Is Oxford, Florida Good for Airbnb Investment?

To start an Airbnb in Oxford, Florida, begin by researching local zoning laws and regulations through Sumter County's planning department, as Oxford falls under their jurisdiction and typically requires short-term rentals to comply with residential zoning restrictions and may require a business tax receipt. Contact Sumter County at (352) 689-4400 to verify specific permit requirements, which often include a vacation rental license, fire safety inspection, and compliance with the International Property Maintenance Code. Find a suitable property by searching MLS listings or working with local realtors familiar with investment properties, ensuring the property is in a zone that allows short-term rentals and considering proximity to The Villages for higher demand. Furnish the property with quality, durable furniture from retailers like Ashley Furniture or Rooms To Go in nearby Ocala, focusing on comfortable bedding, essential kitchen appliances, WiFi, and amenities that appeal to retirees and visitors to The Villages area. Create your Airbnb listing with professional photography, competitive pricing around $80-150 per night based on local market rates, and highlight proximity to golf courses, shopping, and The Villages attractions. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, collect and remit the 6% Florida sales tax plus any applicable tourist development taxes to the Florida Department of Revenue, and consider using property management software like Hostfully or hiring a local management company if you live out of area.

To identify profitable short-term rental properties in Oxford, Florida, focus on properties within 15-20 minutes of major attractions like The Villages retirement community, Wildwood outlets, and Lake County recreational areas, as proximity to these draws significantly impacts occupancy rates. Target 2-4 bedroom single-family homes or condos built after 1990 with amenities like pools, updated kitchens, and outdoor spaces, as these features command 20-30% higher nightly rates in the $80-150 range typical for the Oxford market. Analyze comparable STR properties using AirDNA and Mashvisor to identify optimal pricing strategies, aiming for properties that can achieve 60-70% occupancy rates with average daily rates of $100-120 to generate positive cash flow after expenses. Research competition density using Airdna's market data for Oxford and surrounding Sumter County areas, avoiding oversaturated neighborhoods while identifying underserved pockets near golf courses, lakes, or equestrian facilities that attract longer-stay guests. Utilize tools like Rabbu, STR Helper, and local MLS data through Realtor.com, while connecting with Oxford-area property managers and real estate agents familiar with STR regulations, as Lake County has specific permitting requirements that vary by municipality and can impact profitability timelines.

To obtain an Airbnb/STR permit in Oxford, Florida, you must first contact the Oxford City Hall at 110 West 5th Street or call (352) 748-3947 to inquire about their short-term rental ordinance requirements, as this small city in Sumter County may have specific regulations. You'll typically need to submit a business tax receipt application, provide proof of property ownership or lease agreement, obtain a certificate of occupancy, submit a site plan showing parking and occupancy limits, provide proof of liability insurance (usually $1 million minimum), and complete a background check. Required documents generally include a completed STR permit application, property deed or lease, floor plan, parking diagram, emergency contact information, and house rules for guests. The application fee is estimated at $150-300 annually, with additional costs for inspections ($75-150) and business tax receipt ($50-100). The approval timeline typically takes 30-60 days from submission of complete application, including time for city review, potential site inspection, and neighbor notification period. Oxford likely requires compliance with residential zoning restrictions, maximum occupancy limits based on bedrooms and square footage, adequate parking spaces (usually 2 per unit), 24/7 local contact person, and adherence to noise ordinances and trash collection schedules.

Short-term rentals (STRs) are generally legal in Oxford, Florida, but are subject to local regulations and zoning restrictions implemented by Sumter County, where Oxford is located. The city operates under county jurisdiction for most regulatory matters, and Sumter County has established guidelines that typically require STR operators to obtain proper permits, comply with occupancy limits, maintain adequate parking, and ensure properties meet safety standards. STRs are generally prohibited in certain residential zoning districts and may face restrictions on the number of rental days per year, noise ordinances, and requirements for local contact persons available 24/7. Recent changes around 2022-2023 have seen increased enforcement and stricter permitting processes as the area, being close to The Villages retirement community, has experienced growth in vacation rental demand. Property owners must also comply with state tax collection requirements and may need to register with both county and state authorities, with violations potentially resulting in fines or permit revocation.

