This paper explores the relationship between Airbnb and gentrification by studying Munich, which is at the forefront of the short-term rental market in Germany. We investigate both the Airbnb market and the functional rent gap, providing a spatial comparison. The results show an overlapping of gentrification and Airbnb in the central districts, but there are also functional rent gaps in the peripheries. However, high Airbnb densities do not always go hand in hand with gentrification. We also identify a considerable seasonality on the Airbnb market, that adds a temporal dimension to the phenomena. Drawing on this, we call for a city-wide monitoring of these aspects to increase transparency and provide a database for urban policy. By exploring the case of Munich, we contribute to the ongoing discussion, as other (German) cities develop in the same direction on the Airbnb market as the Bavarian capital. Apart from that, our quantitative model is also transferable to other cases.