What Are the Best Cities for Florida Airbnb Income?

Florida is a favorite destination for tourists. Choosing the best cities to invest in can help investors earn remunerative Airbnb Florida income. 

Investing in short term rentals is one of the best ways to earn extra income. Despite the recent projections about a potential housing market crash this year, the short term rental industry remains strong, especially in selected markets with great tourism. When it comes to Airbnb investing, Florida is one of the top destinations for both new and seasoned investors.

Table of Contents

1. How to Find the Best City in Florida for Airbnb 
2. Top Airbnb Locations for Airbnb Florida Income  
3. How to Choose an Airbnb Florida Income Property That Stands Out From the Competition
4. How to Start an Airbnb in Florida

From theme parks, casinos, restaurants, and festivals, Florida remains a popular destination for tourists and is poised to continue drawing visitors. While the state is considered one of the top Airbnb locations, not every city in the Florida real estate market will see the same demand for short term rentals.

If you are thinking of buying a vacation home in Florida and maximizing your Airbnb Florida income, it would be advisable to start by finding the best cities for Airbnb in the state. Typically, the best areas to invest in short term rentals are those often frequented by visitors all year round. 

Aside from tourist locations, consider the business activities in the area as well. While most guests who stay in short term rentals are tourists, many business travelers prefer Airbnb accommodations over hotel stays. Since Airbnb is a seasonal business, both tourism and business activities in the area will significantly affect the rental demand.

How to Find the Best City in Florida for Airbnb

If you plan to take advantage of Florida’s flourishing short term rental market, you must first find the best Florida cities that will likely offer profitable investment opportunities. Several factors will make a city a good location for Airbnb investing. Before you choose to buy vacation rentals for sale, it’s crucial to determine the area’s income potential first.

Here are a few things that you should look for when finding the best city in Florida for Airbnb rentals:

1. Demand for Short Term Rentals

In general, there is a high demand for short term rentals across the country compared to luxury hotels. Most leisure and business travelers prefer short term rentals because of their affordability and amenities that make them feel at home. However, some areas may have higher demands for Airbnb than others.

A city that’s optimal for Airbnb investing has a high demand for Airbnb rentals. To find whether there is sufficient demand for short term rentals or not, you need to do your research and find out the Airbnb occupancy rate in the area that you’re eyeing to invest in. Before doing your research, it’s best to have a few cities in mind so you’ll know where to begin.

2. Nearby Attractions and Leisure Activities

One factor that drives the demand for short term rentals in the state is the presence of tourist attractions and popular destinations. The best city in Florida for Airbnb hosts is home to various attractions and offers several leisure activities, which are why visitors travel to the area. The more interests and activities a place offers, the higher the Airbnb demand.

To know this, you should be familiar with the city’s amenities. You may check the tourism offices of the places you are assessing to see the top tourist attractions and destinations in the area and its surrounding neighborhoods. Also, check for local events that may attract visitors—this is an excellent way to see if there are sufficient drivers for tourism.

3. Business Activities

As mentioned, business travelers are also one of your primary sources of income as an Airbnb property owner, not just tourists. A location with a busy business district and plenty of business activities is also ideal for short term rental investing. When checking out potential Airbnb locations, consider this factor one of your criteria.

4. Seasonality

Airbnb, in general, is a seasonal business. It means there are times in a year when the demand for short term rentals is high, and there are also instances when it is scarce. This is pretty normal in any short term rental market. Your goal as an investor is to ensure there are more peak days than off-peak days in the city where you invest.

5. Airbnb Income

Another thing that you need to look for is how much you can potentially make from operating a short term rental in the city. Knowing the average Airbnb income in Florida is vital to your overall success as an investor. You need to ensure you’re earning more than enough income to cover your operational costs to realize a return on investment. 

To determine your potential monthly income, you need to conduct a rental comps analysis and check similar properties in the area to see how much they earn from Airbnb. You also need to consider the amenities that these comparable properties provide. Make sure to gather updated Airbnb data to maintain the accuracy and relevance of your analysis.

