Is Palm Coast, Florida Good for Airbnb Investment?

Get significant tax savings and earn cash flow by investing in a short-term rental with data-backed selection. No guessing!

Find Your Airbnb Investment
Palm Coast, Florida market research

Palm Coast, Florida Airbnb Investment Overview

$1,200–$3,500Typical monthly host earnings
8–14%Typical annual ROI
65–70%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Palm Coast, Florida?

Potentially—Palm Coast, Florida combines visitor demand with long-term real estate upside.

  • Presents a promising opportunity, largely driven by its growing appeal as a vacation destination.
  • Current market conditions in Palm Coast indicate a steady demand for short-term rentals, fueled by its beautiful beaches, golf courses.
  • Augustine.
  • Tourism trends show consistent growth in visitors seeking a quieter, family-friendly alternative to more crowded Florida hot spots.
  • Property values in Palm Coast have seen a stable upward trajectory, making it an attractive area for real estate investment with potential for both rental income and capital appreciation.
  • The investment potential is further enhanced by the city's ongoing development and infrastructure improvements, which are likely to attract more tourists and residents in the future.
Earnings

How Much Does an Average Airbnb Earn in Palm Coast?

$1,200–$3,500 per month based on location, season, and property quality.

  • Based on available market data and rental analytics platforms, average Airbnb earnings in Palm Coast, Florida typically range from $1,200 to $3,500 per month for standard residential properties.
  • Seasonal variations show peak earnings during winter months (December through March) when northern visitors escape cold weather, generating 40-60% higher revenues compared to summer months.
  • Properties within walking distance to Flagler Beach or golf courses generally earn 25-35% more than inland locations, and factors significantly affecting earnings include proximity to the beach.
  • The market benefits from Palm Coast's position as a growing retirement destination with relatively lower competition compared to nearby St.
  • Augustine or Daytona Beach, though earnings can be impacted by hurricane season concerns and the seasonal nature of Florida tourism.
  • Data estimates are derived from vacation rental analytics platforms, local property management companies, and host community forums that track regional performance metrics.
ROI Analysis

Airbnb Return on Investment in Palm Coast

Potentially strong—typical annual ROI is 8–14%.

  • Typically generate ROI between 8-14% annually, with higher-performing properties near the beach or golf courses achieving up to 16-18% returns.
  • The average payback period ranges from 6-9 years, depending on initial investment and occupancy rates.
  • Properties generate approximately $35,000-55,000 in gross annual revenue, with average daily rates between $120-180 depending on location and amenities.
  • Compared to traditional long-term rentals in Palm Coast that typically yield 6-8% ROI with gross rental yields around $18,000-28,000 annually.
  • The market benefits from Palm Coast's proximity to Daytona Beach, Flagler Beach, and numerous golf courses, creating steady demand from both leisure travelers and business visitors.
Occupancy Rate

Average Airbnb Occupancy Rate in Palm Coast

Palm Coast, Florida averages 65–70% annual occupancy, with seasonal variation.

  • Palm Coast, Florida Airbnb properties typically maintain an average annual occupancy rate of approximately 65-70%.
  • Peak season occurs from December through April when occupancy rates surge to 80-85% as snowbirds and winter vacationers escape colder climates.
  • The shoulder seasons of fall and late spring experience the lowest occupancy rates at 45-55% as tourist activity diminishes.
  • Palm Coast's occupancy rates generally align closely with Florida's statewide Airbnb average of 68%.
  • Compared to the national Airbnb average of approximately 48-52%, Palm Coast significantly outperforms due to Florida's year-round tourism appeal, favorable climate, and the city's proximity to beaches.
  • Augustine, making it a consistently attractive destination for short-term rental guests throughout most of the year.
Best Neighborhoods

Best Neighborhoods for Airbnb in Palm Coast

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • The best Airbnb investment neighborhoods in Palm Coast include Hammock Dunes, an upscale oceanfront community offering luxury vacation rentals with direct beach access and golf course proximity.
  • The Hammock area provides excellent investment potential with its secluded beaches, state parks, and high-end vacation rental demand from affluent tourists seeking privacy and natural beauty.
  • Palm Coast Plantation offers golf course living with resort-style amenities, attracting golf enthusiasts and retirees willing to pay $150-250 per night for well-appointed homes near championship courses.
  • Grand Haven presents a gated community atmosphere with golf and tennis facilities, appealing to families and couples seeking upscale accommodations at $175-300 nightly rates.
  • The Woodlands neighborhood provides more affordable investment entry points while still offering proximity to beaches and golf.
  • Matanzas Woods offers newer construction homes near shopping and dining, commanding $125-225 per night from visitors wanting modern amenities with easy beach access.
  • Pine Lakes provides a middle-market option with golf course proximity and family-friendly amenities, generating steady rental income of $110-200 per night from diverse guest demographics seeking comfortable accommodations near Palm Coast's recreational offerings.
Regulations

