Is Melbourne, Florida Good for Airbnb Investment?

To start an Airbnb in Melbourne, Florida, begin by researching local regulations through Brevard County and the City of Melbourne, which typically require short-term rental permits and business tax receipts, with properties needing to comply with zoning laws that generally allow vacation rentals in residential areas with proper permits. Obtain necessary permits including a Brevard County vacation rental permit ($100-200 annually), Florida sales tax permit, and Melbourne business tax receipt, while ensuring your property meets fire safety codes and has proper smoke detectors and emergency exits. Find a suitable property by analyzing the Melbourne market focusing on areas near beaches, downtown Melbourne, or near Melbourne International Airport, considering properties that can generate $100-150 per night based on local market rates. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, air conditioning (crucial in Florida), beach equipment, and Florida-themed decor, budgeting approximately $5,000-15,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting Melbourne's proximity to beaches and space attractions, setting competitive rates based on seasonal demand with higher prices during winter months and space launch periods. Manage the property by establishing cleaning protocols between guests, responding quickly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly due to Florida's humid climate, and staying compliant with local tax collection requirements including Florida's 6% sales tax plus Brevard County's tourist development tax.

To identify profitable short-term rental properties in Melbourne, Florida, focus on locations within 2-3 miles of the beach, near popular attractions like the Melbourne Beach Pier and Brevard Zoo, or close to Kennedy Space Center (30 minutes north) which drives significant tourist traffic year-round. Target 2-4 bedroom single-family homes or condos built after 1990 with pools, updated kitchens, and parking, as these command premium rates of $150-300 per night during peak season (December-April) and $100-200 during summer months. Analyze comparable properties on Airbnb and VRBO within a 1-mile radius to ensure your pricing remains competitive while maintaining 70%+ occupancy rates, and research local regulations as Brevard County requires business tax receipts and some HOAs restrict short-term rentals. Utilize AirDNA for market data, STR Helper for performance analytics, and Mashvisor for investment analysis, while monitoring the Melbourne-Palm Bay MSA market trends through local real estate platforms like MLS and Zillow, focusing on properties under $400,000 that can generate 8-12% annual returns after expenses including the 6% tourist development tax collected by Brevard County.

To obtain an Airbnb/STR permit in Melbourne, Florida, you must first contact the City of Melbourne Planning and Zoning Department at City Hall located at 900 E Strawbridge Ave, Melbourne, FL 32901, or visit their website to download the Short-Term Rental License application. Required documents typically include a completed application form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plan of the property, proof of liability insurance (minimum $500,000), business tax receipt, and a site plan showing parking availability. The application fee is approximately $150-200 with an annual renewal fee of around $100-125. Submit your complete application package to the Planning Department either in person or by mail, and schedule a required property inspection with the Building Department which costs an additional $75-100. The city requires compliance with zoning regulations (STRs are typically allowed in certain residential zones with restrictions), occupancy limits based on bedrooms and square footage, adequate parking (usually 1-2 spaces), and adherence to noise ordinances and neighborhood compatibility standards. The approval timeline is generally 4-6 weeks from submission of a complete application, provided the property passes inspection and meets all zoning requirements. Once approved, you must display your license number in all advertising and maintain compliance with ongoing requirements including annual renewals, tax obligations, and local regulations regarding maximum occupancy and operational standards.

Short-term rentals (STRs) are legal in Melbourne, Florida, but operate under specific regulations established by the city. Melbourne allows STRs in most residential zones but requires operators to obtain a business tax receipt and comply with zoning requirements, with properties limited to no more than two unrelated adults per bedroom plus two additional occupants. The city prohibits STRs in certain residential districts and requires a minimum 7-day rental period to distinguish from daily hotel-style accommodations. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide emergency contact information and maintain noise control measures. Recent changes around 2019-2020 included stricter enforcement of existing regulations and clearer definitions of what constitutes a short-term rental, with the city requiring annual renewals of permits and implementing a complaint-driven enforcement system. Melbourne's approach balances allowing property owners to operate STRs while protecting neighborhood character through occupancy limits, parking requirements (typically two spaces per unit), and restrictions on commercial signage, making it more permissive than some Florida municipalities but still maintaining regulatory oversight.

