Raleigh is one of the best cities in North Carolina for short-term rental investments. Here’s why:
- High Demand: Raleigh has a consistent Airbnb occupancy rate of 70.6%, with Downtown properties reaching 78%.
- Strong Earnings: Average nightly rates are $129 citywide, climbing to $165 Downtown. Annual rental incomes can exceed $47,000 in top-performing areas.
- Tourism & Business Travel: The city attracts families, professionals, and festival-goers year-round due to NC State events, cultural attractions, and a growing economy.
- Investor-Friendly Rules: Raleigh’s permitting process is straightforward, with reasonable taxes (4.75% state sales tax + 2–6% local taxes).
Top Neighborhoods for Short-Term Rentals:
- Downtown Raleigh: High occupancy (78%) and annual income (~$47,000). Central location near restaurants, museums, and nightlife.
- Cambridge: Suburban charm near NC State. Steady demand with proximity to Downtown.
- Mordecai: Historic vibe with $143.80 daily rates. Close to Downtown but lower occupancy (43%).
- Hillsborough/Cameron Village: Quiet Hillsborough offers higher nightly rates ($185), while Cameron Village blends urban amenities with family appeal.
Quick Comparison:
| Neighborhood | Occupancy Rate | Daily Rate | Annual Income | Home Prices | Key Appeal |
|---|---|---|---|---|---|
| Downtown Raleigh | 78% | $165 | ~$47,000 | $525,000 (median) | Walkable, central, urban lifestyle |
| Cambridge | Moderate | ~$129 | Moderate | Moderate | Suburban feel near NC State |
| Mordecai | 43% | $143.80 | ~$17,900 | $550,000 (median) | Historic charm, close to Downtown |
| Hillsborough | 48% | $185 | ~$26,703 | ~33 miles from Raleigh | Quiet, premium nightly rates |
Key Takeaway: Downtown Raleigh offers the highest returns, but Cambridge and Hillsborough provide affordable alternatives. Choose a location based on your budget, target guests, and property goals.
Best Rental Investments in Raleigh NC!
1. Cambridge Neighborhood
Cambridge is one of Raleigh’s standout spots for short-term rentals, offering a peaceful, residential vibe that still keeps guests close to the action.
Guest Appeal
This neighborhood strikes the perfect balance between suburban charm and urban convenience. With NC State University nearby, it’s a favorite for visitors attending campus events or exploring Raleigh’s bustling downtown. The walkable streets and well-established infrastructure make it even more appealing for travelers seeking a comfortable, home-like stay.
Proximity to Attractions
Cambridge is just a quick drive from downtown Raleigh, giving guests access to over 150 restaurants, museums, and other local attractions. Whether it’s a cultural outing or a night on the town, everything is within easy reach.
Rental Income Potential
Thanks to its closeness to downtown and NC State, Cambridge offers strong rental income opportunities. Local demand trends, especially during events, make it ideal for dynamic pricing strategies that can maximize revenue.
With NC Host Pro’s expertise in the local market and a fixed monthly fee, property owners can ensure competitive pricing and top-notch service for their guests.
2. Mordecai Neighborhood
Mordecai is a standout neighborhood, blending historic charm with modern convenience, making it a favorite for short-term rental guests.
Guest Appeal
Mordecai’s historic architecture and its designation on the National Register of Historic Places offer visitors a unique glimpse into Raleigh’s past. Guests can enjoy the neighborhood’s small-town vibe while staying close to urban conveniences. Popular spots include the Mordecai House and Park, where history comes alive, and the lively Person Street corridor, filled with local shops and dining options. This mix of heritage and accessibility draws in both families and professionals seeking a well-rounded experience.
Proximity to Attractions
Located just north of downtown Raleigh, Mordecai offers easy access to some of the city’s top attractions. Guests can tour the historic Mordecai House and Park, or take a quick drive to explore the North Carolina Museum of History, the State Capitol, or the Convention Center. For business travelers and medical tourists, the neighborhood’s proximity to WakeMed Hospital and various sports venues is a major plus. Meanwhile, the walkable Person Street corridor is packed with coffee shops, restaurants, bars, breweries, and parks, providing an authentic local vibe that guests love.
