Profitable Markets for Vacation Rentals in Mexico

Vacation rentals in Mexico are transforming the travel and investment landscape. Savvy investors are turning their attention to lucrative Mexican markets that offer vast opportunities. This guide will provide essential insights for anyone looking to capitalize on this trend.
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Vacation rentals in Mexico are becoming a popular investment and accommodation choice. They offer unique experiences compared to traditional hotels. This market’s growth signals strong investment potential, especially in tourist-favored regions.

Understanding the Vacation Rental Market in Mexico

Mexico’s vacation rental industry continues to be an attractive prospect due to the diversity and appeal of properties. The variety caters to every kind of traveler, from families looking for spacious vacation homes to couples seeking a perfect setting with a magnificent view. The average nightly price varies significantly, reflecting the property’s size, location, and amenities.

In popular tourist destinations, vacation rentals often boast amenities like pools and modern kitchens. It positions them as compelling alternatives to traditional hotel stays. Properties within walking distance of beaches or city centers tend to fetch a higher average price. It underscores the value of a great location. The demand for vacation rentals in Mexico aligns with seasonal travel trends and events.

Benefits of Airbnb Investments in Mexico

Investing in Airbnb properties in Mexico offers remarkable advantages. The allure of Mexico vacation rentals continues to climb, thanks to the country’s significant foreign and real estate investment growth. Beyond the arid landscapes often depicted, Mexico teems with vibrant jungles, expansive rivers, and coastal scenes, making vacation rentals particularly appealing.

The nation’s charm as an investment spot is unmistakable, illuminated by its breathtaking white sand beaches, profound history, and rich culture. Mexico City alone, with attractions like the National Museum, provides a perfect location for cultural enthusiasts. Meanwhile, coastal destinations like Puerto Vallarta on the Pacific Ocean and regions bordering the Caribbean Sea draw countless travelers seeking sun, sea, and relaxation.

Key benefits include:

  • Robust Economy: The strong and improving economy makes vacation rentals a smart choice for investors.
  • Strategic Location: Proximity to significant markets enhances tourism and investment potential, especially in areas close to the ocean.
  • Cultural and Natural Richness: The blend of historical sites, luxury villas, and culinary experiences offers a unique vacation setting.
  • Growing Tourism: With areas like the summer-favorite Pacific coast and the Caribbean’s serene waters, Mexico is a top destination for a vacation rental trip.
  • Property Ownership: The option for foreigners to own and rent out properties makes Mexico a popular location for luxury vacation homes.
  • Investment Climate: Endorsements from renowned publications boost confidence in the Mexico vacation rental market.
  • Exchange Rate Advantage: Attractive exchange rates enhance the affordability and appeal for international investors.
  • Optimal Time for Investment: The current market conditions suggest a prime time to explore and spend in Mexico’s vacation rental industry.

The growing economy, strategic location, and cultural richness position Mexico as a prime locale for vacation rentals. From the luxury villas of Puerto Vallarta to the bustling streets of Mexico City, investors can find the perfect location to capitalize on the booming tourism and rental market. As travelers continue to search for unique experiences, the demand for vacation rentals in Mexico provides a lucrative opportunity for those looking to invest, explore, and profit from this vibrant destination.

Mexico vacation rentals with a huge infinity pool and a private terrace

Top Markets for Vacation Rentals in Mexico


Tulum is an enchanting coastal town in Mexico, known for its pristine white sand beaches, the Caribbean Sea, and Mayan ruins. This combination of ancient culture and natural beauty makes the Tulum market a unique destination, appealing to travelers and investors alike. The town is a perfect setting for those seeking a tranquil yet adventurous vacation.

Airbnb Market Insights in Tulum:

  • Number of Active Rentals: Tulum boasts over 5,000 active rentals, offering a variety of options to travelers.
  • Average Daily Rate (ADR): The ADR for vacation rentals in the area hovers over $250, making it a profitable market for investors.
  • Median Occupancy Rate: The area typically sees over 67% occupancy rate, with variations based on seasonality.
  • Rental type: Entire homes comprise 84%, private rooms make up 15%, and shared rooms account for less than 1%.
  • Rental Size: The highest demand is for 1-bedroom and 2-bedroom properties.
  • Rental Channel Presence: Airbnb is the leading platform, but other services like VRBO also play significant roles.

Playa del Carmen

Playa del Carmen, a vibrant city along the Yucatán Peninsula’s Riviera Maya strip in Mexico, is renowned for its palm-lined beaches, coral reefs, and lively Quinta Avenida. The city blends Mexican culture with Caribbean vibes, making it a magnet for international travelers seeking both relaxation and adventure.

Its accessibility, combined with a rich culinary scene and nightlife, positions Playa del Carmen as a top destination for tourists and a lucrative spot for Airbnb investors.