The best Airbnb investment areas in Melbourne, Florida include the Historic Downtown district near the Henegar Center and Melbourne Village, which attracts cultural tourists and visitors attending theater performances and art events year-round. The Eau Gallie Arts District offers strong potential due to its growing reputation as a creative hub with galleries, studios, and the monthly First Friday events that draw visitors from across Central Florida. Properties near Melbourne Beach and the Indiatlantic area are highly attractive for vacation rentals due to their proximity to pristine beaches, surfing spots, and the Sebastian Inlet, appealing to beach tourists and water sports enthusiasts. The areas around Florida Institute of Technology (Florida Tech) provide consistent demand from visiting academics, prospective students, families during graduation, and business travelers attending conferences at the university. Melbourne's proximity to Kennedy Space Center (about 30 minutes) makes neighborhoods along US-1 and near Melbourne International Airport excellent for space tourism and NASA-related business travel, especially during rocket launches which create surge pricing opportunities. The Wickham Park area attracts families and sports tourists due to its recreational facilities and youth sports tournaments, while properties near the Melbourne Square Mall and commercial districts benefit from business travelers and shopping tourists.

In Melbourne, 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% on gross rental receipts. These taxes are collected by hosts at the time of booking or check-in and must be remitted monthly to the Florida Department of Revenue for state sales tax (due by the 20th of the following month) and to Brevard County for the tourist development tax. Hosts must register for a sales tax permit with the Florida Department of Revenue and may need to register separately with Brevard County for the tourist development tax. Exemptions are limited and typically apply only to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, though hosts should verify current exemption criteria as regulations can change.

To start an Airbnb in Melbourne, Florida, the total initial investment would be approximately $385,000-$420,000. Property purchase costs average $320,000 for a median 3-bedroom home suitable for short-term rentals in the area as of 2024. Furnishing costs typically range $15,000-$25,000 including beds, living room furniture, kitchen essentials, linens, and décor to create an attractive rental space. Initial setup expenses of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic amenities. Permits and fees total approximately $1,500-$2,500 including business license, short-term rental permit from Brevard County, and potential HOA approvals. Insurance costs $2,000-$3,000 annually for specialized short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $500-$800 for electricity, water, internet, cable, and trash services. First six months of operating costs add $8,000-$12,000 covering utilities ($200-300/month), cleaning services ($100-150 per turnover), maintenance reserves, property management software subscriptions, and marketing expenses, assuming 60-70% occupancy rates typical for the Melbourne market.

Airbnb properties in Melbourne, Florida typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with oceanfront or near-beach locations commanding premium rates of $150-$300 per night during peak season (December-April) and $80-$150 during off-season. Operating expenses generally range from 40-60% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance reserves (5-10% of revenue). Properties within 2-3 blocks of the beach or Indian River Lagoon achieve occupancy rates of 65-75% annually, resulting in net profit margins of 15-25% after all expenses. Success factors include proximity to Melbourne Beach, Cape Canaveral attractions, professional photography, responsive guest communication, and amenities like pools or beach access. A typical 3-bedroom beach house purchased for $400,000-$600,000 can generate $8,000-$15,000 in annual net profit, though properties requiring significant renovations or those located more than 5 miles from the coast often struggle to achieve profitability due to lower occupancy rates (35-50%) and reduced nightly rates ($60-$120).

Airbnb investments in Melbourne, Florida typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property location and management efficiency. Properties near the beaches and downtown areas command higher nightly rates of $120-180, while inland properties average $80-120 per night. Initial profitability usually occurs within 12-18 months for well-positioned properties with occupancy rates of 65-75% annually. The Melbourne market benefits from proximity to Kennedy Space Center, beaches, and year-round tourism, with peak seasons during winter months and rocket launches driving premium pricing. Total returns including appreciation typically reach 10-15% annually, with break-even on initial investment occurring within 6-8 years for properties purchased at median prices of $250,000-350,000. Cash-on-cash returns are optimized when leveraging 75-80% financing, and properties requiring minimal renovation work achieve profitability fastest in this growing Space Coast market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Melbourne, Florida. Local real estate agents like Keller Williams Space Coast, RE/MAX Elite, and Coldwell Banker Realty have agents experienced in vacation rental investments in the Melbourne area. National services include Awning (founded 2020), which provides Airbnb investment analysis and property management, RedAwning for vacation rental property sourcing, and AirDNA for market data and investment insights. Local property management companies like Vacasa and RedAwning Property Management offer turnkey Airbnb services for investors. Real estate investment firms such as Roofstock and Arrived Homes have expanded into short-term rental markets, while local Melbourne agents like those at Century 21 Ocean and Berkshire Hathaway HomeServices specialize in investment properties near the beaches and Space Coast attractions. Additional services include BiggerPockets for networking and education, Mashvisor for property analysis, and local vacation rental management companies like Coastal Vacation Rentals and Space Coast Vacation Rentals that help investors maximize their Airbnb returns in the Melbourne market.