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 3% tourist development tax collection requirement. Find a suitable property in permitted zones such as beachside areas or designated vacation rental districts, considering proximity to Daytona International Speedway, the beach, and downtown attractions for maximum appeal. Purchase comprehensive furnishings including beach-themed decor, quality linens, kitchen essentials, and safety equipment like smoke detectors and fire extinguishers to meet Florida's safety codes. Create your listing on Airbnb, VRBO, and other platforms with professional photos highlighting the beach location and motorsports proximity, setting competitive rates based on seasonal demand (higher during Bike Week in March, Daytona 500 in February, and summer beach season). Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like RedAwning or Vacasa if you're not local, while maintaining guest communication, handling bookings, and ensuring compliance with Daytona Beach's noise ordinances and occupancy limits to avoid penalties and maintain your business license.

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, noting that peak seasons include Speedweeks (February), Bike Week (March), spring break, and summer months. Research competition by analyzing similar properties within a 2-mile radius using Airbnb and VRBO, examining their pricing strategies, amenities, and guest reviews to identify market gaps. Utilize tools like Rabbu, AllTheRooms, and local MLS data through Realtor.com to assess property values, rental potential, and market saturation, while considering Daytona Beach's specific regulations requiring business tax receipts and potential HOA restrictions in beachfront condominiums.

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 regulations. The application fee is approximately $150 with an additional $75 annual renewal fee, plus inspection fees of around $100. You must also obtain a business tax receipt from the city clerk's office for approximately $25 annually and register with the Florida Department of Revenue for tourist development tax collection. The timeline typically takes 30-45 days for processing once all documents are submitted and approved. Daytona Beach specific requirements include maintaining a maximum occupancy of two persons per bedroom plus two additional guests, providing adequate off-street parking (minimum one space per bedroom), ensuring the property meets all building and fire codes, maintaining a 24-hour contact person available to address complaints, and complying with noise ordinances and neighborhood compatibility standards. Properties must also be inspected annually and maintain current insurance and business licenses throughout operation.

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 targeting STRs, with violations subject to fines up to $500 per day. Properties must meet safety standards including smoke detectors and emergency egress requirements, and operators must provide 24-hour contact information for complaints. Recent changes in 2022-2023 included stricter enforcement mechanisms and increased penalties for non-compliance, particularly regarding noise violations and overcrowding. The city also requires STR operators to collect and remit tourist development taxes, and properties located within 1,000 feet of the beach face additional restrictions during special events like Bike Week and Spring Break to manage tourism impacts on residential areas.

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 to cultural tourists visiting the Halifax Historical Museum and attending festivals, while providing lower property acquisition costs than beachfront areas. 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 Port Orange adjacent areas capture overflow demand from Daytona's peak seasons while offering more affordable investment entry points, and the Speedway Boulevard corridor benefits from motorsports tourism, business travelers visiting companies like NASCAR headquarters, and medical tourism from Halifax Health system, making these neighborhoods particularly attractive for investors seeking diverse revenue streams beyond traditional beach tourism.

In Daytona Beach, Florida, Airbnb hosts must collect and remit several lodging taxes including the Florida state sales tax of 6%, Volusia County tourist development tax of 5%, and Daytona Beach city resort tax of 1%, totaling approximately 12% in combined taxes on short-term rental stays. The Florida Department of Revenue requires hosts to register for a sales tax permit and file monthly returns by the 20th of the following month, while the Volusia County tourist development tax must be remitted monthly to the Volusia County Tax Collector's office by the 20th of each month. The city resort tax is collected by the City of Daytona Beach and follows similar monthly remittance schedules. Airbnb may collect and remit these taxes automatically for hosts in some cases through their platform, but hosts remain ultimately responsible for compliance. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in Daytona Beach, Florida requires approximately $280,000-$320,000 in total initial investment. Property purchase costs average $250,000 for a median 2-3 bedroom home suitable for short-term rental. Furnishing expenses typically run $15,000-$20,000 including beds, sofas, dining sets, appliances, linens, and décor to create an attractive guest experience. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total approximately $1,500-$2,500 including business license, short-term rental permit, and potential HOA approvals. Insurance premiums for short-term rental coverage cost $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and connections require $500-$800 for electricity, water, internet, and cable services. First six months of operating costs average $8,000-$12,000 covering utilities ($200/month), cleaning services ($100 per turnover), property management software ($50/month), maintenance reserves ($300/month), marketing ($100/month), and miscellaneous supplies ($150/month). Additional considerations include potential property management fees of 15-25% if outsourced, which would increase ongoing operational expenses significantly.

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. Properties within 2 miles of the beach command premium rates of $120-$180 per night during peak seasons (February-April, July-August) compared to $80-$120 for inland properties, with occupancy rates averaging 65-75% annually. Operating expenses typically consume 35-45% of gross revenue, including cleaning fees ($75-$100 per turnover), property management (20-25% of revenue), utilities ($150-$250 monthly), insurance ($2,000-$3,500 annually), and maintenance costs, resulting in net profit margins of 25-35% for well-managed properties. Success factors include strategic location near racing venues or beaches, professional photography, competitive pricing during NASCAR events when rates can surge to $300+ per night, and maintaining high guest ratings above 4.7 stars. Properties purchased in 2019-2021 for $200,000-$350,000 have shown particularly strong returns, with some oceanside condos generating $40,000+ annually while carrying mortgages of $1,500-$2,200 monthly, creating positive cash flow scenarios for investors who properly manage seasonal demand fluctuations and maintain quality standards.

Airbnb investments in Daytona Beach, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property location and management efficiency. Properties within 2-3 miles of the beach and Daytona International Speedway command premium rates during race weeks (February, July, October) and spring break season, often achieving 65-75% occupancy rates annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with average daily rates of $120-180 during peak seasons and $80-120 during off-peak periods. The market benefits from consistent tourism driven by NASCAR events, bike weeks, and year-round beach activities, with successful investors typically seeing full investment recovery within 6-8 years while maintaining positive monthly cash flow after the second year of operation.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Daytona Beach, Florida. Local real estate agents like Realty Pros Assured and Coldwell Banker Premier Properties have developed expertise in the Daytona Beach vacation rental market, helping investors identify properties near the beach and motorsports venues. National services include Mashvisor, which provides Airbnb analytics and investment property search tools, and BiggerPockets, which connects investors with local market experts. AirDNA offers comprehensive short-term rental market data and analysis for the Daytona Beach area, while companies like RedAwning and Vacasa provide property management services that can help investors evaluate potential returns. Local firms such as Daytona Beach Realty and Ocean Properties specialize in beachfront and tourist-area properties ideal for vacation rentals. Additional national platforms include Roofstock, which focuses on investment properties, and STR Helper, which provides market analysis tools. Property management companies like AvantStay and Awning also offer consultation services to help investors identify and optimize profitable Airbnb properties in the Daytona Beach market, particularly focusing on properties near Daytona International Speedway and the beachfront areas that attract year-round tourism.