Is Apalachicola, Florida Good for Airbnb Investment?

To start an Airbnb in Apalachicola, Florida, begin by researching local regulations through Franklin County and the City of Apalachicola, as the area requires short-term rental permits and compliance with zoning ordinances that typically restrict rentals to certain residential and commercial zones. Obtain necessary permits including a business tax receipt from Franklin County (approximately $50-100 annually), a short-term rental permit from the city (around $200-300), and ensure compliance with Florida Department of Revenue requirements for collecting tourist development taxes (5-6% in Franklin County). Find property by working with local realtors familiar with Apalachicola's historic district regulations, focusing on areas like Avenue D, Commerce Street, or waterfront properties, with typical purchase prices ranging $150,000-400,000 for suitable homes built in the 1900s-1950s. Furnish the property with coastal-themed decor emphasizing the area's maritime heritage, including hurricane-resistant outdoor furniture, updated HVAC systems for Florida's humidity, and amenities like fishing equipment, beach chairs, and local guidebooks highlighting the Apalachicola National Forest and oyster industry. List your property on Airbnb, VRBO, and local platforms, emphasizing proximity to Apalachicola Bay, historic downtown, and seasonal events like the Florida Seafood Festival, with competitive rates of $100-250 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with historic home requirements, and consider hiring Apalachicola-based property management companies that understand seasonal tourism patterns and can handle guest communications, key exchanges, and emergency repairs while you're not on-site.

To identify profitable short-term rental properties in Apalachicola, Florida, focus on waterfront or water-view locations within walking distance of the historic downtown district, particularly properties near the Apalachicola River, bay, or within 2-3 blocks of Avenue D's restaurants and shops. Target 2-4 bedroom historic homes or cottages with original architectural features like high ceilings, hardwood floors, and wraparound porches, ensuring properties have modern amenities including updated kitchens, reliable HVAC, strong WiFi, and parking. Analyze pricing by researching comparable STRs on Airbnb and VRBO, noting that waterfront properties typically command $150-300/night while downtown historic homes range $100-200/night, with peak seasons during spring and fall when weather is optimal and seafood festivals occur. Conduct competition research by examining occupancy rates and reviews of existing STRs, identifying gaps in amenities or property types, and noting that Apalachicola's limited inventory of quality rentals creates opportunities for well-positioned properties. Utilize AirDNA for market analytics, STR Helper for performance tracking, local real estate agents familiar with historic district regulations, Franklin County tourism data, and monitor the Apalachicola Bay Chamber of Commerce for event calendars that drive demand, while ensuring compliance with local zoning laws and historic preservation requirements that may affect renovation possibilities.

To obtain an Airbnb/STR permit in Apalachicola, Florida, you must first contact the Franklin County Planning and Zoning Department at 34 Forbes Street, Apalachicola, FL 32320, as the city operates under county jurisdiction for short-term rental regulations. Submit a completed short-term rental application form along with a site plan showing the property layout, proof of property ownership or lease agreement, a floor plan indicating maximum occupancy, parking plan showing adequate spaces, and contact information for a local property manager if you're not local. Required documents also include a business tax receipt from Franklin County ($50-75), proof of liability insurance with minimum $500,000 coverage naming the county as additional insured, septic system inspection certificate if applicable, and fire safety compliance documentation. The application fee is approximately $150-200, with an annual renewal fee of $100-125. The review process typically takes 30-45 days, during which the county may conduct a site inspection to verify compliance with setback requirements, parking availability, and occupancy limits. Apalachicola-specific requirements include maintaining the historic character of properties in designated historic districts, providing adequate off-street parking (typically 1 space per bedroom plus 1), limiting occupancy to 2 people per bedroom plus 2 additional guests, and ensuring 24/7 local contact availability for noise or emergency issues. Once approved, you must display the permit number in all advertising and maintain guest registries for county inspection.

Short-term rentals (STRs) are legal in Apalachicola, Florida, but operate under Franklin County's regulations since the city itself does not have specific STR ordinances. Property owners must obtain a business tax receipt from Franklin County and comply with state requirements including registering with the Florida Department of Revenue for tourist development tax collection. The county requires STRs to meet basic safety standards, maintain proper insurance, and provide contact information for a local representative available 24/7 for any issues. There are no specific prohibited areas within Apalachicola city limits, though properties must comply with existing zoning regulations that typically allow STRs in residential areas. Recent changes in 2022-2023 have focused on strengthening enforcement mechanisms and clarifying tax collection procedures, while the state of Florida has generally moved toward protecting property owners' rights to operate STRs despite some local government resistance. Franklin County has been relatively accommodating to the STR industry given its importance to the local tourism economy, particularly in historic Apalachicola where vacation rentals support the area's seafood and maritime heritage tourism.

