Is Alexandria, Louisiana Good for Airbnb Investment?

To start an Airbnb in Alexandria, Louisiana, begin by researching local zoning laws and regulations through the City of Alexandria Planning Department, as short-term rentals may require special permits or be restricted in certain residential zones. Contact the Alexandria City Hall at 318-449-5000 to inquire about business licenses, occupancy permits, and any specific short-term rental ordinances that may have been enacted since 2020-2022 when many Louisiana cities began implementing STR regulations. Obtain necessary permits including a business license from the city, fire safety inspection certificate, and potentially a conditional use permit if required in your zoning district. Find a suitable property by researching neighborhoods like the Garden District, downtown Alexandria near the Red River, or areas close to Louisiana State University of Alexandria, ensuring the property meets minimum safety requirements and parking availability. Furnish the space with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Louisiana fire codes. Create your Airbnb listing with professional photos, competitive pricing based on local market rates (typically $75-150 per night in Alexandria), and highlight nearby attractions like the Alexandria Museum of Art and Kisatchie National Forest. Manage your property by establishing cleaning protocols, guest communication systems, and consider hiring local cleaning services or property management companies familiar with Rapides Parish regulations, while maintaining compliance with Louisiana state tax requirements including collecting and remitting occupancy taxes to both the city and state.

To identify profitable short-term rental properties in Alexandria, Louisiana, focus on locations within 2-3 miles of Louisiana State University of Alexandria, near the Red River waterfront, or in historic downtown areas where business travelers and tourists congregate. Target 2-4 bedroom properties built after 1980 with modern amenities, parking, and outdoor spaces, as these typically generate $80-150 per night compared to $50-80 for older properties. Analyze pricing by monitoring Airbnb and VRBO listings in Alexandria showing average daily rates of $75-120, with occupancy rates around 60-70% annually, while calculating expenses including the city's 4% occupancy tax plus state taxes totaling approximately 13%. Research competition by identifying the roughly 150-200 active STR listings in Rapides Parish, noting that properties near England Airpark or Alexandria Mall command premium rates during events and business travel periods. Utilize tools like AirDNA for market analytics, STRData for occupancy tracking, and the City of Alexandria's permit database to ensure compliance, while monitoring seasonal demand spikes during LSU events, Red River festivals, and winter months when northern visitors increase bookings by an estimated 25-30%.

To obtain an Airbnb/STR permit in Alexandria, Louisiana, contact the City of Alexandria Planning and Zoning Department at City Hall located at 915 3rd Street, Alexandria, LA 71301, or call (318) 449-5070 to begin the application process. Required documents typically include a completed short-term rental permit application, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, fire safety inspection certificate, liability insurance policy (minimum $1 million coverage), floor plan of the rental unit, parking plan showing adequate guest parking, and contact information for a local property manager if you're not local. The application fee is approximately $150-250 with an annual renewal fee of $100-150, and you may need additional inspections costing $50-100 each. The timeline for approval is generally 30-45 days after submitting a complete application, depending on inspection scheduling and any required corrections. Alexandria-specific requirements include maintaining the property as a single-family dwelling appearance, providing adequate off-street parking for guests, ensuring the property manager can respond to issues within 30 minutes, limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 7 AM, and registering with the Louisiana Department of Revenue for tax collection purposes. You must also comply with all residential zoning requirements and may face restrictions in certain historic districts, so verify zoning compatibility before applying.

Short-term rentals (STRs) are legal in Alexandria, Louisiana, but operate under specific regulations established by the city. As of 2023, Alexandria requires STR operators to obtain a business license and comply with zoning restrictions that primarily limit short-term rentals to commercial and mixed-use districts, while generally prohibiting them in residential neighborhoods to preserve community character. The city implemented these regulations around 2020-2021 following growing concerns about the impact of platforms like Airbnb and VRBO on residential areas. Current restrictions include occupancy limits, parking requirements, noise ordinances, and mandatory registration with the city, along with compliance with state and local tax obligations. Properties in historic districts and certain residential zones face additional scrutiny or outright prohibition of STR operations. Recent legal changes have focused on strengthening enforcement mechanisms and clarifying zoning boundaries, with the city taking a measured approach that allows STRs in appropriate areas while protecting traditional residential neighborhoods from commercial intrusion.

The most promising Airbnb investment areas in Alexandria, Louisiana include the Historic Downtown District along 3rd Street and the riverfront area, which attracts tourists visiting the Alexandria Museum of Art, Bentley Hotel, and various cultural events throughout the year. The Garden District near Jackson Street offers charming historic homes that appeal to visitors seeking authentic Southern experiences, while properties near the Alexandria International Airport on MacArthur Drive capture business travelers and those attending conferences at the Rapides Parish Coliseum. The area around Louisiana State University at Alexandria (LSUA) provides steady demand from visiting families, prospective students, and academic travelers. Additionally, neighborhoods near Kisatchie National Forest's Alexandria district attract outdoor enthusiasts and nature tourists, particularly during hunting seasons and spring/fall camping periods. The downtown area benefits from proximity to the Red River, antique districts, and annual events like Mardi Gras celebrations and summer festivals, while the medical district near Rapides Regional Medical Center generates consistent demand from medical tourists and families of patients seeking extended-stay accommodations.

