Is Carrabelle, Florida Good for Airbnb Investment?

To start an Airbnb in Carrabelle, Florida, begin by researching local regulations through Franklin County's planning and zoning department, as Carrabelle requires short-term rental permits and compliance with zoning ordinances that typically allow vacation rentals in residential areas with proper licensing. Obtain necessary permits including a Franklin County business tax receipt, Florida sales tax permit from the Department of Revenue, and a short-term rental license from the city, which usually costs around $100-200 annually and requires property inspections for safety compliance. Find a suitable property near Carrabelle's waterfront areas or historic district, considering properties within walking distance of Carrabelle Beach or the downtown area, with purchase prices typically ranging from $150,000-400,000 depending on proximity to water and size. Furnish the property with coastal-themed decor, essential amenities like high-speed internet, air conditioning, full kitchen appliances, quality linens, and outdoor furniture to capitalize on the area's fishing and beach tourism. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting water views, fishing access, and proximity to attractions like the Carrabelle Lighthouse and St. George Island (20 minutes away), setting competitive rates of $100-250 per night based on seasonality and local events like the Carrabelle Riverfront Festival. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with coastal property challenges, and consider using property management companies like Vacasa or RedAwning if you're not local, while maintaining responsive communication with guests and monitoring Franklin County's evolving short-term rental regulations.

To identify profitable short-term rental properties in Carrabelle, Florida, focus on waterfront or water-view locations within walking distance of the Carrabelle River, marina, or beaches, as this coastal fishing village attracts visitors seeking authentic maritime experiences. Target 2-4 bedroom single-family homes or cottages built after 1980 with outdoor spaces, boat access, fishing amenities, and updated kitchens that can accommodate families and fishing groups year-round. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Apalachicola and St. George Island, aiming for properties under $300,000 that can generate $150-250 per night during peak season (March-October). Research competition by studying existing STR listings within a 5-mile radius, noting that Carrabelle has limited inventory compared to more developed coastal areas, creating opportunity for well-positioned properties. Utilize tools like Rabbu and AllTheRooms for market analysis, consult Franklin County's STR regulations, and leverage local resources including the Carrabelle Area Chamber of Commerce and fishing charter operators to understand seasonal demand patterns driven by red snapper season, scallop season, and snowbird migration from November through April.

To obtain an Airbnb/STR permit in Carrabelle, Florida, you must first contact the Franklin County Planning and Zoning Department at 34 Forbes Street, Apalachicola, FL 32320, as Carrabelle falls under Franklin County jurisdiction. Begin by submitting a Short-Term Rental Registration application along with a completed zoning compliance form, proof of property ownership or lease agreement, a detailed floor plan showing maximum occupancy, proof of liability insurance (minimum $500,000), a waste management plan, and emergency contact information for a local representative available 24/7. You'll need to pay an initial registration fee of approximately $150 plus a $75 annual renewal fee. The property must comply with Franklin County's STR ordinance requiring properties to be located in areas zoned for commercial or mixed-use, maintain adequate parking (one space per bedroom plus one), install proper signage with permit numbers, and limit occupancy to two persons per bedroom plus two additional guests. Schedule a mandatory inspection with the county building department ($100 fee) to verify compliance with fire safety codes, including smoke detectors in each bedroom and common areas, carbon monoxide detectors, and proper egress windows. The entire process typically takes 4-6 weeks from application submission to permit approval, provided all requirements are met and no violations are found during inspection. Once approved, you must display the permit number in all online listings and renew annually by December 31st.

Short-term rentals (STRs) are legal in Carrabelle, Florida, as the city generally follows Franklin County's regulations which permit vacation rentals with proper licensing and registration. Property owners must obtain a business tax receipt from Franklin County and comply with state requirements including collecting tourist development taxes. STRs are typically allowed in residential areas but must adhere to occupancy limits, parking requirements, and noise ordinances, with properties needing to maintain adequate septic and water systems given the coastal location. The city has not implemented significant recent restrictions compared to larger Florida municipalities, though owners must ensure compliance with building codes and flood zone requirements common in this Gulf Coast community. Franklin County requires annual registration renewal and properties must meet health department standards, while the state of Florida mandates that platforms like Airbnb collect and remit tourist taxes, making Carrabelle's STR market relatively accessible for property owners who follow proper permitting procedures.

The best areas for Airbnb investment in Carrabelle, Florida are the Historic Downtown District along Marine Street and Avenue B, which attracts tourists interested in the town's maritime heritage and proximity to the Carrabelle River; the Carrabelle Beach area near Highway 98, popular for its Gulf Coast access and fishing opportunities that draw seasonal visitors year-round; and properties near Carrabelle Point and the lighthouse area, which benefit from scenic waterfront views and proximity to Crooked River Lighthouse State Park. The downtown waterfront district is particularly attractive due to its walkability to restaurants, the historic museum, and charter fishing services, while beachfront properties capitalize on summer tourism and fishing tournaments. Areas near the Tallahassee-St. Marks Historic Railroad State Trail also show promise as they attract cyclists and outdoor enthusiasts, and properties within walking distance of the working waterfront appeal to visitors interested in authentic fishing village experiences and seafood festivals.

