occupancy Rate | vs. 43% state avg. | 28% |
| RevPAN | ADR * Occupancy Rate | $86 |
| Average Monthly Revenue | Historical 12-month average | $1,394 |
| Average Annual Revenue | Historical 12-month average | $16,735 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.
Middletown appeals to investors seeking an affordable California entry point in a low-supply market with strong seasonal demand tied to outdoor recreation and rural getaways.
Key investment factors
"Middletown presents a competitive but narrowly focused opportunity for STR investors willing to navigate pronounced seasonality. July is the clear revenue peak at $2,304 per month, while January dips to just $709 — a spread of more than 3x that underscores the importance of pricing strategy and cost control during the off-season. The above-average supply/demand balance is a bright spot, but below-average occupancy stability (28% overall) means cash flow can be uneven. Investors who target 2-bedroom properties and optimize for summer demand stand the best chance of generating meaningful returns in this micro-market."
— Rabbu Market Analysis Team
Middletown's revenue follows a steep seasonal curve, peaking in July at $2,304 and bottoming out in January at $709 — more than a 3x swing. The strong June-through-September corridor accounts for the bulk of annual earnings, making summer optimization critical for investors.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$709 |
| February |
|
$782 |
| March |
|
$995 |
| April |
|
$1,118 |
| May |
|
$1,455 |
| June |
|
$1,784 |
| July |
|
$2,304 |
| August |
|
$2,056 |
| September |
|
$1,727 |
| October |
|
$1,395 |
| November |
|
$1,194 |
| December |
|
$1,210 |
Supply is concentrated in 1-bedroom (6 listings) and 2-bedroom (7 listings) properties, with the remaining units in other configurations. The small total count of 20 listings suggests limited competition, though investors should note the market's micro-scale when evaluating opportunity.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
6 |
| 2 bedrooms |
|
7 |
ADR scales modestly from $141 for 1-bedroom units to $163 for 2-bedrooms — a roughly 16% premium for the extra bedroom. Given the significantly higher occupancy that 2-bedrooms achieve, the per-night rate bump compounds into a much larger revenue advantage.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$141 |
| 2 bedrooms |
|
$163 |
Two-bedroom properties deliver $60 in RevPAN compared to just $20 for 1-bedrooms — a 3x difference driven by both higher nightly rates and substantially better occupancy. This gap makes 2-bedroom units the clear winner for investors focused on revenue per available night.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$20 |
| 2 bedrooms |
|
$60 |
Two-bedroom listings achieve 37% occupancy while 1-bedroom units lag at just 14%, suggesting that guest demand in Middletown skews toward slightly larger accommodations. The low 1-bedroom occupancy may reflect limited demand for solo or couple-focused stays in this rural market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
14% |
| 2 bedrooms |
|
37% |
Two-bedroom properties generate $1,547 per month on average — more than double the $737 monthly revenue of 1-bedroom listings. This 2.1x revenue gap makes a compelling case for prioritizing 2-bedroom investments in the Middletown market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$737 |
| 2 bedrooms |
|
$1,547 |
At $18,566 annually, 2-bedroom properties produce over twice the revenue of 1-bedroom units ($8,844). For investors weighing acquisition costs against return potential, the 2-bedroom configuration offers a meaningfully stronger revenue foundation in this market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$8,844 |
| 2 bedrooms |
|
$18,566 |
Kitchens are universal (100%) and parking is near-universal (95%), reflecting the rural, car-dependent nature of Middletown. Outdoor amenities dominate the middle tier — outdoor furniture (75%), patios (70%), backyards and BBQ grills (65%) — signaling that guests expect a nature-forward experience, while hot tubs and pools remain uncommon and could serve as differentiators.
| Amenity | Trend | Value |
|---|---|---|
| Kitchen |
|
100% |
| Parking |
|
95% |
| Outdoor Furniture |
|
75% |
| Self Check-in |
|
75% |
| Patio or Balcony |
|
70% |
| Backyard |
|
65% |
| BBQ Grill |
|
65% |
| Dryer |
|
65% |
| Washer |
|
65% |
| Workspace |
|
65% |
| Pets |
|
55% |
| Hot Tub |
|
15% |
| Pool |
|
15% |
| EV Charger |
|
10% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Middletown Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Average | 40% |
| Occupancy Stability | Below average | 30% |
| Market Growth Trend | Average | 15% |
| Supply/Demand Balance | Above average | 15% |
Middletown's ROI Score of 37 out of 100 places it in the 'Competitive Opportunity' band, meaning the market has genuine potential but requires more careful deal selection to achieve attractive returns. The average revenue-to-price ratio and below-average occupancy stability are the primary drags on the score, while the above-average supply/demand balance offers a counterweight suggesting unmet guest demand. Investors should pair this data with thorough local regulatory research and focus on 2-bedroom properties to maximize their odds of a solid outcome.
Understanding local STR regulations is essential before investing in Middletown. Here's the current regulatory landscape:
Short-term rental operators in Middletown and Lake County, California may need to obtain a permit or register their property with local authorities before listing. Investors should verify current requirements directly with the Lake County Planning Department and the State of California's tax agencies.
Common STR restrictions in California communities can include occupancy limits, minimum-night stay requirements, noise ordinances, parking mandates, and caps on the number of permits issued. HOA rules may further limit rentals in certain neighborhoods, so reviewing CC&Rs before purchasing is strongly recommended.
California requires STR operators to collect and remit transient occupancy taxes, and Lake County may impose its own local occupancy tax on top of state obligations. Many booking platforms collect these taxes automatically, but hosts should confirm compliance with both state and county tax authorities.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Middletown can provide current regulatory guidance.
Financing an Airbnb investment in Middletown requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Middletown's STR market is likely to remain highly seasonal, with peak revenue concentrated in June through September and softer winter months pulling down annual averages. The 60% listing growth indicates increasing competition, which could put downward pressure on occupancy unless demand rises proportionally. ADR may hold steady or see modest 1–3% increases during summer months as supply stabilizes, but investors should plan conservatively around an occupancy range of 25–35% and budget for meaningful off-season revenue dips."
— 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 and current snapshots as of April 2026; market conditions can shift due to regulatory changes, economic factors, or seasonal variation. Individual property results will vary based on location, property condition, pricing strategy, and management quality.
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