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 short-term rentals may require special permits or be restricted in certain residential zones. Contact the Lafayette Parish Planning, Zoning & Codes Department to understand specific requirements, which typically include obtaining a business license, occupancy permit, and potentially a conditional use permit depending on your property's zoning classification. Find a suitable property in areas like downtown Lafayette, near the University of Louisiana at Lafayette, or in historic neighborhoods like Freetown-Port Rico, ensuring it meets safety codes and has adequate parking. Obtain necessary permits including a Louisiana sales tax license through the Department of Revenue, register with the Lafayette Parish Tax Assessor for occupancy tax collection (typically 4-5%), and ensure compliance with fire safety codes which may require smoke detectors, fire extinguishers, and emergency exit plans. Furnish the property with quality furniture, linens, kitchen essentials, and amenities that appeal to visitors coming for Cajun culture, university events, or business travel, while ensuring high-speed internet and local guidebooks featuring attractions like Vermilionville and Acadian Village. Create your Airbnb listing with professional photos highlighting unique Louisiana features, competitive pricing based on local market rates ($80-150 per night depending on size and location), and detailed descriptions emphasizing proximity to downtown festivals, restaurants, and cultural sites. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and staying compliant with ongoing tax obligations and any evolving city regulations regarding short-term rentals.

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 Lafayette's cultural district near Jefferson Street, and areas 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, accounting for Lafayette's seasonal demand fluctuations during football season (September-November) and Mardi Gras (February-March). Study competition density using AirDNA and STR analytics tools, avoiding oversaturated areas while identifying underserved neighborhoods near Cajundome and River Ranch development. Utilize local resources including the Lafayette Economic Development Authority market reports, Realtor.com for property acquisition costs averaging $150,000-250,000, and connect with local property management companies like Acadia Realty and Keaty Real Estate who understand Lafayette's unique market dynamics driven by oil industry workers, university visitors, and cultural tourism.

To obtain an Airbnb/STR permit in Lafayette, Louisiana, you must first contact the Lafayette Consolidated Government's Planning, Zoning & Codes Department at 705 W 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 Lafayette Fire Department, liability insurance policy with minimum $1 million coverage naming the city as additional insured, floor plan of the rental unit, parking plan showing adequate off-street parking, and contact information for a local responsible party available 24/7. The application fee is approximately $150-200 with annual renewal fees of $100-150, though you should verify current rates with the department. Lafayette requires STR properties to maintain occupancy limits based on bedroom count (typically 2 guests per bedroom plus 2 additional), provide adequate parking (usually 1 space per bedroom), install smoke and carbon monoxide detectors in all sleeping areas, maintain quiet hours from 10 PM to 7 AM, and display the permit number in all advertising. The approval timeline is generally 30-45 days after submitting a complete application, provided all inspections pass and zoning compliance is verified. Properties must also comply with any applicable homeowners association rules and may face additional restrictions in certain residential districts, so check zoning requirements for your specific address before applying.

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 prohibit STRs in certain residential districts while allowing them in commercial and mixed-use areas. The city implemented registration requirements around 2019-2020, mandating that operators register their properties, maintain liability insurance, and follow occupancy limits typically based on the number of bedrooms plus two additional guests. Properties must meet safety standards including smoke detectors and fire extinguishers, and operators are subject to noise ordinances and parking requirements. Recent changes have included stricter enforcement of existing regulations and enhanced penalties for non-compliance, with the city conducting periodic reviews of STR operations to ensure adherence to local laws. Lafayette's approach balances allowing the STR industry to operate while protecting residential neighborhood character through zoning controls and operational standards.

