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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Salem offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.
Salem, MA stands out as a compelling short-term rental market thanks to its strong cultural identity — most notably its historic ties and seasonal tourism that drive outsized demand during peak months. With an average annual revenue of $66,271 across 137 active listings and an ADR of $302 (well below the $582 state average), the market offers an accessible entry point relative to Massachusetts peers. An ROI score of 61 out of 100 reflects above-average revenue-to-price ratios and occupancy stability, though investors should be mindful of a supply-demand balance that currently lags.
According to Rabbu market data, the Salem short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 137 |
| Average Daily Rate (ADR) | vs. $582 state avg. | $302 |
| Average Occupancy Rate | vs. 44% state avg. | 35% |
| RevPAN | ADR * Occupancy Rate | $105 |
| Average Monthly Revenue | Historical 12-month average | $5,522 |
| Average Annual Revenue | Historical 12-month average | $66,271 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.
Salem's blend of tourism-driven seasonal demand and relatively strong revenue relative to home values makes it an appealing market for investors seeking above-average yield in coastal New England.
Key investment factors
"Salem earns an 'Attractive Opportunity' designation with its 61/100 ROI score, reflecting a market where revenue potential relative to property costs is genuinely above average. The seasonal revenue curve is dramatic — August peaks at $10,865 per month while February dips to just $1,793 — meaning profitability hinges on strong performance during the May-through-October window. The rapid 141% growth in active listings introduces competitive pressure, and the below-average supply/demand balance score suggests the market is absorbing new inventory. That said, operators who differentiate through amenities, pricing strategy, and guest experience should find Salem's tourism-driven demand more than sufficient to support healthy returns."
— Rabbu Market Analysis Team
Salem exhibits extreme seasonality, with August ($10,865) and July ($10,412) generating roughly six times the revenue of the slowest months like February ($1,793) and January ($1,856). October stands out as a strong shoulder-season performer at $8,058, reflecting Salem's unique autumn tourism draw.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$1,856 |
| February |
|
$1,793 |
| March |
|
$2,546 |
| April |
|
$3,747 |
| May |
|
$5,634 |
| June |
|
$7,274 |
| July |
|
$10,412 |
| August |
|
$10,865 |
| September |
|
$6,909 |
| October |
|
$8,058 |
| November |
|
$4,009 |
| December |
|
$3,161 |
One-bedroom units dominate Salem's supply with 68 listings (nearly half the market), while 4-bedroom properties are the scarcest at just 6 listings. The limited supply of larger homes — particularly 3- and 4-bedrooms — could represent an opportunity for investors willing to acquire bigger properties in a market where they're underrepresented.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
68 |
| 2 bedrooms |
|
42 |
| 3 bedrooms |
|
15 |
| 4 bedrooms |
|
6 |
Unusually, 1-bedroom listings command the highest ADR at $328, exceeding larger units that cluster around $254–$258. This inverted pricing dynamic suggests strong demand for compact, well-located accommodations — possibly driven by couples and solo travelers visiting Salem's historic attractions.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$328 |
| 2 bedrooms |
|
$258 |
| 3 bedrooms |
|
$258 |
| 4 bedrooms |
|
$254 |
One-bedroom units deliver the strongest RevPAN at $142, nearly double the $69 and $61 earned by 2- and 3-bedroom listings, while 4-bedrooms recover well at $125. Investors targeting maximum revenue efficiency per available night should take note of the 1-bedroom segment's clear outperformance.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$142 |
| 2 bedrooms |
|
$69 |
| 3 bedrooms |
|
$61 |
| 4 bedrooms |
|
$125 |
Four-bedroom properties lead occupancy at 49%, followed by 1-bedrooms at 43%, while 2- and 3-bedroom units lag at 27% and 24% respectively. This bifurcation suggests that both the smallest and largest properties serve distinct, loyal demand segments — likely solo/couple travelers and group bookings — while mid-size units face stiffer competition.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
43% |
| 2 bedrooms |
|
27% |
| 3 bedrooms |
|
24% |
| 4 bedrooms |
|
49% |
