Is Daytona Beach Shores, Florida Good for Airbnb Investment?

To start an Airbnb in Daytona Beach Shores, Florida, begin by researching local regulations through the City of Daytona Beach Shores planning department, as the city requires short-term rental properties to obtain a business tax receipt and comply with zoning ordinances that typically allow vacation rentals in residential areas with proper permits. Contact Volusia County for additional county-level requirements and obtain necessary permits including a short-term rental license, business tax receipt from the city (approximately $50-100 annually), and ensure compliance with fire safety codes and occupancy limits. Find a suitable property within 1-2 miles of the beach, focusing on condos or single-family homes in areas like Atlantic Avenue or South Atlantic Avenue, with purchase prices ranging from $200,000-$800,000 depending on proximity to ocean and amenities. Furnish the property with coastal-themed décor, essential amenities including WiFi, air conditioning, beach equipment, and ensure it meets Florida's vacation rental standards with proper insurance coverage through companies like Proper or CBIZ. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting ocean views and beach access, setting competitive rates between $100-300 per night based on seasonality and location. Manage the property by establishing cleaning protocols between guests, responding to inquiries within an hour, coordinating check-ins/check-outs, maintaining the property regularly, and consider hiring local property management companies like Vacasa or RedAwning if you're not local, while ensuring compliance with Florida's 13% total tax rate including state sales tax and local tourist development taxes.

To identify profitable short-term rental properties in Daytona Beach Shores, Florida, focus on oceanfront or ocean-view condos within 0.2 miles of the beach, particularly in established complexes like Ocean Walk Resort, Shores Resort & Spa, or Plaza Resort & Spa built after 1990. Target 2-3 bedroom units with modern amenities, full kitchens, balconies, and parking, as these command $150-300 per night during peak season (March-August) and $80-150 in off-season. Analyze comparable properties on Airbnb and VRBO within a 1-mile radius, noting occupancy rates typically range 60-75% annually, with successful properties generating $40,000-80,000 in gross revenue. Research competition density using AirDNA or Mashvisor, avoiding oversaturated buildings with more than 30% STR units, and focus on complexes allowing short-term rentals without restrictive HOA policies. Utilize tools like Rabbu, STR Helper, and local MLS data through Volusia County property records, while monitoring seasonal events like Daytona 500, Bike Week, and spring break that drive premium rates of $200-500 per night, ensuring your target property can capitalize on these high-demand periods while maintaining competitive positioning against the area's 800+ active short-term rentals.

To obtain an Airbnb/STR permit in Daytona Beach Shores, Florida, you must first contact the Daytona Beach Shores Building Department at City Hall located at 3048 South Atlantic Avenue to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement with landlord consent, a current certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (minimum $500,000), business tax receipt from Volusia County, and contact information for a local property manager if you're not local. The application fee is approximately $150-200 with an annual renewal fee of around $100-125, plus you'll need to pay for required inspections which cost about $75-100. The timeline for approval is generally 4-6 weeks from submission of a complete application, provided all inspections pass and there are no zoning issues. Specific Daytona Beach Shores requirements include maintaining maximum occupancy limits based on property size, providing adequate parking (typically 2 spaces minimum), ensuring compliance with noise ordinances, posting emergency contact information prominently in the rental unit, and adhering to the city's 72-hour minimum stay requirement. You must also register with the Florida Department of Revenue for sales tax collection and remit the 6% state sales tax plus 5% Volusia County tourist development tax on all rental income.

Short-term rentals (STRs) are legal in Daytona Beach Shores, Florida, but operate under specific regulations established by the city. The city requires STR operators to obtain a business tax receipt and comply with zoning restrictions that generally limit short-term rentals to commercially zoned areas and some residential zones with conditions. Properties must meet safety requirements including smoke detectors, fire extinguishers, and emergency contact information, while operators must provide 24-hour contact availability for noise or disturbance complaints. Daytona Beach Shores has implemented occupancy limits based on property size and parking requirements, with violations subject to fines and potential permit revocation. The city has been actively updating its STR ordinances in recent years to balance tourism revenue with residential neighborhood concerns, including enhanced enforcement mechanisms and stricter compliance monitoring that became effective around 2022-2023, though specific prohibited areas typically include certain residential neighborhoods where homeowner associations have additional restrictions beyond city regulations.

The best areas for Airbnb investment in Daytona Beach Shores, Florida include the oceanfront corridor along Atlantic Avenue and South Atlantic Avenue, which offers prime beachfront access and attracts year-round tourists seeking beach vacations, particularly during Daytona 500 events in February and Bike Week in March when demand and rates peak significantly. The Sunglow Pier area is highly attractive due to its iconic fishing pier, restaurants, and central beach location that draws both leisure tourists and fishing enthusiasts throughout the year. The northern section near Dunlawton Avenue provides excellent value with slightly lower property costs while maintaining beach proximity and benefiting from overflow demand during major motorsports events at Daytona International Speedway just 15 minutes away. The southern tip near Ponce Inlet offers a more upscale market with luxury vacation rentals commanding premium rates, attracting affluent tourists visiting the historic Ponce de Leon Inlet Lighthouse and seeking quieter beach experiences. Properties within walking distance of Frank Rendon Park and the Main Street Pier area perform well due to family-friendly amenities and easy beach access, while locations near major hotels like The Shores Resort & Spa benefit from corporate overflow during business conferences and racing events, creating consistent demand beyond typical seasonal tourism patterns.

