Is Daytona Beach, Florida Good for Airbnb Investment?

To start an Airbnb in Daytona Beach, Florida, begin by researching local regulations as the city requires short-term rental operators to obtain a business tax receipt and comply with zoning restrictions that limit rentals to certain residential areas while prohibiting them in some historic districts. Contact Volusia County and Daytona Beach's planning department to verify your property's zoning allows vacation rentals, then apply for a business tax receipt ($25-50 annually) and ensure compliance with the city's occupancy limits of 2 people per bedroom plus 2 additional guests. Find a suitable property in permitted zones, focusing on areas near the beach, Daytona International Speedway, or downtown, with properties typically ranging from $150,000-400,000 depending on proximity to attractions. Furnish the space with coastal-themed décor, essential amenities like WiFi, air conditioning, beach equipment, and safety features including smoke detectors and fire extinguishers as required by Florida fire codes. Create your listing on Airbnb, VRBO, and other platforms with professional photos highlighting the beach location and NASCAR proximity, setting competitive rates of $80-200 per night based on seasonality and events like Daytona 500 or Bike Week. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property, and collecting the required 6% Florida sales tax plus 5% Volusia County tourist development tax, which must be remitted monthly to the Florida Department of Revenue and county tax collector respectively.

To identify profitable short-term rental properties in Daytona Beach, Florida, focus on locations within 0.5-1 mile of the beach, particularly in areas like Daytona Beach Shores, New Smyrna Beach vicinity, and near the Daytona International Speedway which drives significant event-based demand during NASCAR seasons (February-July). Target 2-4 bedroom condos or single-family homes with ocean views, pools, parking spaces, and modern amenities, as these command premium rates of $150-400+ per night depending on proximity to beach and property size. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates, occupancy rates (typically 60-75% for well-positioned properties), and seasonal demand patterns, with peak seasons being March-August and race weekends generating 2-3x normal rates. Research competition by analyzing similar properties within a 2-mile radius on Airbnb and VRBO, noting their pricing, amenities, and guest reviews to identify market gaps. Utilize tools like Rabbu, AllTheRooms, and local MLS data through Realtor.com to assess purchase prices, rental potential, and neighborhood trends, while considering Volusia County's STR regulations and HOA restrictions that may limit rental opportunities in certain developments.

To obtain an Airbnb/STR permit in Daytona Beach, Florida, you must first apply through the City of Daytona Beach Planning and Development Department located at 301 S Ridgewood Avenue, either in person or online through their permitting portal. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, floor plan of the property, site plan showing parking spaces, certificate of insurance with minimum $1 million liability coverage naming the city as additional insured, and a notarized affidavit of compliance with all zoning requirements. The application fee is approximately $150 with an additional $75 annual renewal fee, plus potential inspection fees of $100-200. The timeline typically ranges from 30-60 days depending on completeness of application and inspection scheduling. Daytona Beach specific requirements include maintaining minimum two off-street parking spaces per unit, ensuring the property is located in zones where STRs are permitted (primarily tourist and commercial districts), providing 24/7 contact information for a responsible party, maintaining occupancy limits based on bedroom count plus two additional guests, and ensuring compliance with noise ordinances and waste management protocols. Properties must also pass a city inspection covering fire safety, building codes, and zoning compliance before permit issuance, and operators must collect and remit tourist development tax to Volusia County.

Short-term rentals (STRs) are legal in Daytona Beach, Florida, but operate under specific regulations established by the city. As of 2023, Daytona Beach requires STR operators to obtain a business tax receipt and comply with zoning restrictions that generally limit STRs to commercial and mixed-use districts, while prohibiting them in most single-family residential neighborhoods. The city has implemented occupancy limits, parking requirements, and noise ordinances specifically for STRs, with violations subject to fines and potential permit revocation. Recent changes include stricter enforcement mechanisms and enhanced complaint procedures for neighbors, reflecting the city's effort to balance tourism revenue with residential quality of life concerns. Properties must also comply with Florida state regulations regarding safety standards and tax collection, and operators are required to provide local contact information for 24-hour response to issues.

The best Airbnb investment areas in Daytona Beach, Florida include the Oceanfront/Beachside district along Atlantic Avenue and Ocean Avenue, which attracts year-round tourists seeking beach access and proximity to the Daytona International Speedway events like the Daytona 500 and Bike Week that bring hundreds of thousands of visitors annually. The Historic Downtown district near Beach Street offers appeal for cultural tourists visiting the Halifax Historical Museum and enjoying local dining, while also capturing business travelers to nearby corporate offices. The Shores Resort area and Ormond Beach border provide upscale vacation rental opportunities for families and couples seeking quieter beach experiences with easy access to golf courses like LPGA International. The Speedway Boulevard corridor is particularly valuable during major racing events, offering convenient accommodation for motorsports enthusiasts, while the Port Orange adjacent areas attract visitors to sugar sand beaches and the Ponce de Leon Inlet Lighthouse, one of Florida's tallest lighthouses, making these neighborhoods consistently profitable for short-term rental investments due to Daytona's combination of beach tourism, motorsports events, and business travel throughout the year.

