Tampa Airbnb: Is It Worth Investing In?

Florida is consistently one of the country’s hottest real estate markets, which should make investors seriously consider investing in Tampa Airbnb. 

Is It Worth Investing in Tampa Airbnb?

For investors wondering how to invest in real estate, one of the best and most profitable ways is to go with a short-term rental strategy. And Airbnb is one route thousands of investors are taking. If you’re thinking about investing in Tampa FL, you should give Tampa Airbnb some serious thought.   

Tampa FL Short-Term Rental Market Data

As one of the hottest real estate markets in the US, Florida attracts tourists, retirees, and in-migrants all year round. Visitors look to take pleasure in the state’s pleasant subtropical climate, picturesque beaches, scenic views, excellent theme parks, and opportunities for a better life. 

Tampa, located on the west coast of the Sunshine State in Hillsborough County, is one of the bigger cities real estate investors turn to in Florida for a good return on investment. To better understand why Tampa is an excellent investment location, here is Mashvisor’s latest Airbnb Tampa Florida data: 

• Median Property Price: $737,733
• Average Price per Square Foot: $378
• Airbnb Listings: 1,827
• Airbnb Rental Income: $2,741
• Airbnb Cash on Cash Return: 2.26%
• Airbnb Daily Rate: $154
• Airbnb Occupancy Rate: 53%
• Days on Market: 40 days
• Walk Score: 47

Median Property Price

If you notice, the median property price for the Tampa market may seem a bit high, especially when compared to the national median. However, do take note that it just means half of the homes listed are being sold for prices below that median. It still leaves investors with plenty of affordable and profitable investment properties to choose from. 

Number of Airbnb Listings

The number of listed properties on Airbnb Tampa FL is one of the highest in the entire state. With close to 2,000 Airbnb listings, the demand for vacation rentals in the city is high, making it a good place to invest in rental properties. 

Airbnb Rental Income

One of the things investors tend to look at when considering an investment property is how much they will make from rental income. While a traditional long-term rental provides some stability, there is greater potential in going with a short-term rental business, especially if the property is listed on Airbnb. 

Generally, the monthly rental income of Airbnb properties is more than twice what landowners make with traditional rentals. In certain neighborhoods in California and Hawaii, some average Airbnb rental income can go for more than $10,000 a month. And while not all short-term rental properties earn close to such amounts, Airbnb Tampa does pretty well with almost $2,800 a month with an average daily rate of $154. 

Airbnb Occupancy Rate

When it comes to Tampa Airbnb, or anywhere else for that matter, investors need to look into the area’s occupancy rate. Knowing how often vacation rental properties are booked can help investors project their money-making potential. It is especially handy when deciding which investment strategy to go with. Since running an Airbnb business can be costly, markets with very low occupancy rates might cause investors to lose more money, which totally goes against all logic since no one goes into business to lose money.

Investors should be on the lookout for areas with good occupancy rates (at least more than 50%) to help them recover their initial investment faster. The higher the occupancy rate, the better. With a 53% occupancy rate, Airbnb in Tampa Florida is doing okay.

Airbnb Cash on Cash Return

When it comes to computing ROI in real estate investing, most investors look beyond the cap rate and more into cash on cash return for a more accurate valuation. A cash on cash return is typically computed by dividing the property’s net operating income (NOI) by the total amount of cash spent for the investment. The good thing about using cash on cash return to determine a property’s profitability is it takes into account the financing method used to purchase the house. 

Industry professionals all agree that a good cash on cash return rate falls anywhere between 8% and 12%, but realistically, they are few and far between. As long as the cash on cash rate does not dip below 1%, you’re in a good place. 

Reasons Why Real Estate Investors Should Consider Tampa Airbnb

On top of the very good market data, here are a few more reasons why real estate investors should seriously consider putting their money into Tampa FL investment properties. 

Demand Is Strong for Short-Term Rental Properties in the City

Even if we disregard Mashvisor’s Airbnb data on Tampa, it is still clear that the city’s tourism is thriving. The demand for vacation rental properties remains high in the port city, validated by the 1,827 Airbnb listings found on Mashvisor’s massive database. Like most Florida cities, Tampa is optimized toward relaxation and fun, which is why tourists flock to the city year in and year out.

