As Gilbert, Arizona continues to attract visitors, professionals, and relocating families, the short-term rental market has grown significantly. Platforms like Airbnb and VRBO have turned traditional owner-occupied homes into income-generating properties. This leads many homeowners and investors to ask: Do appraisers consider short-term rentals (Airbnb/VRBO) when valuing Gilbert homes?

The answer is: yes, but with important limitations and conditions. Real estate appraisers do consider short-term rental potential in some appraisal scenarios—but not always, and not in the same way they would for long-term income properties.

In this in-depth article, we’ll explore how short-term rental income is evaluated in real estate appraisals, when it matters, when it doesn’t, and how Gilbert property owners can ensure that their appraisal reflects the full value of their investment.

Understanding the Basics: How Real Estate Appraisers Evaluate Homes

A real estate appraisal is an objective, third-party opinion of a property’s market value. It’s typically ordered during:

• Home sales (especially when financing is involved)
• Refinancing mortgages
• Estate planning or legal disputes
• Tax assessments or appeals

Appraisers use three main valuation approaches:

1. Sales Comparison Approach – Based on comparable recent home sales
2. Cost Approach – What it would cost to rebuild the property today
3. Income Approach – Based on how much income the property can generate (primarily for investment or rental properties)

So where do short-term rentals like Airbnb and VRBO fall? That depends on the intended use of the appraisal, the loan type, and the type of buyer or property owner involved.

When Short-Term Rental Income IS Considered in an Appraisal

1. Investment Property Appraisals (Income-Producing Homes)

If the property is explicitly being purchased or refinanced as an investment, and the borrower declares rental income on their application, then appraisers may use the income approach—and that may include short-term rental income.

To do so, the appraiser will typically require:

• Documented rental income from Airbnb/VRBO (past 12–24 months preferred)
• Occupancy rate history
• Average nightly rate data
• Copies of tax returns or income statements showing declared rental income
• Proof that short-term rentals are legally permitted in the area

Appraisers might also reference third-party tools like AirDNA or Mashvisor to estimate short-term rental performance metrics in Gilbert, especially if historical data is limited.

In this context, short-term rental potential can and does increase appraised value—especially if income is strong and well-documented.

2. Multi-Family or Duplex Appraisals

If you’re purchasing or refinancing a duplex, triplex, or other multi-family property and intend to use one or more units for short-term rentals, appraisers can incorporate that documented income into the valuation as well.

This is most common in cash-flow analysis for investors, and especially relevant in areas of Gilbert zoned for multi-unit use.

When Short-Term Rentals Are NOT Typically Considered

1. Owner-Occupied, Primary Residences

If the property is primarily owner-occupied and not being treated as an investment or income property, appraisers will almost always use the sales comparison approach, not the income approach.

In this case:

• Short-term rental income is not included in the appraised value.
• Appraisers focus on size, condition, location, and comparable sales—not potential income from Airbnb.

Even if the homeowner occasionally rents out a room or casita on weekends, unless the income is stable, reported, and the appraisal is for investment purposes, it won’t impact the appraised value.

2. FHA, VA, and USDA Loans

Government-backed loans (FHA, VA, USDA) have stricter appraisal guidelines. They rarely consider short-term rental income when determining property value, even if the borrower has been using Airbnb.

These loans require the property to be a primary residence, and income from rentals is usually disallowed unless it’s from a long-term lease with proper documentation.

Legal Considerations: Is Short-Term Renting Allowed in Gilbert?

Appraisers are required to consider zoning laws and local regulations when assessing short-term rental income.

In Gilbert:

• Short-term rentals are legal, but subject to local ordinances and registration.
• Owners must comply with Arizona state law (A.R.S. §9-500.39), which limits municipalities from banning short-term rentals—but cities can regulate them for health, safety, and nuisance concerns.
• The Town of Gilbert may require business licenses, noise regulations, and neighbor notifications.

If a property is in a HOA, the HOA may prohibit or restrict short-term rentals—making it a moot point for appraisal purposes.

For the income to matter in an appraisal, the property must be legally eligible for short-term rental use.

How Eagle Home Appraisal Approaches Short-Term Rental Properties

As experienced real estate appraisers in the Gilbert area, Eagle Home Appraisal has appraised many homes that operate as short-term rentals or are being purchased for that purpose.

Their approach includes:

• Market-Specific Expertise – They understand which areas of Gilbert attract short-term rental guests and which are more restrictive.
• Income Approach for Investors – When the appraisal is for an investment property, they can incorporate income data from platforms like Airbnb and AirDNA, as well as tax returns.
• Transparent Documentation – Their reports clearly explain which approach was used and whether short-term income was included or excluded—and why.

Tips for Homeowners and Investors

If you’re hoping that your Airbnb income will positively impact your home’s appraisal, keep these best practices in mind:

✅ Document Your Income Thoroughly

Keep clear records of:

• Gross and net income from short-term rental platforms
• Occupancy rates and average nightly rates
• Annual profit and loss statements
• Property management expenses (if applicable)

✅ Show Legal Compliance

Include your Town of Gilbert short-term rental registration (if required), plus HOA bylaws or documentation confirming that rentals are allowed.

✅ Provide Comparative Market Data

If possible, provide your appraiser with nearby sales of other short-term rental properties, especially those with similar rental histories.

✅ Clarify Your Intent

Let the lender and appraiser know whether the property is:

• A primary residence with occasional Airbnb use
• A vacation home that’s rented part-time
• A full-time income-producing short-term rental

Your intent influences the valuation method used.

Frequently Asked Questions (FAQs)

1. Will Airbnb income be counted if I’m refinancing?
   Yes—if the income is well-documented and the property is used as an investment. You’ll likely need 1–2 years of tax returns showing this income.
2. Can my appraiser use AirDNA or other data tools?
   They can use third-party data sources for market trends and estimated occupancy rates, especially if you lack direct rental history.
3. Does having a casita or guest house increase short-term rental value?
   Yes. Detached units with private entrances are especially appealing for Airbnb and can increase income potential—and thus appraisal value for investment properties.
4. Do appraisers value my home higher if I mention Airbnb use during a walk-through?
   Not automatically. Unless the home is officially classified as an investment and income is documented, your casual use of Airbnb won’t change the appraised value.
5. Can a short-term rental ever lower my home’s appraisal?
   If your property has excessive wear and tear from frequent guest turnover, it could impact condition ratings and reduce value. Maintenance matters.

Short-term rentals like Airbnb and VRBO can positively affect appraised value—but only under specific circumstances. If your home in Gilbert is a dedicated, income-producing investment with solid documentation, a qualified real estate appraiser can and should include that income in the valuation.

However, if you’re simply using your home for occasional rentals or applying for a government-backed loan, don’t expect Airbnb income to boost your appraisal.

To ensure your property is evaluated accurately—whether you’re an investor or a homeowner—partner with local experts like Eagle Home Appraisal, who understand Gilbert’s real estate market, zoning rules, and income valuation guidelines for short-term rentals.

Next Article:
👉 How Are New Construction Homes Appraised Differently in Gilbert?