The most promising Airbnb investment areas in Lafayette, Louisiana include the Downtown Historic District, which attracts tourists visiting the Alexandre Mouton House, Cathedral of St. John the Evangelist, and numerous festivals like Festival International de Louisiane and Downtown Alive concerts. The Oil Center district offers strong potential for business travelers working with companies like Chevron, ExxonMobil, and CGG, particularly along Johnston Street and Kaliste Saloom Road where corporate offices concentrate. The University of Louisiana at Lafayette area, especially neighborhoods near campus like Sterling Grove and Broadmoor, provides consistent demand from visiting families during graduation, sports events, and academic conferences. The Freetown-Port Rico neighborhood appeals to cultural tourists seeking authentic Creole and Cajun experiences, while areas near the Cajundome benefit from concert-goers, trade shows, and UL Ragin' Cajuns sporting events. Properties near Vermilionville Historic Village and Acadian Cultural Center capture heritage tourism traffic, and neighborhoods close to the Lafayette Regional Airport serve business travelers and oil industry professionals who frequently fly in for short-term projects in Louisiana's energy corridor.

In Lafayette, Louisiana, Airbnb properties are subject to both state and local lodging taxes that total approximately 13-15% of the rental rate. The Louisiana state sales tax of 4.45% applies to short-term rentals, along with Lafayette Parish's local sales tax of around 5%, and a specific transient occupancy tax of approximately 3-4% levied by the city. These taxes are typically collected automatically by Airbnb through their platform for participating jurisdictions and remitted directly to the appropriate tax authorities on a monthly basis, though hosts should verify their specific obligations with local tax offices. Property owners who collect taxes manually must register with the Louisiana Department of Revenue and Lafayette Parish Tax Assessor's office, file monthly returns, and remit payments by the 20th of the following month. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and some exemptions may exist for certain government or charitable organization bookings, though hosts should confirm current exemption criteria with local tax authorities as regulations can change.

To start an Airbnb in Lafayette, Louisiana, expect total costs of approximately $185,000-$220,000. Property purchase represents the largest expense at $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $8,000-$12,000 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 HOA approvals. Insurance costs run $1,200-$2,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, gas, internet, and cable total approximately $500-$800. First six months operating costs including utilities ($150/month), cleaning services ($75 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses add roughly $3,500-$5,000 to initial investment requirements.

Airbnb properties in Lafayette, Louisiana typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property type and location proximity to University of Louisiana at Lafayette and downtown areas. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near the university campus and Cajundome typically achieve 60-75% occupancy rates with higher profit margins of 25-40%, while suburban locations average 45-60% occupancy with margins around 15-25%. Success factors include strategic pricing during LSU football seasons and festival periods like Festival International de Louisiane, professional photography showcasing Cajun cultural elements, and targeting business travelers visiting companies like CGI, Stuller Inc., and medical professionals at Lafayette General Medical Center. A typical 3-bedroom home purchased for $180,000 and generating $28,000 annual revenue with $16,000 in expenses yields approximately $12,000 net profit annually, representing a 6.7% cash-on-cash return before mortgage considerations, making Lafayette's Airbnb market moderately profitable but requiring careful property selection and active management to maximize returns.

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 for suitable properties range from $150,000-250,000, with investors typically achieving profitability within 18-24 months after accounting for furnishing, marketing, and operational expenses. The oil and gas industry presence, combined with university visitors and business travelers, provides steady demand throughout the year, though occupancy rates fluctuate between 65-75% annually. Cash-on-cash returns are optimized when investors purchase properties with 20-25% down payments and maintain occupancy above 70%, with many investors seeing break-even points around month 14-20 depending on property acquisition costs and renovation expenses.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Lafayette, Louisiana, offering market analysis and property recommendations. Local real estate agents like Keller Williams Acadiana, Coldwell Banker Ingle Safari, and Re/Max Acadiana have agents experienced in investment properties and short-term rental markets in the Lafayette area. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and BiggerPockets for investor networking and property analysis. Local property management companies such as Acadia Property Management and Red River Property Management offer services for investors looking to manage their Airbnb properties. Additional national platforms like Roofstock, which focuses on investment properties, and local investment groups through the Real Estate Investors Association of Acadiana can provide valuable connections and opportunities for finding profitable short-term rental properties in the Lafayette market.