The Florida real estate market is home to some of the most successful Airbnb markets in the US and in the entire world. Some of the most renowned Airbnb Florida markets include Miami and Orlando, but there are plenty of underrated markets as well. This blog is about one of these markets: the Airbnb Tampa real estate market.
Related: The 10 Best Places to Buy Vacation Homes in Florida
While it’s true that COVID-19 has negatively impacted the Airbnb Florida market, there is still potential for generating revenue with this strategy. But should you invest in Airbnb Tampa properties in 2021?
The short answer is yes. Let’s explore the reasons why, starting with a quick look at how the market is doing today.
Airbnb Tampa: City-Level Data
Real estate investors should consider investing in the Tampa housing market for both long-term and short-term rentals. The Tampa real estate market was ranked in the top 20 markets for overall real estate prospects in 2020 by the PwC. And despite COVID-19’s impact, Tampa is generally forecasted to remain a good place to invest. In July, the Tampa metro area officially recovered and real estate prices are set to continue increasing through 2021.
Of course, we’ll only be focusing on investing in Airbnb Tampa, and there’s no better way to start than by looking at the city’s Airbnb data.
Where can real estate investors find the data on Tampa’s Airbnb investment properties? They don’t have to look too far! Investors can use Mashvisor’s heatmap analysis and Airbnb profitability calculator, which you can learn about by clicking here.
We’ve compiled Tampa’s Airbnb short-term rental market data for October 2020 below:
- Median Property Price: $516,329
- Price per Square Foot: $250
- Airbnb Daily Rate: $141
- Airbnb Rental Income: $2,334
- Airbnb Cash on Cash Return: 2.5%
- Airbnb Occupancy Rate: 52%
Clearly, there is much to be said about Tampa’s average Airbnb investment property data. Hosts are still profiting, despite COVID-19. This is one reason to consider investing here, but we have four more:
4 Reasons to Invest in Tampa Short-Term Rentals in 2021
So, why should you be investing in Airbnb in the Tampa housing market 2021? There are four reasons why Airbnb Tampa non-owner occupied properties will make for good investments next year:
Related: Buying Airbnb Property? Then You Need These 3 Tools
#1. Airbnb Will Remain Legal in Tampa in 2021
There are two layers of Airbnb regulations in the Tampa housing market to discuss: the state-level and county-level laws. Overall, Airbnb is legal in Tampa, but there may be some zoning laws to watch out for. And it is likely that there will be no major changes to any of these laws in 2021.
Related: 5 Cities Where Airbnb Is Illegal
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State-Level Airbnb Regulations
The State of Florida has legalized its short-term rental market. No city in the state can prohibit short-term rental investing within its jurisdiction, according to state law. There are many state laws pertaining to Airbnb investment properties, such as a permit requirement, which you can read about in detail here. For now, we’ll only focus on the major regulation that affects Tampa short-term rentals: its taxes.
Florida Airbnb investors of non-owner occupied properties must pay three taxes: the Florida Transient Rental Tax, Florida Discretionary Sales Surtax, and a County Tourist Development Tax. The first tax is constant across the state. It is a 6% tax of the listing price including any cleaning fee for reservations of 182 nights or shorter. The latter two taxes vary by county and will be discussed shortly.
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Hillsborough County Airbnb Regulations
Hillsborough County has some zoning regulations regarding short-term rental properties. If you are to rent out your Tampa short-term rental for fewer than 7 days at a time, it must be properly zoned. Otherwise, you may face fines. Be sure to investigate further and reach out to local officials before making any moves to ensure you are running your property in accordance with the law.
Airbnb Tampa investors must also pay the Hillsborough County Sales Surtax, which is 1% for short-term non-owner-occupied properties. The county’s Tourist Development Tax is 5%.
#2. You Will Generate a Good Airbnb Return on Investment
Tampa short-term rentals are lucrative investments. The average Airbnb return on investment in the market is 2.5%. This is only an average, meaning that a real estate investor’s property can have a higher ROI.
In addition to the impressive averages, hosts in Hillsborough County generated over $33.7 million in Airbnb revenue in 2019. While 2020 numbers probably won’t break any records due to COVID-19, 2021 should look better if a COVID-19 vaccine is introduced.
