Guide to Investing in Airbnb Florida

Are you a real estate investor looking to expand into the vacation rental market? If so, consider Airbnb Florida for your next property.

Table of Contents

1. The Florida Real Estate Market
2. Why Airbnb Is a Great Investment in Florida
3. Airbnb Regulations in Florida
4. 10 Best Cities in Florida for Airbnb Investment
5. How to Find the Best Investment Properties
6. To Recap

In this article, we will look at why houses in Florida are successful in the vacation rental market. Then, we will learn the top cities for these short-term rental properties based on Mashvisor’s latest location report. Lastly, we will share with you the best tools to help guide your Florida Airbnb decisions. 

The Florida Real Estate Market

Overall, the real estate market in Florida is an extremely successful place for short-term rental properties. Though it may be hard to get your hands on a property, once you do find one you are likely to make a quick return on investment.

It may be hard to get ahold of a property as people are relocating to the Sunny State to live permanently. But even with all of these people relocating, Florida continues to be one of the most popular tourist destinations worldwide. Investing in Airbnb Florida can be extremely profitable. Continue reading to learn how to invest in the Florida housing market.

Why Airbnb Is a Great Investment in Florida

The Florida real estate market is always growing. Whether it is retirees looking to permanently move there or families wanting to vacation, there is always a high demand for properties in the state. Specifically, Airbnb properties tend to do well in Florida for travelers looking for a vacation home to stay in during their trip. This is because Florida has year-round warm weather and a sunny environment. People from all over the US travel to the state to experience the nice weather. 

Properties are in high demand in Airbnb Florida. Especially now that the pandemic is slowly coming to an end, people are looking to get out of the house and experience the vacations they have missed out on in the past few years. This is just another reason why this state could be a great place for your next investment property.

Besides the year-round warm weather, Florida is home to many popular destinations such as amusement parks, beaches, nightlife, and luxury shopping. People from all over the world travel to experience these attractions.

Rather than staying in a hotel, many people choose to stay in Airbnb properties as they offer more privacy and extra space. This makes it easy to travel in larger groups and stay all together. Florida vacation rentals are always a popular choice among travelers looking to experience the state’s attractions.

Airbnb Regulations in Florida

Even if you are an experienced investor, it is important to keep in mind that Airbnb rules and regulations vary by state and even city. This means that even if you run a successful vacation rental in one place, you may need an additional license to run the same type of property in another.

The first key regulation to keep up to date with is what is considered an Airbnb property in your desired location. In the state of Florida, an Airbnb property is any unit that is owned individually or collectively that is a transient public lodging establishment but not a timeshare. This includes all condos, apartments, single-family homes, multiple-family homes, and dwelling units. Florida Airbnb does not legally permit single rooms as a vacation property, as they technically are not a unit.

Taxes

The second most important rule to follow for houses for rent in Florida is the tax laws. Guests and owners will need to pay certain taxes in order to legally run and reside in Airbnb Florida properties. Below are the tax laws that must be followed for renters:

• Discretionary Sales Surtax (0.5%–1.5%)
• Transit Rental Tax (6.0%)
• County Tourist Development Tax (2%–5%)

Additionally, the owners of the properties must abide by the city’s tax laws. Most of the time, Airbnb Florida owners also qualify for the Homestead Exception. This can be a tax exemption of up to $50,000.

Licenses

Aside from taxes, owners will need to obtain certain licenses to run their Airbnb properties. The first major license needed is one issued by the state. This can be obtained by applying through the Florida Department of Business and Professional Regulation, specifically in the Vacation Rental division.

Once you apply, you will be issued the license needed to operate an Airbnb in the state. The type of your license will depend on the type of property your Airbnb Florida. Any properties that are houses, multi-family homes, or any unit with four or more collective units will be issued a vacation rental dwelling license. Meanwhile, any property that is a single unit, such as a condominium, will be issued a vacation rental – condominium license. 

Additionally, there are different types of licenses to represent how many properties an owner has. These categories fall under single, group, and collective. 

• Single: Issued to an owner who owns and operates a single Airbnb in one location.
• Group: issued to an owner who owns and operates multiple units in a single building in one location.
• Collective: Issued to an owner who owns and operates multiple units in different buildings across multiple locations.

Though these are the licenses the state of Florida requires, it is important to note that each city may require additional licenses to operate an Airbnb Florida.

10 Best Cities in Florida for Airbnb Investment

Below we will look at the best locations to invest in short-term rental properties in Florida based on cash on cash returns, and why these locations are so successful. All of the Airbnb data presented below are from Mashvisor’s latest location report.

1. Deland

• Median Property Price: $418,366
• Average Price per Square Foot: $218
• Monthly Airbnb Rental Income: $4,696
• Airbnb Cash on Cash Return: 7.78%
• Airbnb Cap Rate: 7.96%
• Airbnb Daily Rate: $144
• Airbnb Occupancy Rate: 68%
• Walk Score: 2

One of the most profitable locations in Airbnb Florida is Deland. This city has a 7.78% cash on cash return, which ensures you will find an Airbnb property that will generate profits. Though you may not have heard of this city before, it has a high demand on Airbnb because it is a short drive away from major cities like Orlando and Daytona Beach. This is the perfect area for travelers who want to be close to, but not right in the middle of, the action. 

2. Mascotte

• Median Property Price: $375,871
• Average Price per Square Foot: $226
• Monthly Airbnb Rental Income: $4,172
• Airbnb Cash on Cash Return: 7.59%
• Airbnb Cap Rate: 7.77%
• Airbnb Daily Rate: $305
• Airbnb Occupancy Rate: 55%
• Walk Score: 27

Similar to Deland, Mascotte is another location that is successful due to its proximity to major cities. Many travelers like to stay just a short drive away from the action, without having to experience it 24/7. Mascotte is an ideal place for these types of visitors. This city is located near the Orlando area and has lake access points. 

