MedellinBnB

Medellín Airbnb Revenue Potential

March 27, 2026 ·

If you are choosing between Medellín and other short-term rental markets, the decision should be based on net ROI (return on investment), not just headline ADR (average daily rate). This guide compares Medellín against Austin, Miami, and Lisbon using the same investment logic.

Botero statue and Medellin city landmark view
Gross revenue is only one layer—capital entry and operating costs decide the real return.

How to compare ROI correctly (apples to apples)

Use the same framework for every city:

  • Initial cash outlay: purchase + closing + setup.
  • Annual gross revenue: realistic, not peak-month.
  • Annual net operating cash: after management, labor, maintenance, reserves, compliance/tax overhead.
  • Cash-on-cash ROI: annual net cash / initial cash outlay.

Market snapshot (headline STR data)

  • Medellín: ~50% occupancy, ~USD 85 ADR (average daily rate), ~USD 8,047 monthly revenue (market average).
  • Austin: ~55% occupancy, ~USD 263 ADR, ~USD 24,726 monthly revenue.
  • Miami: ~52% occupancy, ~USD 279 ADR, ~USD 25,710 monthly revenue.
  • Lisbon: ~67% occupancy, ~USD 141 ADR, ~USD 23,667 monthly revenue.

At this layer, Medellín looks smaller. But this is gross-only and does not include buy-in cost or operating structure.

ROI projection comparison (12-month, same method)

Illustrative ranges for underwriting discipline (not a guarantee):

Medellín (ROI-focused entry market)

  • Buy-in point: around USD 150,000 can still access strong product in many areas (often 2BR/3BR profiles depending on zone/condition).
  • Annual gross target band: ~USD 30,000–42,000 (well-run unit scenario).
  • Annual net operating cash: ~USD 13,500–20,400.
  • Expected ROI range: ~9%–12% in strong execution; top-market operations can push toward the higher end.

Why this can work: lower capital entry + lower service-cost environment + strong local execution can produce attractive net yield even with lower headline ADR.

Austin (high gross, higher capital load)

  • Buy-in point: often ~USD 450,000–650,000 for quality STR-positioned inventory.
  • Annual gross: ~USD 55,000–80,000.
  • Annual net operating cash: ~USD 16,500–28,000.
  • Expected ROI range: ~3.5%–6.0% in many underwriting scenarios.

Why ROI compresses: larger debt/cash requirement, higher carrying costs, and competitive pricing pressure can reduce net return despite strong gross revenue.

Miami (premium revenue, premium cost stack)

  • Buy-in point: often ~USD 500,000–800,000+.
  • Annual gross: ~USD 60,000–95,000.
  • Annual net operating cash: ~USD 18,000–36,000.
  • Expected ROI range: ~3.5%–6.5% under similar conservative assumptions.

Why this happens: high acquisition basis and operating intensity can absorb a large share of gross upside.

Lisbon (international comp with strong occupancy)

  • Buy-in point: often around USD 350,000–550,000 for central STR-relevant inventory (can be higher by neighborhood/spec).
  • Annual gross: commonly modeled around USD 40,000–62,000 for stabilized units, depending on product quality and regulation constraints.
  • Annual net operating cash: often around USD 14,000–29,000 after management + operating stack in conservative models.
  • Expected ROI range: roughly 4%–7% in many underwriting scenarios.

Key takeaway: Lisbon can show strong occupancy/ADR dynamics, but higher acquisition basis can keep cash-on-cash ROI moderate.

Why Medellín’s buy-in point changes the math

The core Medellín advantage is not “highest ADR.” It is capital efficiency. If you can enter around USD 150k with a well-positioned unit and run professional operations, your return on invested cash can outperform higher-gross but higher-cost markets.

Additional factors investors should not ignore

  • Market appreciation potential: neighborhood selection matters as much as short-term cashflow.
  • Operator quality: weak execution can erase ROI in any city.
  • Regulatory sensitivity: each market has different compliance friction and enforcement dynamics.
  • Portfolio strategy: one high-yield Medellín asset may pair well with a lower-yield but lower-volatility market elsewhere.

Bottom line for Medellín investors

If your goal is biggest gross top line, U.S. premium markets usually win. If your goal is cash-on-cash ROI with disciplined execution, Medellín can be extremely competitive—especially in the ~9%–12% target range for strong operators.

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