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, sales tax permit from the Louisiana Department of Revenue, and ensure compliance with fire safety codes and building inspections. 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, focusing on properties that allow short-term rentals and have good access to local attractions like the Alexandria Museum of Art and Kisatchie National Forest. Furnish the property with quality furniture, linens, kitchen essentials, and amenities that appeal to both business travelers visiting companies like Procter & Gamble's Alexandria facility and tourists exploring Central Louisiana. Create listings on Airbnb, VRBO, and other platforms with professional photos highlighting proximity to attractions like the Alexandria Zoological Park and Kent Plantation House. Manage the property by establishing cleaning protocols, coordinating with local cleaning services, implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with Louisiana state tax collection requirements for short-term rentals, which typically require collecting and remitting 4.45% state sales tax plus local taxes.

To identify profitable short-term rental properties in Alexandria, Louisiana, focus on locations within 2-3 miles of downtown Alexandria, near Louisiana State University of Alexandria, or close to major employers like Rapides Regional Medical Center and the Alexandria VA Medical Center. Target properties built after 1980 with 2-4 bedrooms, modern amenities, parking, and outdoor spaces, as these appeal to business travelers and families visiting the area. Conduct pricing analysis using AirDNA and Mashvisor to determine that average daily rates in Alexandria range from $75-150 depending on property size and location, with occupancy rates typically 60-75% annually. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, noting that Alexandria has moderate STR competition compared to larger Louisiana markets like New Orleans or Baton Rouge. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Rapides Parish assessor records to evaluate potential returns, targeting properties under $200,000 that can generate 12-18% annual returns after expenses, while ensuring compliance with Alexandria's zoning regulations and any emerging STR ordinances through the City of Alexandria planning department.

To obtain an Airbnb/STR permit in Alexandria, Louisiana, you must first contact the Alexandria City Planning Department at City Hall located at 915 3rd Street to determine specific zoning compliance for your property, as short-term rentals may require conditional use permits in certain residential zones. Submit an application to the Planning Department including a completed STR permit application form, proof of property ownership or lease agreement with landlord consent, a site plan showing parking arrangements, proof of liability insurance (typically $1 million minimum), Louisiana sales tax registration, and a floor plan indicating maximum occupancy. The application fee is approximately $150-250 with additional fees for conditional use permits if required ($300-500). You must also register with the Louisiana Department of Revenue for sales tax collection and obtain a City of Alexandria business license from the Finance Department (approximately $50-100 annually). The approval process typically takes 30-60 days depending on zoning requirements and whether public hearings are needed for conditional use permits. Alexandria requires STR properties to maintain adequate off-street parking (typically 1 space per bedroom), comply with noise ordinances, post maximum occupancy limits, provide 24-hour contact information for guests, and undergo annual safety inspections. Once approved, you must display your permit number in all online listings and renew annually by December 31st with updated insurance documentation and compliance certifications.

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 zoned R-1 and R-2. The city implemented these regulations around 2019-2020 following concerns about neighborhood character and housing availability. Operators must also comply with occupancy limits, parking requirements, and noise ordinances, with properties subject to inspection and registration requirements. Recent enforcement has focused on ensuring compliance with zoning laws, particularly in historic residential areas where STRs are typically not permitted, though some grandfathered properties may continue operating under specific conditions.

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 Highway 28 West capture business travelers and those attending conferences at the Alexandria Convention Hall. The area around Louisiana State University at Alexandria (LSUA) provides opportunities for visiting families, prospective students, and academic travelers, particularly during graduation seasons and campus events. Additionally, neighborhoods near the Red River and Bringhurst Field cater to sports tourists, especially during baseball tournaments and outdoor recreation activities, while the medical district around Rapides Regional Medical Center attracts 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 brings the combined rate to approximately 9.75-10.25%. Additionally, Alexandria imposes a local occupancy tax of 3% on lodging establishments, making the total tax burden around 12.75-13.25% for Airbnb guests. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Louisiana around 2018-2019. Airbnb remits these collected taxes directly to the Louisiana Department of Revenue and local tax authorities on behalf of hosts on a monthly basis. However, some individual hosts may still need to register with local tax authorities and file returns if their specific situation requires it. Stays of 30 days or longer are generally exempt from occupancy taxes as they're considered long-term rentals rather than transient lodging, and certain government or military-related stays may also qualify for exemptions under state law.

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, short-term rental permits, and tax registrations. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually, so approximately $600-$1,000 for six months. Utility setup and deposits cost around $500-$800, with monthly utilities averaging $150-$250 depending on property size and season. First six months of operating costs including utilities ($900-$1,500), cleaning supplies and services ($600-$1,200), maintenance reserves ($1,000-$2,000), marketing ($300-$600), and platform fees average $3,000-$5,500 total.

Airbnb properties in Alexandria, Louisiana typically generate annual revenues between $18,000-$35,000 for entire homes, with average daily rates ranging from $65-$120 depending on property size and location proximity to downtown or Kisatchie National Forest attractions. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near the Red River waterfront or historic downtown Alexandria command premium rates and achieve 60-75% occupancy, resulting in net profit margins of 25-35%, while suburban properties typically see 45-60% occupancy with 15-25% margins. Success factors include strategic pricing during Louisiana State University events, Mardi Gras season, and hunting seasons when demand peaks, professional photography showcasing Southern charm features, and maintaining 4.8+ star ratings through consistent cleanliness and local hospitality touches like complimentary coffee and regional guidebooks. A typical 3-bedroom historic home near downtown Alexandria generating $28,000 annually with $17,000 in expenses yields approximately $11,000 net profit, representing a 39% margin that outperforms many traditional rental investments in the Central Louisiana market.

Based on Alexandria, Louisiana market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property location and management efficiency. Properties near downtown Alexandria or Louisiana State University of Alexandria tend to perform better, with average daily rates of $75-$120 and occupancy rates of 55-70% annually. Initial profitability usually occurs within 12-18 months after accounting for startup costs, furnishing, and marketing expenses. The market benefits from business travelers visiting companies like Procter & Gamble, Cargill, and various healthcare facilities, plus tourism related to the Red River and historic attractions. Investment properties in the $80,000-$150,000 range typically require $20,000-$40,000 in initial capital including down payment and setup costs, generating monthly cash flow of $300-$800 after expenses including mortgage, insurance, cleaning, and platform fees.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Alexandria, Louisiana. Local real estate agents like Keller Williams Red River and Coldwell Banker Gosslee in Alexandria have experience with investment properties and vacation rental markets. Century 21 Bono Realty and RE/MAX Results also serve the Alexandria area with agents knowledgeable about rental property investments. National services include Mashvisor, which provides Airbnb analytics and property search tools, and BiggerPockets, offering investment property resources and local investor connections. AirDNA provides market data and revenue projections for short-term rentals in the Alexandria market. Local property management companies like Louisiana Property Management Group can assist with ongoing operations, while national platforms such as RedAwning and Vacasa offer full-service Airbnb management. Real estate investment firms like HomeVestors and We Buy Ugly Houses occasionally have properties suitable for Airbnb conversion in the Central Louisiana region.