Short-term Rental Regulations in Palm Coast

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Palm Coast, Florida requires short-term rental operators to obtain a business tax receipt and register with the city.
  • The city imposes a maximum occupancy of two people per bedroom plus two additional guests, with parking limited to the number of spaces available on the property.
  • Owner-occupancy is not required, but properties must be the owner's primary or secondary residence and cannot be investment properties purchased solely for short-term rental purposes.
  • Registration involves submitting an application with property details, contact information for a local representative available 24/7, and proof of liability insurance of at least $1 million.
  • Recent changes in 2022-2023 include stricter enforcement of noise ordinances, mandatory posting of house rules and emergency contact information.
  • Properties must also comply with fire safety requirements including smoke detectors in all bedrooms and common areas.
Fees and Taxes

Short-term Rental Fees and Taxes in Palm Coast

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Palm Coast, Florida are subject to several fees and taxes including Florida's state sales tax of 6% and discretionary sales surtax of 1% for Flagler County.
  • The state tourist development tax (bed tax) is 5% in Flagler County, collected on rentals of six months or less.
  • Palm Coast requires a business tax receipt which costs approximately $25-50 annually depending on the business classification.
  • Property owners must also obtain a short-term rental permit from Flagler County, which typically costs around $100-200 annually, though specific fees may vary.
  • Additionally, operators may need to pay for inspections (approximately $75-150), and there may be application processing fees of $50-100 when initially registering.
  • Some properties may also be subject to additional homeowners association fees or special district assessments that can range from $200-500 annually.
Common questions

Palm Coast, Florida Airbnb investment FAQs

How to start an Airbnb in Palm Coast, Florida?

To start an Airbnb in Palm Coast, Florida, begin by researching local regulations through the City of Palm Coast Planning Department and Flagler County.

Launch checklist

  • Contact the city at (386) 986 to 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 to 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 to 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 to 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 to 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.
What's the best way to identify good STR properties in Palm Coast, Florida?

To identify profitable short term rental properties in Palm Coast, Florida, focus on locations within 10 to 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.

What to prioritize

  • Target 3 to 4 bedroom single family homes or condos with pools, updated kitchens, and outdoor spaces, as these typically command $150 to 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 to 75% occupancy rates with average daily rates of $180 to 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.
How to get an Airbnb permit in Palm Coast, Florida?

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.

Documents and approvals

  • 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).
  • The application fee is approximately $500 to 800 depending on the complexity of the review.
  • Additionally, you must obtain a business tax receipt from the city (around $50 to 100 annually) and register with the Florida Department of Revenue for tourist development tax collection.
  • The approval process typically takes 60 to 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).
Is it legal to operate a short-term rental in Palm Coast, Florida?

Short term rentals (STRs) are legal in Palm Coast, Florida, but operate under specific regulations established by the city.

Core operating requirements

  • 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 to 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.
What are the best places to invest in Airbnb in Palm Coast, Florida?

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.

Areas to research

  • 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.
Airbnb and lodging taxes in Palm Coast, Florida

In Palm Coast, Florida, Airbnb hosts are subject to both state and local lodging taxes.

Taxes and filing responsibilities

  • 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.
Total cost to purchase, furnish and operate an Airbnb in Palm Coast, Florida

The total cost to start an Airbnb in Palm Coast, Florida is approximately $285,000 to $315,000.

Cost breakdown

  • Property purchase costs around $250,000 based on median home prices in the area as of 2023 to 2024.
  • Furnishing a 3 bedroom property runs $15,000 to $25,000 including beds, sofas, dining sets, appliances, linens, and decor.
  • Initial setup costs $3,000 to $5,000 covering professional photography, listing creation, welcome materials, and basic supplies.
  • Permits and fees total $500 to $1,500 including business license, vacation rental permit, and potential HOA approvals.
  • Insurance adds $2,000 to $3,000 annually for short term rental coverage.
  • Utilities average $200 to $300 monthly including electricity, water, internet, cable, and trash service.
  • First six months operating costs reach $8,000 to $12,000 covering utilities ($1,200 to $1,800), cleaning services ($2,400 to $3,600), maintenance and repairs ($1,500 to $2,500), property management or platform fees ($1,800 to $2,700), marketing ($500 to $1,000).
  • Additional considerations include potential property management fees of 15 to 25% of revenue and maintaining 3 to 6 months of mortgage payments as reserves for vacancy periods.
Are Airbnb properties in Palm Coast, Florida profitable?

Airbnb properties in Palm Coast, Florida typically generate annual revenues between $25,000 to $45,000 for well positioned properties, with average daily rates ranging from $85 to $150 depending on proximity to beaches and amenities.

Profitability indicators

  • Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($75 to $125 per turnover), property management (15 to 25% of revenue), utilities ($200 to $350 monthly), insurance ($1,500 to $2,500 annually).
  • Properties within 5 miles of Flagler Beach or featuring pools and modern amenities achieve occupancy rates of 65 to 75%, resulting in net profit margins of 15 to 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.
What is the expected return on investment for an Airbnb in Palm Coast, Florida?

