Is Airbnb Fort Lauderdale a Good Real Estate Investment?

The new year is quickly approaching, making real estate investors start thinking about the best places to invest in real estate and the top rental strategy in the coming year. How about Airbnb Fort Lauderdale? Are Fort Lauderdale vacation rentals going to be a profitable real estate investment strategy? Keep reading to figure out.

Airbnb Fort Lauderdale Rentals Performance Forecast

Let’s get to the point right away. The best way to decide if buying an Airbnb investment property in the Fort Lauderdale real estate market is worth your money is looking at the rate of return to expect there.

Below are all the most important figures which investors should have in mind when deciding in favor of or against a Fort Lauderdale Airbnb rental. The numbers have been computed by Mashvisor’s Airbnb profitability calculator.

This is a specific type of rental property calculator which performs Airbnb investment analysis to provide the return on investment metrics for a specific housing market, neighborhood, or property. This real estate investment tool uses rental comps and other Airbnb data from each neighborhood to come up with a reliable and accurate forecast for the performance of any market or property.

Fort Lauderdale, Florida Real Estate Market

• Median Property Price: $689,700
• Price per Square Foot: $354
• Fort Lauderdale Homes for Sale: 1,344
• Fort Lauderdale Single Family Homes for Sale: 477
• Fort Lauderdale Condos and Apartments for Sale: 710
• Fort Lauderdale Townhouses for Sale: 117
• Fort Lauderdale Multi Family Homes for Sale: 10
• Fort Lauderdale Other Property Types for Sale: 30
• Average Days on Market: 80
• Average Monthly Airbnb Rental Income: $3,290
• Average Airbnb Cash on Cash Return: 1.6%
• Average Airbnb Occupancy Rate: 58.0%
• Airbnb Rental Listings: 6,693
• Walk Score: 48

So, what are the most important trends which emerge in the Airbnb Fort Lauderdale market?

1. Fort Lauderdale real estate prices are rather high. The median price of houses for sale in Fort Lauderdale is nearly triple the national average and exceeds home values in many other top markets such as the Dallas real estate market and the Philadelphia real estate market. This means that potential investors should come up with a solid financing strategy before deciding to buy a Fort Lauderdale investment property.

2. Condos and apartments in Fort Lauderdale are the dominating property type as they constitute 53% of all listings. However, before buying one of the Fort Lauderdale condos for sale, an Airbnb host needs to check the rules and regulations of the HOA in this regard. Many condo complexes prohibit short term rentals in their housing units.

3. The Fort Lauderdale Airbnb rental income is very high compared to the national level. The high Airbnb income makes up for the above-average home prices to bring good return on investment.

4. The city-average Airbnb CoC return does not look like a lot and is below the recommended good cash on cash return of 8%. This should not discourage investors from looking for the best locations for buying a vacation home. This rate of return is only the average of all Airbnb listings in the city. Meanwhile, the best Fort Lauderdale neighborhoods for vacation rentals and individual properties can achieve significantly higher return on investment. You will see this with your own eyes in a bit.

5. The average Airbnb occupancy rate in Fort Lauderdale is high because of the year-round influx of tourists. The Airbnb occupancy rate is one of the main determinants of the return on investment on short term rental properties, together with the nightly rate.

6. All in all, investing in an Airbnb Fort Lauderdale rental property promises to be a good real estate investing decision.

Legal Status of Fort Lauderdale Airbnb

Before moving any further in our discussion of the profitability potential of the Fort Lauderdale housing market for Airbnb properties, we have to discuss local Airbnb laws and regulations.

Many top locations for investing in Airbnb have experienced drastic restrictions and even prohibitions in the past couple of years. For example, Airbnb Las Vegas is no longer allowed for a period of less than 30 days. Meanwhile, Airbnb Los Angeles is only legal for primary residences.

How about Airbnb Fort Lauderdale? Are short term rentals legal and unrestricted?

The great news is that Fort Lauderdale remains one of the relatively few US real estate markets where vacation rentals will be legal for both owner-occupied and non-owner occupied properties.

Moreover, Fort Lauderdale Airbnb is an option for both primary residences (homes) and investment properties. This means that even out of state investors can buy an income property for the sole purpose of renting out on Airbnb or another similar homesharing platform.

