What's the best number of bedrooms for Airbnb success? This guide dives into AirDNA's data-driven insights on how bedroom count affects Airbnb performance across various markets, helping you make an informed decision for your short-term rental investment.

What's the Best Number of Bedrooms for Your Airbnb?

The best number of bedrooms for Airbnb typically ranges from one to two, but larger properties can attract higher nightly rates in certain markets.

Adding bedrooms generally increases earnings up to a certain point, with diminishing returns starting around 5-6 bedrooms.

Understanding local guest demographics and market demand is crucial for determining the most profitable bedroom.

When it comes to investing in an Airbnb property, does the old adage “go big or go home” make sense for your bottom line? The answer isn't one-size-fits-all, but getting it right for your specific market can have a notable impact on your earnings.

At AirDNA, we've analyzed millions of Airbnb listings worldwide to uncover the key dynamics at play. Our data reveals fascinating trends in how bedroom count affects property performance across different markets.

Let’s explore what factors influence your decision so you make an informed choice that turns your property into a top-performing Airbnb.

Your vacation rental may be amazing, but is it better than your competition? Connect your Airbnb listing to AirDNA to see its Booking Performance Score.

Determining the Best Number of Bedrooms for Your Airbnb

Generally, properties with one- to two-bedrooms offer a strong balance of high occupancy rates and profitability. However, larger properties may attract higher nightly rates and cater to different guest needs.

Choosing the best number of bedrooms for your Airbnb is a matter of balancing market trends, location, and your target guests. Each of these factors can significantly impact your property's profitability and occupancy rates. We'll explore these factors in detail to help you make an informed decision.

An Airbnb bedroom must have a private room with a door, access to a private or shared bathroom, and access to at least one common space such as a kitchen or living room. Accurately listing and describing the number of bedrooms sets guest expectations and shows that you’re trustworthy, which can ultimately lead to better reviews and repeat bookings.

Our data reveals a clear correlation between the number of bedrooms and average daily rates (ADR) for Airbnb listings in the United States. Private and shared rooms are the most affordable option for guests, averaging $114 per night. From there, we see a steady increase in ADR as the bedroom count goes up. Properties with 8 bedrooms or more command rates upwards of $1,000 per night on average.

Some jumps in ADR are particularly significant:

The upgrade from a private/shared room to a 1-bedroom entire home rental allows hosts to increase prices by almost 60%.

Upgrading from 4- to 5-bedrooms can justify a 44% increase in ADR.

These findings suggest that adding bedrooms to your rental property can significantly boost your earning potential. 

However, there's a catch: the impact of additional bedrooms isn't uniform across all markets or property sizes. Let's explore how this plays out in different cities.

While national trends provide a helpful starting point, local market dynamics should ultimately guide your strategy for choosing a property size. Here are some eye-opening examples of how ADR patterns vary by location:

Orlando: Bucking the general trend, 2-bedroom listings slightly outperform 3-bedroom listings here ($213 vs $199 per night on average).

Los Angeles: In the City of Angels, nightly rates plateau once you hit 7 bedrooms. Surprisingly, 7-bedroom properties earn more than 8-bedroom properties on average ($1,409 vs $1,379). Turns out bigger isn’t always better. 

New York: The Big Apple throws another curveball, with 4-bedroom listings outperforming 5-bedroom listings by a significant margin of $171 per night on average.

Las Vegas: Sin City offers a particularly illuminating case study. Here, entire home rentals with 1 bedroom make almost triple what a private room listing does—an increase of 180%. The return on investment drops off dramatically for 3-4 bedroom properties, only to pick up again at 5+ bedrooms.

These city-specific insights underscore a crucial point: what works in one market might flop in another. There's also another factor at play here – the principle of diminishing returns. 

When Adding More Bedrooms Stops Paying Off

As we add more bedrooms to a property, we generally see increases in Average Daily Rate (ADR). However, the rate of return for each addition tends to decrease. 

This principle of diminishing returns is clearly illustrated in our U.S. data: 

The initial jump from a private/shared room to a 1-bedroom property is substantial at 57%.

We then see increases of 39-44% for the next few bedroom additions.

After the 5th bedroom, the returns start to diminish significantly. The ADR increase from 7 to 8 bedrooms is only 14% on average.

Here’s where it gets interesting. This pattern of diminishing returns can vary dramatically by market. Let's dive into a case study of Myrtle Beach, South Carolina, to see how local factors can influence the best number of bedrooms for your Airbnb.

