Is Grand Isle, Louisiana Good for Airbnb Investment?

To start an Airbnb in Grand Isle, Louisiana, begin by researching local regulations through Jefferson Parish government offices, as Grand Isle requires short-term rental permits and compliance with zoning ordinances that typically allow vacation rentals in residential areas given the town's tourism focus. Contact Jefferson Parish Planning Department at (504) 736-6320 to obtain the necessary short-term rental permit, which costs approximately $150-300 annually and requires property inspection, insurance verification, and tax registration. Find a suitable property near the beach or fishing areas, with 2-3 bedroom homes ranging from $200,000-400,000, or consider renting a property with owner permission for subletting. Furnish the space with coastal-themed, durable furniture including quality mattresses, linens, kitchen essentials, and outdoor furniture for the Gulf Coast climate, budgeting $8,000-15,000 for a complete setup. Register for Louisiana sales tax and Jefferson Parish occupancy tax (typically 3-5%), then list your property on Airbnb, VRBO, and local rental sites, highlighting proximity to Grand Isle State Park, fishing charters, and beach access with competitive pricing of $100-250 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services ($75-125 per turnover), maintenance contractors familiar with hurricane preparedness, and consider property management companies like local firms that charge 15-25% commission, while maintaining emergency protocols for weather events and providing guests with information about local fishing guides, restaurants like The Lighthouse Restaurant, and seasonal considerations for hurricane season from June through November.

To identify profitable short-term rental properties in Grand Isle, Louisiana, focus on waterfront or near-water locations within walking distance of beaches, fishing charters, and the Grand Isle State Park, as this barrier island community attracts primarily fishing enthusiasts, beach-goers, and oil industry workers. Target properties with 2-4 bedrooms, boat parking or dock access, fish cleaning stations, outdoor spaces, and hurricane-resistant features, as these amenities command premium rates from the fishing and recreational boating market. Analyze pricing by researching comparable Airbnb and VRBO listings during peak fishing seasons (spring and fall) and summer beach season, with rates typically ranging $150-400 per night depending on size and waterfront access. Competition research should focus on the limited inventory of existing STRs on the island, studying their occupancy rates, amenities, and guest reviews to identify gaps in the market. Utilize AirDNA for market data specific to Grand Isle, monitor Jefferson Parish regulations for STR compliance, leverage local real estate agents familiar with the island's unique market dynamics, and consider properties that can serve both recreational tourists and temporary housing for oil industry workers who frequently need extended stays in the area.

To obtain an Airbnb/STR permit in Grand Isle, Louisiana, contact the Grand Isle Town Hall at 985-787-2997 or visit their office at 3101 Highway 1. Submit a completed short-term rental application along with proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy ($1 million minimum coverage), fire safety inspection certificate from the local fire department, and a site plan showing parking availability and property layout. The application fee is typically $150-200 with an annual renewal fee of $100-125. Grand Isle requires STR properties to have adequate parking (minimum 2 spaces), proper septic system capacity for maximum occupancy, hurricane evacuation plan posted in the property, and compliance with the town's noise ordinance with quiet hours from 10 PM to 8 AM. Properties must also meet Jefferson Parish health department standards and maintain a local contact person available 24/7. The approval process takes 4-6 weeks after submitting all required documents, and inspections by fire, health, and building departments must be passed before permit issuance. Annual renewals are required by December 31st each year, and the town limits the total number of STR permits issued to maintain the residential character of the community.

Short-term rentals (STRs) are legal in Grand Isle, Louisiana, but operate under specific municipal regulations that require property owners to obtain proper permits and business licenses from the town. Grand Isle, being a popular coastal vacation destination in Jefferson Parish, allows STRs in most residential areas but requires compliance with occupancy limits, parking requirements, and noise ordinances to maintain neighborhood character. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and proper egress routes, while owners are required to provide 24-hour contact information and respond to complaints within two hours. The town has implemented stricter enforcement measures since 2019-2020 following resident concerns about overcrowding and party houses, including increased fines for violations and more frequent inspections. Recent changes include enhanced registration requirements and stricter penalties for repeat offenders, though the town continues to support the STR industry given its importance to the local tourism economy. Property owners must also comply with Louisiana state tax requirements and may face additional restrictions during hurricane season or emergency declarations.

The most promising Airbnb investment areas in Grand Isle, Louisiana center around the beachfront districts along the Gulf of Mexico, particularly the areas near Grand Isle State Park and the eastern shoreline properties which attract tourists seeking fishing charters, beach access, and hurricane-free vacation periods typically from March through October. The central Grand Isle area near the marina and fishing docks offers strong potential due to the constant influx of sport fishing enthusiasts and charter boat customers, especially during peak fishing seasons for redfish, speckled trout, and offshore species. Properties near the Grand Isle Port Commission area benefit from oil industry workers and contractors who require temporary housing during project rotations, providing steady occupancy outside tourist seasons. The western end of the island, closer to the ferry landing and main access points, attracts visitors attending the annual Grand Isle Migratory Bird Festival in April and those participating in fishing tournaments throughout the year. Beach-adjacent properties command premium rates during summer months and major fishing competitions, while areas with boat launch access or dock space can charge higher rates year-round due to the island's reputation as Louisiana's premier saltwater fishing destination.

