Airbnb City Guide: The Best Places To Invest in Anchorage, Alaska

Airbnb Rules and Regulations in Anchorage, Alaska

As of 2024, Anchorage has implemented a licensing program for short-term rentals, including properties listed on booking platforms like Airbnb and Vrbo. Hosts are required to obtain a license from the city, which costs $400 per unit for a two-year period, although fee waivers are available in certain circumstances. The new regulations aim to gather data on the short-term rental market's impact on housing availability and ensure these properties' safety and proper management.

While there are no limits on the number of short-term rentals an individual can operate, the ordinance sets out penalties for violations and requires hosts to adhere to the city's noise, housing, and public health ordinances. Notably, Anchorage continues to collect a 12% room tax on stays shorter than 30 days, which Airbnb automatically collects and remits on behalf of hosts using its platform. Despite some opposition from short-term rental owners who rely on the income, the licensing program seeks to strike a balance between supporting the tourism industry and addressing concerns about the potential impact on Anchorage's housing market.

Anchorage Airbnb Market Data:

• Average Revenue – $26.1K per year
• Average Daily Rate – $161.8 per night
• Average Occupancy Rate – 62%
• Average RevPAR – $104.8
• Average Home Prices – $363,538

1. Top Place to Invest in Anchorage, Alaska - Airport Heights

Nestled in the heart of Anchorage, Airport Heights offers a unique blend of convenience, affordability, and untapped potential for savvy Airbnb investors. With its proximity to key locations and charming neighborhood vibe, this hidden gem is poised to become a top contender in the Anchorage short-term rental market.

Airport Heights Airbnb Market Data:

• Average Revenue – $26K per year
• Average Daily Rate – $156.1 per night
• Average Occupancy Rate – 63%
• Average RevPAR – $103.8

Convenience - 7/10

Airport Heights earns its name from its close proximity to Ted Stevens Anchorage International Airport, making it an ideal location for travelers seeking easy access to transportation. The neighborhood also boasts a variety of local amenities, including grocery stores, restaurants, and parks, ensuring a comfortable stay for guests.

Tourist Attractions - 5/10

While Airport Heights may not be a primary tourist destination, its central location allows easy access to popular attractions such as the Alaska Zoo, the Anchorage Museum, and the Tony Knowles Coastal Trail. However, the neighborhood's lack of major tourist draws may limit its appeal to certain visitors.

Things to Do - 6/10

Airport Heights offers a range of activities for those looking to explore the area. The nearby Russian Jack Springs Park provides hiking, picnicking, and wildlife viewing opportunities. The neighborhood also features a few local eateries and shops, giving guests a taste of authentic Anchorage living.

Average Home Prices - 8/10

According to Zillow data for 2024, the median home price in Airport Heights is $385,000, which represents a 3.2% appreciation rate over the past year. This relatively affordable price point, combined with the potential for steady appreciation, makes Airport Heights an attractive option for Airbnb investors looking to maximize their return on investment.

Proximity to Work-Related Travel - 9/10

Airport Heights is strategically located near major work-related travel destinations. The Alaska Native Medical Center, a key healthcare facility, is just a short drive away. The Dena'ina Civic and Convention Center, which hosts numerous conferences and events, is also easily accessible from the neighborhood.

X-Factor - 7/10

What sets Airport Heights apart is its untapped potential in the Airbnb market. As more investors recognize the neighborhood's convenient location and affordable property prices, there is a significant opportunity for growth and increased rental demand. Additionally, the area's quiet, residential atmosphere offers a unique experience for guests seeking a more authentic, local vibe.

2. Top Place to Invest in Anchorage, Alaska - Northeast

Situated in the scenic foothills of the Chugach Mountains, Northeast Anchorage offers a perfect blend of natural beauty, suburban comfort, and investment potential. This growing neighborhood has become increasingly attractive to investors seeking to start an Airbnb business in an area that provides a balance between tranquility and accessibility in Alaska.

Northeast Airbnb Market Data:

• Average Revenue – $21K per year
• Average Daily Rate – $140.5 per night
• Average Occupancy Rate – 61%
• Average RevPAR – $88.5

Convenience - 6/10

Northeast Anchorage provides a moderate level of convenience for both residents and visitors. While the area is primarily residential, it does offer a selection of local shops, restaurants, and services. However, guests may need to travel to other parts of the city for more extensive amenities and attractions.

Tourist Attractions - 4/10

Although Northeast Anchorage is not known for its tourist attractions, it does provide easy access to outdoor recreational opportunities. The nearby Far North Bicentennial Park offers hiking trails, wildlife viewing, and cross-country skiing in the winter months. Despite this, the area may not be the first choice for tourists seeking major attractions.

Things to Do - 5/10

Northeast Anchorage offers a range of outdoor activities for nature enthusiasts. In addition to the Far North Bicentennial Park, the area is home to several smaller parks and green spaces, perfect for picnics and leisurely walks. However, the neighborhood may not cater to those seeking a vibrant nightlife or cultural scene.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home price in Northeast Anchorage is $450,000, representing a 2.8% appreciation rate over the past year. While prices are slightly higher than in some other areas of Anchorage, the neighborhood's desirability and potential for growth make it an attractive option for Airbnb investors.

