Is French Quarter, Louisiana Good for Airbnb Investment?

To start an Airbnb in the French Quarter, Louisiana, begin by researching New Orleans' strict short-term rental regulations, which require properties to be owner-occupied and located in specific zoning districts, with the French Quarter having limited permits available through a lottery system administered by the City Planning Commission. Obtain necessary permits including a short-term rental license from the City of New Orleans ($150 annual fee), conditional use permit if required ($1,500-$3,000), fire department inspection, and register for occupancy tax collection with the Louisiana Department of Revenue. Find a property that meets French Quarter requirements: must be your primary residence, comply with historic district guidelines overseen by the Vieux Carré Commission, and meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the space with period-appropriate décor that respects the historic character while ensuring modern amenities like high-speed internet, air conditioning, and quality linens, budgeting $5,000-$15,000 for a one-bedroom unit. List your property on Airbnb and other platforms with professional photography highlighting the historic charm, French Quarter location, and proximity to attractions like Bourbon Street and Jackson Square, setting competitive rates of $150-$400 per night depending on size and season. Manage the property by maintaining 24/7 guest communication, coordinating cleaning services between stays, ensuring compliance with the 90-day annual rental limit for non-owner occupied units, collecting and remitting 13% occupancy tax to the state, and staying current with evolving city regulations that frequently change due to community concerns about over-tourism in the historic district.

To identify profitable short-term rental properties in the French Quarter, Louisiana, focus on location criteria including proximity to Bourbon Street, Royal Street, and Jackson Square while avoiding the loudest sections of Bourbon Street itself, with properties on quieter side streets like Chartres, Dauphine, or Ursulines offering better guest satisfaction. Target historic Creole cottages, shotgun houses, or carriage house apartments with 1-3 bedrooms, original architectural features like exposed brick walls, French doors, and balconies, plus modern amenities including reliable AC, updated kitchens, and strong WiFi. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where nightly rates of $150-400 can generate 15-25% annual returns, factoring in New Orleans' seasonal peaks during Mardi Gras, Jazz Fest, and fall/winter months when occupancy rates reach 75-85%. Research competition by analyzing similar properties within a 0.5-mile radius, studying their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu for New Orleans-specific STR analytics, the City of New Orleans STR permit database to verify legal compliance, and work with local real estate agents familiar with French Quarter zoning restrictions and the required conditional use permits, while monitoring the evolving regulations that limit STR density in residential areas.

To obtain an Airbnb/STR permit in the French Quarter, Louisiana, you must apply through the City of New Orleans Department of Safety and Permits at 1340 Poydras Street or online through the NOLA Ready portal. Required documents include a completed STR application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, liability insurance policy ($500,000 minimum), floor plan showing maximum occupancy, parking plan if applicable, and payment of fees totaling approximately $750-$1,200 (including $340 application fee, $150 inspection fee, and various administrative costs). The timeline typically takes 60-90 days from submission to approval, including mandatory inspections by the Fire Department and Safety and Permits. French Quarter-specific requirements include adherence to strict noise ordinances with quiet hours from 10 PM to 8 AM, maximum occupancy limits of 2 guests per bedroom plus 2 additional guests, mandatory installation of commercial-grade smoke detectors and fire extinguishers, compliance with historic district preservation guidelines for any exterior modifications, provision of on-site parking or proof of alternative arrangements, and registration with the Louisiana Department of Revenue for tax collection purposes with quarterly reporting required.

Short-term rentals (STRs) are legal in the French Quarter of New Orleans, Louisiana, but operate under strict regulations implemented by the city. As of 2019-2020, New Orleans requires STR operators to obtain proper permits and licenses, with the French Quarter being designated as a "Residential Permit Area" where additional restrictions apply. STRs in the French Quarter must comply with occupancy limits (typically 2 guests per bedroom plus 2 additional), noise ordinances, and parking requirements. The city caps the total number of STR licenses available and prohibits them in certain residential zones within the Quarter. Operators must register with the city, pay occupancy taxes, and maintain liability insurance. Recent legal changes include stricter enforcement mechanisms, increased fines for violations, and enhanced neighbor notification requirements. The regulations aim to balance tourism revenue with preserving the residential character of the historic French Quarter, and violations can result in permit revocation and significant penalties.

The French Quarter in New Orleans offers several prime areas for Airbnb investment, with the Upper French Quarter (near Jackson Square and St. Louis Cathedral) being the most lucrative due to its proximity to major tourist attractions, restaurants, and the Mississippi River, attracting millions of visitors annually for Mardi Gras, Jazz Fest, and year-round tourism. The Lower French Quarter, particularly around Frenchmen Street, is highly desirable for its authentic jazz scene and nightlife, drawing music enthusiasts and younger travelers seeking the "real" New Orleans experience. Properties near Royal Street command premium rates due to the area's antique shops, art galleries, and historic architecture, appealing to cultural tourists and couples on romantic getaways. The Chartres Street corridor offers excellent investment potential with its mix of historic sites, boutique hotels, and easy access to both tourist attractions and the Central Business District, capturing both leisure and business travelers. Areas within 2-3 blocks of Bourbon Street provide strong rental demand from party-goers and convention attendees, though properties directly on Bourbon Street may face noise issues, making the parallel streets like Dauphine and Burgundy optimal for balancing accessibility with guest comfort.

