Section 01
City identity
- What draws Airbnb guests
- Airbnb guests choose Oaxaca for its exceptional mix of historical and cultural attractions, culinary experiences, and festivals such as Dia de los Muertos. The city's preserved colonial architecture and streets alive with artisanal crafts and foods are major draws.
- Why this city, not the next one
- Visitors often select Oaxaca over nearby destinations such as Mexico City or Cancun for its unique blend of authentic cultural experiences and vibrant food scene, which offers a more intimate and engaging exploration of Mexican traditions.
- Primary tourism type
- Cultural tourism is the primary pillar, supported by food tourism and eco-tourism. These attract a diverse array of visitors looking to experience authentic Mexican culture and gastronomy.
- How tourism has shifted
- Tourism arrivals in Oaxaca have shown a notable increase over the last five years, driven by international interest in its festivals and growing appeal as a culinary capital. The region remains less over-commercialized compared to other Mexican hotspots, which has contributed to sustained interest.
Section 02
Who visits — and what they want
Oaxaca sees a healthy mix of domestic and international travelers, with a significant portion coming from the USA. Primary age groups include young adults and middle-aged couples seeking cultural and culinary experiences. The city also attracts families during festival periods.
- Typical stay length
- Most international visitors stay between 4 to 7 nights, with longer stays coinciding with major festivals.
- Top source nationalities
- United StatesCanadaFranceSpain
- Most-valued amenities
- High-speed internetLocal coffeeAir conditioningOutdoor terracesCultural maps and guides
Section 03
What drives bookings
Highest-converting attractions
- Monte Albán
Proximity to this archaeological site boosts occupancy, especially amongst cultural tourists.
- Oaxaca City Center
Being near the Zócalo and Santo Domingo church lures travelers interested in historical and architectural experiences.
- Hierve el Agua
Spikes interest in Airbnb listings that offer day trip options to this natural wonder.
- Oaxaca Textile Museum
Listings near this area benefit from guests interested in artisanal crafts.
High-traffic neighborhoods
Annual events that move occupancy
- Guelaguetza· July
Drastic upticks in occupancy and ADR due to the influx of tourists for this traditional festival.
- Dia de los Muertos· October - November
This period sees peak demand as travelers flock to experience traditional Mexican festivals.
- Semana Santa· April
Increased occupancy, attracting religious travelers and those interested in cultural ceremonies.
- Sporting events, trade fairs, conferences
- The Oaxaca Film Festival also draws crowds in October, improving occupancy rates citywide.
Section 04
Month-by-month seasonality
January
mediumPost-holiday visits driven by cultural interest.
February
lowLowest demand due to no significant events.
March
mediumIncreased from spring break tourists.
April
highSemana Santa brings cultural tourists and pilgrims.
May
lowTransition month with minimal tourist influx.
June
mediumPre-Guelaguetza interest starts building.
July
peakGuelaguetza Festival attracts massive crowds, spiking ADR.
August
mediumContinued interest post-Guelaguetza.
September
lowQuieter month with little external tourism draw.
October
highOaxaca Film Festival attracts culture enthusiasts.
November
peakDia de los Muertos draws global visitors.
December
highHoliday season increases demand due to family gatherings and cultural events.
- Best months for occupancy
- July, November
- Best months for pricing
- July, November
- Weakest months
- February, September
- Shoulder seasons
- March to June, August to October
- Weather impact
- Oaxaca’s moderate climate is largely favorable, although occasional storms can disrupt travel plans during the wetter months of June through September.
- School holiday impact
- Increased family bookings coinciding with North American school vacations during March and December.
Section 05
Short-term rental regulations
Oaxaca's regulatory environment for short-term rentals is evolving, with increasing scrutiny on tourist taxes and housing availability.
- Licensing & registration
- Hosts are required to register with the local municipality, but enforcement is inconsistent.
- Primary residence rules
- There are no strict primary residence rental laws, allowing for both resident and non-resident hosts to list properties.