Rental Income Potential
Mordecai’s charm and central location translate into solid rental income opportunities. The average annual revenue for properties here is $17,900, with daily rates averaging $143.80 and an occupancy rate of 43%. As of 2024, the median home value in the area is $550,000, reflecting a 3.8% increase. This steady demand from both leisure and business travelers allows property owners to maximize their returns. By emphasizing Mordecai’s historic character and prime location in their listings, owners can attract more bookings. Partnering with NC Host Pro can further boost earnings, as their fixed monthly fee model and expertise in local market trends help optimize pricing strategies while maintaining top-tier guest experiences.
3. Downtown Raleigh
Downtown Raleigh stands out as a top destination for short-term rental investments in North Carolina’s capital, combining a lively urban atmosphere with strong earning potential.
Guest Appeal
This bustling area draws both tourists and business travelers, thanks to its walkable streets filled with restaurants, bars, and attractions. Downtown Raleigh has become a hotspot for young professionals and affluent residents, creating an energetic vibe with its parks, food halls, and live music venues. Over the past decade, the population has more than doubled to over 10,000, bringing in lifestyle perks like fitness centers, co-working spaces, and rooftop lounges. This urban lifestyle makes it easy for guests to explore Raleigh’s top attractions without much effort.
Proximity to Attractions
The central location of Downtown Raleigh is ideal for short-term rentals. Guests love being steps away from the city’s key cultural, business, and entertainment spots, cutting down on transportation needs and making their stay more convenient and enjoyable.
Rental Income Potential
Properties in Downtown Raleigh enjoy a 78% occupancy rate with an average daily rate of $165, leading to an annual income of about $47,000. Median sale prices for single-family homes are around $525,000, while condos average $350,000. Monthly rents are typically around $1,829. Investors can further optimize their returns by partnering with NC Host Pro, which offers a fixed monthly income model and local expertise.
Local Regulations
The area’s investor-friendly regulations make it easier to operate short-term rentals. Properties in the downtown DX mixed-use zone need a zoning permit, compliance with safety codes, and adherence to tax requirements (4.75% state sales tax plus 2–6% local taxes). Additional requirements include installing safety detectors and following specific rules for cooking spaces or exterior signage when applicable.
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4. Hillsborough / Cameron Village
Hillsborough and Cameron Village serve two very different short-term rental audiences. Cameron Village – now officially known as the Village District since its 2021 rebranding – offers a charming, walkable neighborhood filled with boutique shops, restaurants, and bakeries. Located just two miles west of downtown Raleigh, this urban area draws a mix of renters, including families and professionals.
On the other hand, Hillsborough is about 33 miles from Raleigh and provides a quieter, more relaxed atmosphere. It appeals to guests looking for a peaceful getaway while still being close enough to access city amenities. These differences in setting lead to contrasting rental income patterns.
Rental Income Potential
The rental income for these areas reflects their unique characteristics. In Hillsborough, the average daily rate is $185 with a 48.0% occupancy rate, resulting in a median annual revenue of $26,703 across 61 active Airbnb listings. During peak months, properties can bring in approximately $3,170 per month, with occupancy climbing to 55.5% and daily rates averaging $172. High-performing properties in the top 10% earn over $5,234 monthly, while the top 25% exceed $3,662. The median monthly revenue stands at $2,404.
Cameron Village shows a different rental trend. Studio apartments rent for an average of $1,453, one-bedroom units for $1,655, two-bedroom units for $2,292, and three-bedroom units for $3,375. Overall, the average rent in the area is $1,796, which is slightly higher than the national average [28,29].
Investors in both locations can maximize their earnings by turning to NC Host Pro’s full-service co-hosting solutions, designed to simplify property management and enhance profitability.
Neighborhood Comparison: Pros and Cons
Here’s a quick breakdown of the strengths and challenges for each neighborhood, helping you weigh the options for short-term rental investments:
| Neighborhood | Pros | Cons |
|---|---|---|
| Cambridge | • Historic charm with a well-established residential vibe • Easy access to downtown attractions • Steady guest demand |
• Limited nightlife and entertainment options • Requires extra marketing efforts • Fewer walkable amenities |
| Mordecai | • Rich history with stunning Victorian architecture • Close to downtown (less than 2 miles) • Thriving arts and cultural scene |
• Lower occupancy rate at 43% • Average annual revenue of $17,900, below market averages • Fewer nearby dining and shopping options • Higher median home prices at $550,000, increasing entry costs |
| Downtown Raleigh | • High demand from both tourists and business travelers • Walkable access to restaurants, bars, and attractions • Strong year-round occupancy • Premium daily rates due to central location • Close to landmarks like the North Carolina State Capitol and major museums |
• Higher property purchase costs • Noise levels may affect guest satisfaction • Limited parking availability • Increased competition from hotels and other rentals • Stricter building rules and HOA restrictions |
| Hillsborough / Cameron Village | • Cameron Village offers boutique shopping and a unique local experience • Hillsborough provides a quiet, residential escape • Appeals to a mix of families and professionals • Less crowded market compared to downtown |
• Distance from the city center may lower demand • Requires tailored marketing due to split appeal • Limited public transportation options |
When choosing a neighborhood, investors should consider factors like home prices and guest demand. For instance, Mordecai’s median home value of $550,000 stands above Raleigh’s average of $434,407, making it a pricier option.