Airbnb Market Insights in Playa del Carmen

  • Number of Active Rentals: Playa del Carmen showcases a dynamic market with over 10,000 active vacation rentals, reflecting its popularity among travelers.
  • Average Daily Rate (ADR): The ADR in Playa del Carmen is approximately $150, indicative of its diverse accommodation options.
  • Median Occupancy Rate: Properties here enjoy a median occupancy rate of around 65%, with seasonal peaks during winter and spring breaks.
  • Rental Size: The most sought-after properties are typically 1 to 2 bedrooms, catering to solo travelers, couples, and small families.
  • Rental Channel Presence: Airbnb leads the market, but platforms like VRBO and also have a significant presence, offering varied choices for guests.

Tulum and Playa del Carmen Airbnb Market


Cancun is a renowned tourist destination on Mexico’s Yucatan Peninsula. It is famous for its stunning Caribbean beaches, vibrant nightlife, and rich cultural history. This city is a gateway to the Riviera Maya, offering crystalline waters and powdery white sand beaches that attract millions of visitors each year.

Its all-inclusive resorts and archaeological treasures like the Chichen Itza make Cancun an ideal location for travelers seeking both leisure and adventure. This popularity underscores the city’s potential for lucrative Airbnb investments.

Airbnb Market Insights in Cancun

  • Number of Active Rentals: In Cancun, there are approximately 15,000 active vacation rentals available, showcasing the city’s thriving vacation rental market.
  • Average Daily Rate (ADR): The average daily rate for rentals in Cancun stands around $200, reflecting the area’s premium vacation status.
  • Median Occupancy Rate: The median occupancy rate for properties hovers around 70%, with fluctuations during peak and off-peak seasons.
  • Rental Size: The demand primarily focuses on 1-bedroom and 2-bedroom properties, ideal for couples or small groups.
  • Rental Channel Presence: While Airbnb is highly prevalent, other platforms such as VRBO, Booking, and local rental services also contribute to the diverse accommodation options.

Cancun Airbnb Market

Puerto Vallarta

Puerto Vallarta, nestled on Mexico’s Pacific coast, is known for its stunning beaches, vibrant cultural scene, and friendly atmosphere. This charming resort town combines the beauty of its natural landscapes with the warmth of its people, making it a beloved destination for both national and international tourists.

From the cobblestone streets of its historic town center to the lush jungles and beautiful beaches surrounding the area, Puerto Vallarta offers a unique blend of adventure, relaxation, and cultural experiences, making it an attractive spot for Airbnb investments.

Airbnb Market Insights in Puerto Vallarta

  • Number of Active Rentals: There are over 7,000 active vacation rentals in Puerto Vallarta, indicating a robust and competitive market.
  • Average Daily Rate (ADR): The ADR for Puerto Vallarta is approximately $180, which varies based on location, amenities, and property size.
  • Median Occupancy Rate: The median occupancy rate in the area is around 60%, with seasonal peaks, particularly during the winter months.
  • Rental Size: Most popular rentals are 1 to 3 bedrooms, catering to a wide range of groups, from solo travelers to families.
  • Rental Channel Presence: Airbnb dominates the market, but other platforms like VRBO and Booking also have a significant presence, offering varied lodging options to visitors.

San Miguel de Allende

San Miguel de Allende is a colonial-era city in the heart of Mexico. It is renowned for its well-preserved architecture, vibrant arts scene, and cultural festivals. This UNESCO World Heritage site blends historical charm with modern sophistication, attracting artists, retirees, and tourists from around the globe.

The tourists are attracted by its colorful streets, thriving culinary scene, and rich history. All this makes it an ideal destination for those seeking a blend of tranquility and cultural enrichment.

Airbnb Market Insights in San Miguel de Allende

  • Number of Active Rentals: The city boasts around 3,000 active rentals, reflecting its popularity and the growing interest in authentic Mexican culture.
  • Average Daily Rate (ADR): The ADR in San Miguel de Allende averages around $150, though premium properties can command higher rates.
  • Median Occupancy Rate: Properties typically see a median occupancy rate of 55%, with variations during festival seasons and holidays.
  • Rental Size: The demand mainly centers on 2-bedroom and 3-bedroom properties. These options are suitable for families and small groups seeking a cultural getaway.
  • Rental Channel Presence: While Airbnb is the leading platform for vacation rentals here, other services like VRBO and local rental agencies also maintain a strong presence.

San Miguel de Allende Airbnb Market


Merida, the vibrant capital of the Yucatan Peninsula, is distinguished by its colonial heritage, lively cultural scene, and warm, tropical climate. This city is known as the “White City” for its stunning limestone architecture. It offers a unique blend of Mayan culture, colonial history, and modern amenities.

It makes Merida a captivating destination for travelers seeking an authentic Mexican experience. Merida’s safety, culinary offerings, and proximity to ancient ruins and cenotes make it an increasingly popular choice for tourists and, consequently, a promising area for Airbnb investments.