The lack of income tax makes living in Tampa quite affordable. The cost of living alone is enough to attract retirees, in-migrants, and even tourists from different parts of the US. Visitors enjoy affordable vacations in the sunny, cosmopolitan center. As a melting pot of cultures, the city has plenty to offer tourists of different backgrounds. From natural wonders and man-made theme parks to picturesque views and gastronomic delights, Tampa’s got everything you can ever wish for in a tourism capital. 

Airbnb Is Legal in Tampa

As Airbnb and other short-term rental platforms grew in popularity, many states found it necessary to impose certain regulations and restrictions on vacation rental owners. The regulations aim to protect the local community’s best interest and avoid a housing shortage. Thus, certain counties enforce stricter Airbnb regulations while others only require rental property owners to promptly pay their taxes, observe zoning laws, and respect their neighbors’ right to peace and privacy. 

According to state-level Airbnb regulations, Florida vacation homeowners are required to obtain permits to operate and must pay their taxes, namely: 

• Florida Transient Rental Tax. The transient rental tax is a constant across the entire state. Rental property owners should pay a 6% tax of their listing price (including cleaning fees) for bookings of 182 nights and below. 
• Florida Discretionary Sales Surtax. The surtax varies by county. Hillsborough County requires its Airbnb owners to pay 1% for non-occupied vacation home rental properties.
• County Tourist Development Tax. The county tourist development tax also varies by county, and Hillsborough County charges 5% as its tourist development tax. 

Tampa Airbnb owners are also required to observe proper zoning in compliance with the county’s zoning regulations for short-term rentals. Failure to do so will result in hefty fines. If you’re interested in investing in rental properties in the area, be sure to check out the local zoning regulations and reach out to officials and real estate professionals for more guidance. 

Airbnb in Tampa FL Offers a High Income Potential

Because of its thriving tourism, owning an Airbnb business in the area offers investors plenty of financial growth opportunities. With a good cash on cash return rate of 2.26% and above 50% occupancy rate, Tampa Airbnb owners can not only get their return on interest in a shorter period but are also guaranteed a good profit for their investment. 

The Top Tampa Neighborhoods Are Home to Affordable Properties

As we already mentioned earlier, the median property price of $737,733 might seem a bit steep for a lot of investors, but it is also important to note that it is not the average property price. The amount indicates that half of the listings on the market are priced lower than the median. It means that there are plenty of cheaper houses for real estate investors to choose from. In fact, almost all of Tampa’s top neighborhoods house properties that are priced lower than the median as you will see in the list below. It makes investing in rental properties in Tampa a wise move for people looking for vacation rentals.

How Much Can You Make With Airbnb in Tampa?

Investors are always looking for ways to expand their real estate portfolio and grow their wealth. People who are considering investing in the Tampa short-term rental market are no different. The top question all of them are asking is, “How much can you make with Airbnb in Tampa?” 

As we’ve already laid out earlier, investors can get roughly around $2,741 in Airbnb income in a month at 2.26% cash on cash return. However, the exact numbers vary by property and location. Some neighborhoods in Tampa tend to perform better than others in the vacation rental scene. 

The important thing investors should do is to perform their due diligence and gather as much information as they can on Tampa’s different neighborhoods. Doing so will increase their chances of finding the best property suitable to their investment goals and criteria. 

A thorough Airbnb analysis should be done. Fortunately, a website like Mashvisor helps investors perform market research and data analysis with ease and speed. Tools like the Property Finder and Real Estate Heat Map allow users to locate the best properties in the most profitable areas in any location across the US. Plus, the website’s rental property calculator lets investors crunch the numbers and project accurate results based on the data found on the platform. No investor should go without Mashvisor by their side. 

To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.

