Is Lafayette, Louisiana Good for Airbnb Investment?

To start an Airbnb in Lafayette, Louisiana, begin by researching local zoning laws and regulations through the Lafayette Consolidated Government, as the city requires short-term rental operators to obtain a business license and may have specific zoning restrictions in certain residential areas. Contact the Lafayette Parish Planning, Zoning & Codes Department to verify your property is in an area that permits short-term rentals and obtain necessary permits, which typically include a business license ($25-50 annually) and potentially a conditional use permit depending on your property's zoning classification. Find a suitable property in desirable areas like downtown Lafayette, near the University of Louisiana at Lafayette campus, or in historic neighborhoods like Freetown-Port Rico, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the property with quality furniture, linens, kitchen essentials, and local touches that reflect Lafayette's Cajun culture, budgeting approximately $3,000-8,000 for a complete setup depending on property size. Create your Airbnb listing with professional photos highlighting unique features, competitive pricing (typically $80-150 per night in Lafayette depending on location and amenities), and detailed descriptions emphasizing proximity to local attractions like Vermilionville, Acadian Cultural Center, and downtown festivals. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication with visitors, providing local recommendations for restaurants like Prejean's or Dark Roux, and ensuring compliance with Louisiana's 4.45% state sales tax plus Lafayette Parish's additional occupancy taxes that must be collected and remitted to the Louisiana Department of Revenue.

To identify profitable short-term rental properties in Lafayette, Louisiana, focus on locations within 2-3 miles of the University of Louisiana at Lafayette campus, downtown areas near Jefferson Street, and neighborhoods close to major employers like Lafayette General Medical Center and Schlumberger. Target 2-4 bedroom properties built after 1980 with modern amenities, parking, and outdoor spaces that appeal to business travelers and families visiting students. Analyze pricing by researching comparable Airbnb listings in the $80-150 nightly range, considering Lafayette's average daily rates are typically 20-30% lower than New Orleans but benefit from steady demand from oil industry workers and university visitors. Study competition using AirDNA and Mashvisor to identify occupancy rates averaging 60-75% annually, with peak seasons during football season (September-November) and Mardi Gras period. Research local regulations through Lafayette Consolidated Government's planning department, as the city requires business licenses and has specific zoning restrictions in residential areas. Utilize tools like Rabbu and PriceLabs for revenue management, focus on properties under $200,000 purchase price to maintain healthy profit margins, and consider proximity to Cajundome, River Ranch shopping district, and major highways like I-10 and I-49 for maximum guest appeal and accessibility.

To obtain an Airbnb/STR permit in Lafayette, Louisiana, you must first contact the Lafayette Consolidated Government's Planning, Zoning & Codes Department at 705 West University Avenue or call (337) 291-8750 to begin the application process. Required documents typically include a completed short-term rental permit application, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, fire safety inspection certificate from the Lafayette Fire Department, general liability insurance policy with minimum $500,000 coverage naming the city as additional insured, site plan showing parking arrangements, and a $150 application fee plus $100 annual renewal fee. The property must comply with Lafayette's zoning requirements (generally permitted in residential zones with restrictions), maintain adequate off-street parking (typically 1 space per bedroom), pass fire and building code inspections, and meet occupancy limits based on square footage and bedrooms. The approval timeline is approximately 30-45 days from submission of complete application, provided all inspections pass and no zoning variances are required. Additional requirements include registering with the Louisiana Department of Revenue for tax collection, maintaining a local contact person available 24/7, posting the permit number in all advertisements, and adhering to noise ordinances and neighborhood compatibility standards established by the city in 2019.

Short-term rentals (STRs) are legal in Lafayette, Louisiana, but operate under specific regulations established by the city. Lafayette requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to commercial districts and certain residential areas, while prohibiting them in some single-family residential neighborhoods. The city implemented these regulations around 2018-2019 following concerns about neighborhood impacts and housing availability. Current restrictions include occupancy limits, parking requirements, noise ordinances, and mandatory registration with the city, along with collection of local taxes. Properties must meet safety standards and operators are required to provide contact information for a local representative available 24/7 for any issues. Recent changes have included stricter enforcement mechanisms and updated fee structures, with the city continuing to monitor the balance between supporting tourism revenue and protecting residential neighborhood character.

