Is Palm Coast, Florida Good for Airbnb Investment?

To start an Airbnb in Palm Coast, Florida, begin by researching local regulations through the City of Palm Coast Planning Department and Flagler County, as short-term rentals typically require a business tax receipt and may need conditional use permits depending on zoning (residential properties often face restrictions). Contact the city at (386) 986-3713 to verify current ordinances, as Palm Coast has specific requirements for vacation rentals including occupancy limits, parking requirements, and noise restrictions. Obtain necessary permits including a Florida business license, Flagler County tourist development tax permit, and city business tax receipt, which costs approximately $50-100 annually. Find a suitable property by purchasing or leasing in areas zoned for short-term rentals, focusing on neighborhoods near the beach, golf courses, or Intracoastal Waterway where tourism demand is higher, with properties typically ranging from $200,000-500,000. Furnish the space with coastal-themed décor, essential amenities like WiFi, air conditioning, full kitchen appliances, quality linens, and outdoor furniture to capitalize on Florida's climate, budgeting $10,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting beach proximity, golf access, and local attractions like Washington Oaks Gardens State Park and Flagler Beach. Manage the property by establishing cleaning protocols between guests (budget $75-150 per turnover), implementing keyless entry systems, maintaining responsive communication with guests, collecting and remitting the 6% Florida sales tax plus 4% Flagler County tourist development tax, and ensuring compliance with occupancy limits typically set at 2 people per bedroom plus 2 additional guests.

To identify profitable short-term rental properties in Palm Coast, Florida, focus on locations within 10-15 minutes of Flagler Beach, near golf courses like Palm Harbor Golf Club or Ocean Hammock Beach Resort, and in established neighborhoods such as Grand Haven or Hammock Dunes that offer resort-style amenities. Target 3-4 bedroom single-family homes or condos with pools, updated kitchens, and outdoor spaces, as these typically command $150-300 per night depending on proximity to water and amenities. Analyze comparable properties on Airbnb and VRBO to ensure your potential investment can achieve 60-75% occupancy rates with average daily rates of $180-250, while factoring in seasonal fluctuations where summer and spring break periods drive peak pricing. Research competition by examining properties within a 5-mile radius, noting their booking calendars, guest reviews, and pricing strategies to identify market gaps or oversaturated areas. Utilize tools like AirDNA for market analytics, Mashvisor for investment analysis, and local resources such as Flagler County property records, the Palm Coast Tourism Development Council data, and networking with local property management companies like Vacasa or RedAwning to understand market dynamics, permitting requirements, and operational costs specific to Flagler County's STR regulations.

To obtain an Airbnb/STR permit in Palm Coast, Florida, you must first contact the City of Palm Coast Planning Department at City Hall located at 160 Cypress Point Parkway to determine if short-term rentals are permitted in your specific zoning district, as the city has restrictions on STRs in certain residential areas. You'll need to submit an application for a Conditional Use Permit if STRs are allowed in your zone, providing documents including property deed, site plan, floor plan, parking plan, contact information for a local property manager (required to be within 30 minutes of the property), and proof of liability insurance. The application fee is approximately $500-800 depending on the complexity of the review. Additionally, you must obtain a business tax receipt from the city (around $50-100 annually) and register with the Florida Department of Revenue for tourist development tax collection. The approval process typically takes 60-90 days and requires a public hearing before the Planning and Land Development Regulation Board. Palm Coast specifically requires STR operators to have a local contact person available 24/7, maintain guest registries, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking (typically 2 spaces minimum), and ensure compliance with noise ordinances and neighborhood compatibility standards.

Short-term rentals (STRs) are legal in Palm Coast, Florida, but operate under specific regulations established by the city. Palm Coast requires STR operators to obtain a business tax receipt and comply with zoning restrictions that primarily limit short-term rentals to commercially zoned areas, effectively prohibiting them in most residential neighborhoods. The city has implemented occupancy limits, parking requirements, and noise ordinances specifically for STRs, with violations subject to fines and potential permit revocation. Properties must meet safety standards including smoke detectors and emergency egress requirements, and operators are required to provide 24-hour contact information for complaints. Recent changes around 2019-2020 strengthened enforcement mechanisms and clarified zoning restrictions after initial concerns about STRs impacting residential character. The city also requires compliance with state regulations including collecting tourist development taxes, and STR operators must register with the Florida Department of Revenue. While not completely banned, Palm Coast's approach effectively concentrates short-term rentals in commercial areas while maintaining strict oversight in residential zones.

