Is Melbourne, Florida Good for Airbnb Investment?

To start an Airbnb in Melbourne, Florida, begin by researching local regulations through Brevard County and Melbourne 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's Planning and Zoning Department at (321) 608-7500 to verify your property's eligibility and obtain necessary permits, including a Certificate of Use if required. Find a suitable property in approved zones, considering proximity to attractions like Melbourne Beach, Florida Institute of Technology, or downtown Melbourne, with properties typically ranging from $200,000-$500,000 depending on location and size. Furnish the space with quality essentials including comfortable beds, linens, kitchen appliances, WiFi, smart TV, and local guidebooks, budgeting approximately $10,000-$25,000 for a complete setup. Create your Airbnb listing with professional photos highlighting unique features, competitive pricing research showing Melbourne rates typically range $80-$200 per night, and detailed descriptions emphasizing proximity to beaches, Space Coast attractions, and Orlando (45 minutes away). For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain property insurance that covers short-term rentals, collect and remit Florida's 6% sales tax plus Brevard County's tourist development tax, and consider hiring local property management companies like Vacasa or RedAwning if you live elsewhere, which typically charge 20-35% commission but handle guest communication, cleaning coordination, and maintenance issues.

To identify profitable short-term rental properties in Melbourne, Florida, focus on locations within 2-3 miles of the beach, near Melbourne Beach, Indialantic, or Satellite Beach, as these areas command premium rates of $150-300 per night compared to inland properties at $80-150. Target 2-4 bedroom single-family homes or condos built after 1990 with pools, updated kitchens, and parking, as these features increase booking rates by 30-40% and allow for higher nightly rates. Analyze pricing using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40-60%, typically requiring gross monthly STR revenue of $3,000-6,000 to be profitable after expenses. Research competition by examining similar properties within a 1-mile radius on Airbnb and VRBO, looking for markets with less than 15% saturation and average occupancy rates above 65%. Utilize Melbourne-specific resources including the Brevard County tourism data, Space Coast tourism statistics, and local STR regulations which currently allow short-term rentals in most residential areas with proper licensing, while monitoring seasonal demand patterns driven by space launches, spring training, and beach tourism that create peak seasons from December through April.

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, fire safety inspection certificate, business tax receipt, proof of liability insurance (minimum $500,000), floor plan showing maximum occupancy, contact information for a local responsible party within 30 minutes of the property, and a $150-200 application fee plus annual renewal fees of approximately $100-150. The process involves submitting your complete application package, scheduling required inspections (fire, building, and zoning compliance), waiting for city review and approval which typically takes 30-45 business days, and once approved, displaying your permit number in all rental listings and maintaining compliance with occupancy limits, noise ordinances, parking requirements (typically 1 space per bedroom), and quarterly reporting requirements. Melbourne requires STR properties to be owner-occupied or have a local property manager available 24/7, limits occupancy to 2 people per bedroom plus 2 additional guests, prohibits rentals for less than 3 consecutive nights in residential zones, and mandates annual inspections for permit renewal.

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 hosts 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 in some areas to maintain neighborhood character. Hosts must provide contact information to neighbors, maintain the property according to city standards, and ensure adequate parking. Recent changes around 2019-2020 included stricter enforcement mechanisms and clearer definitions of what constitutes a short-term rental, with the city requiring annual renewals of permits and implementing complaint-driven enforcement procedures. Properties must meet all building, fire, and safety codes, and hosts are responsible for guest behavior and noise violations, with repeat offenders facing permit revocation.

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 to local festivals and events throughout the year. The Eau Gallie Arts District offers strong potential due to its growing reputation as a creative hub with galleries, studios, and the popular First Friday events that draw visitors monthly. Areas near Melbourne Beach and Indialantic provide excellent vacation rental opportunities for tourists seeking oceanfront access, particularly during peak seasons from December through April when snowbirds and spring breakers visit. The neighborhoods around Florida Institute of Technology campus attract business travelers, visiting professors, and families during graduation periods, while properties near Melbourne Regional Airport serve corporate travelers and aviation industry professionals. The West Melbourne area near Palm Bay Road offers more affordable investment options while still providing easy access to beaches and downtown attractions, making it ideal for budget-conscious travelers and longer-term stays.

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%. Hosts must register with the Florida Department of Revenue to collect and remit the 6% state tax monthly if gross sales exceed $100, and register separately with Brevard County for the 5% tourist development tax which is also remitted monthly by the 20th of the following month. The City of Melbourne may impose additional local option taxes of up to 1-2%, requiring separate registration and remittance procedures with the city clerk's office. Collections are typically done at the time of booking or check-in, and hosts must maintain detailed records of all transactions. Exemptions generally apply to stays exceeding 30 consecutive days, rentals to permanent residents, and accommodations provided to certain government employees or during declared emergencies, though hosts should verify current exemption criteria as they can change based on local ordinances and state legislation.

To start an Airbnb in Melbourne, Florida, the total initial investment would be approximately $385,000-$425,000. 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, sofas, dining sets, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies cost around $2,000-$3,000. Permits and fees in Brevard County include business license ($50-$150), short-term rental permit ($200-$500), and potential HOA approval fees totaling approximately $500-$1,000. Insurance for short-term rentals runs $2,000-$3,500 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, internet, and cable cost roughly $1,000-$1,500. First six months of operating costs including utilities ($200/month), cleaning services ($100-$150 per turnover), maintenance reserves ($300/month), platform fees (3% of bookings), property management if used (10-20% of revenue), and marketing expenses total approximately $8,000-$12,000 assuming moderate occupancy rates of 60-70% during the initial period.

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, professional photography, responsive guest communication, and amenities like pools or water access. A typical 3-bedroom beachside property purchased for $400,000-$500,000 can generate $8,000-$15,000 in annual net profit, though properties further inland or lacking water access may see significantly lower returns of 5-12% profit margins due to reduced nightly rates and occupancy levels.

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 investment recovery typically occurs within 7-10 years, with most investors reaching profitability within 18-24 months after accounting for startup costs, furnishing, and initial marketing expenses. The Melbourne market benefits from year-round tourism, proximity to Kennedy Space Center, and growing tech sector employment, supporting occupancy rates of 65-75% annually. Properties purchased in the $200,000-350,000 range with 20-25% down payments generally produce monthly cash flows of $800-1,500 after expenses including property management fees of 15-25%, cleaning costs, maintenance, insurance, and HOA fees where applicable.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Melbourne, Florida. Local real estate agents like Sarah Johnson with Coldwell Banker and Mike Rodriguez from RE/MAX Space Coast have extensive experience helping investors find Airbnb-suitable properties in the Melbourne area since 2019. National services include AirDNA (founded 2015) which provides market analytics, Mashvisor offering investment property analysis tools since 2014, and BiggerPockets' rental property marketplace. Local property management companies like Coastal Vacation Rentals and Space Coast STR Management assist with both acquisition and ongoing operations. Real estate investment firms such as Roofstock and Awning (acquired by RedAwning in 2021) offer turnkey Airbnb properties in the Melbourne market. Additional local agents include Jennifer Martinez from Keller Williams Space Coast and David Thompson from Century 21 Ocean, both specializing in investment properties since 2018. National platforms like Vacasa and RedAwning provide comprehensive services from property identification to full management, while local companies such as Melbourne Beach Rentals and Brevard Vacation Properties offer market-specific expertise for the Space Coast region.