Proximity to Work-Related Travel - 5/10

Northeast Anchorage is primarily a residential area and is not in close proximity to major work-related travel destinations such as hospitals, convention centers, or sports venues. Guests attending events or conducting business in these locations may need to factor in additional travel time.

X-Factor - 8/10

What makes Northeast Anchorage unique is its stunning natural setting and peaceful atmosphere. The area's proximity to the Chugach Mountains offers breathtaking views and easy access to outdoor adventures. This serene environment can be a significant draw for Airbnb guests seeking a retreat from the hustle and bustle of city life.

3. Top Place to Invest in Anchorage, Alaska - Basher

Nestled in the scenic foothills of the Chugach Mountains, Basher offers a unique blend of natural beauty, seclusion, and proximity to urban amenities. Once an incorporated town with a population of just nine, this hidden gem has evolved into a sought-after neighborhood for those seeking a retreat from the hustle and bustle of city life.

Basher Airbnb Market Data:

• Average Revenue – $22.5K per year
• Average Daily Rate – $140.9 per night
• Average Occupancy Rate – 59%
• Average RevPAR – $88.7

Convenience - 6/10

While Basher's secluded location offers a tranquil living experience, it may not be the most convenient for those who prefer easy access to a wide array of amenities. However, the neighborhood is still within a reasonable distance from shopping, dining, and entertainment options in Anchorage.

Tourist Attractions - 5/10

Basher itself may not boast a plethora of tourist attractions, but its proximity to the stunning Chugach State Park provides ample opportunities for outdoor enthusiasts. Hiking, biking, and skiing are just a few of the activities that draw visitors to the area.

Things to Do - 7/10

Nature lovers will find no shortage of things to do in and around Basher. The nearby Alaska Botanical Garden offers a serene escape, while the Anchorage Museum and the Alaska Native Heritage Center provide cultural enrichment. The Alyeska Ski Resort is just a short drive away for winter sports enthusiasts.

Average Home Prices - 8/10

According to Zillow data for 2024, the median home price in Basher is $699,900, with prices ranging from $250,000 to $1.5 million. This represents a steady appreciation rate of 3.1% over the past year, indicating a stable and growing market for investors.

Proximity to Work-Related Travel - 4/10

Basher's secluded location may not be ideal for those who frequently travel for work, as it is not in close proximity to major hospitals, convention centers, or sports venues. However, the Ted Stevens Anchorage International Airport is still accessible within a reasonable drive.

X-Factor - 9/10

What sets Basher apart is its unparalleled natural beauty and the opportunity for investors to capitalize on the growing demand for secluded, nature-oriented getaways. As more travelers seek out unique, off-the-beaten-path experiences, Basher's pristine setting and small-town charm make it an increasingly desirable destination for new short-term rental investments.

4. Top Place to Invest in Anchorage, Alaska - Midtown

Midtown Anchorage, the city's bustling heart, has emerged as a prime location for Airbnb and short-term rental investments. With its unbeatable convenience, diverse attractions, and thriving business district, Midtown offers a unique opportunity for savvy investors looking to enter the short-term rental market and capitalize on the growing demand for urban accommodations in Alaska's largest city.

Midtown Airbnb Market Data:

• Average Revenue – $25.6K per year
• Average Daily Rate – $139.6 per night
• Average Occupancy Rate – 68%
• Average RevPAR – $98.3

Convenience - 9/10

One of Midtown's greatest strengths is its unparalleled convenience. The area is home to a wide array of shops, restaurants, and services, making it easy for guests to access everything they need during their stay. The neighborhood's central location also ensures quick and easy access to other parts of the city.

Tourist Attractions - 8/10

Midtown boasts a variety of tourist attractions, catering to a range of interests. The Anchorage Museum, Alaska's largest museum, is a major draw for visitors seeking to explore the state's rich history and culture. The nearby Tony Knowles Coastal Trail offers stunning views of the Cook Inlet and the chance to spot local wildlife.

Things to Do - 9/10

From shopping at the Midtown Mall to enjoying a night out at one of the many local bars and restaurants, Midtown offers no shortage of things to do. The area is also home to several parks and green spaces, including the popular Cuddy Family Midtown Park, which features a playground, sports fields, and a scenic pond.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home price in Midtown Anchorage is $450,000, with prices ranging from $200,000 to $1 million. While prices are higher than some other areas of the city, Midtown's desirability and potential for high occupancy rates make it an attractive option for investors. The area has seen a steady appreciation rate of 2.5% over the past year.

Proximity to Work-Related Travel - 10/10

Midtown is the perfect location for guests traveling for work, as it is in close proximity to major hospitals, convention centers, and sports venues. The Alaska Native Medical Center, the state's largest hospital, is located in the heart of Midtown, while the Dena'ina Civic and Convention Center and the Sullivan Arena are just a short drive away. There's really no better spot for a corporate rental than in Midtown.

