Is Houma, Louisiana Good for Airbnb Investment?

To start an Airbnb in Houma, Louisiana, begin by researching local regulations through the Terrebonne Parish government offices and Houma city hall, as short term rentals typically require business licenses and may have zoning restrictions in residential areas.

Launch checklist

• Obtain necessary permits including a business license from Terrebonne Parish ($50 to 100 annually), occupancy permits, and ensure compliance with fire safety codes and building inspections.
• Find a suitable property by purchasing or leasing in areas like downtown Houma, near the bayou, or in established neighborhoods, considering proximity to attractions like the Southdown Plantation House and Bayou Terrebonne Waterlife Museum.
• Furnish the property with hurricane resistant furniture, essential amenities including high speed internet, air conditioning (crucial for Louisiana's humid climate), and local touches reflecting Cajun culture.
• List your property on Airbnb, VRBO, and other platforms with professional photos highlighting unique Louisiana features, competitive pricing around $80 to 150 per night depending on size and location, and descriptions emphasizing proximity to fishing, swamp tours.
• Manage the property by establishing cleaning protocols between guests, maintaining 24/7 communication availability, partnering with local cleaning services.

To identify profitable short term rental properties in Houma, Louisiana, focus on locations near the Terrebonne Parish Courthouse, downtown business district, and properties within 15 to 20 minutes of major oil and gas facilities like those operated by Chevron, Shell, and local energy companies.

What to prioritize

• Target 2 to 3 bedroom homes or condos built after 1990 with modern amenities, full kitchens, dedicated workspaces, reliable internet, and parking, as oil workers often stay 1 to 2 weeks and prefer home like accommodations over hotels.
• Analyze pricing by researching the limited hotel inventory at properties like Hampton Inn Houma and Holiday Inn Express, then price your STR 20 to 30% below comparable hotel rates (estimated $80 to 120/night range) while offering more space and amenities.
• Competition research should focus on the small existing Airbnb market in Houma, studying occupancy rates and guest reviews of current listings, particularly those catering to business travelers and fishing enthusiasts visiting nearby Gulf waters.
• Utilize AirDNA for market analysis, STR Helper for revenue projections, and local resources like the Houma Terrebonne Chamber of Commerce for economic data, while monitoring job postings from major employers like Danos, Edison Chouest Offshore, and local shipyards to gauge demand trends.

To obtain an Airbnb/STR permit in Houma, Louisiana, you must first contact the Terrebonne Parish Planning Department at 8026 Main Street, Houma, LA 70360, as short term rentals fall under parish jurisdiction in preference to city oversight.

Documents and approvals

• Begin by submitting a Conditional Use Permit application along with a detailed site plan, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the Houma Fire Department.
• Required documents also include a parking plan demonstrating adequate off street parking, waste management plan, and neighbor notification affidavits within 300 feet of the property.
• The application fee is approximately $350 for the conditional use permit plus $150 for administrative processing, with additional inspection fees of around $100.
• The timeline typically spans 60 to 90 days including a mandatory public hearing before the Terrebonne Parish Planning Commission, followed by Parish Council approval if the commission recommends approval.
• Specific Houma requirements include maintaining a local contact person available 24/7, limiting occupancy to two persons per bedroom plus two additional guests, providing adequate parking spaces (minimum two spaces).
• Annual renewal is required with a $100 fee, and properties must pass yearly safety inspections to maintain permit validity.

Short term rentals (STRs) are legal in Houma, Louisiana, but operate under regulations established by Terrebonne Parish, which governs the city.

Core operating requirements

• As of 2023, the parish requires STR operators to obtain a conditional use permit and business license, with properties subject to safety inspections and compliance with zoning requirements.
• STRs are generally prohibited in residential areas zoned R 1 (single family residential) but may be permitted in certain commercial and mixed use zones, as well as some higher density residential areas with proper permitting.
• The parish has implemented occupancy limits, parking requirements, and noise restrictions, while also requiring operators to maintain liability insurance and designate a local contact person available 24/7.
• Recent changes in 2022 to 2023 included stricter enforcement mechanisms and increased permit fees, with the parish conducting regular compliance checks following complaints from residents about noise and parking issues in neighborhoods near downtown Houma and along the bayou areas.

The most promising Airbnb investment areas in Houma, Louisiana include the Historic Downtown District, which attracts visitors interested in the city's Cajun heritage and serves business travelers visiting the courthouse and government offices; the Southdown Plantation area near the Terrebonne Museum. The oil and gas industry presence creates consistent demand for corporate housing, while the area's proximity to fishing charters, swamp tours, and Cajun cultural experiences attracts leisure travelers year round, with peak seasons during festival times and favorable weather for outdoor activities.

