Top 10 Airbnb Markets in Italy

Italy’s Airbnb market offers some of Europe’s most enticing investment opportunities for short-term rentals. With its rich history, vibrant culture, superior cuisine and diverse regions — from cosmopolitan major cities to the sunny coastal towns — Airbnb investors have a wealth of options to consider.

In this article, we explore the best Airbnb cities, looking at occupancy, nightly rates, revenue and short-term rental regulations and taxes.

Why Invest in the Italian Short-Term Rental Market

The tourist numbers don't lie. Italy ranks in the top five international tourism destinations, and closed 2024 with 458.4 million nights spent in tourist accommodations, an increase of 2.5% from the previous year. This consistent and year-round demand underpins the short-term rental market across many of its cities welcoming visitors.

Savvy Airbnb investors value Italy for:

• Strong occupancy rates even in low seasons

• Diverse property types and price ranges

• High demand from business travelers, couples, families and solo travelers

• Iconic landmarks and cultural attractions

• More visitors from new global markets each year

Still, regulatory challenges exist in many cities. Italy’s Airbnb markets are highly localized: Each city or municipality may have strict regulations, tourist taxes or implemented regulations requiring hosts to register.

Before you invest, it’s critical to conduct thorough research on local regulations and licensing requirements.

What are the Factors Shaping Italy’s Airbnb Investment Landscape?

Success in Italy’s short-term rental market depends on several factors:

• Location and local tourism appeal

• Property acquisition and renovation costs

• Pricing relative to competition

• Seasonality and high seasons

• Occupancy and nightly rate trends

• Guest turnover and management intensity

• Regulatory risks

But remember, each region in the country has its own unique characteristics.

What are the Best Short-Term Rental Markets in Italy?

1. The Amalfi Coast

The Amalfi Coast is Italy’s most glamorous stretch of coastline — a dreamscape of pastel villages perched on cliffs over turquoise waters. Visitors come for Positano’s photogenic houses, Amalfi’s historic cathedral and Ravello’s clifftop gardens. It's the epitome of Italian luxury and romance.

For travelers, it promises dramatic scenery, exclusive dining and that inimitable dolce vita vibe. For vacation rental investors, it offers premium Airbnb properties that command high demand, especially in peak seasons.

Local laws apply from both the city and regional levels. Many towns limit the number of short-term rentals, require registration and enforce zoning aimed at preserving the coast’s residential character. Regulations can also change from year to year in response to over-tourism.

For investors, the risks involved include high acquisition costs, competitive market conditions and navigating evolving local laws. But for those who can manage these hurdles, the coastal region offers some of Italy’s highest-end Airbnb markets with enormous revenue potential.

According to recent data for the Amalfi Coast region:

• Average daily rate: €250+ (varies by town)

• Occupancy rates: 70–80%

• Monthly revenue: €4,000+ in peak

2. Venice

Venice is a dreamscape of canals, gondolas and Gothic palaces. Few travelers can resist the city’s otherworldly beauty — its narrow alleys and stunning piazzas seem untouched by time. Major sights like St. Mark’s Basilica and the Grand Canal ensure high demand even in off-seasons.

But for Airbnb investment, Venice is a classic case of balancing opportunity with strict regulations. Short-term rentals in the historic core are highly controlled. Hosts must register, meet data reporting requirements and often face zoning rules that limit the number of permitted listings. They also need to make sure their intended vacation rental property meets structural requirements and collect the tourist tax. Investors interested in Venice need to do their research to ensure they comply with all applicable rules, as penalties can be significant.

Nonetheless, the city's history and unique setting guarantee a steady stream of visitors, making Venice one of Italy’s most valuable, if regulated, Airbnb markets.

According to recent data for Venice:

• Average daily rate: €180

• Occupancy rate: 77%

• Average revenue per month: €3,200

3. Florence

Florence is the cradle of the Renaissance, a city that dazzles visitors with masterpieces by Michelangelo and Botticelli, the grand Duomo with its iconic red dome and atmospheric streets lined with artisan shops and cafes. For visitors, it’s a journey through art, history and Tuscan charm, making it one of Italy’s most popular Airbnb markets.