In Daytona Beach, Florida, Airbnb properties are subject to multiple lodging taxes including the Florida state sales tax of 6%, the Volusia County tourist development tax of 5%, and the City of Daytona Beach resort tax of 2%, totaling approximately 13% in combined taxes on short-term rental stays. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2016-2017 for most Florida jurisdictions. Airbnb remits the collected tourist development tax to Volusia County monthly and the resort tax to the City of Daytona Beach on a similar schedule, while state sales tax is forwarded to the Florida Department of Revenue. Property owners must still register with local tax authorities and may need to file returns even when Airbnb collects taxes, and stays of 30 days or longer are generally exempt from tourist development and resort taxes but remain subject to sales tax. The tourist development tax funds beach renourishment, tourism marketing, and related infrastructure projects, while the resort tax supports municipal services in tourist areas.

The total cost to start an Airbnb in Daytona Beach, Florida is approximately $285,000-$320,000. Property purchase costs around $250,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property requires $15,000-$20,000 for quality furniture, appliances, linens, and decor suitable for vacation rentals. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees including business license, vacation rental permit, and inspection fees range from $500-$1,500 depending on local regulations. Insurance for short-term rentals costs $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and setup fees for electricity, water, internet, and cable total approximately $1,000-$1,500. First six months operating costs including utilities ($900/month), cleaning services ($150 per turnover, estimated 20 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-$15,000.

Airbnb properties in Daytona Beach, Florida demonstrate strong profitability potential with average annual revenues ranging from $25,000-$45,000 for typical 2-3 bedroom properties, driven by the city's year-round tourism appeal including Daytona International Speedway events, beach proximity, and spring break visitors. Operating expenses typically run 40-50% of gross revenue, including cleaning fees ($75-125 per turnover), property management (15-25%), utilities ($150-250/month), insurance ($1,200-2,000 annually), and maintenance costs, resulting in net profit margins of 25-35% for well-managed properties. Success factors include strategic location within 2 miles of the beach or speedway, professional photography, competitive pricing ($80-180/night depending on season), and maintaining 4.5+ star ratings through consistent guest experience. Properties near the Daytona Beach Boardwalk and Ocean Walk Shoppes command premium rates during peak seasons (February-April, July-August), with some investors reporting 15-20% annual returns on investment. The market benefits from strong occupancy rates of 65-75% annually, though success heavily depends on property condition, marketing effectiveness, and ability to capitalize on major events like the Daytona 500, Bike Week, and college spring break periods.

Airbnb investments in Daytona Beach, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the city's strong tourism market anchored by Daytona International Speedway events, beach tourism, and year-round visitor demand. Properties within 2-3 miles of the beach or speedway command premium nightly rates of $120-200 during peak seasons (February-March for racing, summer months), while off-season rates average $80-120 per night. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically seeing positive cash flow by month 6-12 after accounting for mortgage payments, property management fees of 15-25%, and operational expenses. The market benefits from Daytona's established tourism infrastructure, with companies like Vacasa and RedAwning reporting strong booking rates of 65-75% annually for optimized listings, while the city's relatively affordable property acquisition costs ($200,000-400,000 for suitable investment properties) create favorable entry points compared to other Florida beach markets like Miami or Key West.

STRSearch leads the national market for Airbnb investment property analysis and market data for Daytona Beach, Florida. Local real estate agents specializing in short-term rental investments include Realty Pros Assured, Ocean Properties, and Daytona Beach Realty Group, while regional specialists like Florida Vacation Rental Realty and Coastal Investment Properties focus specifically on vacation rental acquisitions. National services include Mashvisor for property analytics, AirDNA for market research, Awning for full-service Airbnb investing, and RedAwning for vacation rental property sourcing. Additional local companies serving the Daytona Beach market include Volusia County Investment Properties, Speedway Realty (capitalizing on NASCAR tourism), and Atlantic Coast Property Advisors. Property management companies that also help with acquisitions include AvantStay, Vacasa, and local firm Daytona Vacation Rentals, while investment platforms like Roofstock and BiggerPockets connect investors with Daytona Beach opportunities. Local mortgage brokers specializing in investment properties include First Coast Mortgage and Halifax Area Lending, and consulting services like STR Wealth and Short Term Rental University provide market analysis and investment guidance for the Daytona Beach area's strong tourism market driven by NASCAR events, Daytona International Speedway, and beach tourism.