However, there are a few basic Airbnb regulations with which all hosts should comply:

• All Fort Lauderdale vacation rentals should be registered with the City of Fort Lauderdale on annual basis. The first-time registration fee is $350 for up to 4 rental units under the same roof. Renewing registration costs between $80 for owner-occupied vacation rentals and $160 for non-owner occupied vacation rentals.
• Airbnb Fort Lauderdale rental properties need to undergo an inspection to confirm that they obey by all requirements. The cost of the first two inspections is included in the registration fee, while each consecutive inspection costs $75.
• Vacation rentals need to obtain a business license the cost of which ranges between $78.75 and $236.25, depending on the time of the year.
• Similar to other Florida vacation homes, those in Fort Lauderdale have to pay:
  • 6% Florida transient rental tax
  • 0.5-1.5% Florida discretionary sales surtax
  • 6% Broward County tourist development tax
  • City of Fort Lauderdale taxes

Now that you are aware of the legal requirements for listing a property on Airbnb in Fort Lauderdale, all that’s left is to learn what else is required to become an Airbnb host.

Factors Supporting the Growth of Fort Lauderdale Vacation Rentals

1. Tourism and Climate

Tourism will continue to be the main driver of the Airbnb Fort Lauderdale industry. Together with Miami, this is one of the most visited places in all of the US housing market. The warm climate, the year-round sun, and the Fort Lauderdale beach attract millions of tourists each and every year.

Demand for short term rentals there does not face much of seasonality because of the climate specificities, making Fort Lauderdale a top destination throughout the year. This assures a high Airbnb occupancy rate which is particularly important when calculating the return on investment of short term rental properties in terms of both cash on cash return and cap rate.

2. Proximity to Miami

The geographical proximity to Miami, another profitable location for Airbnb rentals, also contributes to making Fort Lauderdale vacation rentals good real estate investment. Relatively smaller cities and towns have always benefited from being close to major tourist, economic, and financial centers.

3. Favorable Airbnb Regulations

The third most important factor for the expected expansion of the Airbnb Fort Lauderdale rental market is the fact that short term rentals in non-owner occupied, non-primary residences remain legal. This is not the case in many of the best places to invest in real estate to rent out on short term basis in the US housing market.

Best Neighborhoods in Fort Lauderdale for Short Term Rentals

Now that we know that investing in Airbnb in Fort Lauderdale, FL is generally a profitable real estate investment strategy, it’s time to think about the practicalities. The Fort Lauderdale housing market is so big that where exactly should you invest? In one of the top areas for Airbnb rental properties of course.

In addition to real estate market analysis, Mashvisor’ investment property calculator can also conduct neighborhood analysis in real estate to highlight the most profitable locations for either rental strategy in any US market. Looking at the performance of actual rental comps from Airbnb.com and analyzing the big data by property type and number of bedrooms, Mashvisor’s Airbnb profit calculator lists the best Fort Lauderdale neighborhoods for investing in short term rental properties:

1. Rock Island

• Median Property Price: $270,900
• Price per Square Foot: $158
• Average Days on Market: 80
• Average Monthly Airbnb Rental Income: $5,280
• Average Airbnb Cash on Cash Return: 15.3%
• Average Airbnb Occupancy Rate: 55.4%
• Walk Score: 41

The Rock Island neighborhood is the absolute best place to invest in an Airbnb Fort Lauderdale property. It yields the highest cash on cash return among all areas.

2. Lauderdale West

• Median Property Price: $260,800
• Price per Square Foot: $144
• Average Days on Market: 61
• Average Monthly Airbnb Rental Income: $4,100
• Average Airbnb Cash on Cash Return: 12.1%
• Average Airbnb Occupancy Rate: 67.8%
• Walk Score: 78

One of the main reasons for the high profitability of short term rentals in the Lauderdale West neighborhood is the high Airbnb occupancy rate.

3. Durrs Homeowners

• Median Property Price: $180,800
• Price per Square Foot: $149
• Average Days on Market: 112
• Average Monthly Airbnb Rental Income: $3,420
• Average Airbnb Cash on Cash Return: 11.8%
• Average Airbnb Occupancy Rate: 50.7%
• Walk Score: 61

Affordable housing prices make the Durrs Homeowners neighborhood so profitable for investing in rental properties including vacation rentals. The property price is one of the main determinants of return on investment in real estate.

4. River Landings

• Median Property Price: $924,500
• Price per Square Foot: $269
• Average Days on Market: 176
• Average Monthly Airbnb Rental Income: $4,410
• Average Airbnb Cash on Cash Return: 10.8%
• Average Airbnb Occupancy Rate: 66.3%
• Walk Score: 33

Buying an Airbnb property in the River Landings neighborhood will bring you a high rate of return due to the above-average rental income and the high Airbnb occupancy rate. However, you have to be able and ready to pay a much higher price than in the rest of the Fort Lauderdale, Florida housing market.

5. Home Beautiful Park

• Median Property Price: $204,000
• Price per Square Foot: $92
• Average Days on Market: 137
• Average Monthly Airbnb Rental Income: $2,800
• Average Airbnb Cash on Cash Return: 9.5%
• Average Airbnb Occupancy Rate: 52.7%
• Walk Score: 77

The Home Beautiful Park neighborhood has the highest walk score in the entire city, which makes it an ideal location for attracting Airbnb guests.