Four-bedroom listings are the top monthly earners at $9,553, nearly doubling the roughly $5,000–$5,100 range for 1- and 2-bedroom units. Three-bedroom properties land in between at $6,888/month, offering a middle-ground option for investors seeking higher revenue without the acquisition cost of a 4-bedroom home.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$5,032 |
| 2 bedrooms |
|
$5,084 |
| 3 bedrooms |
|
$6,888 |
| 4 bedrooms |
|
$9,553 |
Annual revenue scales meaningfully with size: 4-bedroom listings generate $114,641 per year — nearly twice the $60,388 earned by 1-bedroom units. For investors focused on absolute return potential, the 4-bedroom segment offers the highest annual yield despite having just 6 active listings in the market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$60,388 |
| 2 bedrooms |
|
$61,009 |
| 3 bedrooms |
|
$82,665 |
| 4 bedrooms |
|
$114,641 |
Parking dominates at 93% prevalence, signaling it's virtually a requirement for Salem listings rather than a differentiator. Self check-in (80%) and kitchen access (76%) round out the essentials, while amenities like pet-friendliness (19%) and beach access (9%) remain relatively rare — potentially offering a competitive edge for hosts who can provide them.
| Amenity | Trend | Value |
|---|---|---|
| Parking |
|
93% |
| Self Check-in |
|
80% |
| Kitchen |
|
76% |
| Workspace |
|
55% |
| Backyard |
|
45% |
| Patio or Balcony |
|
45% |
| Washer |
|
42% |
| Dryer |
|
42% |
| Outdoor Furniture |
|
38% |
| Pets |
|
19% |
| BBQ Grill |
|
18% |
| Beach Access |
|
9% |
| Waterfront |
|
7% |
| EV Charger |
|
2% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Salem Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Above average | 40% |
| Occupancy Stability | Above average | 30% |
| Market Growth Trend | Average | 15% |
| Supply/Demand Balance | Below average | 15% |
Salem's ROI score of 61 out of 100 places it in the 'Attractive Opportunity' band, driven primarily by above-average revenue-to-price ratios and occupancy stability — meaning hosts here tend to earn solid income relative to what they pay for properties. The market growth trend registers as average while the supply/demand balance falls below average, reflecting the rapid 141% increase in new listings that could put pressure on individual property performance. Investors should pair this score with thorough local regulatory research and a clear strategy for navigating Salem's sharp seasonal swings.
Understanding local STR regulations is essential before investing in Salem. Here's the current regulatory landscape:
The City of Salem, Massachusetts may require short-term rental operators to obtain a permit or register their property before listing it on platforms like Airbnb. Investors should verify current requirements directly with Salem's city hall or licensing department, as STR regulations in Massachusetts municipalities can vary significantly.
Common restrictions in markets like Salem can include occupancy limits, minimum-stay requirements, noise ordinances, and parking provisions — especially relevant given that 93% of local listings already offer parking. HOA or condo association rules may impose additional limitations, and some municipalities cap the number of STR permits issued, so prospective hosts should confirm availability before purchasing.
Short-term rental operators in Massachusetts are generally subject to state and local occupancy taxes, and platforms like Airbnb often collect and remit these on the host's behalf. Investors should also be aware of potential community impact fees and should consult a tax professional to ensure full compliance with Salem's and Massachusetts' obligations.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Salem can provide current regulatory guidance.
Financing an Airbnb investment in Salem requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Salem's pronounced seasonality — with summer and October revenues running 4–6× winter levels — suggests that operators who optimize pricing during peak windows can meaningfully outperform market averages. We estimate ADR could edge up 2–4% as demand continues to grow, though the 141% year-over-year increase in active listings signals that supply is expanding quickly and may temper occupancy gains. Expect occupancy to hover in the 33–38% range market-wide, with well-managed properties in the 1-bedroom and 4-bedroom categories likely to exceed that. Investors entering now should plan conservatively around slower winter months while capitalizing on the reliable summer and autumn surge."
— 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 Mar, 17 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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