As the world continues to become more interconnected, short-term (Airbnb) rentals have become increasingly popular, particularly in South Bend, IN.
With its vibrant culture, impressive scenery, and world-renowned universities, South Bend has become a top destination for tourists and business travelers alike.
Supply
The most popular homes are 3-bedroom homes, comprising 33.70% of inventory. This is followed by 2 and 4-bedroom homes at 25.25% and 17.23% of the total inventory, respectively.
Market Trends and Data
One key trend in the South Bend short-term rental market is the appreciation of home values. According to Zillow, homes in the region have appreciated by 8.00%, with the median home value standing at $169,081. This increase in home values has led to a corresponding increase in the value of short-term rental properties.
Another key trend in the South Bend Airbnb rental market is the average gross yield. The average gross yield for short-term rentals in the region is 29.57%.
This is a strong indicator of the profitability of investing in short-term rentals in South Bend, especially given the relatively low property taxes in the area.
According to SmartAsset, the average property tax in South Bend is 1.04%, making it an attractive location for investors looking to maximize their returns.
Average Daily Rate
The median ADR for the market is $445.70. The Average Daily Rate is the highest for 6 bedroom homes $393 followed by 7 bedrooms and 5 bedrooms at $346 and $300 respectively.
Short-Term Rental Regulations in South Bend
Short-term rental regulation is an important consideration for investors looking to enter the South Bend market. Fortunately, South Bend has investor-friendly short-term rental regulations in place.
According to local regulations, hosts are required to obtain a short-term rental license from the city, but there are no restrictions on the number of licenses that can be obtained. Hosts are also required to pay a 3% transient occupancy tax, which is collected by the city and used to fund tourism initiatives.
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Demographics and Climate
South Bend, IN has a population of approximately 101,860 people, according to the most recent U.S. Census Bureau data. The median household income in South Bend is $41,640, which is slightly below the national median income. The city experiences a humid continental climate, characterized by cold, snowy winters and hot, humid summers.
Hosts
The market is not dominated by property management firms. The largest host is Nicole with 1.6% of the total inventory and an average review of 4.95⭐️s .
Sports and Education
South Bend is home to several sports teams, including the South Bend Cubs, a minor league baseball team affiliated with the Chicago Cubs, and the South Bend Roller Girls, a women’s roller derby league. The city is also home to two prominent colleges: the University of Notre Dame, a private Catholic research university, and Indiana University South Bend, a regional campus of Indiana University.
Crime Rates
Like many cities in the United States, South Bend has a crime rate that is higher than the national average. According to recent data from the FBI, the city’s overall crime rate is 53% higher than the national average. However, it is worth noting that crime rates have been declining in recent years, with the city reporting a 15% decrease in overall crime from 2019 to 2020.
Guests
The majority of the guests come from outside of Indiana. 8.48% of all guests are from Chicago followed by Indianapolis with 2.45%.
Tourism
South Bend is a popular tourist destination, attracting visitors from across the United States and beyond. In 2019, the city welcomed approximately 1.3 million visitors, according to data from Visit South Bend Mishawaka. The majority of visitors to South Bend come from within Indiana, with Chicago, Indianapolis, and Detroit also serving as major source markets.
Tourist Attractions and Peak Season
South Bend is home to several popular tourist attractions, including the University of Notre Dame, the Studebaker National Museum, and the Morris Performing Arts Center. The city’s beautiful parks and outdoor spaces, such as the South Bend Riverwalk and the Potawatomi Zoo, are also major draws for tourists. The peak season for tourism in South Bend typically falls between May and September, with the summer months being the busiest.
Conclusion
Overall, the short-term rental market in South Bend, IN is a dynamic and growing industry. With strong demand for short-term rentals, increasing home values, and favorable regulations, it is an attractive destination for investors looking to enter the market.