Airbnb investments in Palm Coast, Florida typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% based on current market conditions.

Return planning figures

  • Properties in desirable areas near Flagler Beach or golf courses can achieve higher returns of 12 to 15% annually, while standard residential properties average 8 to 10%.
  • Initial profitability usually occurs within 12 to 18 months, with full investment recovery expected in 7 to 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 to $400,000 for investment suitable homes.
  • Seasonal demand peaks during summer months and winter snowbird season can push occupancy rates to 65 to 75% annually, with average daily rates of $120 to $180 depending on property size and amenities.
  • Operating expenses typically consume 35 to 45% of gross rental income, including property management fees of 15 to 25%, cleaning, maintenance, and local taxes.
What company can help me find and buy a profitable Airbnb in Palm Coast, Florida?

STRSearch leads the market in Airbnb investment property analysis nationwide including Palm Coast, Florida.

Companies and resources

  • Local real estate agents specializing in short term rental investments include Flagler Beach Realty Group, Palm Coast Property Pros, and Coastal Investment Realty.
  • 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.

How Smart Investors Build Wealth

Through Data-Driven STRs (Real Results)

From first-time investors to seasoned pros, see how our commitment to comprehensive data analysis led to unparalleled investment victories.

Smiling woman with dark hair and white blouse next to text reading 'Spot on $120K revenue prediction!' attributed to Allison Kraft, STR Search Client on dark green background.

From zero real estate experience to a thriving short-term rental business, Allison locked in $120K in revenue her first year  and is now expanding with STR Search again. Proof that the right team can turn analysis paralysis into profitable action!

- Allison
Portrait of a man with short dark hair and earbuds, alongside the quote 'Cash flow positive since day one!' attributed to Arul, STR Search Client, on a dark green background.

Thanks to John's expert guidance, I made my first real estate and Airbnb investment a massive success, with consistent positive cash flow and an exceptional return on investment!

- Arul
Quote saying 'Bank said This is better than their underwriting team!' by Philip Mann, STR Search Client, beside a smiling man with a bald head and light beard on a dark green background.

John's training gave me the confidence to secure a loan on the spot and scale from one STR to three. His approach is a total game-changer!

- Philip

Why Choose STR Search?

Success Rate
Data Accuracy
Service Scope
Risk Mitigation
Expert Network
STR Search Logo
100% profitable track record
Proprietary filters, precise forecasts
End-to-end STR investment support
Only cash-flow-positive matches
Vetted realtors, lenders, designers included
Other Services
Inconsistent ROI, no guarantees
Generic metrics, inaccurate estimates
Partial services only
No profitability screening
Limited or no partner access
Success Rate
Data Accuracy
Service Scope
Risk Mitigation
Expert Network
STR Search Logo
Success Rate
100% profitable track record
Data Accuracy
Proprietary filters, precise forecasts
Service Scope
End-to-end STR investment support
Risk Mitigation
Only cash-flow-positive matches
Expert Network
Vetted realtors, lenders, designers included
Other Services
Success Rate
Inconsistent ROI, no guarantees
Data Accuracy
Generic metrics, inaccurate estimates
Service Scope
Partial services only
Risk Mitigation
No profitability screening
Expert Network
Limited or no partner access
275+
Properties Acquired
$90M+
Purchased
$20.24M+
Total Taxes Saved

Put your money to work & 
lower your tax bill

We’ve spent years analyzing what works so you don’t have to. Our job is to cut through bad data and help you make smart, profitable decisions backed by real numbers.

Schedule Your Free Call

Trusted by hundreds of 
successful investors

Generate $3-5K+ monthly cash flow with our proven property matching system.

Build long-term wealth through STRs with cash flow, equity, and bonus depreciation.

Skip 6-12 months of trial and error with our data-driven underwriting and market analysis

The Proof is in Our Track Record...

We have a 100% success rate across $90M+ in Real Estate

Out of the 275+ properties we've helped our clients buy every single one has been profitable.

You want more money. More time. More freedom. But may be stuck trading hours for dollars, and scaling your investment strategy feels out of reach.

While others are getting lost in analysis paralysis, you’ve got capital and drive to change your situation. Investors who choose the right STRs can generate $3–5K/month in cash flow, plus serious tax benefits and long-term wealth.

We’ve spent years obsessed with STR investing data so you don’t have to.

With our property match services, there’s no guesswork! Just profitable properties built to perform. With the right deal, your capital can buy more than returns. It can buy your freedom.

Buildings
Rabbu logoAirbnb logoAirdna logoPriceLabs logo
Rabbu logo
Airbnb logo
Airdna logo
PriceLabs logo

All The Ways We Can Help You

Free courses, services, and trainings, to help you maximize your earnings from AirBnb...

Get in touch with us.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Put your money to work & 
lower your tax bill

We’ve spent years analyzing what works so you don’t have to. Our job is to cut through bad data and help you make smart, profitable decisions backed by real numbers.

Schedule Your Free Call