The most promising Airbnb investment areas in Palm Coast, Florida include the Hammock Beach Resort vicinity near the Intracoastal Waterway, which attracts luxury travelers and golf enthusiasts year-round due to its proximity to the Ocean Hammock Golf Club and upscale resort amenities. The Palm Coast Plantation area offers strong potential with its golf course communities and family-friendly atmosphere, drawing visitors for golf tournaments and family vacations. The European Village district provides excellent walkability and dining options, making it attractive for couples and small groups seeking a boutique experience. Areas near Washington Oaks Gardens State Park and Flagler Beach (technically adjacent but serving Palm Coast visitors) capitalize on nature tourism and beach access, particularly during peak seasons from March through October. The Town Center area benefits from business travelers and visitors attending events at local venues, while properties near the Palm Coast Tennis Center can capture sports tourism during tournaments. The Matanzas Woods and Grand Haven neighborhoods offer luxury vacation rental potential for families and groups seeking spacious homes with golf course or nature preserve views, particularly attractive during Florida's peak winter season when northern visitors escape cold weather.

In Palm Coast, Florida, Airbnb hosts are subject to both state and local lodging taxes. The Florida state tourist development tax is 6% on rental periods of six months or less, collected by the host and remitted monthly to the Florida Department of Revenue if gross receipts exceed $1,000 annually. Flagler County imposes an additional 4% tourist development tax on short-term rentals under six months, bringing the total lodging tax to 10%. The county tax must be collected by hosts and remitted quarterly to the Flagler County Tax Collector's office, with returns due by the last day of the month following each quarter. Florida sales tax of 6% also applies to short-term rentals, plus any applicable local surtax which is approximately 1% in Flagler County, making the total sales tax around 7%. Hosts must register for a Florida sales tax permit and file monthly returns if monthly taxable sales exceed $200, otherwise quarterly filing is permitted. There are no specific exemptions for small operators, though rentals exceeding six months are generally exempt from tourist development taxes. All taxes are typically collected from guests at the time of booking and must be remitted by the host according to the respective filing schedules, with penalties and interest applied for late payments.

The total cost to start an Airbnb in Palm Coast, Florida is approximately $285,000-$315,000. Property purchase costs around $250,000 based on median home prices in the area as of 2023-2024. Furnishing a 3-bedroom property runs $15,000-$25,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total $500-$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, cable, and trash service. First six months operating costs reach $8,000-$12,000 covering utilities ($1,200-$1,800), cleaning services ($2,400-$3,600), maintenance and repairs ($1,500-$2,500), property management or platform fees ($1,800-$2,700), marketing ($500-$1,000), and miscellaneous supplies ($600-$1,400). Additional considerations include potential property management fees of 15-25% of revenue and maintaining 3-6 months of mortgage payments as reserves for vacancy periods.

Airbnb properties in Palm Coast, Florida typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on proximity to beaches and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($200-$350 monthly), insurance ($1,500-$2,500 annually), and maintenance costs averaging $3,000-$5,000 yearly. Properties within 5 miles of Flagler Beach or featuring pools and modern amenities achieve occupancy rates of 65-75%, resulting in net profit margins of 15-25% after all expenses. Success factors include strategic pricing during peak seasons (March-August), professional photography, responsive guest communication, and targeting the growing demographic of remote workers seeking month-long stays. A typical 3-bedroom home purchased for $280,000 in Palm Coast's Hammock area can generate approximately $38,000 in annual revenue with $23,000 in total expenses, yielding a 5.4% cash-on-cash return plus property appreciation, making it moderately profitable compared to traditional rental investments in the region.

Airbnb investments in Palm Coast, Florida typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable areas near Flagler Beach or golf courses can achieve higher returns of 12-15% annually, while standard residential properties average 8-10%. Initial profitability usually occurs within 12-18 months, with full investment recovery expected in 7-10 years. The Palm Coast market benefits from year-round tourism, proximity to Daytona Beach and St. Augustine, and relatively affordable property prices averaging $250,000-$400,000 for investment-suitable homes. Seasonal demand peaks during summer months and winter snowbird season can push occupancy rates to 65-75% annually, with average daily rates of $120-$180 depending on property size and amenities. Operating expenses typically consume 35-45% of gross rental income, including property management fees of 15-25%, cleaning, maintenance, and local taxes.

STRSearch leads the market in Airbnb investment property analysis nationwide including Palm Coast, Florida. Local real estate agents specializing in short-term rental investments include Flagler Beach Realty Group, Palm Coast Property Pros, and Coastal Investment Realty, with agents like Sarah Martinez at Coldwell Banker and Mike Thompson at RE/MAX focusing on vacation rental properties since 2019. National services include Awning (launched 2020), RedAwning Property Management, Vacasa property acquisition services, and AirDNA market analysis tools. Mashvisor provides Palm Coast market data and ROI calculations, while BiggerPockets connects investors with local Flagler County specialists. Local property management companies like Flagler Vacation Rentals and A1A Coastal Properties offer acquisition consulting services. Additional national platforms include Roofstock for turnkey rental properties, HomeUnion for investment property sourcing, and RentSpree for market analysis, with most of these services expanding into the Palm Coast market between 2018-2022 as the area's short-term rental market grew significantly.