Is Airbnb Profitable in Kelowna in 2026? The Short Answer

Yes, but profitability in Kelowna depends almost entirely on property type and location.

Waterfront resort units along the Sunset Drive corridor average around $80,000 per year for a two-bedroom at 68% occupancy, with a nightly rate of $262. Downtown subzone buildings, such as Brooklyn and the Sole properties, generate $41,000 to $48,000 annually. A carriage house operated on a principal residence can earn peak summer rates up to $300 per night while directly offsetting the primary mortgage. These are the categories where the numbers work.

The citywide average across all active listings is lower, reflecting a large volume of standard condos in non-resort locations that operate outside the scenarios in which Kelowna STR performs well. That figure is useful for context, but it is not the benchmark to plan against when evaluating a specific opportunity.

Whether your Kelowna Airbnb makes money or loses money depends on the type of property, its location, and whether you are buying in the right building. This guide breaks down the numbers by area and property type so you can see exactly where the line falls.

Kelowna Airbnb Income: Revenue, Occupancy & ADR Data

Kelowna’s Airbnb market is highly seasonal, and that affects how much you can earn throughout the year.

Peak-season monthly revenue can reach $4,911 in the Kelowna core, with August peaking at $5,437. Peak season occupancy climbs to 59.7%. In the winter trough (November through January), monthly revenue falls to roughly $2,072, and occupancy drops to 38.9%.

The big difference between summer and winter means annual averages can be misleading. For example, a listing might make $5,000 in August but only $1,500 in January. You need to save up during the summer to cover your costs in the slower months when your place is often empty.

West Kelowna is different. In the best month, you could earn up to $7,240 with 72.3% occupancy and a $307 daily rate. In the slowest month, revenue drops to $1,789, and occupancy falls to 32.2%. The seasonal ups and downs are bigger here, so you need to price well for summer and be ready for slow winters.

The top 10% of listings, usually legacy resort units with waterfront access and lots of guest reviews, can charge over $454 per night and stay booked more than 84% of the time. Most buyers won’t get these kinds of properties.

Key benchmark figures for Kelowna core (AirROI 2026 data):

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What Kelowna Airbnb Properties Actually Earn Under Nomadics

The figures above reflect market-wide data across active Kelowna listings. Here is what our own managed properties are actually seeing under our Airbnb Management in Kelowna:

The 2026 Rule Change: What Kelowna’s Exemption Means for Hosts

This is the biggest regulatory shift in the Kelowna STR market since B.C.’s 2024 restrictions shut down thousands of listings.

Kelowna became the first municipality in B.C. to receive an early exemption from the province’s short-term rental principal residence requirement, effective June 1, 2026. The city qualified after maintaining a rental vacancy rate above 3% for two consecutive years, a threshold directly tied to the province’s housing policy goals.

As recently as 2023, Kelowna’s vacancy rate stood at 1.2%. It climbed to 3.8% in 2024 and surged to 6.9% by the end of 2025, the highest level among major Canadian metropolitan areas.

Under the exemption, short-term rentals are now permitted as a principal use in eligible properties, effective June 1, 2026. Properties in this classification can operate as short-term rentals for any length of time and do not require the owner to occupy the unit for a minimum number of days per year. To qualify, a property must be rezoned to the STR subzone.

At a May 2026 council meeting, Kelowna adopted zoning amendments adding the STR subzone to 19 properties, spanning McKinley Beach Resort, the Downtown Urban Centre, Pandosy Urban Centre, Village Centre, and a strata on Country Club Drive.

One critical complication: the city’s non-mediation policy. Rezoning applications were accepted from strata executive boards without requiring a full owner vote. Some owners purchased units in quiet residential buildings only to discover after the fact that their strata executive had applied for STR subzone status. Individual operators still need a physically signed strata consent form to obtain a business licence, and a subsequent 75% majority vote to ban STRs can render the subzone designation worthless. Confirm both the subzone designation and strata consent before purchasing with STR intent.

In the vast majority of Kelowna’s residential zones, the principal residence requirement remains in effect. To legally list in these areas, you must occupy the home for at least 240 days per year. The exemption is narrow; it is not a blanket return to pre-2024 conditions.

Airbnb vs. Long-Term Rental in Kelowna: A Real Numbers Comparison

For a standard condo outside a resort subzone, long-term rental almost always generates more income. That is a specific finding for a specific property type, not a verdict on Kelowna STR overall.

