Is Farmerville, Louisiana Good for Airbnb Investment?

To start an Airbnb in Farmerville, Louisiana, begin by researching local regulations through the Farmerville City Hall and Union Parish government offices, as Louisiana generally allows short-term rentals but municipalities may have specific zoning requirements and occupancy limits. Contact the Louisiana Department of Revenue to obtain a sales tax permit and register for the state's 4% sales tax on short-term rentals, while also checking with Union Parish for any local occupancy taxes. Find a suitable property by working with local real estate agents familiar with Farmerville's residential areas, focusing on properties near Lake D'Arbonne or downtown that appeal to tourists and business travelers, ensuring the property meets Louisiana's habitability standards and has proper insurance coverage that includes short-term rental activities. Furnish the property with essential amenities including reliable internet, air conditioning (crucial for Louisiana's climate), quality bedding, kitchen essentials, and safety equipment like smoke detectors and carbon monoxide detectors as required by state law. Create your Airbnb listing with professional photos highlighting local attractions like Lake D'Arbonne State Park and nearby outdoor activities, setting competitive pricing based on similar properties in the region (typically $60-120 per night for Farmerville area). Manage your property by establishing cleaning protocols between guests, maintaining responsive communication with visitors, and potentially partnering with local cleaning services and maintenance providers in the Farmerville area to ensure consistent quality and quick issue resolution.

To identify profitable short-term rental properties in Farmerville, Louisiana, focus on locations near Union Parish's outdoor recreation areas like Lake D'Arbonne State Park and proximity to major highways like I-20 for accessibility to Monroe and Shreveport markets. Target properties with 2-4 bedrooms, waterfront or lake views, outdoor spaces for fishing/hunting enthusiasts, and rustic charm that appeals to nature-seeking guests, as Farmerville attracts visitors for fishing tournaments, hunting seasons, and family lake vacations. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in Monroe (30 minutes away) and similar rural Louisiana markets, aiming for $80-150 nightly rates depending on size and amenities. Research competition by analyzing existing Airbnb and VRBO listings within 15-mile radius, noting occupancy patterns during peak fishing seasons (spring/fall) and hunting seasons, while identifying gaps in luxury or family-friendly accommodations. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Louisiana Realtors Association, while connecting with Farmerville Chamber of Commerce and Union Parish tourism officials for market insights, seasonal event calendars, and upcoming development projects that could impact demand.

To obtain an Airbnb/STR permit in Farmerville, Louisiana, contact the Farmerville City Hall at 318-368-9328 or visit their office at 200 Main Street to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), fire safety inspection certificate, and a site plan showing parking and occupancy limits. Required documents may also include a notarized affidavit from neighbors within 300 feet, tax clearance certificate, and zoning compliance verification. Application fees typically range from $150-$300 for the initial permit plus annual renewal fees of $75-$150. The approval process generally takes 30-45 days after submitting a complete application, during which time the city will conduct inspections and review compliance with local zoning ordinances. Farmerville likely requires STR properties to maintain adequate off-street parking (minimum 2 spaces), limit occupancy to 2 people per bedroom plus 2 additional guests, display the permit number in all advertising, maintain a local contact person available 24/7, and comply with noise ordinances and waste management requirements. Annual renewals are typically required with updated insurance documentation and inspection certificates.

Short-term rentals (STRs) in Farmerville, Louisiana are generally legal but subject to state and local regulations. Louisiana state law allows municipalities to regulate STRs, and Farmerville, as a small city in Union Parish, likely follows basic zoning and business licensing requirements for rental properties. Property owners typically need to obtain proper business licenses, collect and remit state and local taxes including Louisiana's 4.45% state sales tax plus local occupancy taxes, and comply with safety standards and zoning restrictions that may limit STRs in certain residential areas. Recent years have seen Louisiana strengthen STR regulations statewide, with requirements for registration, tax collection, and safety compliance becoming more standardized since 2019-2020. Farmerville may have specific ordinances regarding noise, parking, occupancy limits, and operational standards, and some residential zones might restrict or prohibit commercial STR operations to preserve neighborhood character. Property owners should verify current local ordinances with Farmerville city officials and ensure compliance with both state tax requirements and any homeowners association restrictions before operating an STR.

The best areas for Airbnb investment in Farmerville, Louisiana include the historic downtown district near the courthouse square, which attracts visitors interested in the town's heritage and serves business travelers visiting local government offices and legal proceedings. The Lake D'Arbonne area, approximately 10 miles south, offers excellent potential due to its popularity for fishing tournaments, water sports, and weekend getaways, with consistent demand from Louisiana and Texas visitors. Properties near the Union Parish Fairgrounds benefit from annual events and agricultural shows that draw regional attendees. The residential areas along Highway 2 and near Farmerville High School provide good investment opportunities due to their proximity to local businesses and the school district, attracting visiting families, substitute teachers, and contractors working on municipal projects. Additionally, properties within walking distance of local medical facilities like the Union General Hospital area can capture medical tourism and visiting family members of patients.