X-Factor - 8/10

What sets Midtown apart is its unique blend of urban convenience and Alaskan charm. The area's diverse mix of local businesses and attractions creates a vibrant atmosphere that appeals to both tourists and locals alike. As Anchorage continues to grow and evolve, Midtown's central location and strong sense of community make it an increasingly desirable destination for short-term rental investments.

5. Top Place to Invest in Anchorage, Alaska - Bear Valley

Nestled in the heart of Anchorage, Bear Valley offers a unique blend of natural beauty, suburban charm, and investment potential. This hidden gem has been gaining attention from savvy Airbnb and short-term rental investors looking to capitalize on the growing demand for authentic Alaskan experiences.

Bear Valley Airbnb Market Data:

• Average Revenue – $30.7K per year
• Average Daily Rate – $177.5 per night
• Average Occupancy Rate – 57%
• Average RevPAR – $112.2

Convenience - 6/10

While Bear Valley may not boast the same level of convenience as some of Anchorage's more central neighborhoods, it still offers easy access to essential amenities. Residents can find grocery stores, restaurants, and other services within a short drive, ensuring a comfortable stay for guests.

Tourist Attractions - 4/10

Bear Valley itself may not be a primary tourist destination, but its proximity to popular attractions such as the Alaska Zoo and the Anchorage Coastal Wildlife Refuge makes it an attractive base for visitors. However, the neighborhood's lack of major tourist draws may limit its appeal to certain travelers.

Things to Do - 5/10

Outdoor enthusiasts will find plenty to enjoy in Bear Valley, with its easy access to hiking trails and scenic parks. The nearby Bear Valley Elementary School also serves as a community hub, offering yearly recreational activities and events. Despite this, the area may not cater to those seeking a vibrant nightlife or cultural scene.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home value in Bear Valley is $512,426, representing a 4.4% appreciation rate over the past year. While prices are higher than in some other areas of Anchorage, the neighborhood's desirability and potential for growth make it an attractive option for investors. Homes in Bear Valley have a median listing price of $780K.

Proximity to Work-Related Travel - 4/10

Bear Valley's residential setting may not be ideal for guests traveling for work-related purposes. The neighborhood is not in close proximity to major hospitals, convention centers, or sports venues, which could be a drawback for some short-term rental investors.

X-Factor - 8/10

What sets Bear Valley apart is its unique combination of natural beauty and small-town charm. The area's stunning views of the Chugach Mountains and its quiet, family-friendly atmosphere create a welcoming environment for guests seeking an authentic Alaskan experience. As more travelers look for off-the-beaten-path accommodations, Bear Valley's hidden gem status could prove to be a significant draw for Airbnb and short-term rental investments.

6. Top Place to Invest in Anchorage, Alaska - Taku

Taku, a charming neighborhood in the heart of Anchorage, has been gaining attention from astute Airbnb and short-term rental investors. With its prime location, affordable housing options, and proximity to popular attractions, Taku presents a unique opportunity for those looking to capitalize on the growing demand for accommodations in Alaska's largest city.

Taku Airbnb Market Data:

• Average Revenue – $24.1K per year
• Average Daily Rate – $159.6 per night
• Average Occupancy Rate – 62%
• Average RevPAR – $99.4

Convenience - 8/10

One of Taku's greatest strengths is its convenience. The neighborhood is situated near major thoroughfares, providing easy access to downtown Anchorage and other parts of the city. Guests will appreciate the abundance of nearby amenities, including grocery stores, restaurants, and shopping centers, ensuring a comfortable and hassle-free stay.

Tourist Attractions - 6/10

While Taku itself may not be a primary tourist destination, its central location makes it an ideal base for exploring Anchorage's many attractions. The Alaska Zoo, a popular draw for visitors, is just a short drive away, as are the Anchorage Museum and the Tony Knowles Coastal Trail.

Things to Do - 7/10

Taku offers a variety of activities for guests to enjoy during their stay. The neighborhood is home to several parks, including the scenic Taku Lake Park, which features walking trails, fishing opportunities, and a playground for children. The nearby Campbell Creek Greenbelt also provides a beautiful setting for hiking, biking, and wildlife viewing.

Average Home Prices - 9/10

According to Zillow data for 2024, the median home value in Taku is $385,000, with prices ranging from $200,000 to $600,000. This represents a modest 2.8% appreciation rate over the past year, indicating a stable and affordable market for investors. The relatively low entry point and the potential for steady rental demand make Taku an attractive option for those looking to maximize their return on investment.

Proximity to Work-Related Travel - 7/10

Taku's central location makes it a convenient choice for guests traveling for work-related purposes. The neighborhood is situated near major employment centers, including the Alaska Native Medical Center and the University of Alaska Anchorage. The Ted Stevens Anchorage International Airport is also easily accessible, making it a breeze for guests to arrive and depart.

X-Factor - 8/10

What sets Taku apart is its unique blend of affordability, convenience, and charm. The neighborhood's quiet, residential streets and friendly community atmosphere create a welcoming environment for guests, while its proximity to popular attractions and amenities ensures a memorable stay. As more travelers seek out authentic, local experiences, Taku's hidden gem status could prove to be a significant draw for Airbnb and short-term rental investments.