Authored by the expert who managed and guided the team behind the Ethiopia Property Pack
Everything you need to know before buying real estate is included in our Ethiopia Property Pack
Thinking about starting an Airbnb in Ethiopia and wondering if it can actually make money in 2026?
This guide breaks down everything you need to know about short-term rental profitability in Ethiopia, from nightly rates and occupancy to legal requirements and the best neighborhoods.
We constantly update this blog post with fresh data on current Airbnb prices and earnings in Ethiopia.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Ethiopia.
Insights
- Ethiopia has roughly 1,700 active Airbnb listings nationwide in 2026, with about 80% of them concentrated in Addis Ababa alone.
- The average nightly rate for an Airbnb in Ethiopia sits around $45 in 2026, but listings with reliable power backup and strong Wi-Fi can charge $55 to $90 per night.
- Occupancy rates in Addis Ababa average about 47%, which is notably higher than secondary Ethiopian cities where rates often drop to 35% or lower.
- One and two-bedroom apartments in Ethiopia account for roughly 66% of all Airbnb supply, reflecting the strong demand from solo business travelers and diaspora visitors.
- Power reliability is the single biggest differentiator for Ethiopian Airbnb hosts, with generator-backed listings achieving 60% to 70% occupancy versus the 40% to 45% market average.
- The white space opportunity in Ethiopia's Airbnb market sits in the $55 to $90 per night range, where hosts offering business-ready setups face much less competition.
- Ethiopian Airbnb hosts typically see monthly revenues between $380 in low season and $950 during peak months like December and January when diaspora travel spikes.
- Operating expenses for an apartment or condo Airbnb in Ethiopia run between $180 and $350 per month, making realistic net profits around $120 to $320 monthly.
Can I legally run an Airbnb in Ethiopia in 2026?
Is short-term renting allowed in Ethiopia in 2026?
As of the first half of 2026, short-term renting through platforms like Airbnb is allowed in Ethiopia, though it operates in a gray zone without a single, standardized national law specifically regulating vacation rentals.
The main legal framework affecting Ethiopian Airbnb hosts comes from a combination of income tax laws under Proclamation No. 979/2016 and the recent Rent Control and Administration Proclamation No. 1320/2024, which together establish that rental income is taxable and residential renting faces increasing oversight.
The single most important requirement for Airbnb hosts in Ethiopia is tax compliance, meaning you must register with the Ministry of Revenue, obtain a TIN, and declare your rental income properly.
If you run your Ethiopian Airbnb like a hotel with multiple units, frequent turnover, and staff, authorities may treat you as a business accommodation provider requiring formal licensing rather than just a casual landlord.
Penalties for non-compliance in Ethiopia typically involve tax penalties and back payments rather than specific STR fines, since there is no dedicated short-term rental enforcement framework yet in place.
For a more general view, you can read our article detailing what exactly foreigners can own and buy in Ethiopia.
If you are an American, you might want to read our blog article detailing the property rights of US citizens in Ethiopia.
Are there minimum-stay rules and maximum nights-per-year caps for Airbnbs in Ethiopia as of 2026?
As of the first half of 2026, Ethiopia has no official minimum-stay requirement or maximum nights-per-year cap that is consistently enforced for Airbnb hosts across the country.
These rules do not differ by property type or host residency status in Ethiopia, meaning whether you own an apartment, condo, house, or villa, you face the same absence of formal stay restrictions anywhere in the country.
However, market dynamics in Addis Ababa naturally push many hosts toward 30-plus day minimum stays because the dominant guest segments are diaspora visitors, NGO workers, and business travelers who prefer longer bookings.
Do I have to live there, or can I Airbnb a secondary home in Ethiopia right now?
Ethiopia does not have a nationwide primary residence requirement for Airbnb hosts, so you do not need to live in the property you rent out on a short-term basis.
Secondary home and investment property owners can legally operate short-term rentals in Ethiopia, which is why diaspora-owned condos and villas used for periodic visits are commonly listed on Airbnb when vacant.
There are no additional permits specifically required for non-primary residence short-term rentals in Ethiopia beyond the standard tax compliance obligations that apply to all rental income.
The main practical difference between renting a primary versus secondary home in Ethiopia is not legal but operational, as secondary homes may face building association restrictions or require more active management when the owner is absent.
Don't buy the wrong property, in the wrong area of Ethiopia
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
Can I run multiple Airbnbs under one name in Ethiopia right now?
