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 Division, paying a 7% hotel/motel tax plus applicable state and local taxes. Contact the Savannah Development Services Department to ensure your property is zoned for short-term rentals, as some historic districts have restrictions, and obtain necessary permits including a Certificate of Occupancy if required. Find a suitable property in popular areas like the Historic District, Victorian District, or near Forsyth Park, considering factors like parking availability, noise ordinances, and proximity to attractions like River Street and the Savannah College of Art and Design. Purchase comprehensive insurance that covers short-term rentals, as standard homeowner's policies typically exclude commercial activities. Furnish the property with quality, durable furniture and amenities that reflect Savannah's charm, including essentials like high-speed internet, air conditioning (crucial for Georgia's humid climate), and local guidebooks featuring attractions like Bonaventure Cemetery and trolley tours. Create your Airbnb listing with professional photography highlighting unique features and Savannah's historic character, set competitive pricing based on local market rates (typically $80-200+ per night depending on location and size), and establish house rules that comply with city noise ordinances and occupancy limits. Implement a management system using tools like automated messaging, keyless entry systems, and either self-manage or hire local property management companies familiar with Savannah's tourism patterns and seasonal fluctuations driven by events like St. Patrick's Day celebrations and SCAD graduation.

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 details that photograph well for listings. Conduct pricing analysis by researching comparable STR properties earning $150-300+ per night depending on size and location, calculating potential annual revenue of $40,000-80,000 for well-positioned properties, and factoring in seasonal demand peaks during spring and fall tourist seasons. Research competition using AirDNA and STRData to analyze occupancy rates (typically 60-75% for successful properties), average daily rates, and market saturation in specific neighborhoods, while monitoring new STR permits through Chatham County records. Utilize Savannah-specific resources including the Savannah Economic Development Authority market reports, local STR management companies like Vacasa or RedAwning for market insights, Chatham County's STR permit database to understand regulations and competition density, and connect with local real estate agents specializing in investment properties who understand tourism patterns around SCAD, the port activity, and seasonal visitor trends.

To obtain an Airbnb/STR permit in Savannah, Georgia, you must apply through the City of Savannah's Planning and Urban Design Department located at 112 East State Street or online through their permitting portal. Required documents include a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, parking plan, contact information for a local responsible party within 30 minutes of the property, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $200 with an annual renewal fee of $100, and properties must pass a life safety inspection costing around $150. Specific Savannah requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing one parking space per bedroom, ensuring the responsible party can respond within 30 minutes to address issues, displaying the permit number in all advertisements, and maintaining a guest registry. Properties in the Historic District have additional restrictions and may require Historic Review Board approval. The timeline typically takes 4-6 weeks for processing after submitting a complete application, though Historic District properties may take 8-10 weeks. Once approved, permits must be renewed annually by December 31st, and operators must collect and remit the 7% hotel/motel tax to the City of Savannah monthly.

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 districts and certain residential areas, while prohibiting them in historic residential neighborhoods to preserve community character. 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 areas zoned as single-family residential districts within the historic district boundaries, and operators must collect and remit local accommodation taxes. Recent changes have included stricter enforcement mechanisms and enhanced penalties for violations, with the city conducting regular compliance checks and requiring annual permit renewals to ensure ongoing adherence to 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 prime investment zone since 2018, drawing younger travelers with its vibrant arts scene, craft breweries, and trendy restaurants while offering lower property acquisition costs than downtown. The Tybee Island area, though technically separate, provides excellent returns for beachfront and near-beach properties catering to leisure travelers year-round. River Street and the adjacent Factors Walk offer premium earning potential due to their central location near the Savannah River, shopping, dining, and entertainment venues. The Midtown/Ardsley Park neighborhood appeals to business travelers visiting companies like Gulfstream Aerospace and the Port of Savannah, while also attracting families due to its quieter residential feel and proximity to Forsyth Park. The Thomas Square Streetcar Historic District provides a sweet spot of historic charm with slightly lower property costs, benefiting from the spillover tourism from the main Historic District while offering easier parking and accessibility for guests.