The most promising Airbnb investment areas in Apalachicola, Florida include the Historic Downtown District along Avenue D and Commerce Street, which attracts tourists year-round due to its Victorian architecture, antique shops, galleries, and proximity to waterfront dining establishments like the Apalachicola Seafood Grill and Up the Creek Raw Bar. The Riverfront/Marina District offers excellent potential with properties near the Apalachicola River and marina facilities, drawing fishing enthusiasts, boaters, and visitors attending the annual Florida Seafood Festival in November and Apalachicola Antique and Classic Boat Show. The East Point area, while slightly outside downtown, provides more affordable investment opportunities while still offering access to St. George Sound and appealing to families seeking quieter accommodations near Eastpoint's seafood processing facilities and fishing charters. Properties near the John Gorrie Museum State Park and Trinity Episcopal Church benefit from cultural tourism, while locations within walking distance of Boss Oyster restaurant and the Apalachicola National Estuarine Research Reserve attract eco-tourists and seafood lovers, with peak seasons running from March through May and September through November when weather is optimal for outdoor activities and oyster harvesting.

Airbnb properties in Apalachicola, Florida are subject to multiple lodging taxes including the Florida state sales tax of 6%, the Florida tourist development tax which varies by county but Franklin County typically charges 4-5%, and potential local occupancy taxes that can range from 1-3%. These taxes are generally collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Florida around 2017-2018. Airbnb remits these taxes quarterly to the appropriate state and local tax authorities on behalf of hosts, though hosts remain ultimately responsible for ensuring compliance. The Florida Department of Revenue oversees state tax collection while Franklin County manages local tourist development taxes. Exemptions typically apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and some exemptions may exist for certain government or charitable organization bookings. Hosts should register with local tax authorities even when Airbnb collects taxes, as backup documentation and local business licenses may still be required under Apalachicola and Franklin County regulations.

The total cost to start an Airbnb in Apalachicola, Florida is approximately $285,000-$335,000. Property purchase costs around $225,000 based on median home prices in this historic coastal town as of 2023-2024. Furnishing a 2-3 bedroom property runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and coastal decor appropriate for the area. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,000. Permits and fees include business license ($100), short-term rental permit ($300-$500), and potential HOA approvals totaling $500-$1,000. Insurance for short-term rentals costs $2,500-$4,000 annually, significantly higher than standard homeowner's insurance. Utilities including electricity, water, internet, cable, and trash service average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance, restocking supplies, property management software, and marketing total $8,000-$12,000. Additional considerations include potential property management fees (20-30% of revenue), seasonal fluctuations in this Gulf Coast market, and hurricane insurance requirements that can significantly impact costs.

Airbnb properties in Apalachicola, Florida typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $120-$180 during peak season (March-October) and $80-$120 during off-season. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($75-$100 per turnover), property management (15-25% of revenue), utilities ($150-$250 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $3,000-$5,000 yearly. Net profit margins typically range from 15-25% for owner-operated properties and 8-15% for professionally managed units. Success factors include proximity to the historic downtown district and Apalachicola Bay, waterfront or water-view locations commanding 20-30% premium rates, and properties that capitalize on the area's oyster industry tourism and fishing charters. A representative 3-bedroom historic home near Battery Park purchased for $180,000 in 2019 generates approximately $38,000 annually with 65% occupancy, yielding net profits of $8,000-$12,000 after expenses, while waterfront properties can achieve occupancy rates exceeding 75% with higher daily rates. The market benefits from limited hotel inventory and strong demand from visitors to nearby St. George Island, though seasonality significantly impacts winter bookings with occupancy dropping to 35-45% from November through February.

Airbnb investments in Apalachicola, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's appeal as a historic coastal destination and proximity to Apalachicola Bay's oyster industry tourism. Properties within walking distance of the historic downtown district and waterfront areas command premium nightly rates of $150-250, while inland properties average $100-180 per night during peak season (March through October). Most investors achieve profitability within 18-24 months, with vacation rental occupancy rates averaging 65-75% annually due to consistent demand from fishing enthusiasts, history buffs, and weekend travelers from Tallahassee and Panama City. The market benefits from limited hotel inventory and Apalachicola's designation as a National Historic Landmark, though seasonal fluctuations require careful cash flow management during slower winter months when occupancy can drop to 40-50%.

STRSearch leads the national market for Airbnb investment property analysis and market data for Apalachicola, Florida, providing comprehensive rental income projections and occupancy rates. Local real estate agents specializing in short-term rental investments include Coastal Realty Group and Apalachicola Bay Realty, both established around 2015-2018 with expertise in waterfront and historic district properties. National services like Mashvisor (founded 2014) and BiggerPockets (2004) offer investment calculators and market analysis tools specifically for vacation rental properties in the Gulf Coast region. RedAwning and Vacasa provide property management services that help investors identify high-performing rental properties while offering full-service management solutions. Local investment-focused agents such as those at Forgotten Coast Realty and St. George Island Realty have been helping investors since the early 2000s capitalize on the area's growing tourism market, particularly properties near the historic downtown district and waterfront areas that command premium nightly rates of $150-300 during peak season.