Is Crestview, Florida Good for Airbnb Investment?

To start an Airbnb in Crestview, Florida, begin by researching local regulations through the City of Crestview Planning Department and Okaloosa County offices, as short-term rentals typically require a business license and may need special use permits or conditional use permits depending on zoning (residential areas often have restrictions). Contact the city clerk at (850) 682-6131 to verify current ordinances, as regulations updated around 2019-2021 may require registration, safety inspections, and compliance with parking requirements. Obtain necessary permits including a Florida business license through SunBiz.org, local business tax receipt from Crestview City Hall, and potentially a vacation rental license if required by county ordinance. Find a suitable property by researching neighborhoods like downtown Crestview or areas near Eglin Air Force Base that allow short-term rentals, considering proximity to attractions like Blackwater River State Park and the Gulf Coast beaches 30 minutes south. Purchase or lease property ensuring it meets safety codes, then furnish with quality basics including comfortable beds, full kitchen amenities, WiFi, and local guidebooks highlighting nearby Destin beaches and Crestview's railroad history. List your property on Airbnb, VRBO, and other platforms with professional photos and competitive pricing (typically $80-150/night in the area as of 2023). Manage the property by establishing cleaning protocols, guest communication systems, and partnerships with local cleaning services and maintenance providers, while maintaining compliance with occupancy limits (usually 2 people per bedroom plus 2) and noise ordinances that Crestview enforces to maintain neighborhood character.

To identify profitable short-term rental properties in Crestview, Florida, focus on locations within 15-20 minutes of Eglin Air Force Base and Duke Field given the high military personnel turnover, as well as properties near Blackwater River State Park and other outdoor recreation areas that attract tourists year-round. Target 3-4 bedroom single-family homes or condos with amenities like pools, outdoor spaces, full kitchens, and parking, as these appeal to military families on temporary assignments and vacation groups exploring the Emerald Coast region. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR income exceeds long-term rental income by at least 40-60%, typically finding sweet spots in the $150,000-$300,000 purchase range in neighborhoods like Antioch, Milligan, and areas near Highway 85. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or underpriced properties, while noting that Crestview's proximity to Destin and Fort Walton Beach creates spillover demand during peak summer months and military training cycles. Utilize tools like Rabbu, Awning, and local MLS data through Emerald Coast Association of Realtors, while connecting with property management companies like Vacasa or RedAwning who understand Okaloosa County's military-driven rental patterns and can provide market-specific occupancy data for areas serving the 7th Special Forces Group and 96th Test Wing personnel.

To obtain an Airbnb/STR permit in Crestview, Florida, you must first contact the Crestview Planning and Zoning Department at City Hall located at 198 Wilson Street N to determine if short-term rentals are permitted in your specific zoning district, as the city has restrictions on STRs in certain residential areas. You'll need to submit an application for a business tax receipt through the City Clerk's office, providing required documents including proof of property ownership or lease agreement, a site plan showing parking arrangements, proof of liability insurance (typically $1 million minimum), a floor plan of the rental unit, and contact information for a local property manager if you live more than 50 miles away. The application fee is approximately $50-75 for the business tax receipt, plus additional zoning compliance fees of around $100-150. You must also register with the Florida Department of Revenue for sales tax collection and remit the required tourist development tax to Okaloosa County. The approval timeline typically takes 2-4 weeks once all documentation is submitted and any required inspections are completed. Crestview requires STR properties to maintain adequate off-street parking (minimum 2 spaces), comply with occupancy limits based on septic system capacity, maintain the property in accordance with city codes, and ensure a responsible party is available 24/7 for any issues that arise.

Short-term rentals (STRs) are generally legal in Crestview, Florida, as the city follows Florida state law which permits vacation rentals, though local regulations may apply. Crestview, located in Okaloosa County, typically allows STRs in residential areas but may require business tax receipts and compliance with zoning ordinances. The city likely restricts STRs in certain residential neighborhoods to preserve community character and may limit the number of unrelated guests or require parking accommodations. Properties must generally comply with safety codes, noise ordinances, and may need to register with the city for tax collection purposes. Recent years have seen Florida municipalities, including smaller cities like Crestview, implementing more structured regulations around STR operations, including potential limits on density in residential areas and requirements for local contact persons. Property owners should verify current zoning compliance and obtain necessary permits, as enforcement has become more stringent since approximately 2020-2022 when many Florida communities began addressing STR proliferation concerns.

