Is Pace, Florida Good for Airbnb Investment?

To start an Airbnb in Pace, Florida, begin by researching Santa Rosa County's short-term rental regulations, which typically require a business tax receipt and compliance with zoning ordinances that may restrict rentals in certain residential areas. Obtain necessary permits including a Santa Rosa County business license ($25-50 annually), Florida sales tax permit through the Department of Revenue, and ensure your property meets fire safety codes and occupancy limits. Find a suitable property in Pace by targeting areas near popular attractions like Blackwater River State Park or close to Pensacola Beach (20 minutes away), with 2-3 bedroom homes typically renting for $80-150 per night. Furnish the property with essential amenities including quality mattresses, linens, kitchen appliances, WiFi, and outdoor furniture to capitalize on Florida's year-round outdoor appeal, budgeting approximately $8,000-15,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting the proximity to beaches, rivers, and Gulf Coast attractions, setting competitive rates based on seasonal demand (higher during summer months and spring break). Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges through lockboxes or smart locks, and maintaining relationships with local cleaning services and maintenance contractors, while keeping detailed records for tax purposes and collecting the required 6% Florida sales tax plus any applicable tourist development taxes.

To identify profitable short-term rental properties in Pace, Florida, focus on locations within 15-20 minutes of Pensacola Beach and downtown Pensacola, particularly properties near Blackwater River State Park, as these areas attract tourists seeking outdoor recreation and beach access. Target 3-4 bedroom single-family homes or condos with 2+ bathrooms, outdoor spaces like decks or patios, and modern amenities including high-speed internet, as military families from nearby Naval Air Station Pensacola and tourists prefer spacious accommodations. Analyze pricing using AirDNA and Mashvisor to identify properties where nightly rates of $120-180 can generate 15-20% annual returns, considering seasonal fluctuations with peak rates during summer months and Blue Angels air show periods. Research competition by studying existing Airbnb and VRBO listings within a 5-mile radius, noting occupancy rates, amenities offered, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through partnerships with Santa Rosa County realtors, while monitoring vacation rental regulations in unincorporated Santa Rosa County areas where Pace is located, as these tend to be more permissive than incorporated municipalities.

To obtain an Airbnb/STR permit in Pace, Florida, you must first contact Santa Rosa County's Planning and Zoning Department since Pace is an unincorporated community within the county, typically requiring a Conditional Use Permit (CUP) application which can be submitted at the Santa Rosa County Administrative Complex at 6495 Caroline Street, Milton, FL 32570. Required documents include a completed CUP application, property deed, site plan showing parking and property boundaries, floor plan of the rental unit, proof of property insurance, septic system inspection (if applicable), and a $500-800 application fee paid by check or money order. The process typically takes 60-90 days and includes a public hearing before the Planning Board, during which neighbors are notified and can provide input. Specific requirements for Pace include maintaining adequate off-street parking (minimum 2 spaces per unit), ensuring the property meets all building and fire codes, obtaining a business tax receipt from Santa Rosa County, registering with the Florida Department of Revenue for tourist development tax collection, and maintaining the property as your primary residence if applying for a homestay permit rather than a full rental property, with occupancy limits typically restricted to 2 guests per bedroom plus 2 additional guests with a maximum of 10 people total.

Short-term rentals (STRs) are generally legal in Pace, Florida, as the city operates under Santa Rosa County's regulations, which permit STRs with proper licensing and compliance requirements. Property owners must obtain a business tax receipt from Santa Rosa County and register their rental properties, while adhering to occupancy limits, parking requirements, and noise ordinances. The county requires STR operators to maintain liability insurance, provide emergency contact information to neighbors, and ensure properties meet safety standards including smoke detectors and fire extinguishers. Some residential neighborhoods may have HOA restrictions that limit or prohibit short-term rentals, and operators must comply with state sales tax collection requirements. Recent changes in 2022-2023 have included stricter enforcement of existing regulations and enhanced penalties for non-compliance, though no outright bans have been implemented in Pace specifically, making it more permissive than some other Florida municipalities that have enacted moratoriums or severe restrictions on STR operations.