On the bright side, Raleigh’s neighborhoods share uniform regulatory standards, making the permitting process straightforward.
For hassle-free management and better returns, NC Host Pro offers co-hosting services at a fixed monthly rate.
Conclusion
Our review of Cambridge, Mordecai, Downtown Raleigh, and Hillsborough/Cameron Village highlights the variety of opportunities within Raleigh’s short-term rental market, each with its own strengths.
Downtown Raleigh stands out as the top performer, generating around $47,000 in annual revenue with a 78% occupancy rate and $165 daily rates. Its steady demand from both tourists and business travelers, combined with proximity to key attractions, ensures reliable returns for investors.
For those looking for lower entry costs, Cambridge and Hillsborough/Cameron Village present appealing options. Cambridge offers a suburban feel near NC State with solid rental potential, while Hillsborough commands higher daily rates of $185, making it ideal for larger properties, despite its lower occupancy. Meanwhile, Mordecai caters to guests seeking a historic, local experience, with $143.80 daily rates but a more modest 43% occupancy rate.
The key takeaway? Picking the right neighborhood is crucial to maximizing your rental income. Raleigh’s growing tourism industry supports all these areas, and the city’s straightforward, complaint-driven enforcement approach ensures compliance is manageable no matter the location.
To make the most of your investment, align property types with neighborhood strengths. Smaller, centrally located units thrive Downtown, while larger homes in Hillsborough and Cambridge can justify premium pricing with added space and amenities.
If you’re looking to streamline your operations and boost returns, consider partnering with NC Host Pro. Their co-hosting services handle everything from pricing optimization to 24/7 guest communication and property management. With a fixed monthly fee, you can focus on expanding your portfolio while leaving the day-to-day tasks to the experts.
FAQs
What should I look for when choosing a neighborhood in Raleigh for a short-term rental investment?
When choosing a neighborhood in Raleigh for a short-term rental, there are three main factors to keep in mind: local regulations, guest appeal, and proximity to attractions. Raleigh’s zoning laws and permit requirements vary by area, so it’s essential to research these rules thoroughly to ensure your rental operates within the law.
Look into high-demand areas like Downtown Raleigh or neighborhoods near Cameron Village. These spots are popular thanks to their convenient location, abundance of amenities, and lively atmosphere. Being close to major attractions, restaurants, and shopping centers can also make your property more appealing to guests, leading to higher occupancy rates.
By staying informed about local regulations and focusing on areas that attract visitors, you’ll be better positioned to increase your rental income while staying compliant with city guidelines.
What are the occupancy and daily rental rates like in different neighborhoods of Raleigh?
Occupancy rates in Raleigh generally fall between 46% and 75%, with sought-after neighborhoods often achieving rates in the range of 62% to 70.6%. When it comes to daily rental prices, they typically vary based on location and property type, landing somewhere between $130 and $173.45.
This underscores how crucial it is to select the right neighborhood to optimize both occupancy rates and income potential for short-term rentals.
What are the advantages of using a co-hosting service like NC Host Pro to manage short-term rentals in Raleigh?
Partnering with a co-hosting service like NC Host Pro can simplify the process of managing short-term rentals in Raleigh while boosting your potential earnings. Co-hosts take care of the time-intensive tasks – things like communicating with guests, adjusting pricing based on demand, and handling property upkeep. This ensures your rental remains attractive and competitive in the market.
With a co-host, you get the freedom to decide how hands-on you want to be. Whether you’re looking for full-service management or just need support with specific responsibilities, NC Host Pro can tailor their services to fit your preferences. This not only lightens your workload but also helps keep guests happy, increases your rental income, and ensures your property is always well-maintained.