A year after the storm, short-stay data show the coastal villa earning less while homes inland, in Kingston and in Negril are earning more. For anyone who owns, or plans to buy, a property to rent to visitors, the map has shifted.
KINGSTON, Jamaica, 26 October 2026. Owners of seaside villas on the north coast have taken the sharpest hit in Jamaica’s short-term rental market over the past year, according to data from AirDNA, which tracks listings on Airbnb, Vrbo and Booking. Average annual earnings at coastal villas in Montego Bay fell 17 per cent to US$57,000, about J$9 million, while Ocho Rios slipped 9.0 per cent to US$24,100. The figures, reported by the Financial Gleaner on Sunday, land days before the first anniversary of Hurricane Melissa on 28 October, and they matter well beyond the tourism trade. Short-stay income has become a common part of the case for investment buying on the island, and it shapes what buyers, lenders and families expect a property to earn.
Where the money fell, and where it rose
The decline was concentrated at the top of the market. Active listings in the Montego Bay coastal villa segment fell 1.3 per cent to 231 over the 12 months, a sign that most owners stayed in the market and absorbed lower income rather than leaving it. Away from the coast the picture reversed. Across the other 865 listings in St James, average earnings rose 8.0 per cent to US$25,500. In St Ann, earnings rose 2.3 per cent to US$31,000.
| Market | Average annual earnings | Change over 12 months |
|---|---|---|
| Montego Bay coastal villas | US$57,000 | down 17% |
| Ocho Rios | US$24,100 | down 9.0% |
| St Ann | US$31,000 | up 2.3% |
| St James, excluding coastal villas | US$25,500 | up 8.0% |
| Negril | US$25,409 | up 26.2% |
| St Elizabeth | US$24,000 | up 3.0% |
| Kingston | US$21,000 | up 8.0% |
| Port Antonio, Mandeville, St Catherine | under US$17,000 each | not given |
Negril posted the biggest gain, up 26.2 per cent to US$25,409 per property, although much of that came from a single 32-room boutique property entering the data rather than a broad lift across the resort. Kingston rose 8.0 per cent to US$21,000 and St Elizabeth 3.0 per cent to US$24,000, though the data do not separate the parish’s coast from its interior. Port Antonio, Mandeville and St Catherine each averaged below US$17,000.
Why the coast took the blow
The explanation is not mysterious. The storm struck as a Category 5 hurricane, and the months that followed brought little travel into the west. Passenger traffic at Sangster International Airport in Montego Bay, the island’s main tourism gateway, fell 25.5 per cent to 2.87 million between January and September, according to the operator of Jamaica’s two main airports. Norman Manley International in Kingston fell only 1.8 per cent, to 1.39 million.
That gap likely explains much of the rental pattern. A coastal villa depends almost entirely on leisure visitors arriving through Montego Bay. A two-bedroom apartment in Kingston, or a house in the hills of St James, draws on a wider pool: business travellers, contractors, insurance assessors, relief workers and Jamaicans home from abroad to repair family property. In a year of rebuilding, the guest who needs a bed near the work appears to have proved steadier than the guest who wanted a view.
Keody Thompson, a realtor with Jamaica Sotheby’s International Realty, told the Financial Gleaner that the Montego Bay decline was expected after several months of minimal activity, describing the loss of both visitors and attractions as a “double whammy”. She said business in the city is improving as attractions, festivals and shows return.
A new fee changes the sums
Owners also face a change in how the largest platform takes its cut. Airbnb has been moving hosts to a single host-paid service fee of 15.5 per cent, charged on the nightly rate plus cleaning and other host charges, in place of the older split between host and guest. Guests now see one all-in price. The Financial Gleaner reported that many hosts have raised their prices in response.
The arithmetic is simple, and worth doing before setting a rate. On a booking of US$200 a night plus a US$50 cleaning charge, the subtotal is US$250. A 15.5 per cent fee takes US$38.75, leaving the host US$211.25. To keep a target payout, the listed price has to be the payout divided by 0.845. A host who wants US$250 in hand must list at about US$296.
| Booking subtotal | Platform fee at 15.5% | Host receives |
|---|---|---|
| US$150 | US$23.25 | US$126.75 |
| US$250 | US$38.75 | US$211.25 |
| US$400 | US$62.00 | US$338.00 |
What it means for buyers and owners
For buyers weighing a property on the strength of its rental story, the past year is a useful stress test. A villa that can earn US$57,000 in a weak year at the top of the market is still a substantial earner, but its income is tied to one airport, one season and one kind of guest. Lenders and valuers may look harder at income projections built on peak years, and buyers should too. Any figure quoted in a sales pitch deserves the same question: which year, which platform, and before or after fees?
For owners who bought or built with short-stay income in mind, including Jamaicans overseas who may rely on it to carry a mortgage at home, the lesson is diversification. The data suggest that properties in Kingston, and inland homes in St James, have held up better. Some owners may find that a longer let to a local tenant offers steadier, if lower, income than chasing nightly rates in a market still finding its feet.
The road back
Recovery is coming, but not all at once. About 3,500 hotel rooms are expected to remain out of service next winter, leaving roughly 90 per cent of room stock operational. That may push some visitors towards villas and apartments, which would help coastal owners. Against that, the platform fee change will squeeze margins for owners who cannot raise prices without losing bookings.
The past year has shown that a Jamaican rental property is only as resilient as the guests it can attract when tourism stalls. The owners who come through best will be those who priced honestly, kept costs in check and did not depend on a single season.
The view still sells. It just no longer pays the bills on its own.
This article is for general information and is not financial or investment advice. Rental income varies by property, season and platform. Speak to a qualified adviser before making investment decisions.
Visit our YouTube Community ↗