- Zoning / building rules
- Some neighborhoods may have building regulations that impact the ability to operate STRs; these are typically enforced at the local level, particularly in historical zones.
- Tax obligations
- Hosts must comply with a state-level lodging tax, generally around 3%, in addition to any applicable federal taxes.
- Compliance challenges
- Navigating local bureaucracy can be complex, with paperwork requiring in-person submissions.
- Recent legal changes
- There is talk of more stringent tax enforcement and potential caps on rental numbers in certain tourist-heavy neighborhoods.
- Future regulatory risks
- Increased regulation could arise from local pressure to curb foreign real estate investment impacting housing prices.
Section 06
Neighborhood breakdown
10 neighborhoods relevant to short-term rental in Oaxaca. Each entry sketches the typical guest, property type, rates and 12–36 month outlook.
Centro Histórico
- Who stays
- Attracts travelers who are keen on exploring Oaxaca's main cultural and historical landmarks.
- Best property type
- 1BHK serviced apartment
- Typical ADR
- $70 – $150 USD
- Typical occupancy
- 68–85%
- Advantages
- Central location with strong appeal for cultural tourists and access to vibrantly busy streets full of local shops and restaurants.
- Disadvantages
- Higher noise levels due to nightlife and events.
- Investor appeal
- High demand from both tourists and locals due to centrality.
- Guest appeal
- Walking distance to most major attractions and a variety of dining experiences.
12–36 month outlook
Continued investment in cultural preservation will sustain property appeal.
Jalatlaco
- Who stays
- Sought by young couples and solo travelers looking for an artsy, authentic neighborhood experience.
- Best property type
- Artistic studio apartment
- Typical ADR
- $50 – $100 USD
- Typical occupancy
- 64–80%
- Advantages
- Charming streets with murals, close-knit community feel, proximity to downtown without the hustle.
- Disadvantages
- Limited parking and can feel isolated from the city's central buzz.
- Investor appeal
- Appeal to niche markets interested in arts and culture-driven tourism.
- Guest appeal
- Scenic and quiet with access to quaint coffee shops and cultural venues.
12–36 month outlook
Rising interest among artists and sustainability-focused tourists will drive future demand.
Xochimilco
- Who stays
- Popular among families and older tourists interested in a quieter stay with cultural touchpoints.
- Best property type
- 2BHK traditional house
- Typical ADR
- $60 – $120 USD
- Typical occupancy
- 60–78%
- Advantages
- Historic area known for its aqueduct and tranquil environment with local markets and eateries.
- Disadvantages
- Older infrastructure may lead to maintenance issues; limited public transit options.
- Investor appeal
- Strong rental market due to its scenic beauty and traditional architecture.
- Guest appeal
- Historic charm with a peaceful setting; good for those wanting a less touristy experience.
12–36 month outlook
Gentrification could increase ADR as amenities improve.
Reforma
- Who stays
- Business travelers and families seeking modern comforts near the city outskirts.
- Best property type
- 3BHK modern apartment
- Typical ADR
- $55 – $110 USD
- Typical occupancy
- 58–74%
- Advantages
- Accessibility to supermarkets and modern stores; quieter than downtown.
- Disadvantages
- Lacks the immediate charm and access to historical sites compared to central areas.
- Investor appeal
- Growing demand for residential properties as more families and business professionals move in.
- Guest appeal
- Modern living with suburban quietude yet reasonably close to central attractions.
12–36 month outlook
Potential development of more high-end properties and amenities.
San Felipe del Agua
- Who stays
- Attracts luxury seekers and expatriates looking for a sophisticated retreat.
- Best property type
- Luxury villa
- Typical ADR
- $150 – $300 USD
- Typical occupancy
- 50–70%
- Advantages
- Scenic views and upscale houses; higher yields during peak travel seasons.
