Should You Invest in Airbnb Tampa Properties in 2019?

The Sunshine State 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 in 2019

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 10 markets for overall real estate prospects by the PwC. 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 rental 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, to obtain Tampa’s Airbnb rental data. We’ve compiled Tampa’s Airbnb short-term rental market data below:

Pricing

• Median Property Price: $356,794
• Price per Square Foot: $185
• Price-to-Rent Ratio: 19

Airbnb Investing

• Rental Income: $2,605
• Cap Rate / Cash on Cash Return: 3.7%
• Occupancy Rate: 54.4%

Clearly, there is much to be said about Tampa’s average Airbnb investment property data. We’ll discuss the data and the market’s features later in this post, but first, we need to address an important question: Is Airbnb legal in Tampa?

Is Airbnb Legal in Tampa?

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 on the state level, but no official ordinance has been passed on the county-level.

Related: 5 Cities Where Airbnb Is Illegal in 2019

• 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 a 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.

• Hillsborough County Airbnb Regulations

Hillsborough County, the county Tampa is located in, does not have any official short-term rental laws set in stone as of yet. The City Commission started discussing an ordinance in early March 2019. Some of the proposed Airbnb regulations in Tampa include maximum occupancy limits, parking requirements, and minimum living and safety requirements. Investors of Tampa short-term rentals should follow the situation for any future developments.

As ordained by state law, however, Airbnb Tampa investors must pay the previously mentioned 6% Florida Transient Rental Tax, a Florida Discretionary Sales Surtax, and a County Tourist Development Tax. The Hillsborough County Sales Surtax is 1% for short-term non-owner-occupied properties. The county’s Tourist Development Tax is 5%.

3 Reasons to Invest in Tampa Short-Term Rentals

So, why should you be investing in Airbnb in the Tampa housing market? There are three interrelated reasons why. Airbnb Tampa non-owner occupied properties are profitable, inexpensive, and in demand.

Related: Buying Airbnb Property in 2019? Then You Need These 3 Tools

• Profitability

First and foremost, Tampa short-term rentals are lucrative investments. The average Airbnb return on investment of the market is 3.7%. This is only an average, meaning that a real estate investor’s property will most likely have a higher ROI average. In the best neighborhoods in Tampa, this average ranges from 7.3% to 11.5%.

In addition to the impressive averages, the Tampa Bay market generated over a whopping $113 million in Airbnb revenue in 2018. This accounted for roughly 14% of the state’s total Airbnb income.

• Affordability

One of the reasons the Airbnb Tampa real estate market averages high ROI is its relative affordability. The median investment property in Tampa has a $356,794 price tag, as noted earlier. The median is slightly above what the national median has been over the last 12 months, but it is still affordable. The city median decreases in its best neighborhoods, ranging from roughly $131,000 to $275,000.

• Demand

Florida is an Airbnb hotspot, as over 4.5 million people visited the state through the platform in 2018. Tampa has been a major contributor to the state’s success. Tampa’s sports teams, such as the Tampa Bay Buccaneers, cultural events, such as the Gasparilla Pirate Festival, and beaches will draw consistent demand in 2019.

The Best Neighborhoods in Tampa for Airbnb Rentals

Finally, what are the best neighborhoods for investing in Airbnb Tampa? According to Mashvisor, the best neighborhoods are Woodland Terrace, Palmetto Beach, Terrace Park, Ybor City, and Sulphur Springs.

Woodland Terrace

Pricing

• Median Property Price: $184,000
• Price per Square Foot: $119
• Price-to-Rent Ratio: 12

Airbnb Investing

• Rental Income: $3,998
• Cap Rate / Cash on Cash Return: 11.5%
• Occupancy Rate: 55.3%

Palmetto Beach

Pricing

• Median Property Price: $275,967
• Price per Square Foot: $116
• Price-to-Rent Ratio: 17

Airbnb Investing

• Rental Income: $4,666
• Cap Rate / Cash on Cash Return: 11.1%
• Occupancy Rate: 45%

Terrace Park

Pricing

• Median Property Price: $131,696
• Price per Square Foot: $105
• Price-to-Rent Ratio: 10

Airbnb Investing

• Rental Income: $2,237
• Cap Rate / Cash on Cash Return: 8.5%
• Occupancy Rate: 58.7%

Ybor City

Pricing

• Median Property Price: $176,465
• Price per Square Foot: $130
• Price-to-Rent Ratio: 12

Airbnb Investing

• Rental Income: $2,469
• Cap Rate / Cash on Cash Return: 7.7%
• Occupancy Rate: 58.8%

Sulphur Springs

Pricing

• Median Property Price: $135,216
• Price per Square Foot: $120
• Price-to-Rent Ratio: 13

Airbnb Investing

• Rental Income: $1,848
• Cap Rate / Cash on Cash Return: 7.3%
• Occupancy Rate: 53.3%

To start investing in Airbnb Tampa, click here to start your 14-day FREE trial with Mashvisor!