Is Melbourne Beach, Florida Good for Airbnb Investment?

To start an Airbnb in Melbourne Beach, Florida, begin by researching local regulations through Brevard County and Melbourne Beach city ordinances, which typically require short-term rentals to obtain a business tax receipt and comply with zoning restrictions that may limit rentals to certain residential areas. Contact Melbourne Beach City Hall at 507 Ocean Avenue to verify current permit requirements, as the city may require a conditional use permit for properties in residential zones, and ensure compliance with Florida Department of Business and Professional Regulation licensing if operating more than three units. Find a suitable property within 1-2 miles of the beach, focusing on single-family homes or condos in areas zoned for short-term rentals, with average purchase prices ranging from $400,000-$800,000 depending on proximity to the ocean. Obtain necessary permits including a Brevard County business tax receipt ($50-$150 annually), potential Melbourne Beach conditional use permit ($200-$500), and Florida sales tax registration through the Department of Revenue. Furnish the property with coastal-themed décor, essential amenities like high-speed internet, air conditioning, beach equipment, and safety features including smoke detectors and first aid kits, budgeting approximately $15,000-$25,000 for a 2-3 bedroom property. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting beach access and local attractions like the Melbourne Beach Pier and Sebastian Inlet State Park, setting competitive rates of $150-$300 per night based on seasonality. Manage the property by establishing cleaning protocols between guests, maintaining 24/7 communication availability, coordinating maintenance through local contractors, and ensuring compliance with occupancy limits typically set at 2 guests per bedroom plus 2 additional guests, while collecting and remitting 6% Florida sales tax plus 5% Brevard County tourist development tax on all bookings.

To identify profitable short-term rental properties in Melbourne Beach, Florida, focus on oceanfront or ocean-view locations within walking distance of the beach, particularly along Highway A1A and side streets near Spessard Holland Beach Park. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, private pools, beach access, and parking for multiple vehicles, as these command premium rates of $200-400 per night during peak season (December-April). Analyze comparable properties using AirDNA and Mashvisor to identify areas with 70%+ occupancy rates and $50,000+ annual revenue potential, while researching competition through Airbnb and VRBO to find gaps in amenities or pricing strategies. Utilize Brevard County property records, Zillow, and local MLS data to identify properties under $600,000 that can generate 8-12% cap rates, while consulting with Melbourne Beach-specific property managers like Vacasa or RedAwning who understand local regulations, seasonal demand patterns, and the area's appeal to both snowbirds and space coast tourists visiting nearby Kennedy Space Center attractions.

To obtain an Airbnb/STR permit in Melbourne Beach, Florida, you must first contact the Melbourne Beach City Hall at 507 Ocean Avenue or call (321) 724-5860 to obtain the specific short-term rental application form, as the city requires a business tax receipt and conditional use permit for properties operating as vacation rentals for less than 30 days. Required documents typically include a completed application form, property deed or lease agreement, floor plan of the property, parking plan showing adequate off-street parking, contact information for a local property manager or 24-hour contact person, proof of liability insurance (minimum $300,000), and a site plan. The application fee is approximately $150-250 for the business tax receipt plus $500-750 for the conditional use permit, with additional fees for inspections. You must submit the application to the Planning and Zoning Department, which will schedule a public hearing before the Planning and Zoning Board, followed by City Council approval if recommended. The timeline typically takes 60-90 days from submission to final approval, including the public hearing process. Melbourne Beach specific requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing adequate parking (typically 2 spaces minimum), ensuring the property manager or contact person is available 24/7 and can respond within 30 minutes, prohibiting events or parties, and conducting annual safety inspections. Once approved, you must renew the permit annually and comply with all city ordinances regarding noise, parking, and occupancy limits.

Short-term rentals (STRs) are legal in Melbourne Beach, Florida, but operate under specific regulations established by the city. Melbourne Beach allows STRs in residential areas but requires property owners to obtain a business tax receipt and comply with occupancy limits, parking requirements, and noise ordinances. The city has implemented restrictions including maximum occupancy based on bedrooms, mandatory contact information posting for a local representative available 24/7, and adherence to the city's noise ordinance which prohibits excessive noise between 10 PM and 7 AM. Properties must also meet health and safety standards and provide adequate parking for guests. Recent changes around 2019-2020 included stricter enforcement mechanisms and clearer definition of violation penalties, with fines ranging from $250 to $1,000 for non-compliance. The city does not prohibit STRs in specific residential zones but requires they maintain the residential character of neighborhoods, and commercial areas may have different regulations under the city's zoning ordinances.

