Is Coats, North Carolina Good for Airbnb Investment?

To start an Airbnb in Coats, North Carolina, begin by researching local zoning laws and regulations through Harnett County planning department, as Coats typically follows county guidelines for short-term rentals which may require special use permits or conditional use permits depending on the zoning district. Contact the Town of Coats clerk's office to verify any municipal ordinances and obtain necessary business licenses, which usually cost around $50-100 annually. Find a suitable property by searching residential areas zoned for single-family homes, considering proximity to attractions like Raven Rock State Park or downtown Lillington, with property prices ranging from $150,000-300,000 for typical homes. Secure financing through traditional mortgages or investment property loans, then purchase or lease the property ensuring it meets North Carolina's habitability standards. Furnish the space with essential amenities including quality bedding, kitchen appliances, WiFi, and local guidebooks, budgeting approximately $10,000-15,000 for a complete setup. Create your Airbnb listing with professional photos highlighting the rural charm and outdoor recreation opportunities nearby, setting competitive rates around $75-125 per night based on local market analysis. Implement management systems including automated messaging, professional cleaning services costing $50-75 per turnover, and consider property management companies like Vacasa or local operators if you prefer hands-off management, while maintaining compliance with North Carolina's 6.75% sales tax requirements for short-term rentals and keeping detailed records for tax purposes.

To identify profitable short-term rental properties in Coats, North Carolina, focus on properties within 15-20 minutes of major attractions like downtown Raleigh (30 miles north) or the North Carolina State Fairgrounds, as Coats benefits from its proximity to the Research Triangle area while offering lower property costs. Target 3-4 bedroom single-family homes or properties with unique features like large outdoor spaces, fire pits, or rural charm that appeal to families and groups seeking a countryside retreat, with purchase prices ideally between $150,000-$250,000 to maintain healthy profit margins. Conduct pricing analysis using AirDNA and Mashvisor to evaluate comparable properties in nearby Dunn, Benson, and Angier, aiming for nightly rates of $80-$150 depending on property size and amenities, with occupancy rates typically ranging 50-65% annually in this market. Research competition by analyzing existing STR listings within a 10-mile radius on Airbnb and VRBO, noting that Coats has limited direct competition due to its small size, creating opportunities for well-positioned properties. Utilize tools like Rabbu, STR Helper, and local MLS data through Zillow and Realtor.com, while connecting with Harnett County tourism boards and monitoring seasonal demand patterns tied to NC State events, state fair periods, and summer family vacation trends to optimize your investment strategy.

To obtain an Airbnb/STR permit in Coats, North Carolina, you must first contact the Coats Town Hall at 40 S McKinley Street or call (910) 897-8811 to inquire about their specific short-term rental ordinance requirements, as many small municipalities in North Carolina have adopted STR regulations since 2019-2022. You'll likely need to submit a business license application along with required documents including proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), floor plan showing maximum occupancy, contact information for a local responsible party within 30 minutes of the property, and potentially a site plan. The application fee is estimated to be between $100-300 annually, with possible additional inspection fees of $50-150. You must also register with the North Carolina Department of Revenue for state sales tax collection and remit the 6% state sales tax plus any applicable local occupancy taxes. The approval timeline typically ranges from 30-60 days depending on inspection scheduling and completeness of application materials. Coats may require specific setback requirements from residential properties, parking provisions (usually 1-2 spaces per unit), occupancy limits based on bedrooms and square footage, quiet hours enforcement between 10 PM and 7 AM, and compliance with all building and fire safety codes including smoke detectors, carbon monoxide detectors, and fire extinguishers.

Short-term rentals (STRs) are generally legal in Coats, North Carolina, as the town does not have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with North Carolina state regulations and Harnett County requirements, which typically include business license registration, tax collection responsibilities, and adherence to zoning restrictions that may limit STRs in certain residential areas. The town of Coats, being a small municipality with approximately 2,000 residents, has not implemented comprehensive STR regulations like larger cities such as Asheville or Charlotte, meaning operations are primarily governed by existing zoning laws and general business licensing requirements. Property owners should verify current zoning compliance for their specific location and ensure proper registration with state and county authorities for tax purposes, as North Carolina requires STR operators to collect and remit occupancy taxes.