Ethiopia does not have a clearly established national limit on how many Airbnb listings one person can operate, so running multiple short-term rentals under one name is technically possible.
There is no maximum number of properties officially capped for short-term rental in Ethiopia, but the more units you operate, the more you look like a commercial hospitality business rather than a casual host.
Hosts with multiple listings in Ethiopia should expect increased scrutiny on tax compliance and may need formal business registration, though there is no specific multi-property STR license requirement as of early 2026.
Do I need a short-term rental license or a business registration to host in Ethiopia as of 2026?
As of the first half of 2026, Ethiopia does not have a dedicated short-term rental license that every Airbnb host must obtain, but all hosts are required to comply with income tax obligations through the Ministry of Revenue.
For occasional hosts renting one apartment or condo, the process is straightforward: register for a TIN, keep records of your bookings, and declare rental income during tax filing.
Hosts operating multiple units or running their Airbnb like a guesthouse with staff and frequent turnover should consider formal business registration, which involves registering with the relevant trade authority and potentially aligning with hospitality accommodation standards.
Are there neighborhood bans or restricted zones for Airbnb in Ethiopia as of 2026?
As of the first half of 2026, Ethiopia does not have officially mapped neighborhood bans or government-designated restricted zones specifically prohibiting Airbnb operations.
The practical restrictions that do exist in Ethiopia come from building associations, condo management rules, and landlord clauses in lease agreements rather than city-level zoning laws targeting short-term rentals.
Neighborhoods in Addis Ababa where STR activity is most visible and where building-level rules are more likely to matter include Bole, Kazanchis, Old Airport, Piassa, and the CMC/Gerji corridor.
We made this infographic to show you how property prices in Ethiopia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How much can an Airbnb earn in Ethiopia in 2026?
What's the average and median nightly price on Airbnb in Ethiopia in 2026?
As of the first half of 2026, the average nightly price for an Airbnb in Ethiopia is approximately $45 (around 5,850 ETB or 42 EUR), while the median sits closer to $38 (about 4,940 ETB or 35 EUR) because a smaller number of high-end villas pull the average upward.
The typical nightly price range covering roughly 80% of Ethiopian Airbnb listings falls between $25 and $80 (3,250 to 10,400 ETB, or 23 to 74 EUR), depending on property type, location, and amenities.
The single factor with the biggest impact on nightly pricing in Ethiopia is power reliability, meaning listings with generator or inverter backup can command significantly higher rates than those without guaranteed electricity.
By the way, you will find much more detailed profitability rent ranges in our property pack covering the real estate market in Ethiopia.
How much do nightly prices vary by neighborhood in Ethiopia in 2026?
As of the first half of 2026, nightly prices in Ethiopia vary significantly, ranging from about $25 (3,250 ETB, 23 EUR) in budget areas like Piassa to $80 or more (10,400+ ETB, 74+ EUR) in premium Bole neighborhoods near the airport.
The three neighborhoods in Ethiopia with the highest average nightly Airbnb prices are Bole at $45 to $80 (5,850 to 10,400 ETB, 42 to 74 EUR), Kazanchis at $40 to $75 (5,200 to 9,750 ETB, 37 to 69 EUR), and Old Airport at $40 to $70 (5,200 to 9,100 ETB, 37 to 65 EUR).
The three neighborhoods with the lowest average nightly prices are Piassa at $25 to $45 (3,250 to 5,850 ETB, 23 to 42 EUR), CMC/Gerji at $30 to $55 (3,900 to 7,150 ETB, 28 to 51 EUR), and outer Addis areas, and guests still choose these neighborhoods because they offer better value for longer stays and quieter residential settings.
What's the typical occupancy rate in Ethiopia in 2026?
As of the first half of 2026, the typical occupancy rate for Airbnb listings in Ethiopia averages around 43% nationally, with Addis Ababa performing slightly better at approximately 47%.
The realistic occupancy range covering most Ethiopian Airbnb listings falls between 35% and 55%, with secondary cities like Bahir Dar and Hawassa trending toward the lower end due to thinner and more seasonal demand.
Ethiopia's Airbnb occupancy rates are comparable to or slightly below other East African markets, reflecting the country's still-developing tourism infrastructure and the dominance of business and diaspora travel over leisure tourism.
The single factor with the biggest impact on achieving above-average occupancy in Ethiopia is operational reliability, specifically consistent power supply, stable Wi-Fi, and fast host response times that business travelers and NGO workers prioritize.
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What's the average monthly revenue per listing in Ethiopia in 2026?
