Is Fellsmere, Florida Good for Airbnb Investment?

To start an Airbnb in Fellsmere, Florida, begin by researching local zoning laws and regulations through the City of Fellsmere Planning Department, as the city may require short-term rental permits and compliance with residential zoning restrictions. Contact Indian River County for additional county-level requirements, including potential occupancy taxes and safety inspections. Obtain necessary permits such as a business tax receipt from Fellsmere City Hall, register for Florida sales tax with the Department of Revenue, and secure appropriate insurance coverage for short-term rentals. Find a suitable property by searching residential areas that allow short-term rentals, focusing on single-family homes or condos near attractions like the Fellsmere Frog Leg Festival grounds or outdoor recreation areas. Furnish the property with essential amenities including comfortable bedding, kitchen appliances, Wi-Fi, air conditioning, and local guidebooks highlighting nearby Sebastian Inlet State Park and Vero Beach attractions. Create your Airbnb listing with professional photos, competitive pricing around $80-150 per night based on local market rates, and detailed descriptions emphasizing proximity to beaches and nature preserves. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or lockbox systems, maintaining the property regularly, and ensuring compliance with Fellsmere's noise ordinances and parking requirements while building positive guest reviews to increase bookings.

To identify profitable short-term rental properties in Fellsmere, Florida, focus on properties within 15-20 minutes of popular attractions like the Sebastian Inlet State Park, Vero Beach, and Blue Cypress Lake, as Fellsmere's rural charm attracts visitors seeking nature-based experiences and proximity to coastal areas. Target 2-4 bedroom single-family homes or properties with unique features like waterfront access, large outdoor spaces, boat parking, or historic character that can command $100-200 per night depending on seasonality. Conduct pricing analysis using AirDNA, Mashvisor, or STR Helper to evaluate average daily rates ($80-180), occupancy rates (40-70% annually with peaks December-April), and revenue potential ($25,000-60,000 annually) while monitoring competition through Airbnb and VRBO searches within a 10-mile radius. Research local competitors by analyzing their pricing strategies, amenities, guest reviews, and booking calendars to identify market gaps, then use tools like Rabbu, PriceLabs, or Beyond Pricing for dynamic pricing optimization. Leverage Fellsmere's proximity to Indian River County's agricultural tourism, fishing charters, and seasonal snowbird population by targeting properties under $300,000 that can achieve 12-18% cash-on-cash returns after accounting for management fees (15-25%), cleaning costs ($75-125), insurance increases, and local regulations including potential licensing requirements and occupancy taxes.

To obtain an Airbnb/STR permit in Fellsmere, Florida, you must first contact the Fellsmere City Hall at 19 North Cypress Street to inquire about short-term rental regulations and obtain application forms, as the city requires a business tax receipt and special use permit for vacation rentals. Required documents typically include a completed application form, property deed or lease agreement, floor plan of the rental unit, proof of insurance with minimum $1 million liability coverage, contact information for a local property manager if you're not local, and parking plan showing adequate spaces for guests. The application fee is estimated at $150-250 for the business tax receipt plus $300-500 for the special use permit, with annual renewal fees of approximately $75-150. You must also comply with Indian River County health department requirements if applicable, obtain a Florida sales tax permit from the Department of Revenue, and ensure the property meets all building and fire safety codes. The approval timeline typically takes 30-60 days depending on completeness of application and any required inspections. Fellsmere specific requirements include maintaining the property in residential character, providing adequate parking (typically 2 spaces minimum), having a local contact available 24/7 for issues, limiting occupancy based on bedroom count plus two additional guests, and ensuring quiet hours compliance between 10 PM and 8 AM to maintain neighborhood compatibility.

Short-term rentals (STRs) are generally legal in Fellsmere, Florida, as the city has not enacted specific prohibitions against vacation rentals, though property owners must comply with standard zoning regulations and obtain proper business licenses. The city follows Indian River County's broader regulatory framework, which typically allows STRs in residential areas with basic registration requirements and adherence to occupancy limits, noise ordinances, and parking restrictions. Properties must meet standard health and safety codes, and owners are generally required to provide local contact information for guest issues. Fellsmere has not implemented the more restrictive measures seen in some Florida coastal communities, though the city reserves the right to address nuisance properties through existing code enforcement mechanisms. As of recent years, there have been no major legal changes specifically targeting STRs in Fellsmere, though property owners should verify current business license requirements with the city clerk and ensure compliance with any homeowners association restrictions that may apply to their specific property.

