Is Highlands, North Carolina Good for Airbnb Investment?

To start an Airbnb in Highlands, North Carolina, begin by researching local zoning laws and short-term rental regulations through the Town of Highlands Planning Department, as the town requires short-term rental permits and has specific occupancy limits typically around 2 guests per bedroom plus 2 additional guests. Contact Macon County for any county-level requirements and obtain a North Carolina sales tax license through the NC Department of Revenue since you'll need to collect and remit occupancy taxes. Find a suitable property in residential zones that allow short-term rentals, keeping in mind Highlands' premium mountain location means properties typically range from $300,000-$2 million, with many being seasonal cabins or mountain homes. Apply for your short-term rental permit through the Town of Highlands, which usually requires a site plan, parking verification, and septic system approval if applicable. Furnish the property with mountain-appropriate amenities including heating systems for winter months, outdoor furniture for the scenic views, and quality linens since Highlands attracts affluent tourists visiting for hiking, waterfalls, and seasonal events. Create your Airbnb listing emphasizing proximity to attractions like Whiteside Mountain, Dry Falls, and the town's boutique shopping, with competitive pricing typically ranging $150-$400 per night depending on size and season. Manage the property by establishing relationships with local cleaning services, maintenance providers, and consider hiring a property management company familiar with Highlands' seasonal tourism patterns, ensuring compliance with the town's noise ordinances and parking requirements while maintaining the high standards expected by visitors to this upscale mountain resort community.

To identify profitable short-term rental properties in Highlands, North Carolina, focus on locations within 1-2 miles of Main Street's shopping district and dining scene, near outdoor attractions like Whiteside Mountain and area waterfalls, or properties offering mountain views and privacy. Target 2-4 bedroom cabins or mountain homes built after 1990 with modern amenities, hot tubs, fireplaces, decks with views, and reliable internet, as these features command premium rates of $200-400+ per night during peak summer and fall foliage seasons. Analyze pricing using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically requiring occupancy rates of 50-65% annually given Highlands' seasonal nature peaking June-October. Research competition within a 5-mile radius using Airbnb and VRBO searches, noting that successful properties often differentiate through luxury amenities, unique architecture, or exceptional locations, while the market can support 150-200 active listings. Utilize tools like Rabbu and STR Helper for market analysis, partner with local property managers like Highlands Cashiers Rentals or Village Rentals who understand seasonal patterns, and consult with realtors familiar with STR regulations, as properties typically need $50,000-100,000 in improvements to compete effectively in this upscale mountain resort market where median home prices range $800,000-1.5 million.

To obtain an Airbnb/STR permit in Highlands, North Carolina, you must first contact the Macon County Planning Department at 828-349-2025 or visit their office at 5 West Main Street in Franklin, NC, as Highlands falls under Macon County jurisdiction. Submit a completed short-term rental application along with a site plan showing parking areas, septic system location, and property boundaries, proof of property ownership or lease agreement, a floor plan indicating maximum occupancy, certificate of liability insurance with minimum $1 million coverage, and contact information for a local property manager if you're an absentee owner. The application fee is approximately $150 with an annual renewal fee of $75, and you'll need to pay additional inspection fees of around $100. The approval process typically takes 4-6 weeks including a mandatory on-site inspection by county officials. Specific Highlands requirements include adherence to the town's noise ordinance with quiet hours from 10 PM to 8 AM, maximum occupancy of 2 people per bedroom plus 2 additional guests, mandatory posting of emergency contact information and house rules, compliance with parking requirements of 1 space per bedroom, and registration with the North Carolina Department of Revenue for tax collection purposes. Once approved, you must display your permit number in all advertising and maintain compliance with annual inspections and tax reporting requirements.

Short-term rentals (STRs) are legal in Highlands, North Carolina, but operate under specific regulations established by the Town of Highlands and Macon County. The town requires STR operators to obtain a business license and comply with zoning restrictions that limit rentals primarily to commercial and some residential zones, while prohibiting them in certain residential neighborhoods to preserve community character. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and occupancy limits, with parking restrictions typically limiting guests to available on-site spaces. Recent changes around 2020-2022 have included stricter enforcement of noise ordinances, enhanced permitting processes, and increased penalties for violations, reflecting the town's effort to balance tourism revenue with resident quality of life concerns. The regulations also typically include requirements for local contact persons available 24/7 and adherence to the town's noise ordinance, particularly important given Highlands' status as a popular mountain resort destination where STRs have become increasingly common in recent years.

The best areas for Airbnb investment in Highlands, North Carolina include the Main Street Historic District, which attracts tourists year-round with its upscale shopping, fine dining, and proximity to cultural attractions like the Highlands Playhouse and Bascom arts center. The Cullasaja River Gorge area offers excellent potential due to its proximity to waterfalls like Dry Falls and Bridal Veil Falls, drawing nature enthusiasts and photographers especially during peak summer and fall foliage seasons. The Country Club of the Highlands vicinity appeals to affluent visitors seeking luxury accommodations near golf courses and exclusive amenities, particularly during the summer social season from May through October. The Whiteside Mountain area provides strong investment opportunities for properties catering to hikers and outdoor enthusiasts visiting the Nantahala National Forest, with consistent demand from visitors to nearby attractions like Whiteside Mountain Trail. The Mirror Lake and Sequoyah Lake neighborhoods offer premium locations for vacation rentals targeting families and groups seeking lakefront or lake-view properties, benefiting from Highlands' reputation as a summer retreat destination for wealthy visitors from Florida, Georgia, and South Carolina who escape the heat during the peak season from June through September.

