Is Savannah, Georgia Good for Airbnb Investment?

To start an Airbnb in Savannah, Georgia, begin by researching the city's short-term rental regulations, which require hosts to obtain a business license from the City of Savannah and register with the Tourism and Hospitality Tax Department, as Savannah imposes specific zoning restrictions in the Historic District and limits rentals to no more than 90 days per year in residential areas. Obtain necessary permits including a short-term rental permit ($200-300 annually), business license ($50-100), and ensure compliance with fire safety codes and occupancy limits set by the city. Find a suitable property by considering location restrictions, as properties in the Historic Landmark District face stricter regulations, while areas like Midtown, Southside, and near Forsyth Park offer more flexibility for short-term rentals. Furnish the property with quality furniture, linens, kitchen essentials, and local artwork while ensuring it meets Savannah's safety requirements including smoke detectors, carbon monoxide detectors, and proper lighting. List your property on Airbnb and other platforms like VRBO, highlighting Savannah's attractions such as proximity to River Street, Forsyth Park, or the Historic District, and set competitive pricing based on seasonal demand with higher rates during peak tourist seasons like St. Patrick's Day and spring months. Manage your rental by establishing relationships with local cleaning services, maintenance contractors, and consider hiring property management companies like Vacasa or RedAwning if you're not local, while maintaining compliance with Savannah's 10% hotel-motel tax collection and remittance requirements to the city.

To identify profitable short-term rental properties in Savannah, Georgia, focus on location criteria including proximity to the Historic District (within 1-2 miles), walkable neighborhoods like Forsyth Park area, Victorian District, and Starland District, while avoiding areas with strict STR regulations like some downtown zones. Target property features such as historic charm with modern amenities, 2-4 bedrooms to accommodate groups, parking availability, outdoor spaces like porches or courtyards, and unique architectural elements that photograph well for listings. Conduct pricing analysis by researching comparable STR properties earning $150-300+ per night depending on size and location, calculate potential annual revenue of $40,000-80,000 for well-positioned properties, and factor in Georgia's 8% sales tax plus local hotel taxes. Research competition using AirDNA and STRData to analyze occupancy rates (typically 60-75% for successful properties), average daily rates, and seasonal demand patterns, noting Savannah's peak seasons during spring, fall, and St. Patrick's Day. Utilize market-specific tools including the City of Savannah's STR permit database to verify legal compliance, Rabbu and Mashvisor for Savannah market analytics, local property management companies like Savannah Dreams or RedAwning for operational insights, and connect with Savannah real estate agents specializing in investment properties who understand the tourism market dynamics and can identify emerging profitable neighborhoods before they become oversaturated.

To obtain an Airbnb/STR permit in Savannah, Georgia, you must first register with the City of Savannah's Planning and Urban Design Department by submitting an application through their online portal or visiting City Hall at 2 East Bay Street. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), contact information for a local responsible party within 30 miles, and payment of applicable fees. The registration fee is approximately $200 annually, with additional zoning compliance fees potentially required depending on your property's location and zoning district. The approval timeline typically takes 4-6 weeks after submitting a complete application, though this can extend if additional documentation or inspections are needed. Savannah-specific requirements include maintaining occupancy limits based on square footage (generally 2 people per bedroom plus 2 additional), ensuring adequate parking spaces, posting the registration number prominently at the property, maintaining a guest registry, and adhering to noise ordinances and neighborhood compatibility standards. Properties in certain historic districts may face additional restrictions, and some residential zoning areas have caps on the total number of STR permits allowed, so early application is recommended.

Short-term rentals (STRs) are legal in Savannah, Georgia, but operate under specific regulations implemented by the city. As of 2019, Savannah requires STR operators to obtain a business license and comply with zoning restrictions that limit STRs primarily to commercial and mixed-use districts, while prohibiting them in most residential neighborhoods to preserve housing stock for long-term residents. The city caps the number of STR permits and requires properties to meet safety standards, maintain liability insurance, and designate a local contact person available 24/7. STRs are prohibited in the city's historic residential districts and certain residential zones, with violations subject to significant fines. Recent changes have included stricter enforcement mechanisms and updated permit renewal requirements, reflecting ongoing tensions between tourism revenue and neighborhood preservation concerns that have led to periodic reviews of the regulations.