- Disadvantages
- Distance from central Oaxaca makes it less convenient for short trips; higher travel costs to main attractions.
- Investor appeal
- Appeal to wealthy clients and expatriate community, with sustained high ADR potential.
- Guest appeal
- Privacy, luxury amenities, and views attract affluent visitors.
12–36 month outlook
Increased luxury development driven by expatriate interests could reshape the real estate landscape.
Santa Maria del Tule
- Who stays
- Primarily families and cultural tourists for day trips rather than extended stays.
- Best property type
- Traditional Mexican hacienda
- Typical ADR
- $40 – $80 USD
- Typical occupancy
- 55–67%
- Advantages
- Famous for the Tule Tree, offering a unique local attraction.
- Disadvantages
- Lesser demand for overnight stays due to generally being considered a day-trip destination from Oaxaca City.
- Investor appeal
- Limited but stable investment opportunities focused on eco and cultural tourism.
- Guest appeal
- Proximity to the famous Tule Tree and a chance to experience rural Oaxacan culture.
12–36 month outlook
Sustainable tourism initiatives could attract eco-conscious travelers.
Etla
- Who stays
- Food enthusiasts and agri-tourists interested in exploring the region's culinary offerings and markets.
- Best property type
- Rural cottage
- Typical ADR
- $45 – $95 USD
- Typical occupancy
- 52–70%
- Advantages
- Known for its cheese production and personalized culinary experiences.
- Disadvantages
- Further from Oaxaca City, making it less viable for casual visitors focused on city attractions.
- Investor appeal
- Grows with eco-tourism and culinary tourism sectors, targeting niche travelers.
- Guest appeal
- Specialized experiences such as local farm tours and artisanal cheese workshops.
12–36 month outlook
Expanding recognition in food tourism will increase visitor numbers and interest.
Zaachila
- Who stays
- Cultural history buffs and those wanting to explore authentic archaeological sites.
- Best property type
- Archaeological site-adjacent apartment
- Typical ADR
- $50 – $95 USD
- Typical occupancy
- 50–65%
- Advantages
- Hosts a vibrant weekly market and is close to significant archaeological areas.
- Disadvantages
- Limited infrastructure and accommodation development can restrict potential returns.
- Investor appeal
- Low property prices with emerging tourism markets centering on archaeological exploration.
- Guest appeal
- Deep cultural immersion and access to sites not overrun by tourists.
12–36 month outlook
Rising archaeological interest and market revitalization efforts may boost appeal.
Mitla
- Who stays
- Tourists intrigued by archaeology and authentic markets, often visiting for day trips.
- Best property type
- Eco-friendly bungalow
- Typical ADR
- $35 – $70 USD
- Typical occupancy
- 55–68%
- Advantages
- One of the most important archaeological sites, it attracts steady tourist interest and retains a traditional atmosphere.
- Disadvantages
- Transient visitor base; limited overnight stays compared to city center options.
- Investor appeal
- Potential in targeted eco-tourism investments due to rich historical significance.
- Guest appeal
- Offers rare insights into ancient cultures and opportunities for market and craft exploration.
12–36 month outlook
Historic preservation efforts will ensure continued tourist interest and evolving infrastructure needs.
Huatulco
- Who stays
- Vacationers and beach enthusiasts looking for a relaxed coastal experience away from the urban hustle.
- Best property type
- Beachfront condo
- Typical ADR
- $80 – $200 USD
- Typical occupancy
- 60–75%
- Advantages
- Beautiful beaches and increasing amenities with less tourist saturation.
- Disadvantages
- Distance from Oaxaca City limits integration into cultural excursions centered around the city.
- Investor appeal
- Growing as a tourist hub with increased accessibility due to infrastructure improvements, potentially raising property values.
- Guest appeal
- Captivating ocean views and access to less crowded beaches offer a different side of Oaxaca.
12–36 month outlook
Enhanced connectivity and growing tourist infrastructure could transform Huatulco into a major beach destination.