As of the first half of 2026, the average monthly revenue per Airbnb listing in Ethiopia is approximately $580 (about 75,400 ETB or 535 EUR), calculated from the typical nightly rate multiplied by average occupancy.
The realistic monthly revenue range covering roughly 80% of Ethiopian Airbnb listings falls between $350 and $850 (45,500 to 110,500 ETB, or 323 to 784 EUR), with location and reliability features being the main drivers of where a listing falls in this range.
Top-performing Airbnb listings in Ethiopia can achieve monthly revenues of $1,000 to $1,500 (130,000 to 195,000 ETB, or 922 to 1,383 EUR) during peak periods. For example, a well-managed two-bedroom apartment in Bole charging $70 per night at 65% occupancy would earn roughly $1,365 monthly.
Finally, note that we give here all the information you need to buy and rent out a property in Ethiopia.
What's the typical low-season vs high-season monthly revenue in Ethiopia in 2026?
As of the first half of 2026, typical monthly Airbnb revenue in Ethiopia ranges from about $380 to $520 (49,400 to 67,600 ETB, or 350 to 480 EUR) during low season to $750 to $950 (97,500 to 123,500 ETB, or 692 to 876 EUR) during high season.
Low season for Ethiopian Airbnbs generally runs from March through May and again in September through early November, while high season peaks during December through February when diaspora travel surges, and during major conference periods and Ethiopian holidays like Timket, Meskel, and Enkutatash.
What's a realistic Airbnb monthly expense range in Ethiopia in 2026?
As of the first half of 2026, realistic monthly operating expenses for an Airbnb in Ethiopia range from $180 to $350 (23,400 to 45,500 ETB, or 166 to 323 EUR) for apartments and condos, and $300 to $650 (39,000 to 84,500 ETB, or 277 to 600 EUR) for houses and villas with higher security and maintenance needs.
The single largest expense category for Ethiopian Airbnb hosts is typically utilities combined with power backup costs, including generator fuel or inverter maintenance, which is more significant in Ethiopia than in markets with reliable electricity grids.
Hosts in Ethiopia should typically expect to spend between 30% and 55% of gross revenue on operating expenses, with leaner self-managed apartments at the lower end and fully staffed villas at the higher end.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Ethiopia.
What's realistic monthly net profit and profit per available night for Airbnb in Ethiopia in 2026?
As of the first half of 2026, realistic monthly net profit for an Airbnb in Ethiopia ranges from approximately $120 to $320 (15,600 to 41,600 ETB, or 111 to 295 EUR), with profit per available night falling between $4 and $11 (520 to 1,430 ETB, or 3.70 to 10.15 EUR).
The realistic monthly net profit range covering most Ethiopian Airbnb listings spans from breaking even or slight losses during low season to $400 or more (52,000 ETB, 369 EUR) for well-optimized listings in prime locations during peak months.
Ethiopian Airbnb hosts typically achieve net profit margins between 20% and 40% of gross revenue, with apartments and condos trending higher due to more predictable costs, while houses and villas often see lower margins unless occupancy stays strong.
The break-even occupancy rate for a typical Airbnb listing in Ethiopia falls around 25% to 35%, meaning hosts need to fill their property roughly 8 to 11 nights per month just to cover operating expenses before generating any profit.
In our property pack covering the real estate market in Ethiopia, we explain the best strategies to improve your cashflows.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Ethiopia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How competitive is Airbnb in Ethiopia as of 2026?
How many active Airbnb listings are in Ethiopia as of 2026?
As of the first half of 2026, Ethiopia has approximately 1,700 active Airbnb listings nationwide, with about 1,330 of those concentrated in Addis Ababa alone.
This number has grown modestly compared to previous years, reflecting a gradual increase in supply as more property owners recognize the short-term rental opportunity, though the market remains small compared to major African tourism destinations like Kenya or South Africa.
Which neighborhoods are most saturated in Ethiopia as of 2026?
As of the first half of 2026, the most saturated neighborhoods for Airbnb in Ethiopia are Bole (especially near the airport), Kazanchis in the business core, CMC/Gerji corridor, and Old Airport in Addis Ababa.
These neighborhoods became saturated because they combine proximity to Bole International Airport with access to diplomatic zones, conference venues, and the business services that NGO workers and international travelers need, creating intense competition on price, Wi-Fi quality, and cleanliness.
Relatively undersaturated neighborhoods that may offer better opportunities for new Ethiopian Airbnb hosts include Piassa for budget-conscious travelers, emerging residential areas further from central Addis, and secondary cities like Bahir Dar or Hawassa where supply remains thin but tourism demand exists.