Airbnb properties in Farmerville, Louisiana are subject to Louisiana state sales tax of 4.45% and Union Parish sales tax of approximately 4-5%, totaling around 8.45-9.45% on lodging rentals. The Louisiana Department of Revenue requires hosts to register for a sales tax account and collect these taxes from guests at the time of booking or check-in, with monthly remittance due by the 20th of the following month for properties generating over $1,000 in monthly revenue. Farmerville itself does not impose a separate municipal lodging tax as of 2023, though hosts must still comply with local business licensing requirements. Airbnb may collect and remit state and parish taxes automatically for hosts who opt into their tax collection service, but hosts remain ultimately responsible for ensuring compliance. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and properties rented for less than $2,000 annually may qualify for small seller exemptions from sales tax registration requirements.

To start an Airbnb in Farmerville, Louisiana, expect total costs around $85,000-$95,000. Property purchase costs approximately $65,000 based on median home prices in rural Louisiana markets like Union Parish where Farmerville is located. Furnishing a 2-3 bedroom property runs $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and appliances from retailers like Ashley Furniture, Walmart, and Amazon. Initial setup costs $1,500-$2,500 covering professional photography, listing creation, welcome materials, and basic renovations. Permits and fees total $500-$800 including business license from Farmerville City Hall, short-term rental permit, and tax registration with Louisiana Department of Revenue. Insurance adds $1,200-$1,800 annually for landlord and short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities average $150-$200 monthly for electricity, water, internet, and cable, totaling $900-$1,200 for six months. First six months operating costs include $600-$900 for cleaning services, $300-$500 for maintenance supplies, $200-$400 for marketing and Airbnb fees, and $500-$800 for miscellaneous expenses like restocking amenities and minor repairs.

Airbnb properties in Farmerville, Louisiana typically generate modest returns due to the small market size and limited tourist demand in this rural town of approximately 3,800 residents. Average daily rates range from $45-75 for entire homes, with occupancy rates averaging 35-45% annually, resulting in gross revenues of $6,000-12,000 per year for typical 2-3 bedroom properties. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-200 monthly), insurance ($800-1,200 annually), property management (20-25% of revenue), and maintenance typically consume 60-70% of gross revenue. Net profit margins generally fall between 15-25%, translating to annual profits of $1,500-4,000 for most properties. Success factors include proximity to D'Arbonne National Wildlife Refuge for hunting and fishing guests, competitive pricing below $70/night, and targeting extended-stay business travelers or workers in the nearby oil and gas industry. Properties near Lake D'Arbonne or with unique amenities like boat access perform better, while basic residential homes struggle with low demand. The market faces challenges from limited marketing reach, seasonal fluctuations tied to hunting seasons, and competition from established hotels in nearby Monroe, making Farmerville more suitable for property owners seeking supplemental income rather than primary investment returns.

Based on Farmerville, Louisiana market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and renovation investments. Properties in Farmerville generally achieve profitability within 18-24 months, with average nightly rates of $75-$120 for well-positioned properties near D'Arbonne Lake and local attractions. The market benefits from steady demand from fishing enthusiasts, business travelers to nearby Monroe, and visitors to the Louisiana Delta region, with occupancy rates averaging 45-60% annually. Initial investment requirements typically range from $80,000-$150,000 for suitable properties, with renovation costs adding $15,000-$35,000 to optimize for short-term rentals, resulting in total cash-on-cash returns that often exceed traditional rental properties by 2-4 percentage points in this rural Louisiana market.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Farmerville, Louisiana, offering market analysis and property recommendations. Local real estate agents like Century 21 Buelow-Miller Realty and Coldwell Banker Southern Realty have experience with investment properties in the Union Parish area and understand the local vacation rental market dynamics. National services including Awning, RedAwning, and AirDNA provide comprehensive market data and property management solutions for Airbnb investors targeting the Farmerville market. Roofstock and BiggerPockets also offer resources and connections for short-term rental investors looking in smaller Louisiana markets. Local property management companies such as North Louisiana Property Management and regional firms like Vacasa can handle day-to-day operations for investors purchasing Airbnb properties in the Farmerville area, while platforms like Mashvisor and RentSpree provide analytical tools to evaluate potential returns on vacation rental investments in this emerging North Louisiana market.