Is Avery Island, Louisiana Good for Airbnb Investment?

To start an Airbnb in Avery Island, Louisiana, begin by researching local regulations through Iberia Parish government offices, as Avery Island falls under their jurisdiction, and contact the Iberia Parish Planning Department at (337) 369-4426 to understand zoning requirements and short-term rental ordinances which typically require business licenses and may have occupancy restrictions. Obtain necessary permits including a Louisiana sales tax permit from the Department of Revenue, register for local occupancy taxes with Iberia Parish (estimated 3-5% rate), and secure a business license from the parish clerk's office, while also checking if homeowner association rules apply since much of Avery Island is privately owned by the McIlhenny Company. Find suitable property by contacting local real estate agents familiar with the island's limited residential options, focusing on properties near Jungle Gardens or the Tabasco factory tour route, with typical rental prices ranging $150-300 per night due to the unique location. Furnish the property with Louisiana-themed decor, essential amenities, air conditioning (crucial for the humid climate), and local touches like Tabasco products and information about nearby attractions including the bird sanctuary and salt dome tours. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting the island's natural beauty and proximity to Avery Island attractions, using keywords like "Tabasco Island" and "Jungle Gardens nearby." Manage the property by establishing relationships with local cleaning services in New Iberia (15 minutes away), creating detailed house rules about respecting the island's wildlife and private areas, providing guests with information about ferry schedules if applicable, and maintaining communication with the McIlhenny Company regarding any restrictions on commercial activities, while ensuring compliance with Louisiana's 4.45% state sales tax on short-term rentals and Iberia Parish's local occupancy tax requirements.

For identifying profitable short-term rental properties in Avery Island, Louisiana, focus on properties within 2-3 miles of the Tabasco Factory and Jungle Gardens since these are primary tourist attractions driving visitor demand. Target 2-4 bedroom homes or cottages with unique Louisiana architectural features like raised foundations, wraparound porches, or Creole styling, ensuring properties have modern amenities, reliable internet, and parking since guests often drive from New Orleans or Lafayette. Analyze pricing by researching comparable Airbnb and VRBO listings in nearby New Iberia and Lafayette (typically $80-150/night for 2BR units), accounting for Avery Island's limited inventory which can command 15-20% premiums during peak tourist seasons from October through April. Competition research should focus on the handful of existing STRs on the island and within 10 miles, noting that limited supply creates opportunity but also indicates potential zoning or infrastructure constraints. Utilize AirDNA for market data, STR Helper for performance analysis, and local resources like the Iberia Parish Tourism Commission and New Iberia Chamber of Commerce for visitor statistics, while connecting with local real estate agents familiar with Iberia Parish regulations and flood zone requirements essential for this coastal Louisiana market.

To obtain an Airbnb/STR permit in Avery Island, Louisiana, you must first contact the Iberia Parish Planning and Zoning Department since Avery Island falls under parish jurisdiction, typically requiring an application for a short-term rental permit that includes submitting a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, and liability insurance documentation with minimum $1 million coverage. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150, and you must also obtain a Louisiana state sales tax permit and local occupancy tax registration through the Iberia Parish Tax Assessor's office. Required documents include a site plan showing parking areas and emergency exits, neighbor notification letters within 300 feet of the property, and compliance with parish zoning ordinances that typically limit occupancy to 2 guests per bedroom plus 2 additional guests maximum. The approval timeline ranges from 30-60 days depending on inspection scheduling and document completeness, with properties requiring health department inspection for septic systems and well water testing if applicable, plus compliance with Americans with Disabilities Act requirements for properties built after 1991. Contact the Iberia Parish Government offices at 300 Iberia Street, New Iberia, LA 70560, or call their planning department to initiate the application process and confirm current fee schedules and specific requirements.

Short-term rentals (STRs) in Avery Island, Louisiana are generally legal but subject to Iberia Parish regulations and restrictions. As of 2023, Iberia Parish requires STR operators to obtain proper permits and business licenses, comply with occupancy limits, maintain adequate parking, and follow noise ordinances. The parish has implemented registration requirements and may impose restrictions on the number of guests and vehicles allowed at properties. Avery Island, being privately owned by the McIlhenny Company (makers of Tabasco sauce), may have additional private property restrictions that could limit or prohibit short-term rental operations on the island itself, though nearby areas in Iberia Parish allow STRs with proper permitting. Recent changes in Louisiana state law have given more authority to local parishes to regulate STRs, and Iberia Parish has been updating its ordinances to address concerns about neighborhood impacts while allowing the tourism-related income these rentals provide to the local economy.

