Is rental arbitrage still worth it in 2026, or is this a trap?

I host in Kenya and I’ve been noticing a shift recently. There are now fully furnished apartments in decent neighborhoods going for around $500/month, sometimes even including water and electricity.

On paper, it feels like a solid opportunity for Airbnb arbitrage. The entry cost is low compared to what I see hosts paying in other countries.

But at the same time, the market here (especially Nairobi) feels increasingly saturated. Lots of similar listings, price competition, and guests have plenty of options.

So, I’m stuck between thinking:

• this is a great time to get in because costs are affordable
• or this is exactly how people get trapped in oversupplied markets

For those of you in more mature markets, have you seen this before? When rents drop but supply increases, does arbitrage still make sense?

Would you jump on something like this, or stay out?