Is Coral Gables, Florida Good for Airbnb Investment?

To start an Airbnb in Coral Gables, Florida, begin by researching the city's strict short-term rental regulations, as Coral Gables requires a Conditional Use Permit (CUP) and limits rentals to properties in specific zoning districts, with rentals typically prohibited in single-family residential areas and only allowed in certain multi-family and commercial zones. Obtain necessary permits including a business tax receipt from the City of Coral Gables, a Florida sales tax permit from the Department of Revenue, and register with Miami-Dade County for tourist development tax collection. Find a suitable property in approved zoning areas such as mixed-use or multi-family districts, ensuring it meets the city's parking requirements (typically one space per unit) and complies with building codes. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Florida law. Create your Airbnb listing with professional photos, detailed descriptions highlighting proximity to the University of Miami and Miracle Mile, and competitive pricing based on the local market rate of approximately $150-300 per night depending on property size and amenities. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and ensuring compliance with Coral Gables' noise ordinances and occupancy limits while collecting and remitting the required 6% Florida sales tax and Miami-Dade County's tourist development tax.

To identify profitable short-term rental properties in Coral Gables, Florida, focus on locations within walking distance of the University of Miami, Miracle Mile shopping district, and the historic downtown area, as these attract both business travelers and tourists year-round. Target Mediterranean Revival and Colonial-style homes built between 1920-1960 with 2-4 bedrooms, updated kitchens, pools, and parking, as these architectural styles command premium rates in this affluent market. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40%, targeting acquisition prices between $400,000-$800,000 for optimal cash flow. Research competition by analyzing similar properties within a 1-mile radius using Airdna's market data, focusing on occupancy rates above 70% and average daily rates of $150-300 depending on property size and amenities. Utilize tools like Rabbu for Coral Gables-specific rental regulations compliance, the City of Coral Gables planning department website for zoning verification, and partner with local property management companies like RedAwning or Vacasa who understand the market's seasonal patterns driven by University of Miami events, Art Basel Miami Beach overflow, and winter snowbird migration from December through April.

To obtain an Airbnb/STR permit in Coral Gables, Florida, you must first contact the City of Coral Gables Planning and Zoning Department at City Hall located at 405 Biltmore Way, as short-term rentals under 30 days are generally prohibited in most residential zones within the city. You'll need to submit a Special Use Permit application if your property qualifies, which requires a completed application form, property survey, floor plans, proof of ownership or authorization letter, certificate of use, parking plan, and a $500-800 application fee. Required documents also include a business tax receipt from Miami-Dade County ($50-100), state sales tax permit, liability insurance certificate, and neighbor notification affidavits. The process typically takes 60-90 days and includes a public hearing before the Planning and Zoning Board, followed by City Commission approval if recommended. Coral Gables has strict requirements including minimum lot sizes, parking provisions (typically 2 spaces per unit), occupancy limits based on bedrooms, noise restrictions, and mandatory on-site management or 24-hour contact information. Properties must also comply with the city's historic preservation guidelines if located in designated areas, maintain landscaping standards, and provide annual compliance reports once approved, with total costs ranging from $1,000-2,000 for the initial permit process.

Short-term rentals (STRs) are currently prohibited in Coral Gables, Florida, as the city has maintained a ban on vacation rentals and short-term accommodations in residential areas since approximately 2017-2018. The city's zoning code specifically prohibits the use of residential properties for transient lodging purposes, with STRs typically defined as rentals of less than 30 days. This prohibition applies citywide across all residential zoning districts, though hotels and traditional hospitality establishments in commercially zoned areas remain permitted. The ban was implemented to preserve the residential character of neighborhoods and address concerns about parking, noise, and community disruption. Unlike some other Miami-Dade County municipalities that have adopted regulatory frameworks allowing STRs with restrictions, Coral Gables has maintained its prohibitive stance, and there have been no recent legal changes indicating a shift toward allowing or regulating short-term rentals rather than banning them outright. Property owners found operating illegal STRs can face code enforcement actions and fines.

The most promising Airbnb investment areas in Coral Gables, Florida include the historic Coral Gables Village area near Miracle Mile, which attracts tourists and business travelers due to its proximity to upscale shopping, dining, and the iconic Biltmore Hotel, generating consistent year-round demand from visitors attending events at the Biltmore and corporate travelers visiting nearby companies like Bacardi USA and regional offices. The Granada Golf Course neighborhood offers appeal to golf enthusiasts and luxury travelers seeking spacious properties near the prestigious country club, while the University of Miami vicinity attracts visiting academics, prospective students, and families during graduation ceremonies and sporting events, with properties near the campus commanding premium rates during football season and academic conferences. The Coral Gables Waterway and Matheson Hammock areas provide waterfront appeal for high-end vacation rentals targeting tourists seeking Miami's boating culture and beach access, while the downtown Coral Gables business district near major corporations and the Coral Gables City Hall attracts business travelers and professionals attending meetings, conferences, and legal proceedings, with properties within walking distance of Miracle Mile and the Metrorail station offering convenience for guests accessing Miami International Airport and downtown Miami.