The best areas for Airbnb investment in Pace, Florida include the Blackwater River corridor neighborhoods near the state forest, which attract outdoor enthusiasts for kayaking, fishing, and camping activities year-round. The historic downtown Pace area offers charm for visitors exploring local heritage sites and provides easy access to Pensacola attractions just 20 minutes away. Neighborhoods near the Blackwater River State Park see strong demand from nature tourists and families seeking waterfront recreation. The residential areas along Highway 90 benefit from business travelers working at nearby Eglin Air Force Base and contractors supporting military operations. Properties near the Pace Community Center and recreational facilities attract sports tournament participants and families visiting for youth events. The emerging developments around the Pace area shopping centers appeal to visitors who want suburban comfort while exploring the greater Pensacola Bay region, including nearby beaches and the National Naval Aviation Museum.

In Pace, Florida, Airbnb hosts are subject to both state and local lodging taxes. The Florida state tourist development tax ranges from 1-6% depending on the county, with Santa Rosa County (where Pace is located) typically charging around 4-5% on short-term rental accommodations. Additionally, hosts must collect and remit Florida's 6% state sales tax on rental income. The City of Pace may impose an additional local occupancy tax of 1-3%, bringing the total tax burden to approximately 11-14% of the rental amount. These taxes are collected from guests at the time of booking and must be remitted monthly to the Florida Department of Revenue for state taxes and to Santa Rosa County for local tourist development taxes. Airbnb automatically collects and remits these taxes in many Florida jurisdictions through agreements with local tax authorities, but individual hosts should verify their specific obligations. Properties rented for 30 days or longer are typically exempt from tourist development taxes but may still be subject to sales tax, and hosts must register for tax collection permits before beginning operations.

The total cost to start an Airbnb in Pace, Florida is approximately $285,000-$320,000. Property purchase costs around $220,000-$250,000 based on median home prices in the Santa Rosa County area. Furnishing a 3-bedroom property runs $15,000-$25,000 including beds, sofas, dining sets, appliances, linens, and décor. Initial setup costs $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total $800-$1,500 including business license, vacation rental permit, and potential HOA approvals. Insurance adds $2,000-$3,000 annually for short-term rental coverage. Utilities average $200-$300 monthly including electricity, water, internet, and cable. First six months operating costs reach $8,000-$12,000 covering utilities ($1,800), cleaning services ($2,400), maintenance ($1,500), property management or marketing ($2,000-$4,000), supplies and amenities ($800), and emergency repairs fund ($1,500). Additional considerations include potential property management fees of 15-25% of revenue, marketing costs, and maintaining 3-6 months of mortgage payments as reserves for vacancy periods.

Airbnb properties in Pace, Florida typically generate annual revenues between $15,000-$35,000 for single-family homes and $8,000-$18,000 for condos, with average daily rates ranging from $80-$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 leveraging Pace's proximity to Pensacola Beach and Blackwater River State Park. Properties within 20 minutes of Gulf beaches command premium rates, while those near outdoor recreation areas like Adventures Unlimited attract steady weekend bookings. Success factors include professional photography, responsive communication, local guidebooks, and partnerships with activity providers, with top-performing properties often featuring amenities like kayaks, fishing gear, or beach equipment that capitalize on the area's natural attractions.

Airbnb investments in Pace, 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 Blackwater River State Park and vacation rentals targeting military families from nearby Whiting Field Naval Air Station show the strongest performance, with investors commonly achieving profitability within 18-24 months of initial investment. The market benefits from consistent demand from both leisure travelers seeking outdoor recreation and military personnel requiring temporary housing, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Properties purchased in the $150,000-250,000 range with 20-25% down payments typically generate monthly cash flows of $400-800 after expenses, translating to cash-on-cash returns in the 10-12% range for well-managed properties, while investors focusing on waterfront or premium locations near recreational areas can achieve returns closer to 15-18% annually.

STRSearch leads the market in Airbnb investment property analysis nationwide including Pace, Florida, followed by national services like Awning, RedAwning, and Mashvisor that provide comprehensive short-term rental market data and property recommendations. Local real estate agents specializing in investment properties in the Pace area include Coldwell Banker Realty agents, RE/MAX professionals, and Keller Williams Realty specialists who understand the Gulf Coast vacation rental market. Additional services include AirDNA for market analytics, Rabbu for property management insights, and BiggerPockets for investor networking, while local property management companies like Vacasa, RedAwning Property Management, and Gulf Coast vacation rental specialists can provide on-ground expertise for the Pace and greater Pensacola Bay area market that has seen growing demand since 2019 due to its proximity to beaches and military installations.