In Grand Isle, Louisiana, Airbnb properties are subject to Louisiana state sales tax of 4.45% and Jefferson Parish sales tax of approximately 5%, totaling around 9.45% on lodging rentals, though Grand Isle may have additional local occupancy taxes that could bring the total to 10-12%. 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 rental income. Airbnb automatically collects and remits state and local taxes in Louisiana as of 2019 through their platform for participating hosts, though hosts remain responsible for ensuring compliance and may need to register separately with local authorities. Properties rented for less than 30 consecutive days are generally subject to these occupancy taxes, while long-term rentals over 30 days may be exempt from certain lodging-specific taxes but still subject to general sales tax, and some exemptions may apply for government employees or certain non-profit organizations with proper documentation.

The total cost to start an Airbnb in Grand Isle, Louisiana would be approximately $285,000-$320,000. Property purchase costs average $180,000-$200,000 for a median 2-3 bedroom home suitable for vacation rental in this coastal fishing community. Furnishing costs range $15,000-$25,000 including beds, linens, kitchen appliances, outdoor furniture, and beach-themed decor appropriate for the Gulf Coast location. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic maintenance supplies. Permits and fees include Louisiana sales tax registration ($25), Grand Isle short-term rental permit ($200-$500), and business license ($100-$300). Insurance costs $2,500-$4,000 annually for comprehensive short-term rental coverage including hurricane protection essential for this barrier island location. Utility setup and deposits total $500-$800 for electricity, water, internet, and cable services. First six months operating costs including utilities ($1,800), cleaning services ($2,400), maintenance ($1,500), marketing ($600), and property management platform fees ($1,200) total approximately $7,500, bringing the complete startup investment to $285,000-$320,000 for launching a successful Airbnb operation in Grand Isle.

Airbnb properties in Grand Isle, Louisiana typically generate annual revenues between $15,000-$35,000 for modest beach cottages and $40,000-$65,000 for larger waterfront homes, with peak summer months (June-August) commanding nightly rates of $150-$300 due to fishing tournaments and beach tourism. Operating expenses generally run 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($2,500-$4,500 annually for coastal properties), and maintenance reserves for hurricane damage and salt air corrosion. Net profit margins typically range from 20-35% for well-managed properties, with successful hosts achieving higher profitability by targeting fishing enthusiasts during red snapper season and oil industry workers needing temporary housing. Properties within walking distance of the beach or with boat launches command premium rates, while those offering fishing guides or equipment rentals can increase revenue by 15-25%. The market faces seasonal volatility and hurricane risk, with properties like elevated three-bedroom homes near Grand Isle State Park averaging $45,000 annual revenue with $28,000 in expenses, yielding approximately $17,000 net profit or 38% margins when properly positioned for the fishing and beach tourism market.

Airbnb investments in Grand Isle, Louisiana typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, primarily driven by the area's fishing tourism, oil industry workers, and seasonal beach visitors. Properties within walking distance of Grand Isle State Park or fishing charters command premium rates of $150-250 per night during peak season (April-October), while off-season rates drop to $80-120 per night. The market shows strong demand from Houston and New Orleans visitors, with occupancy rates averaging 65-75% annually. Initial profitability typically occurs within 18-24 months, assuming a 20-25% down payment on properties ranging from $200,000-400,000. Hurricane risk and seasonal fluctuations require careful cash flow management, but properties that survive major storms often see increased demand due to reduced inventory. The limited supply of short-term rental properties on the island, combined with consistent demand from recreational fishermen and oil industry contractors, supports sustainable returns for well-managed properties with proper insurance coverage.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in Grand Isle, Louisiana. Local real estate agents serving Grand Isle include Century 21 Bono Realty and Coldwell Banker Ingle Safari Realty, both operating in the greater New Orleans and coastal Louisiana markets since the 1990s. RE/MAX agents in the Jefferson Parish and Plaquemines Parish areas also serve Grand Isle investors. National services include Awning (launched 2019), which provides full-service Airbnb property management and investment guidance, Mashvisor (founded 2014) for rental property analytics, and AirDNA (established 2015) for short-term rental market data. RedAwning and Vacasa offer property management services that can help investors evaluate potential purchases. Local property management companies like Gulf Coast Property Management and Crescent City Connection Property Management provide insights into the Grand Isle vacation rental market. BiggerPockets, the national real estate investment platform founded in 2004, has forums and resources specific to Louisiana Airbnb investing, while Roofstock (launched 2015) occasionally features Louisiana coastal properties suitable for short-term rentals.