Don't buy an Airbnb without this: how to use AirDNA comps to see if it will be profitable

What a comp set is

It's a group of properties similar to yours (same type, size, capacity and quality level) close to your address. Seeing their real revenue, occupancy and rates gives you a far more reliable estimate than any general market average.

Step by step in AirDNA

1. Create the list

In AirDNA, go to Comp Sets and create a new list with a simple name, for example "Property 1".

2. Choose how to pick comps

You have two options:

• Pick the comps yourself.
• Let AirDNA suggest them from an address.

The second is easiest: enter the address of the property you're evaluating and its details. In the video's example: a property near Miami with 2 bedrooms, 2 bathrooms and room for 6 guests.

3. Clean up the suggestions

AirDNA will suggest nearby properties. Some won't fit (for example, a 2-bedroom, 1-bath that sleeps 4). Remove the ones that don't match and find replacements among the additional comps.

On the map:

• Blue dots are the comps you selected.
• Pink dots are other comps available nearby.

Aim for about five well-chosen properties.

4. Apply the key filters

• Guests: the range that matches your property (2 to 6 in the example).
• Bedrooms: the same as yours.
• Listing type: entire place, private room or shared room. To compare a whole house or apartment, choose entire place.
• Rating of 4 to 5 stars: very important, so you're compared with well-run listings, not ones that drag the average down.
• Number of reviews: to rule out new listings with no track record.
• Amenities: air conditioning, parking, hot tub, pool, breakfast, etc. Filter by what your property will have.

5. Save the list

Use the save button (top right). You can come back to it anytime and create other lists for other addresses.

6. Read the performance report

Under View Performance you'll see what those properties earn each month, plus details like which platforms they're listed on (for example, Airbnb and VRBO). From there you can estimate your future property's monthly revenue.

What to do with the numbers

Comp revenue is only half the equation. To know whether the investment makes sense:

1. Estimate your revenue from the comps (be conservative: use the middle of the range, not the best performer).
2. Add up every expense: mortgage, HOA, taxes, insurance, utilities, cleaning, fees, maintenance and restocking.
3. Calculate your net profit and ROI (annual net profit ÷ total investment × 100).

The RentaClara profitability calculator helps you do this part in minutes.

Common mistakes when analyzing comps

• Comparing against properties that don't match in size or capacity.
• Not filtering by rating, and including poorly run listings that skew the average.
• Focusing only on the best comp and assuming you'll match it from month one.
• Forgetting regulations: a property that's profitable on paper is worthless if the city or HOA doesn't allow short-term rentals.

Want help analyzing your market before you buy? Book a call with our team or start with our free course.