Top 10 Neighborhoods Ideal for Tampa Airbnb

According to Mashvisor’s latest Airbnb data for Tampa, here are ten of the best neighborhoods to invest in:

1. Ybor City

• Median Property Price: $387,800
• Average Price per Square Foot: $244
• Airbnb Listings: 198
• Airbnb Monthly Rental Income: $2,584
• Airbnb Cash on Cash Return: 5.01%
• Airbnb Daily Rate: $136
• Airbnb Occupancy Rate: 62%
• Days on Market: 89 days
• Walk Score: 59

2. Riverbend

• Median Property Price: $369,983
• Average Price per Square Foot: $238
• Airbnb Listings: 184
• Airbnb Monthly Rental Income: $2,476
• Airbnb Cash on Cash Return: 3.88%
• Airbnb Daily Rate: $94
• Airbnb Occupancy Rate: 63%
• Days on Market: 31 days
• Walk Score: 33 

3. Wellswood

• Median Property Price: $552,500
• Average Price per Square Foot: $275
• Airbnb Listings: 196
• Airbnb Monthly Rental Income: $3,166
• Airbnb Cash on Cash Return: 3.82%
• Airbnb Daily Rate: $118
• Airbnb Occupancy Rate: 63%
• Days on Market: 32 days
• Walk Score: 39 

4. Old West Tampa

• Median Property Price: $425,000
• Average Price per Square Foot: $299
• Airbnb Listings: 206
• Airbnb Monthly Rental Income: $2,809
• Airbnb Cash on Cash Return: 3.63%
• Airbnb Daily Rate: $133
• Airbnb Occupancy Rate: 60%
• Days on Market: 26 days
• Walk Score: 47 

5. Bon Air North

• Median Property Price: $617,330
• Average Price per Square Foot: $345
• Airbnb Listings: 195
• Airbnb Monthly Rental Income: $3,394
• Airbnb Cash on Cash Return: 3.48%
• Airbnb Daily Rate: $158
• Airbnb Occupancy Rate: 51%
• Days on Market: 25 days
• Walk Score: 59 

6. Northeast Macfarlane

• Median Property Price: $448,233
• Average Price per Square Foot: $273
• Airbnb Listings: 198
• Airbnb Monthly Rental Income: $2,512
• Airbnb Cash on Cash Return: 3.36%
• Airbnb Daily Rate: $133
• Airbnb Occupancy Rate: 60%
• Days on Market: 23 days
• Walk Score: 82 

7. Tampa Heights

• Median Property Price: $729,132
• Average Price per Square Foot: $379
• Airbnb Listings: 190
• Airbnb Monthly Rental Income: $2,943
• Airbnb Cash on Cash Return: 2.69%
• Airbnb Daily Rate: $144
• Airbnb Occupancy Rate: 64%
• Days on Market: 34 days
• Walk Score: 71 

8. Oakford Park

• Median Property Price: $536,667
• Average Price per Square Foot: $621
• Airbnb Listings: 220
• Airbnb Monthly Rental Income: $2,440
• Airbnb Cash on Cash Return: 2.22%
• Airbnb Daily Rate: $124
• Airbnb Occupancy Rate: 60%
• Days on Market: 33 days
• Walk Score: 61 

9. Old Seminole Heights

• Median Property Price: $416,471
• Average Price per Square Foot: $297
• Airbnb Listings: 209
• Airbnb Monthly Rental Income: $1,798
• Airbnb Cash on Cash Return: 1.65%
• Airbnb Daily Rate: $143
• Airbnb Occupancy Rate: 53%
• Days on Market: 18 days
• Walk Score: 46 

10. Riverside Heights

• Median Property Price: $1,954,983
• Average Price per Square Foot: $370
• Airbnb Listings: 193
• Airbnb Monthly Rental Income: $1,671
• Airbnb Cash on Cash Return: 1.57%
• Airbnb Daily Rate: $121
• Airbnb Occupancy Rate: 61%
• Days on Market: 78 days
• Walk Score: 24

The Verdict: Is Tampa Airbnb Worth Investing?

The right investment strategy in the right location increases the chances of success of a business venture, including investing in Tampa Airbnb. The great thing about the Tampa market is it belongs to one of the hottest real estate markets in the US for both traditional and short-term rentals. Investors with a long-term vision, enough patience, and plenty of diligence will do well investing in a vacation rental property in Tampa FL. Of course, using the right investment tools and getting access to an accurate database help, too. 

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.