In Highlands, North Carolina, Airbnb properties are subject to both state and local occupancy taxes. The North Carolina state occupancy tax is 6% and applies to all short-term rental accommodations under 90 days. Macon County, where Highlands is located, imposes an additional 6% county occupancy tax, bringing the total occupancy tax rate to approximately 12%. The Town of Highlands may also impose a municipal occupancy tax of up to 3%, potentially making the combined rate around 15%. These taxes are collected from guests at the time of booking through Airbnb's automated tax collection system for most jurisdictions, though hosts may need to register directly with local tax authorities and remit taxes manually in some cases. Hosts must register with the North Carolina Department of Revenue and obtain a Certificate of Registration, and may also need to register with Macon County and the Town of Highlands separately. Tax remittance is typically required monthly or quarterly depending on the jurisdiction, with returns due by the 20th of the month following the reporting period. Exemptions are generally limited to stays exceeding 90 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or nonprofit organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Highlands, North Carolina, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $500,000-$600,000 for a median 2-3 bedroom mountain home or cabin suitable for short-term rental. Furnishing costs typically range $25,000-$35,000 including beds, linens, kitchen essentials, living room furniture, outdoor furniture, and mountain-themed decor. Initial setup costs add $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic technology like smart locks and WiFi upgrades. Permits and fees in Macon County include business license ($50), short-term rental permit ($200-$500), and potential HOA approval fees totaling $500-$1,000. Insurance increases significantly for short-term rentals, expect $3,000-$5,000 annually for comprehensive coverage including liability and property protection. Utility setup and deposits for electricity, water, internet, and cable run $500-$1,000. First six months operating costs include utilities ($1,200), cleaning services ($3,600), property management if used ($6,000-$9,000), maintenance reserves ($2,000), marketing ($1,000), and supplies/amenities ($1,500), totaling approximately $15,000-$23,000. Additional considerations include potential renovation costs for mountain properties and seasonal utility fluctuations due to Highlands' elevation and climate.

Airbnb properties in Highlands, North Carolina demonstrate strong profitability potential with average nightly rates ranging from $150-400 depending on property size and amenities, generating annual revenues of $35,000-85,000 for well-managed properties with 60-70% occupancy rates during peak seasons (May-October). Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, plus utilities, insurance, and supplies totaling approximately 45-55% of gross revenue. Properties near Whiteside Mountain or with lake access achieve the highest profit margins of 35-45%, while standard cabins and homes maintain 25-35% margins. Success factors include proximity to outdoor attractions like Cullasaja Falls, professional photography, responsive host communication, and seasonal pricing strategies that capitalize on leaf-peeping season and summer mountain retreats. A typical 3-bedroom mountain cabin purchased for $400,000 and generating $55,000 annually in rental income can achieve net profits of $18,000-22,000 after all expenses, representing a 4.5-5.5% cash-on-cash return before considering property appreciation in this desirable Blue Ridge Mountains market.

Airbnb investments in Highlands, North Carolina typically generate annual ROI of 12-18% due to the area's strong seasonal tourism driven by summer visitors escaping heat and fall leaf-peepers, with properties averaging $200-350 per night during peak seasons (June-October). Cash-on-cash returns generally range from 8-14% annually, with luxury mountain cabins and homes near Whiteside Mountain or downtown Highlands commanding premium rates of $300-500 per night during peak fall foliage season. Most investors achieve profitability within 18-24 months, particularly those purchasing properties in the $400,000-800,000 range and maintaining 60-70% occupancy rates throughout the year. The market benefits from Highlands' reputation as a premier mountain resort destination, proximity to Cashiers and other high-end mountain communities, and consistent demand from affluent visitors from Florida, Georgia, and South Carolina seeking cool mountain retreats, with properties typically appreciating 4-6% annually while generating strong rental income from May through October.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Highlands, North Carolina, offering market analysis and property recommendations. Local real estate agents specializing in Airbnb investments in the Highlands area include Berkshire Hathaway HomeServices Meadows Mountain Realty, which has been serving the region since 1995, and Highlands Sotheby's International Realty, established in 2008, both offering expertise in vacation rental properties. Century 21 Mountain Lifestyles and Coldwell Banker Lifestyles also provide services for investment property acquisition in the area. National services include Awning, founded in 2018, which offers full-service Airbnb property management and investment guidance, RedAwning, established in 2009, providing vacation rental management and investment consulting, and Vacasa, launched in 2009, offering property management and investment advisory services. AirDNA, founded in 2015, provides market data and analytics for short-term rental investments in Highlands, while Mashvisor, established in 2014, offers investment property analysis tools. Local property management companies that also assist with acquisitions include Highland Hiker, operating since 2012, and Highlands Vacation Rentals, serving the market since 2005, both of which can help identify profitable investment opportunities in the Highlands market.