From an Airbnb investment standpoint, Florence stands out but its popularity has also brought tight regulations. The city requires all short-term rentals to register, collect tourist taxes, report tourist data and comply with urban zoning that often restricts short-term rentals in certain historic zones.

For Airbnb investment, this means navigating a challenging regulatory environment. However, those who do so successfully enjoy access to one of Italy’s most lucrative markets, driven by cultural attractions that never go out of style.

According to recent data for Florence:

• Average daily rate: €154

• Occupancy rate: 84%

• Average revenue per month: €3,100

4. Rome

The most visited Italian city, Rome welcomes 25 million international visitors each year. A sprawling open-air museum, you can find the Colosseum rising above its ancient streets, the Sistine Chapel sheltering in Vatican City and piazzas abuzz with life. It’s a city where every turn offers something to discover — from Baroque fountains to atmospheric trattorias. The city delivers some of the highest demand in the country making it a favorite for Airbnb investment.

In terms of short-term rental regulations, hosts must meet structural requirements for their property, register with the city administration, collect a tourist tax per night and comply with zoning restrictions designed to balance housing supply for locals. The city also routinely inspects listings for compliance. While this increases administrative overhead, the market is robust enough to reward well-run Airbnb properties with a steady stream of bookings year round.

According to recent data for Rome:

• Average daily rate: €141

• Occupancy rate: 82%

• Average revenue per month: €2,900

5. Milan

Milan is Italy’s second-largest city and its financial, fashion and design capital. The modern, cosmopolitan hub offers a sharp contrast to the Renaissance-heavy vibe of Florence or Rome. Tourists come for shopping in the Galleria Vittorio Emanuele II, to visit the Last Supper and experiencr high-end dining, nightlife, and design fairs.

Home to an active vacation rental market, Milan is a top pick for Airbnb investment in Italy. Given its role as the commercial heart of the nation with a strong conference and trade show sector, it attracts high demand from business travelers. As for regulations, the city requires registration, tourist tax collection and imposes property quality and furnishing standards.

According to recent data for Milan:

• Average daily rate: €150

• Occupancy rate: 79%

• Average revenue per month: €2,800

6. Verona

Verona is synonymous with romance, forever linked to Shakespeare’s Romeo and Juliet. But visitors also love it for its stunning Roman amphitheater, medieval lanes and proximity to Lake Garda. The city offers a walkable, atmospheric Italian experience, with cultural attractions that keep visitors engaged year-round.

For Airbnb investors, Verona represents one of Italy’s most reliable markets. Local regulations require registration and tourist tax collection. Zoning restrictions exist in the historic center but are less prohibitive than in places like Venice. This balance of oversight and opportunity makes Verona appealing for investors who want strong occupancy rates with fewer regulations.

Seasonality does affect demand, with high seasons in summer and around major festivals, but Verona also attracts tourists year round with its rich history and charming location. It’s a classic choice for those looking for stable Airbnb investment returns.

According to recent data for Verona:

• Average daily rate: €120

• Average occupancy rate: 80%

• Average revenue per month: €2,400

7. Bologna

Bologna is a thriving university city with medieval towers, miles of porticoes and a lively food scene renowned across Europe. Visitors and students alike flock to its authentic trattorias, buzzing nightlife and historic piazzas.

For travelers, it’s Italy without the overwhelming crowds of Venice or Rome. For investors, Bologna’s vacation rental market is highly attractive for its earning potential and manageable regulations. Hosts can register online and are responsible for collecting the tourist tax. This more minimal regulatory environment has allowed a healthy Airbnb market to flourish.

Bologna benefits from high demand driven by its university, frequent business travelers and tourists looking to experience Italy’s gastronomic heart. Its central location also makes it an ideal base for exploring many cities in northern and central Italy, adding to its appeal for guests and investors alike.