The most promising Airbnb investment areas in Lafayette, Louisiana include the Downtown Lafayette Historic District, which attracts business travelers visiting oil and gas companies like Chevron and Schlumberger, plus tourists exploring Cajun culture and attending festivals at Parc International. The University of Louisiana at Lafayette area offers consistent demand from visiting families, prospective students, and academic conferences, with properties near Johnston Street and Ambassador Caffery Parkway performing particularly well. The Oil Center district provides strong business travel demand from energy sector professionals visiting companies like Stone Energy and LLOG Exploration, while the River Ranch development appeals to upscale leisure travelers seeking luxury accommodations near shopping and dining. The Freetown-Port Rico neighborhood offers affordable investment opportunities with growing appeal to cultural tourists interested in authentic Creole experiences, and properties near the Cajundome benefit from major events, concerts, and conventions throughout the year, particularly during Mardi Gras season and Festival International de Louisiane.

In Lafayette, Louisiana, Airbnb hosts are subject to multiple lodging taxes including the Louisiana state sales tax of 4.45%, Lafayette Parish sales tax of 5%, and a Lafayette city hotel occupancy tax of 13% on gross rental receipts. The combined effective tax rate is approximately 22.45% on short-term rental income. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for most Louisiana jurisdictions. Airbnb remits the collected taxes quarterly to the appropriate state and local tax authorities on behalf of hosts. However, hosts remain responsible for registering with the Louisiana Department of Revenue and Lafayette city tax collector, obtaining necessary permits, and ensuring compliance. Properties rented for 30 days or longer may be exempt from the transient occupancy tax but still subject to regular sales tax. Some exemptions may apply for government employees on official business or certain long-term medical stays, but these are limited and require proper documentation.

To start an Airbnb in Lafayette, Louisiana, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in Lafayette. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Lafayette include business license ($50-$100), short-term rental permit ($200-$500), and potential zoning compliance costs totaling $500-$1,500. Insurance for short-term rentals runs $1,200-$2,400 annually, with six months costing $600-$1,200. Utility setup and deposits for electricity, water, gas, internet, and cable average $500-$800 initially. First six months operating costs including utilities ($150-$250/month), cleaning supplies and services ($100-$200/month), maintenance reserves ($100-$150/month), platform fees, and marketing total approximately $2,500-$4,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds that could add $2,000-$5,000 to initial capital requirements.

Airbnb properties in Lafayette, Louisiana typically generate average nightly rates of $85-120, with occupancy rates ranging from 65-75% annually, resulting in gross revenues of $20,000-32,000 per year for well-managed properties. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($150-200 monthly), property management (15-25% of revenue), insurance ($800-1,200 annually), and maintenance ($2,000-3,500 yearly) typically consume 45-60% of gross revenue. Properties near the University of Louisiana at Lafayette and downtown areas command premium rates during football season and Mardi Gras, with some hosts reporting 85-90% occupancy during peak periods. A typical 3-bedroom home purchased for $180,000-220,000 can achieve net profit margins of 15-25% after all expenses, with successful operators like those managing properties in the River Ranch and Oil Center districts reporting annual net profits of $8,000-15,000. Success factors include proximity to UL Lafayette campus, professional photography, responsive guest communication, and strategic pricing during festival seasons including Festival International de Louisiane, with properties within 2 miles of campus consistently outperforming suburban locations by 20-30% in both occupancy and nightly rates.

Airbnb investments in Lafayette, Louisiana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties near the University of Louisiana at Lafayette and downtown areas command higher nightly rates of $80-120, while suburban locations average $60-90 per night. Initial investment costs average $150,000-250,000 for suitable properties, with monthly operating expenses including utilities, cleaning, and maintenance totaling $800-1,200. Most investors achieve profitability within 18-24 months, with occupancy rates averaging 65-75% annually due to consistent demand from university visitors, oil industry professionals, and tourists exploring Acadiana culture. The market benefits from Lafayette's position as a regional hub, though seasonal fluctuations occur during summer months and major university events, with peak earnings during football season and festival periods like Festival International de Louisiane driving occupancy rates above 85%.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Lafayette, Louisiana. In Lafayette specifically, real estate agents like those at Keaty Real Estate, Coldwell Banker Ingle Safari, and RE/MAX Acadiana have experience with investment properties suitable for Airbnb conversions. National services include Mashvisor for market analysis and property discovery, BiggerPockets for investor networking and deal sourcing, and AirDNA for short-term rental market data and performance metrics. Local property management companies such as Acadiana Property Management and Red River Property Management can assist with identifying investment opportunities and managing Airbnb operations. Additional national platforms like Roofstock, HomeUnion, and Awning specialize in turnkey rental property investments and can source properties in the Lafayette market. Local mortgage brokers and lenders familiar with investment properties, such as those at IberiaBank (now First Horizon) and Business First Bank, can provide financing expertise for Airbnb investment purchases in the Lafayette area.