The best areas for Airbnb investment on Avery Island, Louisiana center around properties within 2-3 miles of the McIlhenny Company Tabasco factory and Jungle Gardens, as this 2,200-acre salt dome island attracts approximately 100,000+ visitors annually who come specifically for factory tours, bird watching, and exploring the botanical gardens. The northern section near the factory entrance offers the highest potential due to proximity to the main tourist attraction and easier access from Highway 329, while properties along the eastern edge near Petite Anse Bayou provide scenic waterfront appeal for nature enthusiasts visiting the bird sanctuary that hosts over 20,000 egrets and herons during nesting season. The central area around the historic Tabasco Country Store captures visitors interested in culinary tourism and shopping, particularly during peak seasons from March through May and September through November when weather is optimal for outdoor activities. Investment properties should focus on the limited residential areas since much of the island is privately owned by the McIlhenny family, with the best opportunities being existing homes that can accommodate 4-8 guests seeking unique Louisiana experiences combining industrial heritage tourism, ecological attractions, and authentic Cajun culture within this distinctive salt dome environment.

Airbnb properties on Avery Island, Louisiana are subject to Louisiana state sales tax of 4.45% and local occupancy taxes that vary by parish and municipality. Iberia Parish, where Avery Island is located, typically imposes a 3-4% occupancy tax on short-term rentals, while the state requires collection of sales tax on all rental transactions. Airbnb automatically collects and remits Louisiana state sales tax for hosts through their platform as of 2019, but hosts remain responsible for collecting and remitting local occupancy taxes directly to Iberia Parish on a monthly or quarterly basis depending on volume. Hosts must register with the Louisiana Department of Revenue and obtain a sales tax permit, file returns by the 20th of each month, and maintain detailed records of all transactions. Properties rented for more than 30 consecutive days to the same guest are generally exempt from occupancy taxes, and some jurisdictions may offer exemptions for rentals during declared emergencies or for certain types of extended stays, though specific exemption criteria should be verified with local tax authorities as rates and regulations can change.

To start an Airbnb in Avery Island, Louisiana, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at $150,000-$180,000 for a median 2-3 bedroom home suitable for short-term rental. Furnishing costs typically range $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and décor to create an appealing guest experience. Initial setup costs approximately $2,000-$3,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees total around $500-$800 including business license, occupancy permits, and potential homeowner association approvals. Insurance costs $1,200-$1,800 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $300-$500 for electricity, water, internet, and cable services. First six months operating costs average $4,500-$6,500 including utilities ($150-200/month), cleaning services ($75-100 per turnover), maintenance supplies, guest amenities restocking, platform fees (3% of bookings), and marketing expenses. Additional considerations include potential property management fees if outsourcing operations and emergency repair funds, making the comprehensive startup investment substantial but manageable in this unique Louisiana location known for Tabasco sauce production and eco-tourism appeal.

Airbnb properties in Avery Island, Louisiana show moderate profitability potential with average daily rates ranging from $85-150 depending on property size and amenities, generating annual revenues of $15,000-35,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), maintenance and utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and Airbnb service fees (3% host fee plus guest fees). Properties near the Tabasco factory and Jungle Gardens command premium rates of $120-180 nightly due to tourist appeal, while standard residential properties average $85-120. Net profit margins generally range from 25-35% for hands-on hosts and 15-25% for those using property management companies like Vacasa or RedAwning. Success factors include proximity to Avery Island attractions, unique Cajun cultural theming, professional photography, responsive guest communication, and strategic pricing during peak seasons like Mardi Gras and summer months. Properties featuring authentic Louisiana decor, outdoor spaces, and easy access to local seafood restaurants and cultural sites typically achieve higher occupancy rates and guest satisfaction scores, directly correlating with increased profitability and repeat bookings.

Airbnb investments in Avery Island, Louisiana typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by tourism to the Tabasco factory and McIlhenny Company headquarters. Properties near the Tabasco visitor center and Jungle Gardens command premium rates of $150-250 per night during peak tourist seasons (March-May and September-November), while off-season rates average $80-120 nightly. Initial investment recovery typically occurs within 6-8 years for properties purchased at $200,000-350,000, with renovation costs of $25,000-50,000 for tourist-ready condition. The limited inventory of available properties and steady stream of culinary tourists, birdwatchers visiting the bird sanctuary, and corporate visitors to McIlhenny Company facilities support occupancy rates of 65-75% annually. Cash-on-cash returns are enhanced by Louisiana's relatively low property taxes and the unique draw of staying on the island where Tabasco sauce originated, though investors should factor in potential weather-related maintenance costs and seasonal demand fluctuations typical of Louisiana Gulf Coast markets.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties including in the Avery Island, Louisiana area. Local real estate agents who specialize in investment properties near Avery Island include Coldwell Banker Ingle Safari Realty and Century 21 Bono Realty, both serving the Iberia Parish region. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and property identification tools for the Louisiana Gulf Coast market. RedAwning and Vacasa offer property management services that can help investors evaluate potential Airbnb properties in the area. Local investment-focused agents such as those with Keaty Real Estate and Roux Realty Group have experience with vacation rental properties in the Tabasco country region. Additional national platforms like Roofstock, HomeUnion, and Awning specialize in turnkey rental property investments and provide services extending to Louisiana markets including areas near New Iberia and the Atchafalaya Basin region where Avery Island is located.