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, as Savannah implemented stricter STR ordinances in 2019 limiting rentals in historic districts and requiring properties to be owner-occupied or have special permits. Next, secure necessary permits including a Certificate of Appropriateness if your property is in the Historic District, fire safety inspections, and ensure compliance with zoning laws that restrict short-term rentals in certain residential areas. Find a suitable property by focusing on areas outside the most restricted historic zones or consider properties that qualify for grandfathered status, with popular neighborhoods including Midtown, Southside, and areas near Forsyth Park. Furnish the space with quality furniture, linens, and amenities that reflect Savannah's charm, including essentials like WiFi, air conditioning (crucial for Georgia's humid climate), and local guidebooks. Create your Airbnb listing with professional photos highlighting unique features and Savannah's proximity to attractions like River Street and the Historic District, setting competitive rates based on seasonal demand (higher during spring and fall tourist seasons). Finally, manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property to city standards, and staying current with Savannah's evolving STR regulations and tax requirements including the 7% hotel/motel tax.

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 prime locations), 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 Vacasa or RedAwning for operational insights, and connect with Savannah-area real estate agents specializing in investment properties who understand the tourism patterns and regulatory landscape affecting STR profitability in this historic coastal market.

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 Registration application, proof of property ownership or lease agreement with landlord consent, a site plan showing the property layout, parking plan demonstrating adequate off-street parking, contact information for a local responsible party available 24/7, and payment of the $200 annual registration fee plus a $50 processing fee. You must also obtain a business license from the City Clerk's office for approximately $50-100 depending on your business structure. The property must comply with Savannah's specific requirements including a maximum occupancy of 2 people per bedroom plus 2 additional guests, provision of at least one off-street parking space per bedroom, installation of smoke and carbon monoxide detectors in all sleeping areas, and maintaining quiet hours from 10 PM to 8 AM. The approval timeline typically takes 4-6 weeks after submitting a complete application, and you must renew your registration annually by December 31st. Additionally, you're required to collect and remit the 7% hotel/motel tax to Chatham County and display your registration number in all advertising and booking platforms.

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 traditional neighborhood districts and low-density residential zones, with the city implementing a 400-foot separation requirement between STR properties in some areas. Recent changes include stricter enforcement mechanisms and increased penalties for violations, with the city conducting regular compliance checks and requiring annual permit renewals that include inspections to ensure adherence to occupancy limits, parking requirements, and noise ordinances.

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 area popular with younger travelers seeking authentic local experiences, featuring art galleries, craft breweries, and unique dining options. 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 consistent demand from visiting families, prospective students, and business travelers, while offering more affordable property acquisition costs. River Street and the adjacent Factors Walk area, despite higher property costs, generate substantial revenue due to their prime location near restaurants, shops, and riverfront activities. The Thomas Square Streetcar Historic District offers a balance of historic charm and relative affordability, attracting tourists who want authentic Savannah character while being within walking distance of major attractions, making these areas collectively represent the strongest investment opportunities for short-term rental properties.

In Savannah, Georgia, Airbnb properties 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 2%, totaling approximately 12% 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 for smaller amounts. 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 2% tax follows similar collection and remittance procedures through the city's revenue department. Airbnb may collect and remit some of these taxes on behalf of hosts through their platform in certain jurisdictions, 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 lodging, and some properties may qualify for exemptions if they meet specific criteria such as being used for permanent residency or certain business purposes, though most standard Airbnb operations will be subject to the full tax rates.

The total cost to start an Airbnb in Savannah, Georgia is approximately $285,000-$350,000. Property purchase costs average $275,000 for a median 2-3 bedroom home in desirable areas like the Historic District or Victorian District. 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-$1,500 including business license, short-term rental permit, and potential HOA approvals. Insurance runs $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 total $8,000-$12,000 covering utilities ($1,800), cleaning services ($2,400), maintenance ($1,500), platform fees ($1,800), marketing ($500), and miscellaneous expenses ($500). Additional considerations include potential renovation costs of $10,000-$20,000 for older Savannah properties and working capital reserves of $5,000-$10,000 for unexpected expenses and vacancy periods.

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, where nightly rates typically command $120-$200 during peak tourist seasons and $80-$120 during off-peak periods. Operating expenses generally account for 40-50% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($150-$250 monthly), insurance ($1,200-$2,000 annually), 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 consistently outperform suburban locations by 30-40% due to Savannah's 14+ million annual visitors drawn to its historic charm, ghost tours, and SCAD presence. Success factors include professional photography, rapid guest communication, local experience recommendations, and maintaining occupancy rates above 65%, with top-performing hosts like those managing Victorian-era homes near Chippewa Square achieving 80%+ occupancy and $50,000+ annual profits. The market benefits from Savannah's year-round appeal, strong wedding and conference tourism, and limited hotel inventory in the most desirable historic areas, though hosts must navigate city regulations requiring business licenses and adherence to short-term rental ordinances implemented in 2019.

Airbnb investments in Savannah, Georgia typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the city's robust tourism industry centered around its historic district, proximity to beaches, and year-round visitor appeal. Properties in prime locations like the Historic District or Victorian District can achieve gross rental yields of 15-22% annually, with average daily rates of $150-250 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, considering acquisition costs, renovation expenses, and operational overhead including Airbnb management fees, cleaning, and maintenance. The market benefits from consistent demand from tourists visiting Forsyth Park, River Street, and Tybee Island, with peak seasons during spring and fall generating 70-80% occupancy rates, while off-peak periods maintain 45-55% occupancy, resulting in annual occupancy rates of 60-70% for optimally managed properties in desirable neighborhoods.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Savannah, Georgia. Local real estate agents like Keller Williams Coastal Area Partners, Coldwell Banker Platinum Partners, and RE/MAX All American have agents experienced in Airbnb investment properties in Savannah's historic district and surrounding areas. National services include BiggerPockets for networking and deal analysis, Mashvisor for property analytics and ROI calculations, and AirDNA for market data and revenue projections specific to Savannah's vacation rental market. Local property management companies like Vacasa, RedAwning, and Savannah Dream Vacations can provide insights into profitable neighborhoods while offering management services. Real estate investment firms such as Roofstock and Fundrise have expanded into short-term rental markets, and local agents like those at Savannah Real Estate Experts and Celia Dunn Sotheby's International Realty have developed expertise in identifying properties suitable for Airbnb conversion in popular areas like the Historic District, Forsyth Park vicinity, and Tybee Island.