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 3-5% of gross rental receipts), and secure appropriate insurance coverage that includes short-term rental liability. Furnish the property with quality furniture, linens, kitchen essentials, and amenities that appeal to visitors coming for Cajun culture, university events, or business travel, ensuring compliance with fire safety codes including smoke detectors and carbon monoxide detectors. Create your Airbnb listing with professional photos highlighting local attractions like Vermilionville Historic Village or proximity to Lafayette Regional Airport, set competitive pricing based on local market rates ($80-150 per night depending on size and location), and implement a management system for guest communication, cleaning between stays, and maintenance, either self-managing or hiring local property management companies familiar with Lafayette's short-term rental market.

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, considering Lafayette's average occupancy rates of 60-70% and seasonal demand spikes during UL football season and Mardi Gras. Study competition using AirDNA and Mashvisor to identify market gaps, particularly in the Freetown-Port Rico and River Ranch neighborhoods where supply may be limited. Utilize local resources like the Lafayette Economic Development Authority's market reports, partner with realtors familiar with investment properties like Keaty Real Estate, and monitor the Lafayette Consolidated Government's zoning regulations since some areas restrict short-term rentals. Consider properties near Cajundome for event-driven demand and evaluate neighborhoods like Youngsville and Broussard for newer construction with lower maintenance costs while maintaining proximity to Lafayette's business centers.

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 the Lafayette Fire Department, general liability insurance policy with minimum $1 million coverage naming the city as additional insured, site plan showing parking arrangements, and a $50 non-refundable application fee plus annual permit fee of approximately $200-300. The property must comply with Lafayette's zoning requirements (generally prohibited in R-1 residential zones but allowed in R-2, R-3, and commercial zones), 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 typically 30-45 days from submission of complete application, though inspections may extend this period. Once approved, permits must be renewed annually, and operators must collect and remit 4% city sales tax plus 5% state sales tax, maintain a business license, and display the permit number in all advertising. Properties are subject to periodic inspections and must comply with noise ordinances and neighborhood compatibility standards established by the city.

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 provide contact information, maintain occupancy limits typically capped at 2 people per bedroom plus 2 additional guests, and ensure adequate parking. Properties must meet safety standards including smoke detectors and fire extinguishers, and operators are subject to noise ordinances and neighbor complaint procedures. Recent changes have included stricter enforcement mechanisms and potential penalties for non-compliance, with the city conducting periodic reviews of STR regulations to balance tourism benefits with neighborhood preservation concerns.

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 excellent 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 provides consistent demand from visiting families, prospective students, and academic conference attendees, especially properties within walking distance of campus on University Avenue and surrounding neighborhoods. The River Ranch development appeals to upscale travelers seeking luxury accommodations near shopping, dining, and entertainment venues, while the Freetown-Port Rico neighborhood offers authentic Creole culture experiences for cultural tourists. The Scott area, technically adjacent to Lafayette, captures overflow demand during major events and provides easier airport access for business travelers, while properties near the Cajundome benefit from concerts, sports events, and trade shows throughout the year.

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 total 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 and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with the Louisiana Department of Revenue and Lafayette Parish Tax Assessor's office. The city occupancy tax applies to rentals of less than 30 consecutive days, while stays of 30 days or longer may be exempt from the occupancy tax but still subject to sales taxes. Hosts must obtain a Lafayette business license and may need to register for a hotel/motel permit depending on the frequency of rentals, with quarterly remittance required if collecting taxes independently rather than through Airbnb's collection service.

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 the area. 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 HOA approvals. Insurance costs run $1,200-$2,400 annually for landlord and short-term rental coverage. Monthly utilities average $150-$250 covering electricity, water, internet, and cable. First six months operating costs including utilities ($900-$1,500), cleaning services ($1,800-$3,000), maintenance reserves ($1,000-$2,000), marketing ($500-$1,000), and platform fees total approximately $4,200-$7,500. Additional considerations include property taxes ($1,500-$3,000 annually) and potential property management fees if outsourced at 10-20% of revenue.

Airbnb properties in Lafayette, Louisiana typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $75-$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-$250 monthly), insurance ($800-$1,200 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near ULL campus and the oil and gas corridor along I-10 show higher occupancy rates of 65-75% compared to 45-60% for suburban locations, with successful hosts like those operating renovated Craftsman homes in the Saint Streets Historic District achieving profit margins of 25-35% by targeting business travelers from companies like CGI, Stuller Inc, and visiting families during Ragin' Cajuns football season. Key success factors include strategic pricing during Mardi Gras, Festival International de Louisiane, and crawfish season (February-May), maintaining authentic Cajun décor and amenities, and leveraging Lafayette's position as a hub for the Atchafalaya Basin tourism, with the most profitable properties being those that capture both business travel demand from the region's energy sector and leisure travelers exploring Acadiana culture.

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 properties average $60-90 per night. With average property acquisition costs of $150,000-250,000 and monthly operating expenses including utilities, cleaning, and maintenance totaling $800-1,200, investors can expect to reach profitability within 18-24 months. The oil and gas industry presence, combined with university events and Cajun tourism, provides steady demand throughout the year, though occupancy rates fluctuate seasonally between 60-75%. After accounting for vacancy periods, property management fees of 15-25%, and initial renovation costs of $10,000-25,000 for short-term rental optimization, net annual returns typically stabilize at 7-9% by year two of operation.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Lafayette, Louisiana. Local real estate agents who focus on investment properties include Keller Williams Acadiana with agents like Sarah Boudreaux and Mike Thibodaux who have experience with Airbnb investments since 2019. RE/MAX Acadiana also has several agents specializing in rental property investments. National services include AirDNA for market analysis, Mashvisor for property analytics, and BiggerPockets for investor networking and deal sourcing. Local property management companies like Cajun Coast Vacations and Bayou Property Management offer turnkey Airbnb setup services. Real estate investment firms such as Louisiana Investment Properties and Acadiana Real Estate Investors Group provide specialized services for short-term rental acquisitions. Additional national platforms include Roofstock, which expanded into the STR market in 2021, and AvantStay for luxury property investments. Local mortgage brokers like First National Bank of Louisiana and IberiaBank offer specialized financing for investment properties, while companies like RedAwning and Vacasa provide comprehensive property management and optimization services for Airbnb investors in the Lafayette market.