Summer travel is here. How much can you make renting out a room on Airbnb in Fayetteville?
When Lori Castelli retired from her career at the Veteran’s Administration in Durham last year, she knew she would have to find a way to supplement her income.
Castelli, 65, thought about taking up woodworking and selling her wares at area arts and crafts fairs or getting a part-time job. Whatever she decided, she didn’t want it to take away from time spent with her 9-year-old granddaughter.
Then, Castelli realized that she could turn the garage of her Eutaw neighborhood home into a suite — complete with a private entrance, full bathroom, electric fireplace, mini fridge and coffeemaker — and rent it on Airbnb, a site that lists rooms and residences for short-term rentals.
That was a year ago. Now, Castelli said, in a typical month, she might rent out the suite for 20 days at $59 per night, banking about $1,200.
“It really, really, helped me out,” she said. “I can stay retired and stay home.”
How much can you make renting a room on Airbnb?
Castelli’s annual Airbnb room earnings of about $14,000 is four times the typical North Carolina room host last year, at $3,500, according to a May 4 news release from the company. Typical earnings for U.S. room hosts is $4,800.
According to data from Airbnb obtained by The Fayetteville Observer, the typical Airbnb host in Cumberland County earned approximately $7,900 in 2022. Collectively, hosts in Cumberland County earned over $9.3 million in 2022.
Airbnb’s recent marketing push highlights hosts like Castelli who rent rooms in their own home. It could be in response to negative buzz around what researchers at University of Pennsylvania called the “Airbnb effect,” or the tendency for rent and home prices to rise in response to increased whole-house short-term rentals.
In Fayetteville, 75% of Airbnb listings are whole-house rentals, according to AirDNA, a real estate analytics firm. According to the same report, there are 629 active rentals in Fayetteville, down slightly from 685 around the same time last year.
The area short-term rental market exploded from 2020 to 2022, but real estate professionals say demand, and daily rates, have recently fallen.
Previously: Fayetteville investors are converting Airbnbs into long-term rentals. Here's why
AirDNA data shows that the current average daily rate of $125 is down 10% from this time last year; the occupancy rate of 57% is down 17% from last year; and the average monthly revenue of $1,499 is down 14% from last year.
Airbnb hosts can sometimes serve as tour guides
Castelli, however, says that she has had no shortage of guests. She hosts mostly women with partners in the military, some New York and New Jersey residents who stop by on their way to Myrtle Beach and some healthcare workers.
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While the income is important, Castelli said that she's also had an amazing experience with her guests.
One woman who was in town from Germany to visit her Army boyfriend, stayed for three weeks. Castelli said she and her guest visited the beach together and stayed in touch after the woman returned home.
Castelli doesn’t plan on buying any other properties around town to rent, but she said that if she ever moves, she would find another property with a similar setup.
“I really enjoy doing it and meeting nice people,” she said.
Reporter Taylor Shook can be reached at tshook@gannett.com.
This article originally appeared on The Fayetteville Observer: How much can you make renting out a room on Airbnb in Fayetteville?