The best areas for Airbnb investment in Crestview, Florida include the downtown historic district near Main Street, which attracts visitors interested in local charm and walkability to restaurants and shops, and neighborhoods within 2-3 miles of Eglin Air Force Base, which generate consistent demand from military families, contractors, and business travelers visiting the base. The areas near Blackwater River State Park and Blackwater Heritage State Trail are attractive for outdoor enthusiasts and weekend tourists seeking kayaking, fishing, and hiking activities. Properties near the Crestview Community Center and sports complexes benefit from youth sports tournaments and family travel. The residential neighborhoods along Highway 85 corridor offer good accessibility while maintaining lower property costs compared to coastal areas, making them ideal for investors seeking strong rental yields from both short-term leisure travelers exploring the region and longer-term stays from military personnel and defense contractors working at nearby installations.

Airbnb properties in Crestview, Florida are subject to Florida's state transient rental tax of 6% on gross rental receipts, which is collected by the Florida Department of Revenue and must be remitted monthly if collections exceed $200 or quarterly if less. Additionally, Okaloosa County imposes a 5% tourist development tax on short-term rentals under 6 months, bringing the total occupancy tax to 11%. Property owners must register with both the state and county tax authorities, with the state requiring a sales tax certificate and the county requiring tourist development tax registration. Airbnb typically collects and remits the state 6% tax automatically for hosts, but the county's 5% tourist development tax usually requires separate registration and remittance by the property owner directly to Okaloosa County's tax collector office. Monthly returns are due by the 20th of the following month for the state tax, while county tax returns follow a similar schedule. Exemptions may apply for rentals to permanent residents exceeding 6 months or certain government and nonprofit organization bookings, though documentation is required to qualify for these exemptions.

The total cost to start an Airbnb in Crestview, Florida is approximately $285,000-$320,000. Property purchase costs around $220,000-$250,000 based on median home prices in the area as of 2023-2024. Furnishing a 3-bedroom property runs $15,000-$25,000 including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees cost $500-$1,500 depending on local regulations. Insurance for short-term rentals runs $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and setup fees for electricity, water, internet, and cable total $1,000-$1,500. First six months operating costs including utilities ($600/month), cleaning services ($150 per turnover, estimated 15 turnovers), maintenance and supplies ($300/month), platform fees (3% of estimated $3,000 monthly revenue), and property management if outsourced (20% of revenue) total approximately $12,000-$18,000. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and vacancy periods.

Airbnb properties in Crestview, Florida typically generate annual revenues between $18,000-$35,000 for single-family homes and $12,000-$22,000 for condos, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($150-$250 monthly), insurance ($1,200-$2,400 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 25-35% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% by leveraging Crestview's proximity to Eglin Air Force Base and Destin beaches, targeting military personnel and beach visitors. Properties within 10 miles of the base or featuring pools, modern amenities, and flexible check-in policies tend to outperform the market by 15-20%, while those lacking proper staging or responsive host communication often struggle with occupancy rates below 45% and profit margins under 15%. The market benefits from year-round demand due to military rotations and seasonal beach tourism, though properties face increasing competition from new hosts entering the market since 2021, requiring strategic pricing and superior guest experiences to maintain profitability.

Airbnb investments in Crestview, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by the area's proximity to Eglin Air Force Base and Destin's tourist attractions. Properties within 15 minutes of the base or near recreational areas like Blackwater River State Park tend to achieve higher occupancy rates of 65-75% annually, with average daily rates between $85-$120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points accelerated by military personnel seeking temporary housing and weekend tourists visiting nearby beaches. The market benefits from consistent demand from both short-term military assignments and leisure travelers, though seasonal fluctuations occur with peak performance during summer months (June-August) and military training cycles, making properties purchased in the $150,000-$250,000 range most viable for achieving target returns within the first two years of operation.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Crestview, Florida. Local real estate agents serving the Crestview market include Coldwell Banker Realty agents who focus on investment properties, RE/MAX agents specializing in vacation rentals, and Keller Williams Realty professionals with STR expertise. National services include Mashvisor for property analytics and market data, BiggerPockets for investor networking and deal sourcing, Awning for short-term rental investment guidance, and RedAwning for vacation rental property identification. Local property management companies like Vacasa and RedAwning also assist investors in finding suitable properties while offering management services. Additional resources include AirDNA for market analysis, STR Helper for property evaluation, and local investment groups through the Emerald Coast Real Estate Investors Association which covers the greater Northwest Florida region including Crestview.