Is Flagler Beach, Florida Good for Airbnb Investment?

To start an Airbnb in Flagler Beach, Florida, begin by researching local regulations through the City of Flagler Beach Planning Department, as the city requires short-term rental properties to obtain a Conditional Use Permit and comply with zoning restrictions that typically limit rentals to certain residential areas. Contact Flagler County for additional county-level requirements and obtain a Florida state sales tax permit through the Department of Revenue, as you'll need to collect and remit tourist development taxes (approximately 5-6% in Flagler County). Find a suitable property within permitted zones, preferably near the beach or Flagler Beach State Park, with properties ranging from $300,000-$800,000 depending on proximity to ocean. Furnish the property with coastal-themed décor, essential amenities including high-speed internet, air conditioning, beach equipment, and ensure compliance with safety requirements like smoke detectors and fire extinguishers. Create listings on Airbnb, VRBO, and Booking.com with professional photography highlighting beach access and local attractions like the Flagler Beach Pier and scenic A1A coastal drive. For management, either handle bookings personally or hire local property management companies like Flagler Beach Vacation Rentals or Coastal Properties, which typically charge 15-25% commission, and establish relationships with local cleaning services, maintenance contractors, and consider installing keyless entry systems for seamless guest access while maintaining the property's appeal to visitors seeking Florida's Historic Coast experience.

For identifying profitable short-term rental properties in Flagler Beach, Florida, focus on oceanfront or ocean-view properties within walking distance of the beach, particularly along A1A and side streets between 6th and 20th Streets North where vacation rental density is highest. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, pools, parking, and hurricane-resistant features, as these command $150-400 per night depending on proximity to beach and size. Analyze comparable properties using AirDNA and Mashvisor to identify average daily rates of $180-250 for beachfront units and $120-180 for properties 2-3 blocks inland, with peak season occupancy rates of 75-85% from March through August. Research competition by monitoring active listings on Airbnb and VRBO within a 0.5-mile radius, noting that successful properties typically generate $40,000-80,000 annually with beachfront commanding premium rates. Utilize STR-specific tools like Rabbu, AllTheRooms, and local market data from the Flagler County Property Appraiser website, while ensuring compliance with Flagler Beach's short-term rental ordinances which require business tax receipts and adherence to occupancy limits, and consider properties near popular attractions like Flagler Beach Pier, Washington Oaks Gardens State Park, and the scenic Intracoastal Waterway for maximum rental appeal.

To obtain an Airbnb/STR permit in Flagler Beach, Florida, you must first contact the Flagler Beach City Hall at 105 South 2nd Street or call (386) 517-2000 to obtain the short-term rental application form. Required documents typically include a completed application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the property, contact information for a local property manager or 24-hour contact person within 30 miles, and a business tax receipt from Flagler County. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. Submit your complete application to the Building and Zoning Department, schedule a required safety inspection which checks for smoke detectors, carbon monoxide detectors, fire extinguishers, and proper egress windows. The approval timeline is typically 30-45 days from submission of a complete application. Flagler Beach specific requirements include maintaining occupancy limits based on bedrooms (typically 2 people per bedroom plus 2 additional), providing adequate parking spaces (usually 1 space per bedroom), ensuring the property meets all building and fire codes, and maintaining a current business tax receipt. Once approved, you must display the permit number in all advertising and renew annually by December 31st.

Short-term rentals (STRs) are legal in Flagler Beach, Florida, but operate under specific municipal regulations that require property owners to obtain a business tax receipt and comply with zoning restrictions. The city allows STRs in most residential areas but prohibits them in certain single-family residential zones, particularly R-1 districts, while permitting them in multi-family and commercial zones. Properties must meet safety requirements including smoke detectors, fire extinguishers, and emergency contact information, with a maximum occupancy limit of two people per bedroom plus two additional guests. Recent changes around 2019-2020 included stricter enforcement of noise ordinances, parking requirements (typically two spaces per unit), and mandatory registration with the city, while also implementing a complaint-driven enforcement system for violations. The city requires a 24-hour local contact person and has established fines for non-compliance, with some areas near the beach having additional restrictions on density to preserve neighborhood character.

The most attractive Airbnb investment areas in Flagler Beach, Florida include the Oceanfront District along A1A, particularly between 6th Street South and 10th Street North, which offers prime beachfront access and commands premium rates year-round due to consistent tourist demand from visitors seeking direct beach access. The Historic Flagler Beach area near the pier (around 200-500 A1A South) is highly desirable for its walkability to restaurants, shops, and the iconic fishing pier, attracting both leisure tourists and fishing enthusiasts. The Bulow Creek area on the western side provides a more secluded, nature-focused experience appealing to eco-tourists and those seeking kayaking, fishing, and wildlife viewing opportunities. The Central Beach District (around 1000-1500 A1A South) offers a balance of beach access and affordability while still capturing strong rental demand from families and couples. These areas benefit from Flagler Beach's growing reputation as a quieter alternative to Daytona Beach, consistent tourism from motorcycle events like Bike Week and Biketoberfest, fishing tournaments, and the town's appeal to retirees and weekend visitors from Orlando and Jacksonville who drive rental demand throughout the year.

