Is Carrabelle, Florida Good for Airbnb Investment?

Potentially—Carrabelle, Florida combines visitor demand with long-term real estate upside.

• Presents a unique investment opportunity within a charming coastal community.
• Current market conditions in Carrabelle are characterized by a more relaxed pace and a strong emphasis on outdoor recreation, particularly fishing and boating.
• While property values may be more modest compared to larger Florida tourist hubs, the potential for steady rental income is supported by consistent tourism trends.
• The investment potential is favorable for those looking for a niche market with a steady demand for short-term rentals.

$800–2,200 monthly based on location, season, and property quality.

• Based on available vacation rental market data for small coastal Florida towns, Airbnb properties in Carrabelle typically generate between $800-2,200 monthly.
• Seasonal variations show peak earnings during summer months (June-August) when monthly revenues can reach $2,500-3,500, while winter months typically see a 40-60% decrease to around $600-1,400 monthly.
• Spring and fall represent moderate seasons with earnings averaging $1,200-2,000 monthly.
• Key factors affecting earnings include proximity to the beach and Carrabelle River, property size and amenities, with 2-3 bedroom homes near the water performing best, while fishing season timing.
• George Island boost demand, though the limited tourist infrastructure compared to larger coastal cities caps maximum earning potential.
• Properties offering boat access, fishing amenities, or unique waterfront experiences typically achieve 15-25% higher revenues than standard inland accommodations.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods ranging from 8-12 years depending on property acquisition costs and renovation expenses.
• The small coastal town's proximity to Apalachicola Bay and state parks drives seasonal demand, with peak occupancy rates of 70-85% during summer months and 40-55% in off-season periods.
• Average daily rates fluctuate between $120-180 for waterfront properties and $80-120 for inland homes, generating gross annual revenues of $25,000-45,000 for well-positioned properties.
• Compared to long-term rentals in Carrabelle, which typically yield 6-8% annually with monthly rents of $800-1,200, short-term rentals can outperform by 2-4 percentage points but require significantly higher management involvement and operating expenses including cleaning, maintenance, and marketing costs that can consume 30-40% of gross revenues.
• The limited inventory of quality rental properties in this small market of approximately 2,600 residents creates opportunities for investors willing to actively manage properties.

Carrabelle, Florida averages 45–55% annual occupancy, with seasonal variation.

• Carrabelle, Florida Airbnb properties typically maintain an average annual occupancy rate of approximately 45-55%.
• Peak season occurs from March through August, when occupancy rates can reach 70-85% due to spring break visitors, summer vacationers.
• The shoulder seasons of September-November and February see moderate occupancy rates around 40-60%, while the lowest occupancy occurs during December and January at 25-35% when cooler temperatures and fewer tourists visit the area.
• Carrabelle's occupancy rates generally underperform compared to Florida's statewide Airbnb average of approximately 60-65% annually.
• Nationally, Carrabelle's performance aligns more closely with rural coastal markets, running about 5-10 percentage points below the national Airbnb average of 55-60%.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown Carrabelle waterfront district offers the strongest Airbnb investment potential due to its proximity to the historic lighthouse, marina, and seafood restaurants.
• The Carrabelle Beach area along Highway 98 provides excellent rental opportunities with direct beach access and stunning Gulf views.
• The residential neighborhoods near Carrabelle River offer more affordable investment properties with good rental potential at $80-120 per night.
• The areas around Crooked River State Park attract eco-tourists and outdoor enthusiasts willing to pay $90-140 nightly for proximity to hiking, kayaking, and wildlife viewing.
• The historic district near the old railroad depot appeals to cultural tourists and history buffs, supporting rates of $100-150 per night with its charming vintage architecture and walkability to local shops.
• Properties near the Carrabelle Boat Club and marina district perform well with boating tourists and fishing charters.
• The quieter residential streets between downtown and the beach offer the best value investments with lower purchase prices but steady rental demand at $85-130 per night from visitors seeking peaceful retreats within walking distance of main attractions.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Short-term rental regulations in Carrabelle, Florida are primarily governed by Franklin County ordinances.
• Properties must comply with a maximum occupancy limit of two persons per bedroom plus two additional guests, with parking requirements of one space per bedroom.
• There are no owner-occupancy requirements, allowing non-resident owners to operate rentals, but properties must be located in areas zoned for residential or commercial use where short-term rentals are permitted.
• The registration process involves submitting an application to Franklin County with property details, contact information for a local representative available 24/7, proof of insurance.
• Properties must also comply with Florida Department of Business and Professional Regulation requirements for transient accommodations if renting for periods less than 30 days.
• Recent changes implemented around 2020-2022 have strengthened enforcement mechanisms and increased penalties for non-compliance.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Carrabelle, Florida are subject to several fees and taxes including Florida's state sales tax of 6% and tourist development tax which varies by county but typically ranges from 2-6% in Franklin County where Carrabelle is located, estimated at approximately 4% for this area.
• Property owners must obtain a business tax receipt from Franklin County costing approximately $25-50 annually.
• The Florida Department of Revenue requires registration for sales tax collection which is free but mandatory.
• Additional costs may include a one-time zoning compliance verification fee of around $50-100 and potential homeowner association fees if applicable.
• Resort tax or bed tax collections must be remitted monthly to the county, and properties may also be subject to local municipal business licenses costing an estimated $25-75 annually depending on Carrabelle's specific requirements, bringing total annual regulatory costs to approximately $200-425 plus the percentage-based taxes on each booking.