What local events spike demand in Ethiopia in 2026?
As of the first half of 2026, the main local events that spike Airbnb demand in Ethiopia are African Union summits and meetings, UNECA and UN conferences hosted in Addis Ababa, and major Ethiopian holidays including Timket (Epiphany), Meskel, Enkutatash (Ethiopian New Year), and Genna (Ethiopian Christmas).
During these peak events, Ethiopian Airbnb hosts typically see bookings increase by 30% to 60% and can raise nightly rates by 20% to 40% above normal levels, especially for properties close to conference venues or with reliable amenities.
Hosts should adjust their pricing and availability at least three to four weeks before major AU summits or diplomatic conferences, and even earlier for predictable holidays like Timket in January, to capture the surge in demand before competitors fill the market.
What occupancy differences exist between top and average hosts in Ethiopia in 2026?
As of the first half of 2026, top-performing Airbnb hosts in Ethiopia achieve occupancy rates between 60% and 70%, significantly outperforming the market average.
By comparison, average hosts in Ethiopia typically see occupancy rates of 40% to 45%, meaning top performers fill their properties roughly 50% more nights per month by offering reliable power, strong Wi-Fi, and fast communication.
New hosts in Ethiopia can typically reach top-performer occupancy levels within 6 to 12 months if they focus on building reviews, maintaining excellent response times, and differentiating on reliability rather than just competing on price.
We give more details about the different Airbnb strategies to adopt in our property pack covering the real estate market in Ethiopia.
What amenities do nearly all competitors offer in Ethiopia right now?
As of the first half of 2026, nearly all competitive Airbnb listings in Ethiopia offer Wi-Fi, parking, a kitchen, and a TV as baseline amenities that guests now expect as standard.
The differentiating amenities that set top Ethiopian listings apart are not the basics but rather reliability features like generator or inverter backup for power outages, strong and consistent internet speed, dedicated workspace for business travelers, and airport pickup coordination.
Hosts who want to stand out in Ethiopia's Airbnb market should focus less on decorative upgrades and more on solving the practical frustrations that guests commonly encounter, especially around electricity and water pressure.
Which price points are most crowded, and where's the "white space" for new hosts in Ethiopia right now?
The nightly price range with the highest concentration of Airbnb listings in Ethiopia is $25 to $50 (3,250 to 6,500 ETB, or 23 to 46 EUR), particularly for apartments and condos in Addis Ababa's Bole area.
The white space opportunity for new Ethiopian Airbnb hosts sits in the $55 to $90 range (7,150 to 11,700 ETB, or 51 to 83 EUR), where competition is thinner because fewer hosts invest in the reliability features that justify premium pricing.
To successfully compete in this underserved price segment in Ethiopia, a new host should offer generator or inverter backup, strong and tested Wi-Fi, a dedicated workspace, quality linens, and responsive communication, essentially solving the reliability problems that frustrate business travelers willing to pay more.
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What property works best for Airbnb demand in Ethiopia right now?
What bedroom count gets the most bookings in Ethiopia as of 2026?
As of the first half of 2026, one-bedroom and two-bedroom properties get the most Airbnb bookings in Ethiopia, reflecting the dominant demand from solo business travelers, couples, and small diaspora family groups.
The estimated booking rate breakdown by bedroom count in Ethiopia shows one-bedroom units at roughly 35% of supply, two-bedroom at about 31%, and three-bedroom-plus at around 24%, with studios making up the remainder.
These bedroom counts perform best in Ethiopia because the core guest segments are NGO workers, diplomats, and diaspora visitors who need functional space for stays of several weeks but rarely travel in large groups requiring bigger properties.
What property type performs best in Ethiopia in 2026?
As of the first half of 2026, well-managed apartments and condos in prime Addis Ababa neighborhoods deliver the best risk-adjusted returns for Airbnb hosts in Ethiopia, offering steadier occupancy and more controllable costs than larger properties.
Occupancy rates across property types in Ethiopia show apartments and condos averaging 45% to 55% when well-run, while houses and villas can achieve higher nightly rates but often see occupancy drop to 35% to 45% due to higher price points and more demanding guest expectations.
Apartments and condos outperform in Ethiopia because they match the practical needs of the dominant guest segments, specifically business and NGO travelers who value location, reliability, and security over space, and because operating costs stay predictable without the staffing and maintenance burden of larger homes.
