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 areas near LSU, 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 for a complete setup. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to attractions like the USS Kidd, Louisiana State Capitol, or Tiger Stadium, pricing competitively at $80-150 per night depending on location and amenities. Register for Louisiana state taxes and Baton Rouge's 4% hotel occupancy tax, which you'll need to collect and remit quarterly. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and considering hiring local cleaning services like Baton Rouge-based companies that charge $40-80 per turnover, while staying compliant with the city's noise ordinances and parking requirements that typically limit occupancy to two guests per bedroom.

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 researching competition density through Airbnb and VRBO searches to avoid oversaturated pockets. Key demand drivers include LSU football season (September-November), Mardi Gras events, business travel to government offices, and medical tourism to facilities like Our Lady of the Lake Regional Medical Center. Utilize tools like BiggerPockets for investment analysis, STR Helper for permit research, and connect with local property management companies like RedAwning or Vacasa who understand East Baton Rouge Parish regulations. Properties near major employers like ExxonMobil, Dow Chemical, and state government offices typically maintain higher occupancy rates, while avoiding flood-prone areas identified in FEMA maps ensures long-term viability and insurance costs remain manageable.

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 written consent from neighbors within 300 feet of the property. The application fee is approximately $500-750 for the CUP process, plus additional fees for inspections and permits totaling around $200-400. You must also obtain a business license from the City of Baton Rouge ($50-100 annually) and register for local taxes with the Department of Finance. 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, display the permit number in all advertisements, maintain a 24-hour contact person, and comply with noise ordinances with quiet hours from 10 PM to 7 AM. Properties must pass safety inspections and cannot operate within 1,000 feet of another permitted STR in some residential districts.

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 around 2 guests 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. The regulations include parking requirements (usually one space per bedroom), noise restrictions, and prohibitions on events or parties, with violations subject to fines ranging from $500 to $2,500. Recent changes have focused on strengthening enforcement mechanisms and clarifying permit requirements, particularly in response to neighborhood concerns about impacts on residential character and parking availability.

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; Mid City near LSU campus, benefiting from consistent demand from visiting families, prospective students, and football game attendees especially during fall season; the Spanish Town area, popular for its annual Mardi Gras festivities and historic architecture that appeals to cultural tourists; downtown Baton Rouge near the State Capitol and riverfront, which captures business travelers, government visitors, and tourists exploring the USS Kidd and Louisiana Art & Science Museum; and the Southdowns/University area, which serves the medical district around Our Lady of the Lake Regional Medical Center and Baton Rouge General, generating steady demand from medical professionals, patients' families, and healthcare-related business travel. These neighborhoods benefit from Louisiana State University's year-round activities, state government operations, petrochemical industry business travel, and Baton Rouge's position as a cultural hub with festivals, casino gaming, and Mississippi River tourism.

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 may collect and remit some of these taxes directly on behalf of hosts through their platform, but hosts remain ultimately responsible for ensuring compliance and may need to register separately with local tax authorities. Properties rented for 30 days or longer are typically exempt from the hotel occupancy tax but may still be subject to sales taxes, and certain exemptions may apply for government employees or extended-stay guests, though specific exemption criteria vary by jurisdiction and hosts should verify current requirements with the Louisiana Department of Revenue and East Baton Rouge Parish tax collector.

Starting an Airbnb in Baton Rouge, Louisiana requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $165,000 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 beds, living room furniture, kitchen essentials, linens, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs total $2,500-3,500 covering professional photography ($300-500), listing optimization, welcome materials, and basic renovations or touch-ups. Permits and fees include short-term rental license ($150), business license ($50), and potential HOA approval fees ($200-500). Insurance premiums for short-term rental coverage cost $1,200-1,800 annually through companies like Proper Insurance or CBIZ. Utility deposits and connections (electricity, water, gas, internet, cable) require $800-1,200 upfront. First six months operating costs include utilities ($150/month), cleaning services ($75 per turnover), property management software like Airbnb or VRBO fees (3% of bookings), maintenance reserves ($200/month), and marketing expenses, totaling approximately $2,400-3,600 assuming 60-70% occupancy rates typical for Baton Rouge's tourism market driven by LSU events and business travel.

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 or premium locations can achieve profit margins exceeding 30%.

Airbnb investments in Baton Rouge, Louisiana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties near Louisiana State University and downtown areas command higher nightly rates of $80-150, while suburban locations average $60-100 per night with occupancy rates around 65-75% annually. Initial investment recovery and profitability generally occurs within 18-24 months, assuming a 20-25% down payment on properties valued between $150,000-$300,000. The market benefits from consistent demand from LSU visitors, business travelers to ExxonMobil and other petrochemical companies, and tourists exploring Louisiana's capital region, with peak seasons during football season and spring/summer months driving occupancy rates up to 85-90% and allowing for premium pricing that can boost annual returns to the higher end of the range.

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 Garden District. National services include BiggerPockets for networking and deal analysis, Mashvisor for market analytics and property recommendations, and AirDNA for short-term rental data analysis in the Baton Rouge market. Local property management companies such as RedStick Property Management and Capital City Property Services offer turnkey solutions for investors, while national companies like AvantStay and RedAwning provide full-service Airbnb management. Real estate investment firms like Louisiana Investment Properties and Baton Rouge Real Estate Investors Group actively help investors identify cash-flowing properties near LSU campus and downtown areas. Additional services include STR Helper for market analysis, Rabbu for automated property search, and local mortgage brokers like Investar Bank and First Horizon who understand investment property financing for short-term rentals in Louisiana's regulatory environment.