#3. Many of the Top Airbnb Neighborhoods in Tampa Are Affordable
One of the reasons the Airbnb Tampa real estate market averages high ROI is its relative affordability. An investment property in Tampa has a $516,329 price tag, on average. This is quite expensive, no doubt. However, scroll down to the list of the best neighborhoods below. There, you’ll see that you don’t have to pay an arm and a leg just to acquire a profitable Airbnb rental property.
#4. Airbnb Tampa Rental Properties Are in High Demand
Florida is an Airbnb hotspot, as over 6.6 million people visited the state through the platform in 2019. Tampa has been a major contributor to the state’s success. Although COVID-19 is sure to have a lasting effect, Florida and Tampa are likely to continue to see tourists visiting and staying in Airbnbs in 2021, just as they are now during the pandemic.
The Best Neighborhoods in Tampa for Investing in Airbnb Rentals in 2021
What are the best neighborhoods for investing in Airbnb Tampa in 2021? Looking at Mashvisor’s data, there are neighborhoods that stand out – hosts are earning a high Airbnb cash on cash return in these areas, even during COVID-19. So we can expect that these will be the best places to invest in Airbnb in 2021 as they have proven to be resilient.
#1. Northeast
- Median Property Price: $107,714
- Price per Square Foot: $105
- Airbnb Daily Rate: $138
- Airbnb Rental Income: $1,763
- Airbnb Cash on Cash Return: 7.8%
- Airbnb Occupancy Rate: 61%
#2. Beasley
- Median Property Price: $165,000
- Price per Square Foot: $144
- Airbnb Daily Rate: $150
- Airbnb Rental Income: $2,093
- Airbnb Cash on Cash Return: 7.8%
- Airbnb Occupancy Rate: 55%
#3. Sun Bay South
- Median Property Price: $432,231
- Price per Square Foot: $227
- Airbnb Daily Rate: $143
- Airbnb Rental Income: $3,511
- Airbnb Cash on Cash Return: 6.4%
- Airbnb Occupancy Rate: 47%
#4. North Tampa
- Median Property Price: $156,457
- Price per Square Foot: $146
- Airbnb Daily Rate: $92
- Airbnb Rental Income: $2,336
- Airbnb Cash on Cash Return: 6.2%
- Airbnb Occupancy Rate: 66%
#5. Interbay
- Median Property Price: $474,270
- Price per Square Foot: $238
- Airbnb Daily Rate: $130
- Airbnb Rental Income: $3,927
- Airbnb Cash on Cash Return: 6.0%
- Airbnb Occupancy Rate: 49%
#6. Riverbend
- Median Property Price: $319,312
- Price per Square Foot: $201
- Airbnb Daily Rate: $120
- Airbnb Rental Income: $2,791
- Airbnb Cash on Cash Return: 5.5%
- Airbnb Occupancy Rate: 59%
#7. MacDill AFB Area
- Median Property Price: $279,950
- Price per Square Foot: $70
- Airbnb Daily Rate: $123
- Airbnb Rental Income: $2,998
- Airbnb Cash on Cash Return: 5.4%
- Airbnb Occupancy Rate: 45%
#8. East Ybor
- Median Property Price: $171,600
- Price per Square Foot: $174
- Airbnb Daily Rate: $87
- Airbnb Rental Income: $1,601
- Airbnb Cash on Cash Return: 5.2%
- Airbnb Occupancy Rate: 56%
#9. Ybor City
- Median Property Price: $255,087
- Price per Square Foot: $176
- Airbnb Daily Rate: $131
- Airbnb Rental Income: $2,116
- Airbnb Cash on Cash Return: 4.9%
- Airbnb Occupancy Rate: 50%
#10. Sulphur Springs
- Median Property Price: $192,321
- Price per Square Foot: $149
- Airbnb Daily Rate: $159
- Airbnb Rental Income: $1,706
- Airbnb Cash on Cash Return: 4.9%
- Airbnb Occupancy Rate: 61%
To start investing in Airbnb Tampa, properties, click here to start your 7-day FREE trial with Mashvisor!