Is Baton Rouge, Louisiana Good for Airbnb Investment?

To start an Airbnb in Baton Rouge, Louisiana, begin by researching local regulations as the city requires short-term rental operators to obtain a business license and comply with zoning restrictions that limit rentals to certain residential areas while prohibiting them in historic districts. Contact the Baton Rouge Planning Commission at (225) 389-3144 to verify your property's zoning eligibility and apply for necessary permits including a Conditional Use Permit if required, which costs approximately $200-400. Find a suitable property in permitted zones such as parts of Mid City, Garden District, or near LSU campus where demand is higher, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality furniture, linens, kitchen essentials, and local touches like LSU or Saints memorabilia, budgeting $3,000-8,000 depending on property size. Create your Airbnb listing with professional photos highlighting proximity to attractions like the USS Kidd, Louisiana State Capitol, or Tiger Stadium, setting competitive rates around $75-150 per night based on location and amenities. For ongoing management, establish cleaning protocols between guests (budget $30-60 per turnover), respond promptly to inquiries, maintain Louisiana state tax compliance by collecting 4.45% state sales tax plus 5% East Baton Rouge Parish tax, and consider property management companies like RedAwning or Vacasa if you prefer hands-off operation, though they typically charge 15-25% commission.

To identify profitable short-term rental properties in Baton Rouge, Louisiana, focus on locations within 2-3 miles of LSU campus, downtown business district near the State Capitol, and neighborhoods like Mid City, Garden District, and areas near the Mississippi River for tourism appeal. Target 2-4 bedroom properties built after 1980 with parking, outdoor spaces, and modern amenities, as corporate travelers and LSU visitors drive consistent demand year-round. Analyze pricing using AirDNA and Mashvisor to benchmark against the $80-150 nightly rate range typical for quality properties, while factoring in Louisiana's 4.45% state sales tax plus local occupancy taxes. Research competition density using AllTheRooms and STRAnalytics, avoiding oversaturated areas while identifying underserved pockets near Pennington Biomedical Research Center, Woman's Hospital, and Our Lady of the Lake Regional Medical Center which generate medical tourism. Leverage local resources including the Baton Rouge Area Chamber, Visit Baton Rouge tourism data, and East Baton Rouge Parish property records through the Assessor's office, while monitoring LSU event calendars and state government session schedules that create predictable demand spikes, ensuring properties can achieve 65-75% occupancy rates needed for profitability in this market.

To obtain an Airbnb/STR permit in Baton Rouge, Louisiana, you must first apply through the City-Parish Planning Commission by submitting an application for a Conditional Use Permit (CUP) since short-term rentals require special approval in most residential zones. Required documents include a completed CUP application form, property deed or lease agreement, site plan showing parking arrangements, floor plan of the rental unit, proof of liability insurance (minimum $1 million), contact information for a local property manager if you're not local, and letters from adjacent property owners acknowledging the proposed use. The application fee is approximately $500-750 for the CUP process, plus additional inspection fees of around $100-200. You must also obtain a business license from the City of Baton Rouge (approximately $50-100 annually) and register for local occupancy taxes with the East Baton Rouge Parish Tax Collector. The timeline typically takes 60-90 days from application submission, including a public hearing before the Planning Commission and potential appeals period. Baton Rouge requires STRs to maintain off-street parking for each bedroom, limit occupancy to 2 people per bedroom plus 2 additional guests, maintain quiet hours from 10 PM to 8 AM, and have a local contact person available 24/7 who can respond within 30 minutes to address any issues, with properties subject to annual safety inspections and compliance monitoring.

Short-term rentals (STRs) are legal in Baton Rouge, Louisiana, but operate under specific regulations established by the city-parish government around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions, with STRs generally prohibited in certain residential districts and subject to occupancy limits typically capping guests at 2 people per bedroom plus 2 additional guests. Properties must meet safety requirements including smoke detectors, fire extinguishers, and emergency exit plans, while operators must provide 24/7 contact information and respond to complaints within 30 minutes. Recent changes have included stricter enforcement of noise ordinances and parking requirements, with violations potentially resulting in license revocation. The regulations also mandate that STRs cannot operate within 300 feet of schools or churches in some zones, and the city has implemented a complaint-based enforcement system where multiple violations can lead to permanent operating restrictions.