In Daytona Beach Shores, Florida, Airbnb hosts must collect and remit a 6% Florida state sales tax on all rental transactions, plus a 5% Volusia County tourist development tax, totaling 11% in occupancy taxes. The state sales tax is collected through Florida's Department of Revenue system where hosts must register for a sales tax permit and file returns monthly, quarterly, or annually depending on volume. The tourist development tax is administered by Volusia County and requires separate registration with the county tax collector's office, with remittance typically due monthly by the 20th of the following month. Additionally, there may be a local municipal tax of up to 1-2% imposed by Daytona Beach Shores city government. Airbnb automatically collects and remits these taxes in many cases through agreements with state and local authorities since approximately 2017-2018, but hosts should verify their specific obligations. Exemptions generally apply to rentals of 30 days or longer, which are considered long-term residential rentals rather than transient accommodations, and some exemptions may exist for certain government or charitable organization bookings.

Starting an Airbnb in Daytona Beach Shores, Florida requires approximately $450,000-$550,000 in total initial investment. Property purchase costs average $380,000-$450,000 for a median 2-3 bedroom condo or beach house suitable for short-term rentals. Furnishing costs range $15,000-$25,000 including furniture, appliances, linens, kitchenware, and décor to create an attractive vacation rental. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic marketing. Permits and fees include a $150 business tax receipt, $200-$400 short-term rental permit, and $300-$500 in various city and county licensing fees. Insurance costs $2,500-$4,000 annually for specialized short-term rental coverage. Monthly utilities average $200-$350 including electricity, water, internet, cable, and trash service. First six months operating costs total $8,000-$12,000 covering platform fees (3% of bookings), cleaning services ($75-$125 per turnover), maintenance supplies, property management software subscriptions, and marketing expenses, assuming 60-70% occupancy rates typical for the Daytona Beach area.

Airbnb properties in Daytona Beach Shores, Florida typically generate annual revenues between $35,000-$65,000 for oceanfront condos and $20,000-$40,000 for inland properties, with peak earnings during Daytona 500 race weeks in February and summer months when nightly rates can reach $200-$400 compared to off-season rates of $80-$150. Operating expenses generally consume 40-50% of gross revenue, including property management fees (20-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$350 monthly), insurance ($2,000-$4,000 annually), and maintenance reserves, resulting in net profit margins of 15-25% for well-managed properties. Success factors include proximity to the beach (oceanfront properties outperform by 30-40%), professional photography, dynamic pricing strategies, and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. A typical 2-bedroom oceanfront condo purchased for $300,000 in 2022 generated approximately $52,000 in gross rental income with $23,000 in expenses, yielding a 9.7% cash-on-cash return, while properties further from the beach showed returns of 6-8%, with the market benefiting from Daytona's year-round tourism, NASCAR events, and Embry-Riddle Aeronautical University visitor traffic.

Airbnb investments in Daytona Beach Shores, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property type and location proximity to the beach. Oceanfront condos and single-family homes within walking distance of the shore command premium nightly rates of $150-300 during peak season (March-August) and $80-150 during off-season, with average occupancy rates of 65-75% annually. Properties purchased in the $200,000-400,000 range can expect gross rental income of $35,000-65,000 per year, with net operating income after expenses (cleaning, maintenance, property management, insurance, taxes) typically running 60-70% of gross revenue. Most investors achieve profitability within 6-12 months of operation, with full investment recovery typically occurring within 7-10 years. The market benefits from consistent demand due to Daytona International Speedway events, spring break tourism, and year-round beach activities, though investors should factor in seasonal fluctuations and hurricane insurance costs which can impact overall returns by 2-4 percentage points annually.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Daytona Beach Shores, Florida. Local real estate agents like Realty Pros Assured and Coldwell Banker Premier Properties have extensive knowledge of the Daytona Beach Shores market and work with Airbnb investors to identify high-performing vacation rental properties. National services include AirDNA for market analytics, Mashvisor for investment property analysis, and BiggerPockets for investor networking and deal sourcing. Local companies such as Volusia County Real Estate Group and Ormond Beach Realty often assist investors in finding beachfront and near-beach properties suitable for vacation rentals. RedAwning and Vacasa provide property management services while also helping investors identify acquisition opportunities. RE/MAX and Keller Williams have local agents in the Daytona Beach area who specialize in investment properties and understand the short-term rental market dynamics. Additional services include RentSpree for rental market analysis, Awning for Airbnb investment consulting, and local property management companies like Coastal Vacation Rentals that can provide insights into the most profitable areas and property types in Daytona Beach Shores for Airbnb investments.