The best areas for Airbnb investment in Oxford, Florida include the historic downtown district near the Oxford Town Center and areas close to The Villages retirement community border, which attracts a steady stream of visitors and family members visiting residents. Properties near Lake Miona and the surrounding waterfront areas are particularly attractive due to recreational activities like fishing, boating, and scenic views that appeal to tourists seeking peaceful getaways. The residential neighborhoods within a 10-15 minute drive of The Villages' amenities, such as golf courses, shopping centers, and entertainment venues, offer strong investment potential as they capture overflow demand from the popular retirement destination while maintaining lower property acquisition costs than properties directly within The Villages. Areas near Webster Westside Flea Market, one of Florida's largest outdoor markets operating on Mondays, provide opportunities for weekend rental income from bargain hunters and antique enthusiasts who travel from across the state. The proximity to major highways like I-75 and the Florida Turnpike makes Oxford attractive for business travelers and tourists using it as a convenient stopover location between major Florida destinations, while the rural charm and agricultural heritage of the area appeal to visitors seeking authentic Florida experiences away from crowded tourist centers.

In Oxford, Florida, Airbnb hosts are subject to Florida's 6% state sales tax on transient rentals, plus Sumter County's 5% tourist development tax, totaling 11% in lodging taxes on stays of six months or less. The state sales tax applies to the total rental amount including cleaning fees, while the tourist development tax applies to the first $3,000 of rent charged per unit per calendar month. Airbnb typically collects and remits these taxes automatically for hosts through their platform since 2017, but hosts should verify this is occurring and register with the Florida Department of Revenue if collecting taxes independently. Hosts must obtain a sales tax certificate from the Florida Department of Revenue and file returns monthly, quarterly, or annually depending on tax liability volume. The tourist development tax is remitted to Sumter County by the 20th of the month following collection. Exemptions include rentals to permanent residents (over 6 months), rentals to government employees on official business, and certain agricultural worker housing, though documentation is required to claim these exemptions.

To start an Airbnb in Oxford, Florida, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at approximately $250,000-$280,000 based on median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, sofas, dining sets, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees vary but budget $500-$1,500 for business licenses, vacation rental permits, and any required inspections from Sumter County. Insurance including landlord and short-term rental coverage costs $2,000-$4,000 annually. Utility setup and deposits for electricity, water, internet, and cable total $500-$1,000. First six months operating costs including utilities ($1,200), cleaning supplies and services ($1,800), maintenance reserves ($2,000), platform fees to Airbnb and VRBO ($1,500), and miscellaneous expenses ($1,500) add approximately $8,000. Marketing and initial guest acquisition costs may require an additional $2,000-$3,000 during the startup phase to establish reviews and visibility in this competitive Central Florida market near The Villages retirement community.

Airbnb properties in Oxford, Florida typically generate annual revenues of $15,000-$35,000 for single-family homes and $8,000-$18,000 for condos, with average daily rates ranging from $75-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$80 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% by focusing on proximity to The Villages retirement community, competitive pricing during peak winter months (December-March), and maintaining high cleanliness standards. Properties within 10 miles of The Villages consistently outperform others due to visitor demand from families visiting residents, with some three-bedroom homes near Lake Weir generating over $40,000 annually. Success factors include professional photography, responsive communication, strategic pricing adjustments for seasonal demand, and targeting the 55+ demographic market that dominates the area's tourism.

Airbnb investments in Oxford, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, depending on property type and location within the market. Single-family homes near the Oxford area, particularly those within 30 minutes of major attractions like Disney World and Universal Studios, command higher nightly rates of $120-200 during peak seasons and $80-120 during off-peak periods. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with vacation rental management companies like Vacasa and RedAwning reporting occupancy rates of 65-75% annually in the Central Florida corridor. Properties requiring minimal renovation typically achieve faster profitability timelines of 12-18 months, while those needing significant updates may extend to 24-36 months before reaching consistent positive cash flow, with the Oxford market benefiting from its proximity to The Villages retirement community and Orlando's tourism infrastructure.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Oxford, Florida, providing market analysis and property recommendations. Local real estate agents specializing in Airbnb investments in the Oxford area include Keller Williams Realty agents who focus on vacation rental properties, RE/MAX agents with short-term rental expertise, and Coldwell Banker professionals experienced in investment properties. National services include Mashvisor, which offers rental property analysis and market data for Oxford, AirDNA for short-term rental market insights and revenue projections, Awning for turnkey Airbnb investment properties, Roofstock for rental property investments, and BiggerPockets for investor networking and property analysis tools. Local property management companies that also help with acquisitions include RedAwning Property Management, Vacasa, and several boutique vacation rental management firms operating in the Central Florida market. Additional services include local mortgage brokers specializing in investment properties, property inspectors familiar with short-term rental requirements, and real estate attorneys experienced in vacation rental regulations in Sumter County where Oxford is located.