The best Airbnb investment areas in Baton Rouge include the Garden District, which attracts visitors with its historic charm, walkable streets, and proximity to downtown attractions; Downtown Baton Rouge near the State Capitol and riverfront, appealing to business travelers, government workers, and tourists visiting the USS Kidd and Louisiana Art & Science Museum; the LSU campus area and Tigerland, which sees high demand during football season, graduation, and academic events with consistent student and parent traffic; Mid City around Government Street, offering a trendy neighborhood with local restaurants, breweries, and cultural attractions that draw younger travelers; Spanish Town, known for its annual Mardi Gras parade and historic architecture attracting festival-goers and cultural tourists; and areas near the Raising Cane's River Center and Louisiana State University, which benefit from convention attendees, concert-goers, and sports fans visiting for events at the Pete Maravich Assembly Center and Tiger Stadium.

In Baton Rouge, Louisiana, Airbnb properties are subject to multiple lodging taxes including the Louisiana state sales tax of 4.45%, East Baton Rouge Parish sales tax of 5%, and a local hotel occupancy tax of 13% on gross rental receipts, resulting in a combined tax rate of approximately 22.45% on short-term rental income. The state sales tax and parish tax are collected through the Louisiana Department of Revenue, with hosts required to register for a sales tax permit and file monthly returns if gross receipts exceed $1,000 annually, while the hotel occupancy tax is administered by the East Baton Rouge Parish government and must be remitted monthly by the 20th of the following month. Airbnb typically collects and remits these taxes automatically for hosts through their platform since 2018, though hosts remain ultimately responsible for compliance and should verify proper collection and remittance. Exemptions generally apply to rentals of 30 days or longer, which are considered long-term leases rather than short-term rentals, and some exemptions may apply for government employees or certain non-profit organizations, though these are limited and require proper documentation.

Starting an Airbnb in Baton Rouge, Louisiana requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $150,000-180,000 based on median home prices in desirable neighborhoods like Mid City or Garden District. Furnishing a 2-3 bedroom property runs $8,000-12,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and marketing materials total $1,500-2,500. Permits and fees include a $200 business license, $150 short-term rental permit from East Baton Rouge Parish, and $300-500 in various city registration fees. Insurance premiums for short-term rental coverage cost $2,000-3,000 annually through companies like Proper Insurance or CBIZ. Utility deposits and connections for electricity (Entergy), water/sewer (Baton Rouge Water Company), internet (Cox Communications), and gas total $800-1,200. First six months operating costs including utilities ($200/month), cleaning services ($75 per turnover), property management software ($50/month), maintenance reserves ($150/month), and marketing expenses ($100/month) add approximately $3,450 to the startup budget.

Airbnb properties in Baton Rouge, Louisiana typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on location and property type. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near LSU campus and downtown areas achieve higher occupancy rates of 60-75% compared to suburban locations at 45-60%, with successful hosts reporting net profit margins of 15-25% after all expenses. Key success factors include proximity to Louisiana State University, competitive pricing during football season and Mardi Gras when rates can increase 200-300%, professional photography, and responsive guest communication. A typical 3-bedroom home near LSU purchased for $180,000 and generating $28,000 annually in gross revenue can yield approximately $4,000-$7,000 in net profit after expenses, representing a 2-4% cash-on-cash return, though properties with unique features like historic charm in the Garden District or modern amenities can achieve higher margins of 25-35%.

Airbnb investments in Baton Rouge, Louisiana 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 LSU campus and downtown areas command higher nightly rates of $80-150, while suburban locations average $60-100 per night with occupancy rates of 65-75% annually. Initial profitability usually occurs within 12-18 months for well-positioned properties, with break-even points accelerated by Louisiana's relatively affordable real estate prices averaging $150,000-250,000 for investment-suitable properties. The market benefits from consistent demand from LSU events, business travelers to ExxonMobil and other petrochemical companies, and tourists visiting local attractions, though seasonal fluctuations occur during summer months and football season peaks that can boost monthly revenues by 20-30% during high-demand periods.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Baton Rouge, Louisiana. Local real estate agents like those at Keller Williams Red Stick Partners, Coldwell Banker Ingle Safari, and Re/Max First Choice Realty have experience helping investors find Airbnb-suitable properties in desirable neighborhoods like Mid City, Spanish Town, and near LSU campus. National services include Mashvisor, which provides rental property analytics and market data for Baton Rouge, AirDNA for short-term rental market insights, and Awning, a full-service Airbnb property management company that also helps with acquisitions. Local property management companies like Red Stick Rentals and Baton Rouge Property Management Group offer services to investors looking to optimize their short-term rental investments. BiggerPockets, while primarily a national real estate investing platform, connects investors with local Baton Rouge market experts and provides market analysis tools. Additionally, local investment groups and meetups in the Baton Rouge area, often organized through platforms like Meetup.com, provide networking opportunities with experienced Airbnb investors who can share market insights and property recommendations in this Louisiana capital city market.