Is Holly Hill, Florida Good for Airbnb Investment?

To start an Airbnb in Holly Hill, Florida, begin by researching local regulations through the Holly Hill City Hall (386-248-9474) and Volusia County offices, as short-term rentals typically require business tax receipts and may need special use permits or conditional use permits depending on zoning. Obtain necessary permits including a Florida business license, Volusia County tourist development tax permit, and Holly Hill business tax receipt, while ensuring compliance with fire safety codes and occupancy limits. Find a suitable property by researching neighborhoods near Daytona Beach attractions, considering proximity to the beach (about 10 minutes away), and analyzing comparable Airbnb rates in the $75-150 per night range. Purchase essential furnishings including quality mattresses, linens, kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $8,000-15,000 for a complete setup. Create your Airbnb listing with professional photos highlighting the property's proximity to Daytona International Speedway (15 minutes) and beaches, set competitive pricing based on local market research, and write detailed descriptions emphasizing local attractions. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and consider hiring local cleaning services or property management companies like Vacasa or RedAwning if needed, while staying current with Holly Hill's evolving short-term rental ordinances and collecting the required 6% Florida sales tax plus local tourist development taxes.

To identify profitable short-term rental properties in Holly Hill, Florida, focus on properties within 1-2 miles of the beach and Daytona International Speedway, as proximity to these attractions drives year-round demand. Target 2-4 bedroom single-family homes or condos built after 1990 with pools, updated kitchens, and parking for multiple vehicles, as these features command premium rates averaging $150-250 per night during peak racing and beach seasons. Analyze comparable properties using AirDNA and Mashvisor to identify areas with 70%+ occupancy rates and $40,000+ annual revenue potential, particularly in neighborhoods like Riverside Drive and areas near Tomoka State Park. Research competition by monitoring active Airbnb and VRBO listings within a 3-mile radius, noting their pricing strategies, amenities, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtors like RE/MAX or Century 21 to analyze purchase prices, renovation costs, and projected returns, while consulting Holly Hill's zoning department to ensure STR compliance in residential areas, as the city allows short-term rentals with proper permits and adherence to occupancy limits.

To obtain an Airbnb/STR permit in Holly Hill, Florida, you must first contact the Holly Hill City Clerk's office at 1065 Ridgewood Avenue or call (386) 248-9474 to submit a short-term rental application. Required documents typically include a completed application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager or 24-hour emergency contact within 30 miles, and a $150-200 application fee. You'll also need to provide a business tax receipt from Volusia County, pass a fire safety inspection conducted by the Holly Hill Fire Department (approximately $75 fee), and obtain a certificate of occupancy if the property use is changing. The city requires STR properties to be owner-occupied or have a designated local representative, maintain guest registries, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking (minimum 1 space per bedroom), and comply with noise ordinances with quiet hours from 10 PM to 8 AM. The approval process typically takes 30-45 days after submission of complete documentation, and permits must be renewed annually with a $100 renewal fee. Properties must also comply with all zoning requirements, as some residential zones may restrict short-term rentals, and you may need to attend a city council meeting if your application requires special consideration.

Short-term rentals (STRs) are generally legal in Holly Hill, Florida, but operate under specific municipal regulations that require property owners to obtain proper licensing and comply with zoning restrictions. The city typically requires STR operators to register their properties, obtain business tax receipts, and ensure compliance with residential zoning requirements, though commercial zones may have different allowances. Holly Hill generally prohibits STRs in certain residential areas to maintain neighborhood character and may impose occupancy limits, parking requirements, and noise restrictions. Recent years have seen Florida municipalities, including Holly Hill, tightening regulations around 2020-2023 in response to community concerns about housing availability and neighborhood impacts, with the city implementing stricter enforcement mechanisms and potentially higher fees for non-compliance. Property owners must also comply with state fire safety codes and may face restrictions on the number of rental days per year, though Holly Hill tends to be more permissive than larger Florida cities like Miami Beach or Key West that have implemented more restrictive caps or moratoriums.