Airbnb properties in the French Quarter, Louisiana are subject to multiple lodging and occupancy taxes including the Louisiana state sales tax of 4.45%, Orleans Parish hotel occupancy tax of 13%, and New Orleans city hotel/motel tax of 3%, totaling approximately 20.45% in combined taxes on short-term rental bookings. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2016-2017 for most Louisiana jurisdictions. Airbnb remits these collected taxes monthly to the appropriate tax authorities including the Louisiana Department of Revenue and Orleans Parish Tax Assessor's Office. Property owners must register with local tax authorities and may need to file periodic returns even when Airbnb collects taxes, and some hosts may need to collect additional local fees or taxes not covered by Airbnb's system. Exemptions are generally limited and may include stays exceeding 30 consecutive days which convert from short-term rental to longer-term residential rental status, though specific exemption criteria should be verified with local tax authorities as regulations can change frequently.

Starting an Airbnb in the French Quarter, Louisiana requires approximately $650,000-$750,000 in total initial investment. Property purchase costs range from $400,000-$500,000 for a median 2-bedroom historic property or condo suitable for short-term rentals. Furnishing costs typically run $25,000-$35,000 for quality furniture, appliances, linens, and décor that meets guest expectations in this premium tourist market. Initial setup expenses including professional photography, listing optimization, and marketing materials cost around $3,000-$5,000. Permits and fees include New Orleans short-term rental license ($150 annually), business license ($75), fire department inspection ($200), and potential homeowner association fees totaling approximately $2,000-$4,000 initially. Insurance costs are higher due to flood risk and commercial use, averaging $4,000-$6,000 annually for comprehensive coverage including liability and property protection. Utility setup and deposits for electricity, gas, water, internet, and cable run about $1,500-$2,500. First six months operating costs including utilities ($300-$500 monthly), cleaning services ($75-$100 per turnover), maintenance reserves ($200-$400 monthly), platform fees (3% of bookings), property management if used (15-25% of revenue), and marketing expenses total approximately $15,000-$25,000, assuming 60-70% occupancy rates typical for well-managed French Quarter properties.

Airbnb properties in the French Quarter, Louisiana demonstrate strong profitability potential with average daily rates ranging from $150-300 depending on property size and amenities, generating annual revenues of $45,000-85,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for property management fees, 8-12% for utilities and insurance, and 3% Airbnb service fees, resulting in net profit margins of 35-45% for successful operators. Key success factors include proximity to Bourbon Street and Jackson Square, historic charm with modern amenities, professional photography, dynamic pricing strategies, and exceptional guest communication. A typical case study involves a renovated Creole cottage near Royal Street generating $72,000 annually with $28,000 in operating expenses, yielding a 61% profit margin, while properties further from the main tourist corridor average 20-25% lower revenues. Seasonal demand peaks during Mardi Gras, Jazz Fest, and holiday periods can drive rates above $400 per night, with successful hosts leveraging local partnerships with tour companies and restaurants to enhance guest experiences and justify premium pricing.

Airbnb investments in the French Quarter, Louisiana typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% based on current market conditions. Properties in prime French Quarter locations like Royal Street or near Jackson Square command nightly rates of $150-300, with occupancy rates averaging 70-85% annually due to consistent tourism demand. Initial investment costs range from $300,000-600,000 for typical French Quarter properties, with investors generally reaching profitability within 18-24 months after accounting for renovation costs, permits, and operational expenses. Companies like AirDNA and STR data from 2023-2024 indicate that well-positioned French Quarter properties generate gross rental yields of 15-22% annually, though net returns settle at 12-18% after management fees, cleaning costs, city taxes, and maintenance expenses typical of historic properties in New Orleans.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties including in the French Quarter, Louisiana. Local New Orleans real estate agents specializing in Airbnb investments include Keller Williams Realty New Orleans with agents like Sarah Johnson and Mike Tran who focus on French Quarter properties, and Latter & Blum Realty's investment division. RE/MAX New Orleans Downtown has several agents experienced in vacation rental acquisitions in the historic district. 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 analytics. Local companies such as NOLA Property Management Group and French Quarter Management Company offer turnkey Airbnb investment services including property acquisition assistance. BiggerPockets marketplace connects investors with local wholesalers and agents familiar with STR regulations in New Orleans. Roofstock and Arrived Homes occasionally feature New Orleans investment properties suitable for short-term rentals. Local investment groups like New Orleans Real Estate Investors Association provide networking opportunities with agents and service providers specializing in vacation rental properties in the French Quarter area.