The best areas for Airbnb investment in Melbourne Beach, Florida include the beachfront district along Highway A1A, particularly between Spessard Holland Park and the Melbourne Beach Pier, which attracts tourists year-round seeking direct beach access and ocean views. The Ocean Park area near the community center offers excellent rental potential due to its proximity to both beach activities and local amenities, drawing families and couples for vacation stays. The residential neighborhoods between 5th Avenue and 15th Avenue provide attractive investment opportunities as they're within walking distance of the beach while offering more affordable property prices, appealing to budget-conscious travelers and longer-term visitors. The area near Ryckman Park is particularly desirable for investors as it combines beach proximity with recreational facilities, attracting families during summer months and snowbirds during winter season from 2020-2024, with companies like Airbnb and VRBO reporting strong booking rates in these coastal zones.

In Melbourne Beach, 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 sales tax of 6% applies to all short-term rental accommodations under 6 months, while Brevard County imposes an additional tourist development tax of 5% on transient accommodations, bringing the total tax rate to approximately 11%. Melbourne Beach may also impose a local resort tax of 1-2%, though this varies by municipality. Airbnb typically collects and remits the state sales tax and county tourist development tax automatically for hosts through their platform, but hosts remain responsible for ensuring compliance and may need to register with the Florida Department of Revenue and obtain a sales tax permit. The tourist development tax collected by Brevard County is remitted monthly to the Brevard County Tax Collector's office, while state sales tax is filed through Florida's Department of Revenue system. Exemptions are limited and generally apply only to stays exceeding 30 consecutive days or accommodations rented to permanent residents, with most short-term vacation rentals being subject to the full tax burden regardless of the rental duration or guest type.

The total cost to start an Airbnb in Melbourne Beach, Florida is approximately $485,000-$565,000. Property purchase represents the largest expense at $400,000-$475,000 based on median home prices for beachside properties in the area. Furnishing costs range from $25,000-$35,000 to create an attractive vacation rental with quality furniture, appliances, linens, and decor suitable for beach guests. Initial setup costs including professional photography, listing creation, and marketing materials total around $2,000-$3,000. Permits and fees including business license, vacation rental permit, and inspection fees cost approximately $1,500-$2,500 depending on local regulations. Insurance for short-term rental coverage runs $3,000-$4,000 annually. Utility setup and deposits for electricity, water, internet, and cable total around $1,000-$1,500. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance and supplies ($2,000), property management software ($300), and marketing ($1,000) add approximately $8,700 to initial expenses.

Airbnb properties in Melbourne Beach, Florida demonstrate strong profitability potential with average nightly rates ranging from $150-300 depending on proximity to the beach and property size, generating annual revenues of $35,000-65,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($75-100 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($2,000-4,000 annually), and maintenance costs averaging $3,000-5,000 yearly. Successful properties achieve net profit margins of 25-35%, with beachfront condos and single-family homes within walking distance of the pier performing best due to Melbourne Beach's appeal as a quieter alternative to nearby Cocoa Beach. Key success factors include professional photography, responsive guest communication, consistent 5-star reviews, and strategic pricing during peak seasons like spring break and summer months when rates can increase 40-60%. Properties managed by companies like Vacasa and RedAwning in the area report higher occupancy rates through dynamic pricing and professional marketing, while owner-operated properties often achieve better profit margins by eliminating management fees. The market benefits from year-round demand due to Florida's climate and proximity to Kennedy Space Center, with successful hosts reporting ROI of 8-12% annually on properties purchased specifically for short-term rental investment.

Airbnb investments in Melbourne Beach, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% based on current market conditions. Properties averaging $400,000-$600,000 purchase price can expect gross rental income of $45,000-$65,000 annually, with net returns after expenses (property management, maintenance, insurance, taxes) settling around $25,000-$35,000 per year. The beachfront location and proximity to attractions like the Brevard Zoo and Kennedy Space Center drive strong occupancy rates of 65-75% annually, with peak season rates of $200-$350 per night and off-season rates of $120-$180 per night. Most investors reach profitability within 18-24 months when factoring in initial renovation costs of $15,000-$25,000 for furnishing and property optimization. The Melbourne Beach market benefits from consistent year-round demand due to its Atlantic coastline location and growing Space Coast tourism, with properties typically appreciating 4-6% annually while generating positive cash flow from month 6-12 of operation.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Melbourne Beach, Florida. Local real estate agents like Coldwell Banker Paradise and RE/MAX Elite have extensive experience with vacation rental properties in the Brevard County area, while Century 21 Ocean has been serving the Melbourne Beach market since 1995. National services include Awning (founded 2018), which provides end-to-end Airbnb investment services, and RedAwning, a vacation rental investment platform established in 2009. Local property management companies like Vacasa and RedAwning Property Management offer turnkey solutions for investors. Real estate investment firms such as Roofstock and Mashvisor provide data analytics and property sourcing specifically for short-term rental investments. Melbourne Beach-specific agents like those at Berkshire Hathaway HomeServices Florida Realty and Keller Williams Brevard specialize in oceanfront and vacation rental properties. Additional national platforms include BiggerPockets for networking with local investors, AirDNA for market analysis data, and Rabbu for Airbnb-specific property searches in the Space Coast region.