In Savannah, Georgia, Airbnb properties are subject to multiple lodging taxes including the Georgia state hotel/motel tax of 5%, Chatham County's hotel/motel tax of 6%, and the City of Savannah's hotel/motel tax of 2%, totaling 13% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking through their tax collection service, which began around 2017-2018. Property owners who collect taxes independently must register with the Georgia Department of Revenue and local tax authorities, file monthly returns, and remit taxes by the 20th of the following month. Exemptions generally include stays of 30 days or longer (considered long-term rentals), stays by permanent residents of the rental property, and certain government or military personnel on official business. The City of Savannah also requires short-term rental operators to obtain a business license and comply with zoning regulations, though this doesn't directly affect tax rates. Property owners should verify current rates and requirements with local tax authorities as rates and collection procedures can change.

To start an Airbnb in Savannah, Georgia, the total initial investment would be approximately $285,000-$350,000. Property purchase costs average $280,000-$320,000 for a median 2-3 bedroom home in desirable historic or downtown areas. Furnishing costs range $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees cost $500-$1,200 including business license, short-term rental permit, and potential HOA approvals. Insurance runs $2,000-$3,500 annually for short-term rental coverage. Utility deposits and setup fees total $800-$1,500 for electricity, water, gas, internet, and cable. First six months operating costs average $8,000-$12,000 covering utilities ($200-300/month), cleaning services ($75-100 per turnover), maintenance, property management software, and marketing expenses, assuming 60-70% occupancy rates typical for Savannah's tourism market.

Airbnb properties in Savannah, Georgia demonstrate strong profitability potential with average annual revenues ranging from $25,000-$45,000 for well-positioned properties in the Historic District and downtown areas. Properties near Forsyth Park and the Victorian District typically achieve 65-75% occupancy rates with average daily rates of $120-$180, while expenses including cleaning fees ($75-$100 per turnover), property management (15-25% of revenue), utilities ($150-$250 monthly), insurance ($1,200-$2,000 annually), and city licensing fees ($150 annually) generally total 40-55% of gross revenue. This results in net profit margins of 25-35% for successful operators. A typical 2-bedroom Victorian cottage near the Historic District generating $35,000 annually might incur $20,000 in expenses, yielding $15,000 in net profit. Success factors include proximity to tourist attractions like River Street and the Historic District, professional photography, responsive guest communication, and maintaining authentic Savannah charm with period furnishings. Properties managed by companies like Vacasa and RedAwning in Savannah have reported occupancy rates exceeding 70% during peak seasons (March-May, October-November), with some premium properties in prime locations achieving profit margins above 40% when properly managed and marketed.

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 65-75% occupancy rates, while properties in emerging neighborhoods like Starland District see rates of $100-180 per night with 60-70% occupancy. Initial investment recovery typically occurs within 6-8 years for well-positioned properties, with monthly gross revenues averaging $3,000-5,500 for 2-3 bedroom properties after accounting for Savannah's 6% hotel tax, cleaning fees, and property management costs of 15-25%. The market benefits from year-round tourism driven by the city's historic attractions, SCAD University presence, and proximity to Tybee Island, with peak seasons during spring and fall generating 20-30% higher rates than winter months.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Savannah, Georgia. Local real estate agents who focus on Airbnb investment properties in Savannah include Keller Williams Coastal Area Realty agents like Sarah Mitchell and David Thompson, Coldwell Banker Platinum Partners agents specializing in investment properties, and RE/MAX agents with vacation rental expertise such as Jennifer Adams. National services include Mashvisor for property analysis, AirDNA for market data and revenue projections, RedAwning for turnkey Airbnb investments, and Awning for full-service property management and acquisition. Local Savannah companies like Hostfully Property Management, Savannah Vacation Rentals, and Lucky Savannah offer property management and acquisition consulting services. Additional national platforms include Roofstock for rental property investments, BiggerPockets for investor networking and deals, and AvantStay for luxury short-term rental investments, while local mortgage brokers like Savannah Home Loans and Georgia Investment Property Financing specialize in financing Airbnb purchases in the historic Savannah market.