The best areas for Airbnb investment in Holly Hill, Florida include the beachfront districts along the Atlantic Ocean, particularly near Flagler Avenue and areas close to Daytona Beach International Speedway (approximately 10 miles south), which attract motorsports tourists year-round especially during Daytona 500 events in February and Bike Week in March. The historic downtown Holly Hill area near Ridgewood Avenue offers charm for cultural tourists and is experiencing revitalization efforts that began around 2018-2020. Properties near the Halifax River waterfront provide scenic water views and attract boating enthusiasts and fishing tourists, while areas close to LPGA International golf courses draw golf tourism particularly during tournament seasons. The neighborhoods near Nova Road corridor benefit from proximity to Embry-Riddle Aeronautical University, generating consistent demand from visiting families, prospective students, and business travelers, while also being convenient to Daytona Beach's main tourist attractions, NASCAR events, and the Daytona International Airport, making these areas particularly attractive for short-term rental investments due to diverse demand sources throughout the year.

In Holly Hill, Florida, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to appropriate authorities. The Florida state tourist development tax ranges from 1-6% depending on the county, with Volusia County (where Holly Hill is located) typically charging around 5% on short-term rental accommodations under 6 months. Additionally, hosts must collect Florida's 6% state sales tax on rental income, and Holly Hill may impose a local business tax or occupancy permit fee of approximately $50-150 annually. Airbnb automatically collects and remits state and county tourist development taxes for most Florida properties through their platform since 2017, but hosts remain responsible for registering with the Florida Department of Revenue, obtaining a sales tax permit, and filing monthly or quarterly returns depending on their volume. Local business tax registration with Holly Hill's city clerk office is typically required, and hosts must remit any locally-imposed occupancy taxes directly to the city. Exemptions generally apply to stays over 30 days (considered long-term rentals), rentals to permanent residents, and in some cases properties rented fewer than 3 times per year, though hosts should verify current exemption criteria as regulations frequently change.

The total cost to start an Airbnb in Holly Hill, Florida is approximately $285,000-$320,000. Property purchase costs around $220,000 based on the median home price in the area as of 2023. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, vacation rental permit, and inspection fees range from $500-$1,500 depending on local requirements. Insurance for short-term rentals costs $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and setup fees for electricity, water, internet, and cable total approximately $1,000-$1,500. First six months operating costs including utilities ($900/month), cleaning services ($100 per turnover), maintenance reserves ($200/month), platform fees (3% of bookings), and marketing expenses total $8,000-$12,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Holly Hill, Florida typically generate annual revenues between $18,000-$35,000 for single-family homes and $12,000-$22,000 for condos, with average daily rates ranging from $85-$140 depending on proximity to Daytona Beach (just 5 miles away) and property amenities. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($150-$250 monthly), insurance ($1,200-$2,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 25-40% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% by leveraging Holly Hill's strategic location between Daytona Beach and Ormond Beach, targeting NASCAR race weekends, spring break periods, and summer beach vacations. Properties within walking distance of Riverside Park or featuring pools and updated interiors consistently outperform the market, with some hosts reporting annual profits of $12,000-$18,000 on properties purchased for $150,000-$250,000, representing solid returns of 6-9% annually when combined with property appreciation in this growing Central Florida market.

Airbnb investments in Holly Hill, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, based on the area's proximity to Daytona Beach and average property values of $180,000-$280,000. Properties generally achieve profitability within 18-24 months, with average daily rates of $85-$120 during peak season (February-April, July-August) and $60-$85 during off-season periods. The market benefits from consistent demand due to Daytona International Speedway events, beach tourism, and business travelers, with occupancy rates typically reaching 65-75% annually. Initial investment requirements including down payment, renovations, and furnishing typically range from $45,000-$70,000 for a standard 2-3 bedroom property, while gross rental yields average 10-15% before expenses, with net yields settling around 7-11% after accounting for property management, maintenance, insurance, and local taxes.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Holly Hill, Florida. Local real estate agents in the Daytona Beach area who focus on investment properties include Realty Pros Assured and Coldwell Banker Premier Properties, with agents experienced in vacation rental markets. National services like Awning, RedAwning, and AirDNA provide market analysis and property identification specifically for Airbnb investments in the Holly Hill market. Local property management companies such as Vacasa and RedAwning also offer acquisition services alongside their management offerings. Real estate investment firms like Roofstock and Fundrise have expanded into short-term rental markets and can assist with Holly Hill properties. Local agents from RE/MAX and Keller Williams in the Volusia County area often specialize in investment properties near the beach corridor. Additional services include BiggerPockets for networking with local investors, Mashvisor for property analysis, and AirDNA for market data specific to the Holly Hill and greater Daytona Beach vacation rental market.