In Houma, Louisiana, Airbnb properties are subject to multiple lodging taxes including the Louisiana state sales tax of 4.45%, Terrebonne Parish sales tax of approximately 5%, and a local hotel occupancy tax of around 3 to 4%.

Taxes and filing responsibilities

• The total effective tax rate on short term rentals typically ranges from 12 to 14%.
• These taxes are generally collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Louisiana around 2018.
• Airbnb remits the collected state and local taxes directly to the Louisiana Department of Revenue and local tax authorities on behalf of hosts on a monthly basis.
• However, hosts may still need to register with local tax authorities and file periodic returns even when Airbnb collects taxes, and some hosts may need to collect and remit taxes manually if their property doesn't qualify for Airbnb's automatic collection.
• Exemptions are rare but may apply to stays exceeding 30 consecutive days, which are typically considered long term rentals in preference to transient lodging.

To start an Airbnb in Houma, Louisiana, expect total costs of approximately $185,000 to $220,000.

Cost breakdown

• Property purchase represents the largest expense at $140,000 to $160,000 based on median home prices in the area.
• Furnishing costs typically range $15,000 to $25,000 for a complete 2 to 3 bedroom setup including furniture, appliances, linens, and décor.
• Initial setup costs including professional photography, listing creation, and basic renovations average $3,000 to $5,000.
• Permits and fees in Louisiana generally cost $500 to $1,500 including business licenses and short term rental permits.
• Insurance premiums for short term rentals run $2,000 to $3,500 annually.
• Utility deposits and connections typically cost $500 to $800.
• First six months operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees (3% of bookings estimated at $300/month), and marketing expenses ($100/month) total approximately $4,500 to $5,100.
• Additional considerations include property taxes averaging $1,200 to $1,800 annually and potential HOA fees if applicable.

Airbnb properties in Houma, Louisiana typically generate modest returns with average daily rates ranging from $75 to 120 depending on property size and location, with occupancy rates averaging 45 to 60% annually due to the area's oil industry workforce and fishing tourism. A typical 2 bedroom property might gross $18,000 to 25,000 annually, but after expenses including mortgage payments, insurance (elevated due to hurricane risk at $2,000 to 4,000 annually), property management fees (20 to 25%), utilities ($150 to 200 monthly), maintenance, and cleaning costs ($30 to 50 per turnover).

Profitability indicators

• Properties near downtown or waterfront areas perform better, with some investors reporting 20 to 30% ROI on properties purchased for $80,000 to 150,000, particularly those catering to oil field workers on extended stays.
• Success factors include competitive pricing for corporate housing, reliable internet for remote workers, and hurricane preparedness features.

Airbnb investments in Houma, Louisiana typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10%, primarily driven by the area's proximity to oil and gas operations in the Gulf of Mexico which creates consistent demand from business travelers and contractors.

Return planning figures

• Properties in Houma generally achieve profitability within 18 to 24 months, with average daily rates of $85 to 120 and occupancy rates of 65 to 75% annually.
• The market benefits from limited hotel inventory and steady industrial activity, though seasonal fluctuations occur with hurricane season affecting bookings from June through November.
• Investment properties typically require $40,000 to 80,000 down payment for suitable 2 to 3 bedroom homes priced between $150,000 to 300,000, with monthly operating expenses including cleaning, utilities, and maintenance averaging $800 to 1,200 per property.
• The timeframe to break even on initial investment averages 7 to 9 years, factoring in property appreciation of 3 to 4% annually and the area's stable economic base supported by companies like Chevron, Shell.

STRSearch is a leading national platform that helps investors identify profitable short term rental properties in Houma, Louisiana by providing market data and investment analysis.

Companies and resources

• Local real estate agents specializing in Airbnb investments in Houma include Coldwell Banker Ingle Safari Realty, Century 21 Bessette Realty, and Re/Max A 1 Realty.
• National services include AirDNA for market analytics, Mashvisor for property analysis, BiggerPockets for investor networking, and Awning for short term rental property management.
• RedAwning and Vacasa also provide property management services for Airbnb investments in the area.
• Local property management companies like Bayou Property Management and Gulf Coast Vacation Rentals specialize in managing short term rentals in Houma and surrounding areas.
• Investment firms such as Roofstock and Arrived Homes occasionally feature Louisiana properties, while local mortgage brokers like First Bank & Trust and Synergy Bank can provide financing for investment properties in the Houma market.