The most lucrative Airbnb investment areas in Savannah, Georgia include the Historic District, particularly around Forsyth Park and the Victorian District, which attracts millions of tourists annually due to its cobblestone streets, antebellum architecture, and proximity to major attractions like River Street and City Market. The Starland District has emerged as a trendy neighborhood popular with younger travelers seeking local art galleries, craft breweries, and unique dining experiences. Tybee Island, though technically separate, offers beachfront properties that command premium rates year-round and attract both leisure travelers and wedding parties. The Midtown area near SCAD (Savannah College of Art and Design) provides steady demand from visiting families, prospective students, and business travelers, while also benefiting from the college's events calendar. River Street and the adjacent Bay Street corridor remain prime locations due to their walkability to restaurants, shops, and riverfront activities, making them ideal for tourists who want to experience Savannah's nightlife and dining scene without needing transportation.

Airbnb properties in Savannah, Georgia are subject to multiple lodging taxes including the Georgia state sales tax of 4%, Chatham County hotel/motel tax of 6%, and the City of Savannah hotel/motel tax of 1%, totaling approximately 11% in combined taxes on short-term rental accommodations. The Georgia Department of Revenue requires hosts to register for a sales tax permit and collect the 4% state sales tax, which must be remitted monthly if collections exceed $300 or quarterly if less. Chatham County's 6% hotel/motel tax is collected by the county and must be remitted by the 20th of the following month, while the City of Savannah's 1% tax follows similar collection procedures through the city's revenue department. Airbnb may collect and remit some of these taxes on behalf of hosts through their platform, but hosts remain ultimately responsible for compliance and should verify which taxes are being handled by the platform versus those requiring direct remittance. Exemptions typically apply to stays exceeding 30 consecutive days, which are generally considered long-term rentals rather than transient accommodations, and certain government or non-profit travelers may qualify for exemptions with proper documentation.

To start an Airbnb in Savannah, Georgia, expect total costs of approximately $285,000-$350,000. Property purchase represents the largest expense at $220,000-$280,000 based on median home prices in desirable historic districts like the Victorian District or Midtown. Furnishing costs range $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor that matches Savannah's historic charm. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,500. Permits and fees total $800-$1,200, covering business license, short-term rental permit, and potential homeowner association approvals. Insurance runs $2,400-$3,600 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits cost $500-$800 for electricity, water, gas, internet, and cable. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance ($2,000), property management software ($600), and marketing ($1,200) total approximately $9,200. Additional considerations include potential renovation costs of $10,000-$20,000 for historic properties and working capital reserves of $5,000-$10,000 for unexpected expenses and vacancy periods during the initial launch phase.

Airbnb properties in Savannah, Georgia demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for well-positioned properties in the Historic District, where nightly rates typically command $150-$300 depending on size and amenities. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% if outsourced), insurance ($2,000-$4,000 annually), utilities ($200-$400 monthly), and maintenance costs, resulting in net profit margins of 25-35% for successful operators. Properties within walking distance of Forsyth Park, River Street, and the Historic District perform best due to Savannah's 14+ million annual tourists, with peak seasons during spring (March-May) and fall (September-November) generating 60-70% higher rates than summer months. Success factors include professional photography, rapid guest communication, local experience recommendations, and maintaining properties that capture Savannah's historic charm while offering modern amenities, with top-performing hosts often achieving 90%+ occupancy rates and super-host status driving premium pricing power in this competitive but lucrative market.

Airbnb investments in Savannah, Georgia typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property location and management efficiency. Properties in the Historic District and near Forsyth Park command premium rates of $150-250 per night with 70-80% occupancy rates, while properties in emerging neighborhoods like Starland District see rates of $100-180 per night with 65-75% occupancy. Initial investment recovery typically occurs within 6-8 years, with most investors reaching profitability within 18-24 months after accounting for startup costs, furnishing, and initial marketing expenses. The city's strong tourism market, driven by over 14 million annual visitors and proximity to attractions like River Street and the Savannah College of Art and Design, supports consistent demand year-round with peak seasons generating 25-30% higher returns during spring and fall months.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties across markets including Savannah, Georgia. In Savannah specifically, Keller Williams Coastal Area Realty has agents experienced in investment properties, while Celia Dunn Sotheby's International Realty offers luxury vacation rental property expertise. Local services include Savannah Real Estate Investors Group and Coast to Coast Property Management, which provides Airbnb management and acquisition consulting. National companies serving the Savannah market include Awning (formerly RedAwning) for property management and investment analysis, Mashvisor for market analytics and property search, AirDNA for short-term rental data analysis, and BiggerPockets for investor networking and deal sourcing. Local real estate agents specializing in investment properties include teams at Coldwell Banker Platinum Partners and RE/MAX All American, while Vacasa provides both property management and helps investors identify acquisition opportunities in the historic district and nearby beach areas.