6. Melrose Manors

• Median Property Price: $222,000
• Price per Square Foot: $136
• Average Days on Market: 87
• Average Monthly Airbnb Rental Income: $2,960
• Average Airbnb Cash on Cash Return: 9.3%
• Average Airbnb Occupancy Rate: 58.9%
• Walk Score: 58

The good cash on cash return for Fort Lauderdale vacation rentals in the Melrose Manors neighborhood is the result of low home values, relatively high rental income, and good Airbnb occupancy rate.

7. River Run

• Median Property Price: $298,500
• Price per Square Foot: $221
• Average Days on Market: 197
• Average Monthly Airbnb Rental Income: $4,410
• Average Airbnb Cash on Cash Return: 7.9%
• Average Airbnb Occupancy Rate: 66.3%
• Walk Score: 65

Another one of the best Fort Lauderdale neighborhoods for buying an Airbnb property is the River Run neighborhood. While property prices are affordable, the expected Airbnb rental income is particularly high.

8. River Garden Sweeting Estate

• Median Property Price: $233,700
• Price per Square Foot: $159
• Average Days on Market: 148
• Average Monthly Airbnb Rental Income: $3,050
• Average Airbnb Cash on Cash Return: 7.9%
• Average Airbnb Occupancy Rate: 54.5%
• Walk Score: 35

Another place where you can invest in Airbnb in the Fort Lauderdale real estate market is the River Garden Sweeting Estate neighborhood. This is a buyer’s market where real estate listings spend a lot of time on the market and where prices are low, which makes it a perfect choice for first-time property investors.

9. Riverland Village

• Median Property Price: $314,800
• Price per Square Foot: $234
• Average Days on Market: 148
• Average Monthly Airbnb Rental Income: $4,040
• Average Airbnb Cash on Cash Return: 7.8%
• Average Airbnb Occupancy Rate: 64.2%
• Walk Score: 58

The Riverland Village neighborhood is another area which enjoys particularly high Airbnb occupancy rate, resulting in high Airbnb income and CoC return.

#10 Sunset

• Median Property Price: $321,300
• Price per Square Foot: $212
• Average Days on Market: 97
• Average Monthly Airbnb Rental Income: $3,830
• Average Airbnb Cash on Cash Return: 7.4%
• Average Airbnb Occupancy Rate: 65.4%
• Walk Score: 65

The last on our list of the best places to buy an Airbnb rental property in Fort Lauderdale is the Sunset neighborhood. Even at position #10, the location offers high average return on investment.

Investment Property Search in the Fort Lauderdale Real Estate Market

There are over 1,300 homes for sale in Fort Lauderdale, Florida at the moment. How do you know which one to buy? How do you decide which one will bring you the highest return on investment as an Airbnb rental property?

The answer is easy: Use Mashvisor’s must-have real estate investment tools. Profitable real estate investing is all about having access to the latest technology in the real estate industry including AI, machine learning, predictive analytics, and big data analysis. All these features are available on Mashvisor’s Airbnb analytics platform.

Here are the tools which will help you find the right neighborhood and the best investment property there based on your budget and investment expectations:

• Heatmap: Mashvisor’s heatmap analysis tools will provide real estate investors with a color-coded Fort Lauderdale neighborhoods map for the following criteria: property listing price, Airbnb rental income, Airbnb cash on cash return, and Airbnb occupancy rate. This is the quickest way there is to conduct neighborhood analysis at the entire market level.

Have a look below at the Fort Lauderdale neighborhoods with the highest Airbnb cash on cash return.

• Property Finder: Mashvisor’s Property Finder tool is the fastest and most efficient way to search through all homes for sale in the Fort Lauderdale, Florida real estate market to find the one which matches your budget, preferred property type, preferred number of bedrooms, and optimal rental strategy, of course.

You can see below some of the top-performing single family homes in Fort Lauderdale:

• Investment Property Calculator: Mashvisor’s Aibnb profitability calculator will allow you to perform both neighborhood analysis and investment property analysis. You can look at the price, startup costs, recurring expenses, Airbnb rental income, Airbnb occupancy rate, cash flow, Airbnb cash on cash return, Airbnb cap rate, and many other real estate metrics for any listing in Fort Lauderdale or any other US housing market.

Have a look at the rental property analysis of this property in the Lauderdale West neighborhood:

Buying an Airbnb Fort Lauderdale rental property is one of the top real estate investing options. As long as you study the neighborhood well and choose a property carefully, you are guaranteed to make some good money. Sign up for Mashvisor today to start searching for top-performing investment properties in Fort Lauderdale and beyond.

To start using Mashvisor, click here.