The best areas for Airbnb investment in Coats, North Carolina include the historic downtown district near Main Street, which attracts visitors interested in small-town charm and local events like the annual Coats Heritage Festival. The residential neighborhoods along Highway 55 corridor offer convenient access for business travelers commuting to nearby Raleigh-Durham Research Triangle Park, approximately 30 minutes away. Properties near the Coats Museum and antique shops draw heritage tourism visitors exploring rural North Carolina culture. The areas close to Cape Fear River access points appeal to outdoor enthusiasts and fishing tourists. Neighborhoods within walking distance of local restaurants and the town center provide authentic small-town experiences that urban visitors seek for weekend getaways. The proximity to Angier and Fuquay-Varina makes these locations attractive for visitors attending events in those larger neighboring communities while preferring quieter accommodations in Coats.

Airbnb properties in Coats, North Carolina are subject to the state's 4.75% occupancy tax on gross receipts from short-term rentals under 90 days, which is collected by the North Carolina Department of Revenue and must be remitted monthly by hosts who exceed $1,000 in annual rental income. Harnett County, where Coats is located, imposes an additional 6% occupancy tax that applies to all transient accommodations including Airbnbs, bringing the total occupancy tax rate to approximately 10.75%. The county tax is collected and remitted quarterly through the Harnett County Tax Department, with returns due by the last day of the month following each quarter. Additionally, the standard North Carolina sales tax of 4.75% plus local sales tax of approximately 2.25% applies to the rental charges, making the combined tax burden around 17.75% of gross rental receipts. Hosts must register with both state and county tax authorities, maintain detailed records of all transactions, and file returns even during periods of no activity. Exemptions are limited and typically apply only to rentals exceeding 90 consecutive days to the same guest or rentals to permanent residents, with no exemptions for occasional or small-scale hosts.

The total cost to start an Airbnb in Coats, North Carolina is approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the rural Wake County area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rentals runs $1,200-$2,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, internet, and cable cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional working capital of $3,000-$5,000 should be reserved for unexpected repairs, guest refunds, and initial vacancy periods while building reviews and bookings.

Airbnb properties in Coats, North Carolina, a small town in Harnett County with approximately 2,400 residents, face challenging profitability conditions due to limited tourism demand and competition from nearby Raleigh-Durham markets. Properties in this rural area typically generate $15,000-$25,000 annually in gross revenue, significantly lower than North Carolina's statewide average of $35,000-$45,000, with occupancy rates averaging 35-45% compared to urban markets reaching 65-75%. Operating expenses including mortgage payments, property taxes ($800-$1,200 annually), insurance ($1,500-$2,500), cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), and maintenance typically consume 70-85% of gross revenue, leaving net profit margins of 15-30% or $2,250-$7,500 annually. Success factors for profitable operations include targeting corporate travelers visiting nearby Fort Bragg military installations, offering competitive pricing 20-30% below Raleigh rates ($65-85 per night), maintaining properties near Highway 95 for accessibility, and marketing to families visiting North Carolina State University or Duke University. Properties that succeed often feature amenities like full kitchens, multiple bedrooms for group stays, and outdoor spaces, with hosts like those operating converted farmhouses or family homes near the Coats town center reporting better performance when they maintain personal involvement in guest communication and property management rather than relying on third-party management companies.

Airbnb investments in Coats, North Carolina can expect annual ROI of 8-12% based on the area's proximity to Raleigh-Durham metro market and growing tourism to the Research Triangle region. Cash-on-cash returns typically range from 6-10% annually, with properties averaging $80-120 per night during peak seasons and 60-70% occupancy rates throughout the year. Most investors in the Coats market achieve profitability within 18-24 months, particularly for properties within 30 minutes of downtown Raleigh or near Jordan Lake recreational areas. The market benefits from corporate travelers to nearby business parks and weekend visitors exploring central North Carolina, with vacation rental properties in Coats generating approximately $25,000-40,000 in annual gross revenue depending on property size and amenities, while operating expenses typically consume 40-50% of gross income including cleaning, maintenance, insurance, and platform fees.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Coats, North Carolina. Local real estate agents serving the Coats area include Keller Williams Capital Realty agents who focus on investment properties, Coldwell Banker Howard Perry and Walston agents specializing in Wake County investments, and RE/MAX agents with short-term rental expertise. National services include Mashvisor, which provides Airbnb analytics and property recommendations for the Coats market, AirDNA for market data and investment analysis, Awning for full-service Airbnb property management and acquisition assistance, and RedAwning's investment property search platform. Local property management companies that also help with acquisitions include Triangle Vacation Rentals and Carolina Coastal Vacations, while investment-focused real estate companies like HomeVestors and local investment groups such as Triangle Real Estate Investors Association provide networking and deal flow opportunities. Additional services include BiggerPockets for investor education and networking, Roofstock for turnkey rental properties, and local mortgage brokers like First Citizens Bank and BB&T (now Truist) who understand investment property financing in the North Carolina market.