In Flagler Beach, Florida, Airbnb hosts are subject to multiple lodging and occupancy taxes including the Florida state sales tax of 6%, Flagler County tourist development tax of 4%, and a local bed tax that varies but typically ranges from 1-3% for short-term rentals under 6 months. These taxes are generally collected automatically by Airbnb through their tax collection service for most bookings, with the platform remitting payments directly to the appropriate tax authorities on a monthly basis. However, hosts may still need to register with the Florida Department of Revenue and obtain a sales tax permit, and should verify their registration status with Flagler County for the tourist development tax. Properties rented for 30 days or longer may be exempt from tourist development taxes, and certain agricultural or educational properties may qualify for exemptions under specific circumstances. Hosts who collect taxes independently must remit Florida sales tax monthly if collections exceed $200, while tourist development taxes are typically due monthly to Flagler County, with specific deadlines usually falling on the 20th of the following month.

The total cost to start an Airbnb in Flagler Beach, Florida is approximately $485,000-$565,000. Property purchase costs around $400,000-$450,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom coastal property requires $15,000-$25,000 for quality furniture, appliances, linens, and beach-themed decor. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,000. Permits and fees including short-term rental license, business license, and city registration total $1,500-$2,500 annually. Insurance for short-term rentals runs $3,000-$4,000 per year, significantly higher than standard homeowner's insurance. Utilities including electricity, water, internet, cable, and trash service average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance, supplies, property management software, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees of $200-$400 monthly and a recommended cash reserve of $10,000-$15,000 for unexpected repairs and vacancy periods.

Airbnb properties in Flagler Beach, Florida demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for typical 2-3 bedroom properties, driven by the area's year-round tourism appeal and proximity to both Daytona Beach and St. Augustine. Operating expenses typically run 40-50% of gross revenue, including property management fees (15-25%), 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 25-35% for well-managed properties. Success factors include oceanfront or near-beach locations which command 30-40% premium rates, professional photography and staging, dynamic pricing strategies, and maintaining super-host status through consistent 4.8+ ratings. Properties within walking distance of Flagler Beach Pier and A1A typically achieve 70-85% occupancy rates with average daily rates of $150-280 depending on seasonality, while inland properties average $95-180 nightly but maintain similar occupancy due to lower pricing. Case studies from 2022-2023 show renovated beach cottages purchased for $400,000-600,000 generating $45,000-75,000 annual net income after expenses, representing 8-15% cash-on-cash returns, with peak performance during summer months and special events like Bike Week spillover from nearby Daytona Beach.

Airbnb investments in Flagler Beach, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's strong vacation rental demand and proximity to beaches. Properties in Flagler Beach generally reach profitability within 18-24 months, with average daily rates of $150-250 depending on property size and location. The market benefits from year-round tourism, though peak seasons (March-August) can command 30-40% higher rates. Investment properties averaging $400,000-600,000 can expect gross rental income of $45,000-75,000 annually, with net returns after expenses typically falling between $25,000-45,000. Occupancy rates in Flagler Beach average 65-75% annually, with well-managed properties achieving 80%+ occupancy during peak months, making the timeframe to break-even on initial investment approximately 6-8 years for cash purchases or 4-6 years when factoring in appreciation and mortgage paydown.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for investors seeking profitable short-term rental opportunities in Flagler Beach, Florida. Local real estate agents specializing in vacation rental investments include Flagler Beach Realty Group, Coastal Properties of Flagler, and Palm Coast Real Estate Partners, while regional specialists like Florida Vacation Rental Investments and Coastal Investment Properties focus specifically on STR acquisitions along the Flagler County coastline. National services supporting Airbnb investors in the area include Awning (property management and acquisition consulting), Mashvisor (investment property analytics), BiggerPockets (investor networking and deal sourcing), RedAwning (vacation rental market analysis), and AirDNA (short-term rental data and market insights). Additional local services include Flagler Beach Property Management Company, Seaside STR Consulting, and Atlantic Coast Vacation Rentals, which provide market expertise, property management, and investment guidance specifically for the Flagler Beach vacation rental market, with most of these services expanding their Airbnb-focused offerings significantly between 2019-2023 as the short-term rental market grew in this coastal Florida destination.