6. Local Short Term Rental Laws

Each state may have different governing rules about short term rentals. Also, not all cities regulate the operation of short term rentals. While Florida typically has favorable Airbnb laws, make sure that the city you choose allows Airbnb rentals without too many restrictions. Also, check the HOA or condo bylaws if you plan to buy an investment unit from a community.

Use Market Finder to Find the Best City in Florida for Airbnb

To determine the real estate data mentioned above, you need to conduct thorough research and rental analysis. However, manually researching information such as Airbnb statistics by city can take much of your time and energy. It is also more prone to error. Fortunately, online tools are available to make your search a lot easier and more convenient.

The best real estate analytics tool for finding the best city in Florida for investing in short term rentals is Mashvisor’s Market Finder. If you don’t know how to start an Airbnb business, this tool will come in handy.

Market Finder lets you find the best areas to invest in by allowing you to see the potential of a city or neighborhood in greater detail. It uses a Heatmap tool to make your search so much easier. You can set your preferred filters to see which Florida cities meet your criteria. 

For example, if you want to know which cities have a high Airbnb demand, you can set the filter to Airbnb occupancy rate and select a percentage you prefer. A high occupancy rate is typically above 50%. The heatmap will then highlight the areas in green that meet your chosen criteria.

You can also set your monthly income preference in the filters, as well as the cap rate and regulatory score for Airbnb laws. Other filters include the Mashmeter score, which evaluates the potential opportunities in the city, school rankings, crime and safety, and home values.

Are you ready to find the best city for Airbnb investing in Florida? Start a 7-day free trial with Mashvisor today.

Top Airbnb Locations for Airbnb Florida Income

With Florida’s many tourist attractions and serene views, the state is considered one of the most visited states in the United States. With the state’s high tourism rate and more than 400 cities, towns, and villages to choose from, short term rental properties in Florida are sure to thrive. 

If you want to know how to start an Airbnb in Florida, we have listed the top cities to invest in. We considered the markets with the highest Airbnb income, cap rates of 2% or higher, and occupancy rates of 50% or higher. We only included cities with a median property price of less than $1 million and at least 100 Airbnb listings. 

Based on Mashvisor’s data as of April 2023, the following are the best cities for earning high Airbnb Florida income:

1. Saint Augustine, FL

• Median Property Price: $607,475
• Average Price per Square Foot: $313
• Days on Market: 52
• Number of Airbnb Listings: 1,286
• Monthly Airbnb Rental Income: $4,712
• Airbnb Cash on Cash Return: 5.13%
• Airbnb Cap Rate: 5.18%
• Airbnb Daily Rate: $244
• Airbnb Occupancy Rate: 50
• Walk Score: 0

2. University Park, FL

• Median Property Price: $606,293
• Average Price per Square Foot: $366
• Days on Market: 29
• Number of Airbnb Listings: 405
• Monthly Airbnb Rental Income: $4,312
• Airbnb Cash on Cash Return: 4.12%
• Airbnb Cap Rate: 4.16%
• Airbnb Daily Rate: $170
• Airbnb Occupancy Rate: 53
• Walk Score: 69

3. Winter Park, FL

• Median Property Price: $918,848
• Average Price per Square Foot: $420
• Days on Market: 118
• Number of Airbnb Listings: 155
• Monthly Airbnb Rental Income: $4,120
• Airbnb Cash on Cash Return: 3.62%
• Airbnb Cap Rate: 3.67%
• Airbnb Daily Rate: $158
• Airbnb Occupancy Rate: 59
• Walk Score: 25

4. Palmetto, FL

• Median Property Price: $594,159
• Average Price per Square Foot: $325
• Days on Market: 81
• Number of Airbnb Listings: 125
• Monthly Airbnb Rental Income: $3,742
• Airbnb Cash on Cash Return: 4.23%
• Airbnb Cap Rate: 4.28%
• Airbnb Daily Rate: $188
• Airbnb Occupancy Rate: 50
• Walk Score: 48