Airbnb Market Insights in Merida

  • Number of Active Rentals: Merida presents a growing market with over 4,000 active rentals. It showcases the city’s rising popularity among travelers.
  • Average Daily Rate (ADR): The ADR for rentals in Merida hovers around $120. Offering an accessible price point for a wide range of visitors the city attracts a lot of tourists.
  • Median Occupancy Rate: The median occupancy rate in Merida stands at about 50%, influenced by seasonal tourism and local events.
  • Rental Size: Vacation rentals in Merida typically range from 1-bedroom apartments to 3-bedroom homes, catering to solo travelers, couples, and families.
  • Rental Channel Presence: Airbnb leads the market in Merida, but platforms like VRBO and Booking are also prevalent. They provide various options for different traveler needs.

Merida Airbnb Market


Guadalajara, Mexico’s second-largest city, is celebrated for its rich history, vibrant culture, and robust tech industry. It earned the nickname “Silicon Valley of Mexico.” This city combines traditional Mexican charm with modern urban life. This makes it an attractive destination for both business and leisure travelers.

Known for its mariachi music, tequila, and colonial architecture, Guadalajara offers a diverse cultural experience, further enhancing its appeal for those looking to invest in Airbnb properties.

Airbnb Market Insights in Guadalajara

  • Number of Active Rentals: Guadalajara has approximately 2,500 active rentals. The city indicates a healthy and growing market for vacation accommodations.
  • Average Daily Rate (ADR): The average daily rate for vacation rentals in Guadalajara is around $100. This makes it an affordable option for a wide range of tourists.
  • Median Occupancy Rate: The city experiences a median occupancy rate of around 55%. There are fluctuations due to business events and cultural festivals.
  • Rental Size: The demand in Guadalajara is varied, with a mix of studio apartments, 1-bedroom, and 2-bedroom properties. Such accommodation options are the most popular among travelers.
  • Rental Channel Presence: Airbnb is the predominant platform in Guadalajara. Platforms like VRBO and Booking also have a significant presence, offering a variety of lodging choices to visitors.

Guadalajara Airbnb Market

Mexico City

Mexico City, the vibrant and sprawling capital of Mexico, stands as a melting pot of history, culture, and modernity. Known for its historic center, Aztec ruins, world-class museums, and gastronomy, the city attracts a diverse array of visitors year-round. From art enthusiasts and history buffs to business travelers, Mexico City offers something for everyone, making it a prime location for Airbnb investments.

Airbnb Market Insights in Mexico City

  • Number of Active Rentals: There are around 20,000 active rentals in Mexico City. It reflects its status as a major global metropolis with a robust tourism and business travel sector.
  • Average Daily Rate (ADR): The ADR in Mexico City averages about $80. The city offers a range of accommodations from budget-friendly options to luxury stays.
  • Median Occupancy Rate: The median occupancy rate for Airbnb properties is approximately 60%, demonstrating consistent demand throughout the year.
  • Rental Size: Rental properties typically range from studio apartments for solo travelers to larger 2-3 bedroom homes.
  • Rental Channel Presence: Airbnb is the leading platform, however, Mexico City’s rental market also sees significant listings on other platforms. VRBO, Booking, and local rental services are widely used.

Mexico City Airbnb Market

Cabo San Lucas

Cabo San Lucas is located at the southern tip of Mexico’s Baja California Peninsula. It is famed for its stunning beaches, lively nightlife, and luxurious resorts. This premier vacation destination is renowned for its dramatic desert backdrop contrasted with crystal-clear waters. It makes this place a magnet for beach lovers, adventure seekers, and luxury travelers alike. The unique blend of natural beauty and upscale amenities makes Cabo San Lucas a sought-after location for Airbnb investments.

Airbnb Market Insights in Cabo San Lucas

  • Number of Active Rentals: Cabo San Lucas hosts approximately 3,000 active rentals. It showcases a vibrant market geared towards high-end vacation experiences.
  • Average Daily Rate (ADR): The ADR for properties in Cabo San Lucas is around $350. It reflects the area’s luxury accommodations and high demand.
  • Median Occupancy Rate: The median occupancy rate stands at about 65%. It is influenced by seasonal travel, with peaks during winter and early spring.
  • Rental Size: The market primarily consists of 2 to 4-bedroom properties, catering to families, groups, and luxury travelers seeking spacious and upscale accommodations.
  • Rental Channel Presence: While Airbnb dominates the vacation rental scene, other platforms like VRBO and Booking also contribute significantly. They offer a range of options from exclusive villas to cozy beachfront condos.

Cabo San Lucas Airbnb Market


These markets show varying but generally high levels of demand for Airbnb rentals. A mixture of cultural, beach, and urban attractions is appealing to a wide range of tourists. When considering an investment in Mexico vacation rentals, it’s important to factor in market demand, ADR, and occupancy rates.

Additionally, being successful in the vacation rental industry in Mexico involves understanding and adhering to the specific Airbnb regulations and tax laws applicable in each area.

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Avatar for Max Zinovev

I'm a co-founder of DPGO and an experienced Airbnb host with a deep love for big data and cutting-edge technology. I’m thrilled to navigate the exciting confluence of hosting and innovative tech, sharing my insights, vision, and learnings along the way. My journey in the hospitality industry has been enriched by my fascination with developing solutions that empower hosts and elevate guest experiences. Let’s explore the multifaceted world of tech-driven hospitality together!

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