According to recent data for Bologna:

• Average daily rate: €115

• Average occupancy rate: 79%

• Average revenue per month: €2,100

8. Naples

Naples offers something different: The raw, unvarnished soul of southern Italy. Visitors love its chaotic energy, dramatic seaside views and being the gateway to Pompeii and the coast of Amalfi. Neapolitan pizza and bustling street life add to its authentic appeal.

For vacation rental investors, Naples represents a market with affordable property prices and significant demand. Plus, unlike major northern cities, Naples has more relaxed regulations, making it easier to start hosting. However, that doesn’t mean no rules — hosts still need to register and pay tourist taxes. But the process is simpler, with less restrictive zoning.

Investors should consider Naples for investment opportunities that balance manageable acquisition costs, growing demand and good market fundamentals. Its proximity to the Amalfi Coast ensures more visitors during high seasons, offering Airbnb properties a chance for earning fantastic revenue.

According to recent data for Naples:

• Average daily rate: €105

• Average occupancy rate: 81%

• Monthly revenue: €2,000

9. Turin

Turin, in northern Italy, is often overlooked by first-time visitors but cherished by those who return. With grand boulevards, stately cafés, Baroque palaces and views of the Alps, it’s a place that feels sophisticated yet welcoming. It's also known for its chocolate, historic car industry and contemporary art.

For Airbnb investment, Turin is an underrated but promising market. Its short-term rental market is growing steadily, buoyed by major events like the Torino Film Festival and a consistent business visitor base. Regulations are less restrictive than in the more tourist-saturated cities like Rome or Venice. Hosts must register and pay tourist taxes.

For vacation rental investors looking for investment opportunities with a simple regulatory landscape, solid occupancy and room for market growth, Turin is a great fit.

According to recent data for Turin:

• Average daily rate: €97

• Average occupancy rate: 78%

• Average revenue per month: €1,850

10. Palermo

The capital of Sicily, Palermo embodies the dramatic beauty and layered rich history of southern Italy. Its ornate Norman cathedrals, bustling street markets, Arab-Norman palaces and golden beaches draw travelers from all over the world. The city feels both grand and gritty, with a vibrant culture that rewards exploration.

For Airbnb investment, Palermo is an emerging market with excellent potential. It offers affordable property prices, making entry costs far lower than northern cities. Local laws are much more relaxed compared to the north. That said, regulations can evolve quickly particularly as visitor numbers grow, so thorough research is critical.

Palermo’s Airbnb market benefits from high demand among European travelers seeking authenticity and value. It’s not one of the most popular destinations but offers vacation rental investors an opportunity to secure solid returns in a growing short-term rental market.

According to recent data for Palermo:

• Average daily rate: €90

• Average occupancy rate: 76%

• Average revenue per month: €1,700

5 Tips for Airbnb Investment in Italy

1. Study local regulations

• Many municipalities have strict regulations and licensing.

• Always verify laws, regulations and taxes before purchasing a property.

• Keep in mind that while some areas have relaxed regulations, particularly southern Italy, they are tightening over time.

2. Pricing strategies

• Tailor your rate strategies to peak seasons and competition.

• Use a dynamic pricing tool like Hostaway that takes billions of data points into account to give you the best nightly rate on a daily basis.

• Monitor market trends using tools like KeyData.

3. Understand the risks involved

• Seasonal demand variability

• Regulatory challenges

• Guest turnover and management needs

4. Choose the right location

• Consider historic centers vs. suburbs

• Look for proximity to iconic landmarks and other attractions

• Consider access to major events and proximity to more popular tourism destinations

5. Diversify property type

• Entire homes vs. private rooms

• Villas, apartments, heritage buildings

• Consider risk tolerance

• Consider the type of guests being targeted and their expectations

Choose the Right Airbnb Market and Investment Strategy For You

Italy is home to a diversity of Airbnb markets suited for a range of investment profiles. Zoning remains the most challenging regulation while Airbnb collects the tourist tax on behalf of hosts though this won't always be the case when you list on other platforms or do direct bookings. So choose your market, location and property wisely, adjust your pricing daily and welcome your Airbnb guests to a charming stay while earning fantastic revenue from your Airbnb investment.