If you're a new host with $200-400k to deploy in 2026, Europe is hugely under-discussed. US markets dominate English-language Airbnb content, but European secondary cities offer better cash-on-cash ROI, easier regulation, and lower entry property cost. Here are 10 markets ranked by combined ROI (revenue, property cost, regulation) using public AirDNA, Idealista, and Spitogatos data.
The 10 markets — ranked
1) Porto, Portugal
Median 1-2BR central property: €180-280k. Estimated avg revenue €1,800-2,800/month → 9-11% gross yield. Watch: STR licensing tightened in 2024 in some parishes — verify alojamento local availability for the specific street.
2) Athens, Greece
Median 1-2BR Athens-center property: €120-220k. Revenue €1,400-2,200/month → 10-12% gross yield. Edge: tourist demand 9 months/year. Watch: short-term rental licensing required, more friction for non-EU citizens.
3) Tbilisi, Georgia
Median 1-2BR central property: $40-90k. Revenue $700-1,400/month → 12-18% gross yield. Edge: no STR license needed yet (as of 2026). Risk: emerging-market currency risk + political uncertainty.
4) Krakow, Poland
Median 1-2BR Old Town property: €150-240k. Revenue €1,500-2,300/month → 8-10% yield. Edge: rising tourism, EU stability.
5) Lisbon, Portugal
Median 1-2BR central: €260-380k. Revenue €2,000-3,000/month → 7-9% yield. Watch: Mais Habitação law (2024) suspended new STR licenses in many central parishes. Existing licenses transferable; new applications mostly blocked.
6) Naples, Italy
Median 1-2BR central property: €120-200k. Revenue €1,300-1,900/month → 8-11% yield. Edge: cheaper than Rome/Florence, growing tourism.
7) Valencia, Spain
Median 1-2BR central: €180-280k. Revenue €1,600-2,400/month → 8-10% yield. Watch: Spain national crackdown ongoing — verify Valencia-city license rules before committing.
8) Budapest, Hungary
Median 1-2BR Pest district: €120-200k. Revenue €1,200-1,900/month → 8-11% yield. Watch: District-level restrictions tightening since 2024.
9) Sofia, Bulgaria
Median 1-2BR central: €70-130k. Revenue €700-1,100/month → 9-12% yield. Edge: lowest entry cost in EU. Watch: smaller demand pool than top-5 markets.
10) Brussels, Belgium
Median 1-2BR central: €230-340k. Revenue €1,800-2,600/month → 7-9% yield. Edge: stable institutional / business demand. Watch: STR registration required since 2023.
Summary table
| # | Market | Property | Revenue/mo | Gross yield | Friction |
|---|---|---|---|---|---|
| 1 | Porto | €180-280k | €1,800-2,800 | 9-11% | Medium |
| 2 | Athens | €120-220k | €1,400-2,200 | 10-12% | Medium |
| 3 | Tbilisi | $40-90k | $700-1,400 | 12-18% | Low (politics ⚠) |
| 4 | Krakow | €150-240k | €1,500-2,300 | 8-10% | Low |
| 5 | Lisbon | €260-380k | €2,000-3,000 | 7-9% | High (caps) |
| 6 | Naples | €120-200k | €1,300-1,900 | 8-11% | Low |
| 7 | Valencia | €180-280k | €1,600-2,400 | 8-10% | Medium-High |
| 8 | Budapest | €120-200k | €1,200-1,900 | 8-11% | Medium |
| 9 | Sofia | €70-130k | €700-1,100 | 9-12% | Low |
| 10 | Brussels | €230-340k | €1,800-2,600 | 7-9% | Medium |
Markets we did NOT include and why
- Paris, Amsterdam, Barcelona, Berlin — STR functionally banned or capped at 30 nights/year for non-primary.
- London — 90-night cap on entire-property listings for non-licensed.
- Vienna, Prague — heavy registration friction; yields don't justify entry cost.
Honest caveats
- Gross yield ≠ net yield. Subtract Airbnb fees (~15%), cleaning, management, taxes, vacancy. Net is typically 50-65% of gross.
- Currency / political risk for non-EU markets (Tbilisi, partially Hungary).
- License availability changes yearly. Always verify current rules before committing.
- Property quality variance is enormous. Median property price is a starting point, not what you'll actually pay for a guest-ready unit.
Next steps
For market sizing, use the Airbnb income calculator. For listing strategy once you have a property, our sample report shows the end-to-end weekly analysis.
Sources: AirDNA public market summaries (Q1 2026), Idealista property median prices, Spitogatos (Greece) property listings, Imoveis Brasil. Individual results vary; all figures are illustrative estimates from public data. Not financial advice; always verify local STR licensing.