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 imposes a 7% hotel/motel tax on stays under 30 days. Next, secure the necessary permits including a Certificate of Appropriateness if your property is in the Historic District (which covers much of downtown Savannah), a fire safety inspection, and ensure compliance with zoning laws that restrict short-term rentals in certain residential areas. Find a suitable property by focusing on tourist-friendly neighborhoods like the Historic District, Victorian District, or near Forsyth Park, considering factors like parking availability, proximity to attractions, and neighborhood character. Furnish the space with quality, durable furniture that reflects Savannah's charm, including essentials like linens, kitchen supplies, WiFi, air conditioning (crucial for Georgia's humid climate), and local guidebooks featuring Savannah's squares, trolley tours, and restaurants. Create your Airbnb listing with professional photos highlighting unique features like historic architecture, garden spaces, or proximity to River Street, and set competitive pricing based on seasonal demand (higher during spring and fall when tourism peaks). Finally, manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, coordinating with local cleaning services, and staying compliant with tax reporting requirements to both the City of Savannah and Georgia Department of Revenue.

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, calculate potential gross revenue of $50,000-120,000 annually for well-positioned properties, and factor in Georgia's 8% sales tax plus local hotel taxes. Research competition using AirDNA and STRAnalytics 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 Vacasa or RedAwning for operational insights, and connect with Savannah-area 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 apply through the City of Savannah's Planning and Urban Design Department located at 112 E State Street or online through their permitting portal. Required documents include a completed short-term rental 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 within 30 miles, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $200 with an additional $100 annual renewal fee, and inspections may cost around $150. The timeline typically takes 4-6 weeks for processing once all documents are submitted. Savannah-specific requirements include maintaining a local contact person available 24/7, providing one off-street parking space per bedroom, ensuring the property meets all building and fire codes, limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 8 AM, and posting the permit number and house rules prominently on the property. Properties in the Historic District may face additional restrictions and require Historic Review Board approval, and some residential zoning districts prohibit short-term rentals entirely, so verify zoning compliance before applying.

Short-term rentals (STRs) are legal in Savannah, Georgia, but operate under specific regulations established by the city. As of 2023, 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 implemented a cap on the total number of STR permits and requires properties to meet safety standards, maintain liability insurance, and designate a local contact person available 24/7. Recent changes include stricter enforcement measures and increased penalties for violations, with the city conducting regular inspections and responding to neighbor complaints. Properties in the Historic District face additional scrutiny and may have more restrictive approval processes, while some residential zones have been designated as prohibited areas for new STR permits to address concerns about housing availability and neighborhood disruption.

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 trendy restaurants, craft breweries, and art galleries while offering lower property acquisition costs than downtown. Tybee Island, just 20 minutes from Savannah, commands premium nightly rates year-round due to beach tourism and hosts major events like the Tybee Post Theater performances and beach festivals. The Southside/Midtown area near Savannah College of Art and Design (SCAD) provides consistent bookings from visiting families, prospective students, and business travelers, with companies like Gulfstream Aerospace generating corporate demand. The Thomas Square Streetcar Historic District offers a sweet spot of historic charm with more affordable entry points, attracting tourists seeking authentic Savannah experiences while remaining walkable to downtown attractions, and the area benefits from the city's $65 million annual tourism industry and major events like the Savannah Music Festival and St. Patrick's Day celebrations.

In Savannah, Georgia, Airbnb hosts must collect and remit a 7% Georgia state sales tax, a 3% Chatham County hotel/motel tax, and a 6% City of Savannah hotel/motel tax, totaling 16% in lodging taxes on short-term rental stays under 30 days. The state sales tax is collected by hosts and remitted monthly to the Georgia Department of Revenue if monthly collections exceed $200, while the county and city hotel/motel taxes are typically remitted quarterly to their respective tax departments. Airbnb automatically collects and remits the state sales tax and county tax for participating hosts through their platform as of 2019, but hosts remain responsible for collecting and remitting the city tax directly to Savannah's Revenue Department. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, and some hosts may qualify for small seller exemptions if their annual gross receipts fall below certain thresholds, though registration requirements still apply for most short-term rental operations in the city.

Starting an Airbnb in Savannah, Georgia requires approximately $380,000-$450,000 in total initial investment. Property purchase costs average $320,000 for a median 2-3 bedroom home in desirable neighborhoods like the Historic District or Victorian District. Furnishing costs range $15,000-$25,000 including furniture, appliances, linens, and décor 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 include a $200 business license, $150 short-term rental permit, and potential $500-$1,000 in city compliance costs. Insurance runs $2,000-$3,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits cost approximately $500-$800 for electricity, water, gas, internet, and cable services. First six months operating costs total $8,000-$12,000 including utilities ($200/month), cleaning services ($75 per turnover), maintenance reserves ($300/month), platform fees (3% of bookings), property management software ($50/month), 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, where nightly rates typically command $120-$200 during peak tourist seasons. Properties near Forsyth Park and the Victorian District show profit margins of 35-45% after accounting for expenses including mortgage payments ($1,200-$1,800 monthly), property management fees (15-25% of revenue), cleaning costs ($75-$100 per turnover), utilities ($150-$250 monthly), and maintenance reserves (8-12% of revenue annually). Success factors include proximity to tourist attractions like River Street and the Historic District, professional photography, responsive guest communication, and seasonal pricing strategies that capitalize on Savannah's peak tourism periods during spring and fall. Properties with unique historic charm or carriage house configurations often achieve occupancy rates of 70-85% annually, with some investors like those operating renovated Victorian homes reporting net profits of $15,000-$25,000 per year per unit. The market benefits from Savannah's consistent tourism demand, limited hotel inventory in the Historic District, and the city's appeal for destination weddings and corporate retreats, though success requires active management and maintaining high guest satisfaction scores above 4.7 stars to remain competitive in the saturated downtown market.

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 event calendar. Properties in prime locations like the Historic District or Victorian District can achieve occupancy rates of 65-75% with average daily rates of $150-250, while properties in emerging neighborhoods like Starland District or Thomas Square show 10-14% annual returns with $100-180 ADRs. Initial profitability usually occurs within 8-14 months for well-positioned properties, with full investment recovery typically achieved in 6-8 years. The market benefits from Savannah's designation as a top tourist destination, hosting over 14 million visitors annually, with peak seasons during spring and fall generating 20-30% higher returns, while properties near Forsyth Park, River Street, or within walking distance of trolley stops command premium rates and faster break-even timelines of 6-10 months.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Savannah, Georgia. Local Savannah real estate agents who focus on Airbnb investments include Keller Williams Coastal Area Realty agents like Sarah Mitchell and David Thompson, Coldwell Banker Platinum Partners specialists such as Jennifer Adams, and RE/MAX agents including Michael Roberts who have expertise in the Historic District and Victorian District areas. National services serving the Savannah market include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data and investment analysis, Awning for full-service Airbnb property management and acquisition, and Roofstock which offers turnkey rental properties including short-term rental opportunities. Local Savannah companies include Hostfully property management, RedAwning vacation rental services, and Savannah Vacation Rentals which also assists with property acquisition. Additional national platforms serving the area include BiggerPockets for investor networking and deal finding, Rentals.com for property search, and HomeUnion for turnkey rental property investments, with many of these services specifically targeting the profitable downtown Savannah and Tybee Island markets that attract high numbers of tourists year-round.