Section 07
Market performance
City-wide ADR
$65 – $120 USD
Occupancy
65–77%
Typical annual revenue
$18,000 – $30,000 USD
- Revenue across neighborhoods
- Centro Histórico and Jalatlaco consistently top revenue charts due to their cultural significance and tourist foot traffic; areas like Xochimilco follow closely with strong familial travel appeal.
- Revenue across property types
- 1BHK and 2BHK properties see the highest annual yields in central locations, while luxury villas in the outskirts like San Felipe del Agua capture niche markets with higher ADR potential.
- Most profitable categories
- Luxury villas during peak festival seasons, and well-located 1BHK apartments in historical districts.
- Oversupplied categories
- Standard hotels in city outskirts and rural areas, due to lacking distinct travel drivers.
Section 08
Competition
- Overall intensity
- Moderate compared to larger Mexican cities; the market is growing as international awareness of Oaxaca rises.
- Active listings
- Approximately 2,000 – 2,500 active short-term rental listings.
- Luxury segment
- Growing interest in luxury vacation rentals, especially in areas like San Felipe del Agua and along coastal zones.
- Budget segment
- Demand is strong for affordable rentals in central districts due to traveler interest in budget-friendly cultural exploration.
Underserved niches
- Eco-friendly accommodation
- Culinary tour packages
- Pet-friendly rentals
Section 09
Local operating costs
- Cleaning
- $20 – $35 USD per turnover for standard-sized properties.
- Laundry
- For outsourced services, costs average $10 – $20 USD per load.
- Utilities
- Approximately $100 – $200 USD monthly, with fluctuations based on occupancy.
- Internet
- Reliable high-speed internet services average around $30 – $50 USD per month.
- Property management
- Approximately 10%–20% of monthly revenue for full service, including guest handling and maintenance.
- Maintenance
- Budget around $50 to $100 USD per month for minor repairs and upkeep.
- Insurance
- Home insurance typically ranges from $150 – $300 USD annually, depending on coverage.
Section 10
What local guests expect
- Parking
- Preferred by guests in suburban and rural neighborhoods, less critical downtown.
- Air conditioning
- An essential feature for comfort during warmer months, particularly in newer developments.
- Heating
- Generally not required due to Oaxaca’s mild climate.
- Public transport access
- Good linkage within the city center but less reliable in outlying areas, making proximity to transit valuable.
- Workspace
- Valued by digital nomads, especially in central locations with reliable internet.
- Balcony
- Considered a luxury feature, most desired in properties with city or scenic views.
- Pool
- Not commonly expected, though a plus for properties in luxury segments or warmer regions like Huatulco.
- Family amenities
- Family-centric amenities are beneficial but not considered essential except during school holidays.
- Luxury expectations
- High standards for properties in exclusive neighborhoods or near major events/festivals, often requiring premium furnishings and personalized touches.
Section 11
Transport & connectivity
- Airport impact
- Xoxocotlán International Airport is 20 minutes from the city, making Centro Histórico a prime location for visitors needing quick access.
- Rail
- No major rail service affects tourist logistics; reliance on road travel and public buses is predominant.
- Public transit quality
- Adequate for city movement, but rental vehicles or taxis are recommended for travel to remote attractions.
- Walkability
- High in the city center, especially around historical areas; less so in peripheral neighborhoods.
- Car dependency
- Moderate, as further attractions require taxis or rental cars despite good central public transport.
- Future infrastructure
- The potential expansion of the Oaxaca International Airport could improve accessibility, further boosting tourism arrivals.
Section 12
Investment angle
- Best neighborhoods for investors
- Centro HistóricoJalatlacoSan Felipe del Agua
- Fastest-growing
- HuatulcoXochimilco
- Luxury opportunities
- Prime in neighborhoods like San Felipe del Agua and Huatulco where upscale developments increase property valuation.