The best areas for Airbnb investment in Fellsmere, Florida are primarily concentrated around the historic downtown district along Broadway Street and the residential neighborhoods near the Fellsmere Frog Leg Festival grounds, as this small city of approximately 5,000 residents attracts visitors mainly during the annual Frog Leg Festival in January which draws over 75,000 attendees. The downtown area offers charm with its 1920s architecture and proximity to local restaurants and shops, making it attractive for festival-goers and tourists exploring Florida's agricultural heritage. Properties near the Stick Marsh and Farm 13 reservoir areas are also promising due to fishing and outdoor recreation tourism, particularly attracting visitors from nearby Vero Beach and Sebastian who seek more affordable accommodations while accessing world-class bass fishing. The residential areas along Fellsmere Road (CR 512) provide good investment potential due to their accessibility to both I-95 and US-1, attracting business travelers and tourists heading to the Space Coast or Treasure Coast regions who prefer quieter, more affordable lodging options compared to beachfront properties in Vero Beach or Melbourne.

Airbnb properties in Fellsmere, Florida are subject to Florida's state transient rental tax of 6% on the total rental amount, which is collected by the Florida Department of Revenue and must be remitted monthly by hosts who exceed $100 in monthly collections. Additionally, Indian River County imposes a 5% tourist development tax on short-term rentals under 6 months, bringing the total occupancy tax to approximately 11%. The City of Fellsmere does not currently impose a separate municipal lodging tax as of 2023. Hosts must register with the Florida Department of Revenue to obtain a sales tax certificate and file returns by the 20th of each month following the collection period. Indian River County's tourist development tax is collected through the same state system and automatically remitted to the county. There are no standard exemptions for stays under 30 days, though monthly rentals exceeding 30 days may be exempt from the transient rental tax but could still be subject to regular sales tax. Airbnb typically collects and remits these taxes automatically for hosts in Florida, but individual hosts remain ultimately responsible for compliance and should verify their registration status with state authorities.

The total cost to start an Airbnb in Fellsmere, Florida is approximately $285,000-$335,000. Property purchase costs around $250,000 based on median home prices in this small Indian River County city. Furnishing a 2-3 bedroom property requires $15,000-$20,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, vacation rental permits, and potential HOA approvals. Insurance including landlord and short-term rental coverage costs $2,500-$3,500 annually. Utility deposits and connections for electricity, water, internet, and cable run $1,000-$1,500. First six months operating costs including utilities ($900/month), cleaning services ($100 per turnover), maintenance reserves ($200/month), platform fees (3% of bookings), and property management if used (10-20% of revenue) total approximately $8,000-$12,000 assuming moderate occupancy rates of 50-60% in this emerging vacation rental market near Vero Beach and Sebastian.

Airbnb properties in Fellsmere, Florida typically generate annual revenues between $15,000-$35,000 for single-family homes, with average daily rates ranging from $80-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties within 30 minutes of Vero Beach or Sebastian typically achieve 45-65% occupancy rates, resulting in net profit margins of 15-25% for well-managed properties. Success factors include proximity to outdoor attractions like the St. Sebastian River State Park, competitive pricing against nearby coastal markets, professional photography, and responsive guest communication. A typical 3-bedroom home purchased for $200,000 in Fellsmere might generate $28,000 in annual revenue with $18,000 in expenses, yielding a 5% cash-on-cash return before mortgage considerations, though properties with unique features like waterfront access or luxury amenities can achieve significantly higher returns of 8-12%.

Based on Fellsmere, Florida market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the city. Properties near the Sebastian River or historic downtown areas command higher nightly rates of $85-120, while standard residential properties average $65-95 per night with 60-75% occupancy rates throughout the year. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically achieved in 6-8 years. The market benefits from proximity to Vero Beach tourism, Sebastian Inlet State Park visitors, and seasonal snowbird rentals, with peak seasons generating 25-35% higher returns during winter months and summer beach season. Properties requiring minimal renovation show faster returns, while full rehabs may extend profitability timelines to 30-36 months but can achieve the higher end ROI figures of 16-18% annually once stabilized.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Fellsmere, Florida. Local real estate agents specializing in investment properties include Treasure Coast Sotheby's International Realty, Dale Sorensen Real Estate, and Coldwell Banker Paradise, with agents like those at RE/MAX Crown Realty and Century 21 Beggins Enterprises having experience in the Fellsmere market since around 2018. National services include Mashvisor (launched 2014), which offers Airbnb analytics and property recommendations, AirDNA for market data analysis, Awning for full-service Airbnb investment management, Roofstock for turnkey rental properties, and BiggerPockets for investor networking and deal sourcing. RedAwning provides vacation rental market analysis, while local property management companies like VTrips and Vacasa (operating in Florida since 2016) offer end-to-end Airbnb management services that help investors identify profitable properties in the Fellsmere area, which has seen growing interest due to its proximity to Vero Beach and Sebastian River attractions.