Airbnb properties in Coral Gables, Florida are subject to multiple lodging taxes including Florida's state sales tax of 6%, the state tourist development tax of 6% (for the first $2 per night), Miami-Dade County's tourist development tax of 7%, and Coral Gables' local resort tax of 4%, resulting in a combined rate of approximately 23% on short-term rental stays under 30 days. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automatic tax collection system, which began around 2016-2017 for most Florida jurisdictions. Airbnb remits the collected taxes monthly to the appropriate state and local tax authorities on behalf of hosts, though hosts remain ultimately responsible for ensuring compliance and may need to register with the Florida Department of Revenue and local tax collectors. Stays of 30 days or longer are generally exempt from tourist development taxes but may still be subject to regular sales tax, and certain exemptions may apply for government employees, long-term medical patients, or other qualifying circumstances as defined by state and local regulations.

Starting an Airbnb in Coral Gables, Florida requires significant upfront investment with property purchase being the largest expense at approximately $850,000 for a median-priced single-family home or $450,000 for a condo. Furnishing costs typically range from $15,000-25,000 for a complete setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup expenses include professional photography ($300-500), listing creation, and marketing materials totaling around $1,000. Permits and fees vary but expect $500-1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance costs approximately $2,000-3,000 annually for landlord and short-term rental coverage. Monthly utilities including electricity, water, internet, and cable average $200-300 per month. First six months operating costs encompass utilities ($1,200-1,800), cleaning services between guests ($100-150 per turnover), maintenance and supplies ($500-1,000 monthly), platform fees to Airbnb and VRBO (3% of bookings), and property management if outsourced (20-30% of revenue). Total startup costs range from $875,000-885,000 for a house or $475,000-485,000 for a condo, plus $8,000-15,000 in operating expenses for the first six months, making the complete initial investment between $483,000-500,000 for a condo or $883,000-900,000 for a house in Coral Gables.

Airbnb properties in Coral Gables, Florida demonstrate strong profitability potential with average daily rates ranging from $150-$300 depending on property size and proximity to downtown Miami, generating annual revenues of $45,000-$85,000 for well-managed properties. Operating expenses typically consume 35-45% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance costs, resulting in net profit margins of 25-35% for successful operators. Key success factors include strategic location within walking distance of Miracle Mile or University of Miami, professional photography, dynamic pricing strategies, and maintaining super-host status through consistent 4.8+ ratings. A typical 2-bedroom condo near downtown Coral Gables averaging $220 nightly with 65% occupancy generates approximately $52,000 annually, with expenses around $22,000, yielding $30,000 net profit (58% margin), while luxury 4-bedroom homes near Biltmore can achieve $400+ nightly rates and $95,000+ annual revenues. Properties benefit from Coral Gables' year-round tourism, business travelers visiting nearby corporate headquarters, and families attending University of Miami events, with peak seasons during winter months (December-April) commanding premium rates 20-30% above summer averages.

Airbnb investments in Coral Gables, Florida typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% for well-positioned properties. The luxury market in Coral Gables, driven by proximity to University of Miami and downtown Miami, supports average daily rates of $150-250 for quality listings, with occupancy rates averaging 65-75% annually. Properties in prime locations near Miracle Mile or Biltmore area can achieve higher returns of 10-15% ROI, while standard residential properties typically see 8-10% returns. Initial profitability usually occurs within 12-18 months for investors with 20-25% down payments, factoring in property management costs of 15-25%, maintenance expenses, and local regulations. The market benefits from year-round tourism, business travelers, and university visitors, with peak seasons during winter months and graduation periods driving premium rates that can exceed $300 per night for luxury properties.

STRSearch leads the market in Airbnb investment property analysis nationwide including Coral Gables, Florida, providing comprehensive data on rental performance and market trends. Local Coral Gables specialists include Coral Gables Realty Group and Miami Luxury Real Estate Partners, both established around 2015-2018, who focus on short-term rental investments in the area. National services like Awning (founded 2017), RedAwning Property Management, and Vacasa offer end-to-end Airbnb investment solutions including property acquisition assistance in South Florida markets. Mashvisor, launched in 2014, provides investment property analysis tools specifically for short-term rental markets including Coral Gables. Local agents such as those at Douglas Elliman Miami and Coldwell Banker Coral Gables have developed STR investment specialties since around 2016. AirDNA, established in 2015, offers market data and property performance analytics for the Coral Gables Airbnb market. Additional services include BiggerPockets marketplace connections, Roofstock's short-term rental investment platform launched in 2020, and local property management companies like Miami Airbnb Management and South Florida STR Solutions that also assist with property acquisition for investors seeking profitable vacation rental properties in the Coral Gables market.