- Budget opportunities
- Affordable opportunities are robust in rural areas like Zaachila and Mitla, where cultural tourism holds future promise.
- Key risks
- Potential over-regulation and international economic instability impact future growth projections.
Section 13
Local risks
- Noise & community
- Occasional community pushback due to noise concerns during festivals and high tourist influx times.
- Tourist taxes
- Unpredictable changes in lodging taxes can affect operational costs and must be closely monitored.
- Housing shortage debate
- Concerns regarding short-term rentals inflating local housing markets, sparking discussions on potential restrictions or heavier taxations.
- Regulatory uncertainty
- Current discussions around regulation tightening may affect future hosting conditions and legal obligations.
- Crime considerations
- While generally safe, petty thefts can occur, so security measures in tourist-heavy areas are advised.
- Environmental risks
- Periodic flooding in the rainy season could disrupt travel and affect certain low-lying properties.
- Seasonality risks
- Hosts must prepare for significant demand swings based on festival and event calendars, which can impact cash flow.
Section 14
Future outlook
- Tourism forecast
- Positive growth expected as Oaxaca garners international attention for its distinct cultural and culinary offerings, though susceptible to global travel trends.
Infrastructure projects in the pipeline
- Expansion of Oaxaca International Airport· ETA 2025
Expected to increase tourist traffic from international markets, especially from the USA.
- Oaxaca-Costa Highway· ETA 2023
Will drastically cut travel time to the coast, boosting cross-regional tourist flows.
- Major developments
- With increased international tourism interest, there is a growing trend towards luxury accommodation development in Oaxaca’s suburbs and coast.
- Upcoming regulations
- Possible introduction of stricter short-term rental regulations by 2024 could impact new-style hosting strategies.
- Economic factors
- The global economic climate may affect international tourist numbers; however, domestic tourism is expected to remain a stabilizing factor.
Section 15
Oaxaca as a mixed destination
Cultural Tourism in Oaxaca
Oaxaca's cultural tourism is anchored by its deeply-rooted indigenous traditions, vibrant festivals, and historical sites such as Monte Albán, a UNESCO World Heritage site. Properties that emphasize easy access to cultural districts, provide insights into local customs, or guide guests to traditional festivals see consistent demand. Hosts in the Centro Histórico district, for example, capitalize on the foot traffic driven by proximity to cultural landmarks and events, providing a rich backdrop for tourists eager to immerse themselves in Oaxacan history and traditions.
Culinary Experiences as a Draw
Oaxaca is recognized globally for its rich and varied culinary traditions, including its famous moles and mezcal. As a host, offering a culinary angle—whether through providing local gastronomic recommendations, partnering with nearby local cooks for in-home dining experiences, or offering tastings tied to local markets like Mercado 20 de Noviembre—enhances your property's appeal. Tours focused on Oaxacan food are particularly effective magnets for guests with a specific travel interest in cuisines, often helping retain higher occupancy rates even outside peak cultural event seasons.
Growing Eco-Tourism Opportunities
With its diverse landscapes, from mountains to coastal regions, Oaxaca is increasingly attracting eco-tourists. Properties that emphasize sustainable practices or are strategically located near natural sites like Hierve el Agua or the Sierra Norte mountains are finding an emerging market willing to pay a premium for eco-friendly accommodation. Simple additions, like offering guest bicycles or organizing hiking trails, can transform a standard listing into an attractive option for nature-loving travelers. Hosts who align their offerings with eco and adventure tourism have the opportunity to engage with a significant trend in global travel focused on sustainability and immersive natural experiences.
Section 16
Oaxaca-specific insights
The questions a local consultant would answer. Everything below is city-specific — none of it would apply to a neighbouring market.
What makes Oaxaca's Airbnb market unique compared to other Mexican cities?
Oaxaca's market is more cultural and festival-driven than commercially focused tourist cities like Cancun or Mexico City, resulting in distinct seasonal peaks and a diverse visitor profile drawn by unique cultural events and gastronomy.