Here is what the numbers look like on a typical two-bedroom Kelowna condo purchased at the May 2026 median price of $430,000:

Long-term rentals generate about six times as much net income and are much simpler to manage. Tenants pay their own utilities, there’s no need for frequent cleaning, no extra insurance for short stays, and no yearly licence fee.

This comparison reflects one scenario: a standard, non-waterfront condo in a non-resort subzone. The waterfront resort units and STR subzone buildings covered in the Best Neighbourhoods section below operate under a different cost structure and revenue ceiling. If you are evaluating one of those property types, the picture changes substantially.

Best Neighbourhoods for Airbnb in Kelowna (and Why They Differ)

Where your property is in Kelowna matters for more than just how much you can earn—it also decides if you’re allowed to run an Airbnb there.

• Sunset Drive Corridor (Waterfront): Buildings like Discovery Bay are among the strongest-performing STR assets in the entire Central Okanagan. Direct lake access, resort pools, and high guest retention drive average annual revenue of around $65,000 for a two-bedroom unit, at roughly $262 per night and 68% occupancy. These properties sit within approved STR subzones. They are also priced accordingly, often selling for more than $550,000 for a two-bedroom unit.
• Downtown and Pandosy Urban Centre Buildings, such as Brooklyn at Bernard Block and the Sole properties (St. Paul, KLO, Sole Downtown), operate in commercial corridors that are included in the May 2026 subzone amendments. Revenue for a two-bedroom unit ranges from $41,000 to $48,000 annually, with occupancy between 50% and 59%. Downtown locations benefit from walkability and proximity to events, particularly during May’s Memorial Cup and summer programming.
• University District (UBCO): Three-bedroom condos near UBCO have softened to the $460,000 to $474,000 range, a price point not consistently seen since 2020. The play here is a hybrid model: long-term student tenants from September through April, then conversion to summer STR during peak July and August demand. This structure hedges the seasonal risk that kills standard year-round STR economics near the university.
• West Kelowna Resort Zones: West Kelowna operates under its own bylaws. Council opted out of the provincial principal residence requirement for purpose-built tourism and resort developments, including Barona Beach, Boucherie Beach, Paradise Estates, The Cove Lakeside Resort, and Casa Loma Resort. Outside those resort and tourist zones, short-term vacation rentals in West Kelowna remain limited to principal residences. Investors treating West Kelowna as interchangeable with the City of Kelowna are making a meaningful regulatory error.

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Startup Costs, Operating Expenses & ROI Modelled on Real Kelowna Property Prices

The neighbourhood breakdown above shows clearly that Kelowna STR performance is not uniform. Here is what the pro forma looks like across the two scenarios that actually matter to serious investors.

Scenario A: Median Kelowna Condo (Standard Subzone)

• Purchase price: $430,000
• Annual gross revenue: $21,818
• Operating expenses: ~$19,009 (management, cleaning, strata, taxes, insurance, licensing, utilities)
• Net Operating Income: $2,809
• Unleveraged cap rate: 0.65%
• Add a mortgage at 2026 rates, and the property runs a monthly cash flow deficit.

Scenario B: Legacy Resort Unit (e.g., Discovery Bay, Two-Bedroom)

• Purchase price: ~$550,000
• Annual gross revenue: $65,000
• Operating expenses: ~$48,095 (40% management fee at full-service resort tier, $600/month strata, turnover, commercial STR insurance at ~$2,000, utilities)
• Net Operating Income: $16,905
• Unleveraged cap rate: 3.07%

Discovery Bay is the best example of short-term rental investment in Kelowna. Still, a 3.07% cap rate without a mortgage is lower than most investors want, and with a mortgage, you’ll likely have negative cash flow each month.

To break even on a $430,000 condo with a $237 nightly rate and about $1,500 in monthly fixed costs, you’d need to book around 212 nights a year. The average in Kelowna is only about 165 nights, so most listings don’t break even if you have a mortgage.

Regulations, Licences & STR Subzone Buildings You Can Actually Buy

Making sure your property is in the right zone is the most important thing to check before investing in a Kelowna Airbnb.

Outside STR subzone-approved buildings, the principal residence requirement remains in place in all other zones, ensuring long-term rental supply is protected. A short-term rental is defined as any rental of a dwelling unit or bedroom for less than 90 consecutive days.

Licensing fees (City of Kelowna, 2026):

West Kelowna fees: $250 initial application fee, $500 annual licence fee, up to $1,000 in daily fines.

