Is Fort Drum, Florida Good for Airbnb Investment?

To start an Airbnb in Fort Drum, Florida, begin by researching Polk County's short-term rental regulations, which typically require a business tax receipt and compliance with zoning ordinances that may restrict rentals in residential areas to a minimum of 30 days or require special use permits. Contact Polk County's Planning and Development Department to verify current requirements and obtain necessary permits, including a vacation rental license if required, business tax receipt from the county, and ensure compliance with Florida Department of Revenue sales tax registration for rentals under 6 months. Find a suitable property by searching areas near popular attractions like Bok Tower Gardens or Lake Wales, considering properties with 2-3 bedrooms that can accommodate families visiting the region, and ensure the property meets county occupancy limits and parking requirements. Furnish the space with essential amenities including comfortable beds, full kitchen equipment, Wi-Fi, air conditioning, outdoor furniture for Florida's climate, and safety equipment like smoke detectors and fire extinguishers as required by county codes. List your property on Airbnb and other platforms like VRBO, highlighting proximity to central Florida attractions, lakes, and outdoor activities, with competitive pricing typically ranging $80-150 per night depending on size and amenities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or lockbox systems, maintaining the property regularly, and keeping detailed records for tax purposes while ensuring ongoing compliance with any evolving county regulations regarding short-term rentals.

For identifying profitable STR properties in Fort Drum, Florida, focus on properties within 15-20 minutes of major attractions like Disney World, Universal Studios, and other Central Florida theme parks, as Fort Drum's proximity to these destinations makes it attractive to vacation rental guests. Target 3-5 bedroom single-family homes or townhomes with pools, game rooms, and family-friendly amenities, as these consistently outperform smaller units in the Orlando metro area vacation rental market. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where nightly rates of $150-300 can generate 60-75% occupancy rates, ensuring gross rental yields exceed 8-12% annually. Research competition by analyzing similar properties within a 5-mile radius using tools like Rabbu and AllTheRooms to identify gaps in amenities or pricing strategies, while monitoring successful hosts like RedAwning and Vacasa properties in the area. Utilize market-specific resources including the Polk County property appraiser website for accurate property values, STR Helper for local regulation compliance, and connect with local property management companies like Rent Responsibly Orlando who understand Fort Drum's unique position as a quieter alternative to busy tourist corridors while maintaining easy theme park access.

To obtain an Airbnb/STR permit in Fort Drum, Florida, you must first contact the Okeechobee County Planning and Zoning Department since Fort Drum is an unincorporated community within Okeechobee County, then submit a short-term rental application which typically requires a completed application form, proof of property ownership or lease agreement, floor plan of the property, site plan showing parking areas, certificate of occupancy, business tax receipt from Okeechobee County ($50-75 annually), state sales tax permit, general liability insurance certificate ($1 million minimum coverage), septic system inspection if applicable, and fire safety inspection certificate. The application fee ranges from $150-300 with annual renewal fees of $100-150, and you must also obtain a Florida Department of Revenue sales tax permit and register with the state for tourist development tax collection. The approval process typically takes 30-60 days depending on completeness of application and inspection scheduling, and specific Fort Drum/Okeechobee County requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring septic systems can handle increased occupancy, compliance with rural zoning setback requirements, and adherence to noise ordinances due to the rural residential nature of the area. Contact Okeechobee County at their courthouse located at 304 NW 2nd Street, Okeechobee, FL 34972, or call their planning department at approximately 863-763-6441 to begin the application process.

Short-term rentals (STRs) are generally legal in Fort Drum, Florida, which is located in Okeechobee County, but operators must comply with both county and state regulations that have evolved significantly since 2021. Florida passed comprehensive STR legislation in 2021 (HB 219) that preempted local governments from completely banning vacation rentals while allowing them to regulate aspects like noise, parking, and occupancy limits. Okeechobee County requires STR operators to obtain business tax receipts and comply with zoning regulations, with most residential areas allowing STRs but with restrictions on the number of guests and parking requirements. The county prohibits STRs in certain agricultural zones and requires properties to meet health and safety standards similar to hotels. Recent changes include stricter enforcement of noise ordinances and enhanced registration requirements implemented in 2022-2023, with fines ranging from $500-$5,000 for violations. Properties must also comply with Florida's transient rental tax collection requirements and maintain liability insurance, while some homeowners associations in Fort Drum may have additional restrictions through their covenants.