In Alexandria, Louisiana, Airbnb properties are subject to both state and local lodging taxes. The Louisiana state sales tax of 4.45% applies to short-term rental accommodations, along with the Rapides Parish sales tax which varies but is typically around 4-5%. Additionally, Alexandria imposes a local hotel/motel occupancy tax of approximately 3-4% on lodging establishments, which includes short-term rentals like Airbnb properties. These taxes are generally collected from guests at the time of booking through Airbnb's automated tax collection system for participating jurisdictions, though hosts may need to register directly with the Louisiana Department of Revenue and local tax authorities if automatic collection is not available. Remittance procedures typically require monthly or quarterly filing depending on the volume of transactions, with payments due by the 20th of the month following the reporting period. Some exemptions may apply for stays exceeding 30 consecutive days, which are often considered long-term rentals rather than transient lodging, and certain government or non-profit organization bookings may qualify for tax exemptions with proper documentation.

To start an Airbnb in Alexandria, Louisiana, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Louisiana generally cost $300-$800 covering business licenses, occupancy permits, and registration requirements. Insurance specifically for short-term rentals runs $1,200-$2,400 annually, with six months costing $600-$1,200. Utility setup and deposits for electricity, water, gas, internet, and cable total approximately $500-$800 initially. First six months of operating costs including utilities ($150-$250 monthly), cleaning supplies ($50-$100 monthly), maintenance reserves ($100-$200 monthly), and platform fees (3% of bookings estimated at $200-$400 monthly) total roughly $3,000-$5,700. Marketing and initial promotional costs may add another $500-$1,000 to establish your listing presence in the competitive Alexandria market.

Airbnb properties in Alexandria, Louisiana typically generate annual revenues between $18,000-$35,000 for entire homes, with average daily rates ranging from $75-$120 depending on property size and location proximity to downtown or Louisiana State University of Alexandria. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,200 annually), and maintenance costs ($2,000-4,000 yearly). Properties near the Red River waterfront or historic downtown Alexandria command premium rates and achieve 65-75% occupancy rates, resulting in net profit margins of 25-35% for well-managed properties. Success factors include professional photography, responsive guest communication, strategic pricing during LSU events and local festivals, and maintaining properties that highlight Louisiana's cultural charm with modern amenities. A typical 3-bedroom home purchased for $120,000 and generating $28,000 annually in Airbnb revenue can yield approximately $8,000-10,000 in net profit after expenses, representing a solid 7-8% return on investment when combined with property appreciation in Alexandria's stable real estate market.

Airbnb investments in Alexandria, Louisiana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near downtown Alexandria or close to Louisiana State University of Alexandria can achieve higher returns of 12-15% annually, while standard residential properties average 8-10%. Initial profitability usually occurs within 12-18 months for well-positioned properties, with full investment recovery typically achieved in 7-10 years. The market benefits from steady demand from business travelers visiting companies like Procter & Gamble, Crest Industries, and various healthcare facilities, plus tourism related to historic sites and outdoor recreation along the Red River. Average nightly rates range from $75-120 depending on property size and location, with occupancy rates of 60-75% achievable for well-managed properties, though seasonal fluctuations occur with lower demand during summer months and higher demand during fall and spring when weather is more favorable for outdoor activities and business travel peaks.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Alexandria, Louisiana. Local real estate agents like Coldwell Banker Ingle Safari Realty and Century 21 Buelow & Associates have experience with investment properties in the Alexandria market and understand the local rental dynamics. RE/MAX agents in the area, particularly those with investment property expertise, can help identify properties near Fort Johnson and Louisiana State University of Alexandria that attract consistent bookings. National services like Mashvisor provide market analysis and rental income projections for Alexandria properties, while AirDNA offers short-term rental data analytics for the market. Local property management companies such as Red River Property Management can assist with ongoing operations once properties are acquired. BiggerPockets connects investors with local Alexandria real estate professionals who specialize in rental properties, and Roofstock occasionally features turnkey rental properties in the Louisiana market. Awning and RedAwning provide vacation rental management services that can help optimize newly purchased properties in Alexandria. Local mortgage brokers familiar with investment property financing in Rapides Parish can facilitate the purchasing process for out-of-state investors looking to capitalize on Alexandria's growing tourism market centered around the Red River and historic downtown district.