What location traits boost bookings in Ethiopia right now?
As of the first half of 2026, the location traits that boost Airbnb bookings in Ethiopia are less about scenic charm and more about logistics and reliability, with proximity to Bole International Airport and quick access to business and diplomatic zones being the top drivers.
Properties near conference venues, embassies, and UN offices in central Addis Ababa attract the highest booking volumes because these are where business travelers and NGO workers need to be during their stays.
Beyond location, the operational traits that matter most are low-friction living features like consistent water pressure, quiet buildings with good security, and work-ready setups with stable Wi-Fi and a dedicated desk space.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Ethiopia, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| AirDNA MarketMinder | AirDNA is a widely recognized STR analytics provider that tracks Airbnb and Vrbo performance metrics with documented methodology. | We used it as our core benchmark for active listings, ADR, occupancy, and RevPAR in Addis Ababa. We then computed monthly revenue and profit ranges from these metrics. |
| Airbnb Regulatory Guidance | This is Airbnb's official guidance hub explaining how hosts should approach local rules and compliance. | We used it to frame host responsibilities around local law compliance and registration requirements. We also used it to keep the legal section practical and host-focused. |
| Ethiopia Ministry of Revenue | This is the Ethiopian government's official tax portal covering policy, directives, and taxpayer obligations. | We used it to establish that rental income is a taxable activity in Ethiopia. We framed what hosts must prepare for including TIN registration and recordkeeping. |
| Federal Income Tax Proclamation No. 979/2016 | This is the formal Ethiopian tax law text that defines rental income taxation and treatment. | We used it to support that rental income is taxed in Ethiopia. We structured the expenses, net profit, and tax discussion based on this legal foundation. |
| Income Tax Amendment Proclamation No. 1395/2025 | This is a published copy of the enacted tax amendment distributed by a major audit firm for compliance purposes. | We used it to ensure our January 2026 tax framing reflects current rules rather than outdated 2016 provisions. We layered it on top of the original proclamation. |
| Rent Control Proclamation No. 1320/2024 | This is the published text of a national proclamation directly affecting residential renting rules in Ethiopia. | We used it to explain how Ethiopia has tightened oversight on residential renting. We framed it as a risk factor rather than claiming it creates STR-specific caps. |
| Dablo Law Firm Analysis | This is a law firm explainer that directly references the city directive and proclamation basis for Addis Ababa. | We used it only to clarify how enforcement works in Addis Ababa in practice. We did not use it as the sole source for legal interpretation. |
| National Bank of Ethiopia Exchange Rates | NBE is Ethiopia's central bank, and this is the official reference for exchange rate publication. | We used it to explain why USD pricing is common in Addis Ababa STRs. We also used it to frame currency risk and convert prices accurately. |
| NBE Monetary Policy Committee Note | This is an official central bank communication about macro conditions affecting pricing and demand in Ethiopia. | We used it to support the macro backdrop of inflation and monetary tightening. We triangulated it with tourism demand indicators for context. |
| World Bank Tourism Arrivals Data | The World Bank data portal is a standard, citable repository that sources tourism arrivals from UN Tourism datasets. | We used it to show long-run tourism demand context and why Addis is structurally the base market. We combined it with Ethiopia's own tourism communications. |
| UN Tourism Statistics Database | UN Tourism is the UN-recognized body for global tourism measurement standards and data collection. | We used it to validate that our indicators align with global definitions. We used it as triangulation behind World Bank tourism data. |
| UN Tourism Data Dashboard | This is UN Tourism's official dashboard for inbound and outbound indicators and tourism performance signals. | We used it to cross-check that Ethiopia's tourism trajectory matches regional recovery patterns. We also used it to justify event-driven demand spikes. |
| Visit Ethiopia Tourism Newsletter | This is published on the official Visit Ethiopia domain used for government tourism communications. | We used it to cite Ethiopia's own reported arrivals narrative and seasonality cues. We used it as a local lens alongside UN and World Bank data. |
| UNECA Tourism Sector Report | UNECA is a UN body, and this is an official announcement about Ethiopia's tourism measurement system upgrades. | We used it to support that Ethiopia is professionalizing tourism measurement and planning. We used it as a policy signal for medium-term demand credibility. |
| Airbnb Bole Neighborhood Page | This is Airbnb's own public neighborhood inventory page reflecting real-time listing volume and entry prices. | We used it to ground neighborhood examples with actual names and show Bole's deep inventory. We used it as a reality check alongside AirDNA market totals. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Ethiopia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.