5. New Smyrna Beach, FL

• Median Property Price: $632,075
• Average Price per Square Foot: $340
• Days on Market: 92
• Number of Airbnb Listings: 197
• Monthly Airbnb Rental Income: $3,526
• Airbnb Cash on Cash Return: 3.20%
• Airbnb Cap Rate: 3.24%
• Airbnb Daily Rate: $156
• Airbnb Occupancy Rate: 52
• Walk Score: 26

6. Kendall, FL

• Median Property Price: $419,946
• Average Price per Square Foot: $325
• Days on Market: 28
• Number of Airbnb Listings: 273
• Monthly Airbnb Rental Income: $3,412
• Airbnb Cash on Cash Return: 3.79%
• Airbnb Cap Rate: 3.85%
• Airbnb Daily Rate: $238
• Airbnb Occupancy Rate: 51
• Walk Score: 22

7. Ormond Beach, FL

• Median Property Price: $554,452
• Average Price per Square Foot: $307
• Days on Market: 102
• Number of Airbnb Listings: 294
• Monthly Airbnb Rental Income: $3,363
• Airbnb Cash on Cash Return: 3.78%
• Airbnb Cap Rate: 3.83%
• Airbnb Daily Rate: $182
• Airbnb Occupancy Rate: 52
• Walk Score: 52

8. Malabar, FL

• Median Property Price: $729,992
• Average Price per Square Foot: $447
• Days on Market: 134
• Number of Airbnb Listings: 144
• Monthly Airbnb Rental Income: $3,159
• Airbnb Cash on Cash Return: 2.33%
• Airbnb Cap Rate: 2.35%
• Airbnb Daily Rate: $215
• Airbnb Occupancy Rate: 54
• Walk Score: 26

9. Brandon, FL

• Median Property Price: $384,750
• Average Price per Square Foot: $227
• Days on Market: 70
• Number of Airbnb Listings: 123
• Monthly Airbnb Rental Income: $3,128
• Airbnb Cash on Cash Return: 4.41%
• Airbnb Cap Rate: 4.48%
• Airbnb Daily Rate: $163
• Airbnb Occupancy Rate: 50
• Walk Score: 75

10. Fern Park, FL

• Median Property Price: $383,927
• Average Price per Square Foot: $218
• Days on Market: 31
• Number of Airbnb Listings: 316
• Monthly Airbnb Rental Income: $3,127
• Airbnb Cash on Cash Return: 3.87%
• Airbnb Cap Rate: 3.93%
• Airbnb Daily Rate: $148
• Airbnb Occupancy Rate: 54
• Walk Score: 50

11. Melbourne, FL

• Median Property Price: $478,639
• Average Price per Square Foot: $275
• Days on Market: 74
• Number of Airbnb Listings: 299
• Monthly Airbnb Rental Income: $3,109
• Airbnb Cash on Cash Return: 4.03%
• Airbnb Cap Rate: 4.09%
• Airbnb Daily Rate: $166
• Airbnb Occupancy Rate: 54
• Walk Score: 76

12. Hernando Beach, FL

• Median Property Price: $609,333
• Average Price per Square Foot: $355
• Days on Market: 87
• Number of Airbnb Listings: 137
• Monthly Airbnb Rental Income: $3,044
• Airbnb Cash on Cash Return: 2.36%
• Airbnb Cap Rate: 2.38%
• Airbnb Daily Rate: $208
• Airbnb Occupancy Rate: 50
• Walk Score: 1

13. Port Saint Lucie, FL

• Median Property Price: $491,433
• Average Price per Square Foot: $253
• Days on Market: 101
• Number of Airbnb Listings: 360
• Monthly Airbnb Rental Income: $2,935
• Airbnb Cash on Cash Return: 2.89%
• Airbnb Cap Rate: 2.92%
• Airbnb Daily Rate: $162
• Airbnb Occupancy Rate: 53
• Walk Score: 59