In B.C., if your listing doesn’t have a valid business licence, it will be automatically removed from the platform. There’s no room for error.

Confirmed STR subzone buildings include properties in the Sunset Drive corridor (Discovery Bay, Sunset Waterfront Resort, Waterscapes), Lower Mission (Playa Del Sol, Mission Shores, Aqua Waterfront Village), and downtown commercial corridors (Brooklyn at Bernard Block, Sole Downtown, Sole St. Paul, Sole KLO). Confirm the current subzone list directly with the City of Kelowna before purchasing, as rezoning applications are ongoing.

For tax purposes in Canada, all short-term rental income is treated as business income. If you make more than $30,000 a year, you’ll need to register for GST/HST. You can claim deductions for things like furniture and some property costs. If you want to split income with your spouse, you’ll need to set it up properly to meet CRA rules. It’s not hard, but it’s important to get it right from the start. Talk to a Canadian accountant who knows about short-term rentals before you list your property.

Continue Reading: Kelowna Airbnb Rules

Is Now a Good Time to Invest? Timing, Event Demand & the 2026 Market

Tourism Kelowna has designated 2026 the “Year of Sport,” with a lineup of nationally significant events including the Memorial Cup in May, Hoopfest, Touchdown Kelowna, and the BC Summer Games in the summer, and Skate Canada International in the fall.

The Memorial Cup alone is projected to generate more than $22.5 million in economic impact for Kelowna. Tourism Kelowna reported a record 30,000 visitors to its information centre in May, a figure officials largely attribute to the Memorial Cup. That kind of demand concentration creates real, bookable revenue spikes for well-positioned STR operators, particularly in downtown and waterfront locations.

Whether now is a good time to invest depends on your strategy, and there are two clear answers.

For a carriage house or secondary suite model, the timing is good. You can enter below the cost threshold of resort condos, satisfy the principal residence requirement by living in the main dwelling, and operate a legal Airbnb in the secondary unit at peak summer rates up to $300 per night. This model sidesteps strata politics, avoids the commercial licence tier, and lets rental income directly offset the primary mortgage.

If you’re looking to buy a condo just for investment, it’s still tough unless you get an approved subzone unit at a good price. The June 2026 exemption has increased demand for these condos, so prices have likely risen. Buying one now means you’ll pay more, which makes the profit margin even smaller.

For regular condos that aren’t in a subzone, long-term rentals are much better. Short-term rentals just aren’t an option in those buildings.

The best bet for a Kelowna Airbnb in 2026 is a waterfront or STR-subzone resort unit that costs less than $500,000, is professionally managed, and can realistically get 65% to 70% occupancy with a nightly rate over $250. These properties are out there, but they’re rare, and you need to know which buildings qualify and which stratas will give consent.

Every property in Kelowna has its own mix of zoning, strata rules, and seasonal demand. The numbers above are just a starting point. Book a free strategy call, and we’ll review your property’s location, assess whether it qualifies for the STR subzone or is better suited as a carriage house or long-term rental, and help you plan for cash flow.

Disclaimer: This content is for informational purposes only and does not constitute investment, tax, or legal advice. STR regulations in Kelowna are actively evolving. Confirm current zoning, subzone eligibility, and licensing requirements directly with the City of Kelowna before making any investment decision. Consult a licensed Canadian accountant regarding income tax and GST/HST obligations.

Sources:

1. AirROI – Kelowna, BC Airbnb Data 2026
2. AirROI – West Kelowna STR Market Analysis 2025
3. City of Kelowna – Short-Term Rental Regulations (updated June 2026)
4. BC Gov News – Accelerating the STR Opt-Out Process (April 17, 2026)
5. Boughton Law – Kelowna’s Exemption from the Principal Residence Requirement (June 2026)
6. Creston Valley Advance – Surge of Short-Term Rentals to Return in Kelowna (May 6, 2026)
7. Destination BC – Short-Term Rental Rules Update (April 2026)
8. Kelowna Real Estate (Coldwell Banker Horizon) – Kelowna STR Exemption for Condo Investors 2026
9. City of Kelowna – Memorial Cup 2026
10. Tourism Kelowna – Q1 2026 Industry Indicators
11. Global News – Kelowna Businesses Score Big During Memorial Cup
12. Kelowna Capital News – West Kelowna Resort Accommodations Safe from STR Changes
13. Castanet – West Kelowna Opts Out of Provincial STR Rules
14. WBN News – Kelowna Opts Out of BC’s Short-Term Rental Rules (April 22, 2026)