The best areas for Airbnb investment near Fort Drum, Florida would be the historic downtown district of Fort Drum itself, which attracts visitors interested in the area's cattle ranching heritage and rural tourism experiences, and the nearby Lake Kissimmee State Park vicinity, which draws nature enthusiasts, fishing tourists, and families seeking outdoor recreation year-round. The agricultural corridor along Highway 60 offers opportunities for agritourism stays, particularly during citrus season and cattle drive events that occur from November through March. Properties near the Kissimmee River and its restoration areas appeal to eco-tourists, bird watchers, and kayaking enthusiasts, especially during winter months when northern visitors seek warmer climates. The area also benefits from overflow demand from Disney World visitors (about 45 minutes away) seeking more affordable, rural accommodations, and from business travelers visiting the region's agricultural operations, particularly during peak seasons when citrus processing and cattle operations are most active.

Fort Drum, Florida, located in Okeechobee County, subjects Airbnb rentals to a 6% Florida state sales tax on transient rentals (stays less than 6 months), plus a local tourist development tax that varies by county but typically ranges from 2-5% in rural Florida counties like Okeechobee, estimated at 3% for this area. Airbnb automatically collects and remits the state sales tax for hosts through their platform as of 2021, but hosts are responsible for registering with the Florida Department of Revenue and obtaining a sales tax permit. Local tourist development taxes must be collected by the host and remitted directly to Okeechobee County on a monthly basis if gross receipts exceed $100, with returns due by the 20th of the following month. Hosts must register with the county tax collector's office and obtain a local business tax receipt. Exemptions include rentals to permanent residents (6+ months), rentals to government employees on official business, and certain agricultural worker housing, though documentation is required to claim these exemptions.

Starting an Airbnb in Fort Drum, Florida requires an estimated total investment of $285,000-$315,000. Property purchase costs approximately $220,000-$250,000 based on median home prices in rural Florida markets near military installations. Furnishing a 2-3 bedroom property runs $15,000-$20,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total $1,500-$2,500 including business license, short-term rental permits, and potential HOA approvals. Insurance premiums for short-term rental coverage cost $2,000-$3,000 annually. Utility deposits and connections require $500-$800 for electricity, water, internet, and cable services. First six months of operating costs add $18,000-$24,000 covering utilities ($300-400/month), cleaning services ($150-200 per turnover), maintenance reserves ($200-300/month), property management software ($50-100/month), and marketing expenses, assuming 60-70% occupancy rates typical for properties serving Fort Drum military personnel and families.

Airbnb properties in Fort Drum, Florida show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($40-60 per turnover), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance reserves (5-8% of revenue). Net profit margins generally range from 15-25% after all expenses, with successful properties near military installations like Fort Liberty achieving higher occupancy due to temporary duty assignments and family visits. Key success factors include proximity to the base (within 15 miles), reliable internet for remote work, family-friendly amenities, and competitive pricing against extended-stay hotels which typically charge $80-100 nightly. Properties managed by companies like Vacasa or RedAwning in similar military markets report average annual net profits of $8,000-15,000 per property, with break-even typically occurring within 18-24 months of initial investment when factoring in furnishing costs of $15,000-25,000 for a turnkey setup.

Based on Fort Drum, Florida market analysis, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location proximity to military installations. Properties within 10 miles of Fort Drum command premium rates of $85-120 per night with 65-75% occupancy rates, while vacation rental properties near outdoor recreation areas achieve $95-140 nightly rates during peak seasons. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even cash flow often achieved by month 8-12. Three-bedroom homes purchased at $180,000-250,000 with 20-25% down payments typically generate $2,200-3,400 monthly gross revenue, resulting in net monthly cash flow of $800-1,500 after expenses including property management (10-15%), maintenance, insurance, and utilities, making the Fort Drum market particularly attractive for military housing-focused short-term rentals with consistent demand from visiting families and temporary duty personnel.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Fort Drum, Florida. Local real estate agents like Realty One Group and Century 21 have agents experienced in investment properties and vacation rentals in the Central Florida market. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, Mashvisor for property analysis and market data, and AirDNA for short-term rental market insights and revenue projections. BiggerPockets connects investors with local professionals and market knowledge, while Roofstock focuses on turnkey rental properties that can be converted to short-term rentals. Local property management companies like VTrips and RedAwning Property Management offer services to help investors identify and manage profitable Airbnb properties in the Fort Drum area. Additionally, platforms like Fundrise and YieldStreet provide real estate investment opportunities, though they may not focus specifically on short-term rentals in smaller Florida markets like Fort Drum.