14. Ocoee, FL

• Median Property Price: $400,785
• Average Price per Square Foot: $233
• Days on Market: 88
• Number of Airbnb Listings: 122
• Monthly Airbnb Rental Income: $2,912
• Airbnb Cash on Cash Return: 3.42%
• Airbnb Cap Rate: 3.47%
• Airbnb Daily Rate: $149
• Airbnb Occupancy Rate: 52
• Walk Score: 56

15. Palm Coast, FL

• Median Property Price: $478,224
• Average Price per Square Foot: $242
• Days on Market: 91
• Number of Airbnb Listings: 313
• Monthly Airbnb Rental Income: $2,885
• Airbnb Cash on Cash Return: 3.56%
• Airbnb Cap Rate: 3.61%
• Airbnb Daily Rate: $197
• Airbnb Occupancy Rate: 50
• Walk Score: 8

Start searching for the best investment property in a profitable city in Florida.

How to Choose an Airbnb Florida Income Property That Stands Out From the Competition

While knowing the best cities for earning a profitable Airbnb Florida income this year is an excellent start to your rental property investment journey, being in a top-performing Airbnb city is only the first step. Investing in Airbnb can be a confusing and tedious process, especially with several things that need to be considered. 

First, you need to ensure that your Florida Airbnb property generates a positive cash flow and high returns. You also need to choose a place that is often flocked with visitors. Because of Florida’s favorable weather conditions, its tourism industry is booming all year round—so finding a location with a high occupancy rate will not be that difficult. 

To help guide you through the process, we’ve put together a few practical tips on how to choose the best places to invest in Florida real estate:

1. Invest According to Your Goals

Depending on what you hope to achieve with your real estate investment on Airbnb, you will need to find an Airbnb city and property that aligns with that. For instance, some investors want a passive investment, while others want to make their short term rentals a full-time business.

If you are looking for an occasional rental property which you can earn a passive income from, you don’t need to buy a property in the busiest parts of the city. Instead, buy a vacation home in areas that attract seasonal visitors that require less initial capital while still providing you with the Airbnb Florida income you want.

On the other hand, if you want to earn the highest possible returns on your investment, you should look for the best short term rental markets in Florida with year-long visitors. Places frequented by tourists all year round ensure a high occupancy rate and a consistent flow of Florida Airbnb income.

2. Find Out the Rules and Regulations of the Airbnb City

As mentioned earlier, every Airbnb city across the country, including the cities in Florida, follows different rules and regulations. Before investing in any Airbnb city, you need to familiarize yourself with their specific short term rental policies and restrictions to ensure that you comply with the law.

For example, some areas don’t allow Airbnb rentals that are not owner-occupied or are not the owner’s primary residence. On the other hand, some cities fully allow secondary homes, investment properties, and vacation homes to be rented all year round without needing to be occupied by the owner.

To ensure that you comply with the law, do your research and be familiar with the short term rental rules and regulations before buying a property. Visit Mashvisor’s short term rental regulations page to learn more about your preferred city’s local Airbnb law.

3. Choose the Right Neighborhood in the City

Within a popular Airbnb city, not all neighborhoods will be good for putting up a transient public lodging establishment, nor will they generate the same Airbnb Florida income. Using Mashvisor’s real estate investment tools and heatmap will give you an accurate and extensive neighborhood analysis of each city in minutes.

Mashvisor’s tools are easy to use because you can customize your search based on your chosen criteria. It helps narrow down the different areas that fit within your budget and investment goals. You can use the Market Finder tool to view the neighborhoods in a city based on your chosen filters, such as monthly income, occupancy rate, or cash on cash return.

4. Find Properties Within Your Budget

After narrowing down the possible neighborhoods optimal for investing in Florida Airbnb, you need to find listings within that area that fit your investment budget. While there are many ways to find a suitable investment property, Mashvisor’s Property Finder can help you find the best investment property available.