3. Ocoee

• Median Property Price: $416,383
• Average Price per Square Foot: $229
• Monthly Airbnb Rental Income: $4,234
• Airbnb Cash on Cash Return: 6.73%
• Airbnb Cap Rate: 6.88%
• Airbnb Daily Rate: $170
• Airbnb Occupancy Rate: 65%
• Walk Score: 39

Ocoee is another great location near major Florida cities. With a 6.73% cash on cash return, investors are sure to earn a high income here. Ocoee is located just a few miles from Orlando, especially near Disney World and Universal Studios.

4. Palm Springs

• Median Property Price: $260,217
• Average Price per Square Foot: $209
• Monthly Airbnb Rental Income: $2,793
• Airbnb Cash on Cash Return: 6.12%
• Airbnb Cap Rate: 6.41%
• Airbnb Daily Rate: $214
• Airbnb Occupancy Rate: 56%
• Walk Score: 29

Though this is just considered a small village in Florida, the metrics for Palm Springs are great. This is due to the fact that it is closest to some of Florida’s most popular tourist destinations, such as Fort Lauderdale and Miami.

5. Niceville

• Median Property Price: $612,588
• Average Price per Square Foot: $262
• Monthly Airbnb Rental Income: $4,179
• Airbnb Cash on Cash Return: 5.19%
• Airbnb Cap Rate: 5.29%
• Airbnb Daily Rate: $173
• Airbnb Occupancy Rate: 52%
• Walk Score: 45

Niceville is located right on the coast, just a few miles away from some popular Florida beaches. This city has a great cash on cash return rate of 5.19%, guaranteeing a successful return on your investment.

6. Orange Park

• Median Property Price: $350,991
• Average Price per Square Foot: $190
• Monthly Airbnb Rental Income: $3,074
• Airbnb Cash on Cash Return: 5.04%
• Airbnb Cap Rate: 5.17%
• Airbnb Daily Rate: $209
• Airbnb Occupancy Rate: 56%
• Walk Score: 62

Orange Park, Florida is located just a few minutes from Jacksonville. Most of this town borders a lake for easy access to beaches and is just a few miles from the coast. With a 5.04% cash on cash return, you can earn a great passive income in this area.

7. Orlando

• Median Property Price: $449,831
• Average Price per Square Foot: $269
• Monthly Airbnb Rental Income: $2,912
• Airbnb Cash on Cash Return: 3.41%
• Airbnb Cap Rate: 3.51%
• Airbnb Daily Rate: $118
• Airbnb Occupancy Rate: 57%
• Walk Score: 42

Airbnb Orlando Florida is one of the most successful locations to invest in due to the high volume of travelers that it welcomes year-round. The city is home to major amusement parks such as Disney World, Universal Studios, and Sea World. Unsurprisingly, Orlando Airbnbs have a very good cash on cash return at 3.41%, which ensures you will generate a profitable investment. 

8. Key West

• Median Property Price: $1,488,793
• Average Price per Square Foot: $1,070
• Monthly Airbnb Rental Income: $7,773
• Airbnb Cash on Cash Return: 3.25%
• Airbnb Cap Rate: 3.27%
• Airbnb Daily Rate: $455
• Airbnb Occupancy Rate: 48%
• Walk Score: 73

If you can afford the high property price, Airbnb Key West Florida is a great investment. The city of Key West is known for its beaches, as the entire location is surrounded by water on all sides. Snorkeling and diving are popular attractions that people from all over travel to take part in. With cash on cash return of 3.25%, your income property will thrive in this city.

9. Miami

• Median Property Price: $970,317
• Average Price per Square Foot: $668
• Monthly Airbnb Rental Income: $3,962
• Airbnb Cash on Cash Return: 1.75%
  
• Airbnb Cap Rate: 1.80%
• Airbnb Daily Rate: $275
• Airbnb Occupancy Rate: 47%
• Walk Score: 61

Another popular destination is Airbnb Miami Florida. While Miami has beaches, the city is known for its nightlife and luxury feeling. Celebrities and wealthy people are known to travel to the area to experience the city’s vibes. This is a great location to consider an investment property in as it will surely attract visitors during any time of the year.

10. Destin

• Median Property Price: $954,299
• Average Price per Square Foot: $528
• Monthly Airbnb Rental Income: $3,099
• Airbnb Cash on Cash Return: 1.55%
• Airbnb Cap Rate: 1.58%
• Airbnb Daily Rate: $328
• Airbnb Occupancy Rate: 42%
• Walk Score: 52

Investing in an Airbnb Destin Florida is a fantastic opportunity as the city is surrounded by the ocean on all sides. This area has some of the best Florida beach house rentals available in the entire state. Visitors looking for easy access to the beaches in Florida will look to Destin for Airbnb.

As an investor, Destin can be profitable even with relatively low cash on cash return of around 1.55%. You will never have to worry about finding renters for your beach rental property in this city.

How to Find the Best Investment Properties

If you are looking for cabins in Florida or any type of property, visit Mashvisor for the best investing tools. We offer tools such as the Airbnb calculator. We also have a Property Finder tool that can help you find listings and locations with a high profit potential.

With these tools, you can see data and metrics to help guide your investment decisions. We only use trustworthy data from sites like the MLS to ensure you can make profitable investments.

Learn More: How to Find a Property for Airbnb Real Estate Investing

To Recap

If you are looking for new investment opportunities, consider investing in Airbnb Florida. This year-round warm and sunny state attracts visitors every season. This ensures you will always find a renter for your property.

Use Mashvisor’s tools to help find the most successful listings anywhere in Florida this year.

To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.