Airbnb properties in Carrabelle, 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 is typically 4-6% in Franklin County where Carrabelle is located, and potentially local municipal lodging taxes that can range from 1-3%. These taxes are generally collected automatically by Airbnb through their platform for participating jurisdictions and remitted directly to the appropriate tax authorities on behalf of hosts, though hosts should verify their specific obligations with Franklin County and the City of Carrabelle as collection arrangements can change. The Florida Department of Revenue requires registration and monthly remittance of sales tax, while tourist development taxes are typically remitted to the county tax collector, with most jurisdictions requiring monthly or quarterly filings depending on volume. Exemptions may apply for stays exceeding 30 consecutive days, certain government or non-profit travelers, and properties renting fewer than three rooms within an owner-occupied residence, though hosts should confirm current exemption criteria with local tax authorities as regulations can vary and change over time.

To start an Airbnb in Carrabelle, Florida, expect total costs around $285,000-$320,000. Property purchase will be the largest expense at approximately $200,000-$250,000 for a median 2-3 bedroom home near the coast. Furnishing costs typically range $15,000-$25,000 including beds, linens, kitchen appliances, furniture, and decor to create an attractive rental space. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total approximately $500-$1,500 including business license, vacation rental permit, and any local registration requirements. Insurance costs $2,000-$3,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $500-$1,000 for electricity, water, internet, cable, and trash services. First six months operating costs of $8,000-$12,000 include utilities ($200-300/month), cleaning services ($75-100 per turnover), maintenance supplies, property management software subscriptions, and marketing expenses. Additional considerations include potential HOA fees if applicable and a reserve fund for unexpected repairs or vacancy periods during slower tourism seasons.

Airbnb properties in Carrabelle, Florida typically generate annual revenues of $18,000-$35,000 for waterfront properties and $12,000-$22,000 for inland properties, with average daily rates ranging from $85-$150 depending on proximity to the Gulf Coast and property amenities. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), insurance ($2,500-$4,500 annually), utilities ($200-$350 monthly), and maintenance costs averaging $3,000-$5,000 yearly. Net profit margins typically range from 25-35% for well-managed properties, with waterfront homes near Carrabelle Beach achieving the highest returns due to premium pricing during peak fishing and boating seasons from March through October. Success factors include professional photography showcasing water access, partnerships with local fishing charter companies, providing boat slips or kayaks, and maintaining consistent 4.8+ star ratings through responsive communication and immaculate cleanliness standards. Properties within walking distance of the Carrabelle River or offering direct Gulf access command 30-40% higher nightly rates than comparable inland rentals, while those featuring amenities like hot tubs, fire pits, or fishing equipment see occupancy rates of 65-75% compared to the area average of 55-60%.

Based on Carrabelle, Florida market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property type and location proximity to the coast. Properties within walking distance of Carrabelle Beach or the historic downtown area command higher nightly rates of $120-180, while inland properties average $80-120 per night. Initial profitability usually occurs within 18-24 months for well-positioned properties, with seasonal occupancy rates peaking at 75-85% during summer months (June-August) and dropping to 35-45% in winter. The market benefits from consistent fishing tourism, proximity to Apalachicola National Forest, and growing popularity as a quiet coastal destination, with average annual appreciation of 4-6% complementing rental income returns.

STRSearch leads the national market for Airbnb investment property analysis and market data, providing comprehensive tools for identifying profitable short-term rental opportunities in Carrabelle, Florida. Local real estate agents specializing in investment properties include Carrabelle Realty Group, Forgotten Coast Properties, and Gulf Coast Investment Realty, while regional firms like Apalachicola Bay Realty and Franklin County Real Estate Services have extensive knowledge of the vacation rental market along the Forgotten Coast. National services such as Mashvisor, BiggerPockets, and AirDNA offer market analytics and property search tools specifically for short-term rental investments. RedAwning and Vacasa provide property management services that can help investors identify and acquire properties already performing well in the vacation rental market. Local property management companies like Forgotten Coast Vacation Rentals and Carrabelle Beach Properties often have insights into which properties are coming to market and can assist with acquisition strategies. Investment-focused platforms such as Roofstock and HomeUnion occasionally feature Carrabelle properties, while local mortgage brokers like Gulf Coast Lending and Panhandle Mortgage Group specialize in financing vacation rental properties in the area.