In Myrtle Beach, the relationship between bedroom count and ADR tells quite the story:

The jump from 3 to 4 bedrooms offers the highest return on investment, with a whopping 49.2% increase in ADR.

The second-biggest jump is from 1 to 2 bedrooms, yielding a 42% increase.

Interestingly, the leap from 7 to 8 bedrooms also shows a significant 30.1% increase.

Unlike most markets, the ADR difference between a private room and a 1-bedroom entire property in Myrtle Beach is surprisingly modest, at about $30. This unique pattern reflects the specific nature of Myrtle Beach as a destination.

As a coastal hotspot frequented by families and friend groups, Myrtle Beach attracts visitors who are willing to pay a premium for larger properties. The significant jumps in ADR for 4-bedroom and 8-bedroom properties likely reflect the sweet spots for different group sizes. Perhaps it’s small families or couples traveling together for the 4-bedroom properties, and larger extended families or groups of friends for the 8-bedroom properties.

Myrtle Beach’s unique relationship between nightly rates and bedroom count underscores a crucial point: the "best" number of bedrooms for your Airbnb isn't universal. It depends heavily on your specific market and the type of travelers it attracts. Are guests in your area typically solo travelers, couples, families, or large groups? Is your destination known for luxury, high-end experiences or budget-friendly vacations?

Your pricing strategy should be as unique as your rental property.

Factors to Consider When Deciding the Number of Bedrooms

Consider these important elements before making your decision:

Know your crowd! Are you catering to solo jet-setters, romantic duos, or lively family reunions? Solo travelers and couples typically gravitate towards cozy one- or two-bedroom spots, while families and larger groups hunt for spacious digs with three or more bedrooms. You'll boost occupancy rates and ADRs by aligning your property with the most common guest profiles. 

Research local tourism data and market trends to pinpoint your ideal guests. This is where custom comps are helpful, too. With an AirDNA account, you can look at the specs for other vacation rentals in your area and see how they’re performing relative to yours. You can even filter listings by the number of people they accommodate to see how properties of different sizes perform in your market. 

What's the buzz in your area? Is it a bustling urban jungle attracting business moguls, or a serene beach getaway calling out to vacationing families? Urban centers often see higher demand for compact, efficient spaces, while vacation hotspots might benefit from larger properties that can host bigger groups. Use data analytics tools like AirDNA to uncover seasonal visitor patterns and market demand. This data-driven approach will help you make smart, profitable decisions about your property's bedroom count.

Bigger properties might command higher nightly rates, but they also come with a heftier price tag. Larger properties command more dollars during the initial investment, maintenance, and those pesky utility bills. Crunch the numbers on potential return on investment (ROI) for different property sizes and weigh them against your budget and financial goals. Factor in local real estate trends, appreciation potential, and your long-term investment strategy. Sometimes less is more—especially when it comes to your bottom line.

What are you working with? Houses often offer more flexibility in terms of bedrooms and space, making them a hit with larger groups. Apartments and condos or townhomes, on the other hand, might be a better fit for solo travelers or couples. 

Consider how your property type aligns with local zoning laws, short-term rental regulations, and your overall investment portfolio strategy. Think about scalability too - does your property have room to grow as your Airbnb empire expands?

How to Change the Number of Bedrooms on Airbnb

Let’s say you’ve completed a market analysis and you’ve decided to invest in a home expansion that brings your bedroom count from 1 to 2. How do you change the number of bedrooms on your Airbnb listing?

Updating the number of bedrooms is a straightforward process. Here’s a step-by-step guide:

Go to Listings: Click Listings and select the listing you want to edit.

Photo Tour: Under Photo tour on the right, click the plus sign next to All Photos space.

Add a room or space: Choose a room or space type from the options provided

Add photos: you can add new or existing photos to your listing to represent the added space. You can also select ‘Skip for now’ if you want to circle back to this step.

Save Changes: Click Save to ensure your listing is updated. Selecting ‘Skip for now’ in the previous step will also save your changes and return you to your property dashboard.

For other platforms, the process might be slightly different, but the idea is the same: navigate to your listing details and update the bedroom information accordingly. 

AirDNA’s vacation rental pricing tool uses data-driven recommendations to propose the best daily rates.

When it comes to investing in an Airbnb property, does the adage “go big or go home” make sense for your bottom line? We’ve got data on the ideal bedroom count.

What's the Best Number of Bedrooms for Your Airbnb?

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