How does Oaxaca's culinary reputation affect Airbnb demand?
The growing reputation as a culinary capital, particularly known for its moles and mezcal, draws food enthusiasts, which boosts demand for centrally-located listings near key food markets and events.
What is the best way to handle listing properties during Oaxaca's rainy season?
Ensure properties are water-tight and consider offering amenities such as umbrellas. Listings with scenic views may still perform well if positioned correctly to showcase the lush landscape.
What cultural considerations should hosts be aware of in Oaxaca?
Understanding and respecting local customs, especially during festivals like Dia de los Muertos, is crucial. Providing guests with cultural insights and recommendations is also highly valued.
Which neighborhoods are thriving due to recent infrastructure developments?
San Felipe del Agua is seeing growth due to upscale development projects, while Huatulco benefits from improved road connectivity, increasing its attraction as a coastal destination.
How does the local craft industry affect hosting strategies in Oaxaca?
Proximity to artisan markets in areas like Xochimilco and Jalatlaco can be a unique selling point for guests interested in hand-crafted goods; listings can partner with local artisans to enhance guest experiences.
Are family-friendly accommodations in demand in Oaxaca?
Yes, especially during school holidays, providing amenities such as extra bedding and family activity guides can enhance appeal.
What are the implications of Oaxaca’s increasing focus on eco-tourism?
There is rising demand for sustainable practices, making eco-friendly accommodations and partnerships with local conservation initiatives attractive to an environmentally conscious demographic.
How do festivals impact occupancy in Oaxaca?
Significant festivals like Guelaguetza and Dia de los Muertos lead to peak occupancy rates, often surpassing 90%, thus necessitating strategic pricing and booking management.
What property type sees the highest yield during the Guelaguetza festival?
Luxury villas and centrally-located 1BHK apartments often see maximum yield due to both high demand and willingness to premium pricing during this festival.
How should hosts prepare for cultural tourists visiting Oaxaca?
Having in-depth local guides and strong communication about cultural events and history adds value, enhancing the guest experience and potential reviews.
How is public transportation in Oaxaca affecting Airbnb stays?
While it's adequate in the city, properties with good access to taxi or private hire services tend to perform better, as public options are limited beyond city limits.
Can hosts attract digital nomads in Oaxaca?
Yes, centrally located properties with high-speed internet and convenient workspaces are increasingly popular among digital nomads, thanks to the city's cultural richness.
What special considerations should be made for properties in rural Oaxaca?
Highlighting unique local experiences and ensuring reliable utilities (especially water and electricity) can differentiate listings positively.
How do traditional events influence local tourism in Mitla?
Traditional ceremonies and markets draw visitors interested in cultural immersion, benefiting hosts who cater to market visits or offer traditional accommodation settings.
What effect do food festivals have on Airbnb bookings in Etla?
Food festivals significantly increase bookings, with most interest in accommodations offering easy market access or culinary experience tie-ins, such as farm tours.
How does Airbnb hosting in Oaxaca differ during non-peak months?
Non-peak months require more competitive pricing and might benefit from targeted promotions focusing on culinary experiences or quieter exploration opportunities.
How do archaeological sites near Mitla affect Airbnb interest?
Proximity to these sites remains a strong attraction for history enthusiasts and cultural tourists, suggesting a continued demand for properties facilitating these interests.
What are the current trends affecting luxury property rentals in Oaxaca?
There is a trend towards enhancing property offerings with cultural packages or experiences, especially in upscale segments seeking deeper engagement beyond mere accommodation.
How can hosts address potential security concerns for guests?
Providing secure property features such as gated entries and digital locks, along with clear communication about safety practices, reassures guests.
Skip the operations
List with Rovostays instead
We list on Booking.com, Airbnb, Expedia and our own demand — regulatory filings, payouts, housekeeping and concierge handled. See what your Oaxaca apartment could earn before you commit.