Jerusalem

As of May 2026, Jerusalem, Bethlehem have 1,499 active Airbnb and VRBO listings. This represents a 24% decrease from the previous year.

The average Airbnb or VRBO in Jerusalem generates ₪78K per year. High-performing properties earn ₪218K/year, while low-performing properties earn ₪28K/year. The extreme variance between top and bottom earners suggests that revenue potential is heavily concentrated in a select subset of listings, despite a contraction in total market supply.

Airbnb and VRBO can be profitable in Jerusalem. Average annual revenue is ₪78K with 27% occupancy. High-performing properties earn up to ₪218K/year. The significant delta between average and high-end returns indicates that market success is heavily skewed toward specific asset tiers rather than broad market participation.

The average occupancy rate for Airbnbs and VRBOs in Jerusalem is 27%. This occupancy level, combined with an average nightly rate of ₪926, results in a RevPAR (revenue per available room) of ₪158 per day.

4+ bedroom properties demonstrate the strongest performance in Jerusalem, with annual revenue of ₪143K. These properties balance operating costs and rental demand most effectively in the Jerusalem market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Jerusalem area. Jerusalem: Moderate. Business license required, tax registration mandatory. Zoning restrictions in residential areas. Enforcement increasing but inconsistent - many unlicensed operators still active. Bethlehem: Lenient. Tourism ministry registration recommended but rarely enforced. Minimal oversight in practice. Many hosts operate informally without permits or consequences. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Jerusalem Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 24% year-over-year, while RevPAR has decreased 27%. This indicates balanced supply-demand dynamics. The parallel decline in both supply and revenue suggests that the market is recalibrating to match reduced traveler demand, preventing deeper saturation issues.

Launch around September, 2-3 months before peak fall season (December peaks). This pre-peak timing lets you build reviews when competition is -93% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (July-April) when gaining traction is harder.

The most common amenities in Jerusalem listings include: Air Conditioning (97%), Kitchen (95%), Heating (86%), Washing Machine (83%), Tv (79%). Amenities that boost revenue the most include Air Conditioning, Washing Machine, Bbq, with Air Conditioning properties earning approximately 98% more (₪163K/year vs ₪82K/year).

Monthly estimated revenue per listing in Jerusalem over the last 12 months: May: ₪4K, June: ₪4K, July: ₪4K, August: ₪6K, September: ₪4K, October: ₪6K, November: ₪5K, December: ₪8K, January: ₪7K, February: ₪5K, March: ₪4K, April: ₪3K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Jerusalem is ₪926, up 12% year-over-year. By property size: 1-bedroom properties average ₪573/night, 2-bedroom properties average ₪906/night, 3-bedroom properties average ₪1K/night, 4+ bedroom properties average ₪2K/night. Rates peak in October and are lowest in May.

Guests in Jerusalem book an average of 23 days in advance, down 26% from last year. By property size: 1-bedroom: 21 days, 2-bedroom: 25 days, 3-bedroom: 27 days, 4+ bedroom: 31 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Jerusalem Airbnb and VRBO market has seen the following changes: supply declined 24%, revenue per listing decreased 27%, occupancy fell 14%, average nightly rates increased 12%, and lead time decreased 26%. Shorter lead times combined with higher rates signal a shift toward more spontaneous, premium-focused bookings amid a shrinking inventory.

In Jerusalem, Friday sees the highest booking demand while Sunday has the lowest. Nightly rates peak on Friday and are lowest on Sunday. Weekends show 11% higher occupancy than weekdays.