This tool lets you find properties in a specific area that matches your budget and other criteria. You can customize your search according to property type, size, potential rental income, and cash on cash return. Once you’ve added all your specifications, you will see all the available listings that meet your criteria.

5. Buy the Best Real Estate Property

From the list of for-sale listings provided, you will then need to choose which specific property is right for you. While they are all excellent options for earning a profitable Airbnb Florida income, they will not offer the same profits and returns.

To help you decide which property is the most lucrative option, you can use Mashvisor’s Airbnb calculator. Our Airbnb profitability calculator can provide you with a comprehensive investment property analysis that will give you access to Mashvisor’s Airbnb analytics. It helps you make the best investment decision based on actual and well-researched figures.

With a comprehensive and data-based rental property analysis to guide your decision, you can now confidently buy your Florida Airbnb investment property that will lead you to success. 

How to Start an Airbnb in Florida

After choosing a Florida investment property to operate as a short term rental, the next step is to start the process of Airbnb investing. Here’s a step-by-step guide that will help you get started with your Florida Airbnb business:

Step 1: Make Your Property Rent-Ready

Unless you bought a newly built house, you may need to perform some renovations and home improvements to prepare your property for occupancy. Unlike long term rentals, Airbnb properties should be visually and aesthetically attractive. Set a budget for interior design and other amenities to increase the value of your Airbnb rental.

Step 2: Register Your Short Term Rental

Depending on the regulations governing short term rentals in your chosen city, you may need to register your short term rental business before you are allowed to operate it. Check with the local government or the Florida Department of Business on the process and requirements for registering your Airbnb business.

Step 3: List Your Property on Airbnb

Once everything is all set, you can list your short term rental on the Airbnb platform to start getting bookings. Make sure to check the Airbnb requirements before you have your property listed to make the process a lot smoother.

Step 4: Price Your Short Term Rental Correctly

Since Airbnb rentals are seasonal, you need to use a dynamic pricing strategy to ensure that you maximize your Airbnb Florida income, as well as your occupancy rate. Setting a wrong rental estimate can harm your investment. If you price your property too low, you’ll miss out on earning better returns. If you price it too high, guests may be discouraged from booking a stay.

Fortunately, you can now take the guessing game out of the equation when pricing your Airbnb rental with the help of Mashvisor’s Dynamic Pricing tool. This tool automates your Airbnb pricing based on seasonality, local events and holidays, market demand, and booking history. Using this tool makes it easier to price your Airbnb rental property accurately. 

The best thing about Mashvisor’s Dynamic Pricing is that it not only suggests the best rental rates but also provides other essential features to help you make the right decisions. For instance, you will have access to Market Insights, where you can get a better picture of the current market conditions and understand the competition.

Besides that, it provides access to a smart calendar feature where you can easily synchronize your rental rates directly to the Airbnb platform. Plus, you still have complete control over your income because you can set your base price, minimum and maximum prices, and configure your booking settings.

Schedule a demo to see for yourself how our Dynamic Pricing tool can work for you.

The Bottom Line

The Airbnb market in Florida can be a profitable real estate investment if done right. Knowing the best 15 cities with the highest Airbnb Florida income potential is just the first step. Moreover, don’t forget to review the Airbnb rules and regulations in your chosen location to ensure you can operate a short term rental business. 

Now that you know which Florida cities are best for short term rentals, use Mashvisor’s real estate investment tools to help you analyze and narrow down your investment property options. Three of the best tools you should use are Market Finder, Property Finder, and Airbnb Calculator. These tools can help you find the best Airbnb investment in the right market.

Once you find the best Airbnb for sale, make sure to use Mashvisor’s Dynamic Pricing tool to ensure that you maximize your income-earning potential by setting the right rental rates. 

Want to know how Mashvisor can help set you up for success? Schedule a demo now.