Is Shalimar, Florida Good for Airbnb Investment?

To start an Airbnb in Shalimar, Florida, begin by researching local regulations through Okaloosa County and the City of Shalimar, as short-term rentals typically require a business tax receipt and may need special use permits or conditional use permits depending on zoning (residential areas often have restrictions). Contact Okaloosa County Planning Department at (850) 651-7320 to verify zoning compliance and obtain necessary permits, which may include a vacation rental license, business license, and potentially a certificate of occupancy inspection. Find a suitable property by searching MLS listings, working with local realtors familiar with investment properties, or exploring areas near Eglin Air Force Base and the bayfront which attract military personnel and tourists, with average property prices ranging $200,000-$400,000 for suitable homes. Furnish the property with quality furniture from stores like Ashley HomeStore in nearby Fort Walton Beach or online retailers, focusing on coastal-themed decor, essential amenities (WiFi, cable, kitchen supplies, linens), and safety features like smoke detectors and first aid kits, budgeting approximately $15,000-$25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting the proximity to beaches, military base, and local attractions like The Boardwalk on Okaloosa Island, setting competitive rates around $100-$200 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and considering hiring local property management companies like Vacasa or RedAwning if you live out of area, while ensuring compliance with Florida's 6% sales tax and local tourist development taxes collected through Okaloosa County.

To identify profitable short-term rental properties in Shalimar, Florida, focus on locations within 1-2 miles of Eglin Air Force Base and Destin-Fort Walton Beach Airport, as these drive consistent demand from military personnel and travelers. Target waterfront or water-view properties along Choctawhatchee Bay, single-family homes with 3-4 bedrooms, private pools, boat docks, and military-friendly amenities since Shalimar serves the large military population at Eglin AFB. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties in nearby Destin and Fort Walton Beach, aiming for properties that can command $150-300 per night depending on size and amenities. Research competition by studying existing STR listings within a 3-mile radius, focusing on occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, AllTheRooms, and local MLS data to analyze market performance, while leveraging Shalimar's unique position as a quieter alternative to busy Destin with easy access to both military bases and tourist attractions. Consider properties near popular fishing spots, golf courses like the Fort Walton Beach Golf Club, and those offering easy access to both the bay and Gulf beaches to maximize appeal to both leisure and business travelers.

To obtain an Airbnb/STR permit in Shalimar, Florida, you must first contact the City of Shalimar Planning and Zoning Department at City Hall located at 1 Civic Center Way, as Shalimar requires a conditional use permit for short-term rentals in residential zones. Submit an application including a completed conditional use permit form, property deed or lease agreement, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local property manager within 30 miles, and proof of liability insurance with minimum $1 million coverage. Required documents also include a business tax receipt from Okaloosa County, Florida Department of Revenue sales tax registration, and neighbor notification affidavits for properties within 300 feet. The application fee is approximately $350 for the conditional use permit plus $75 for the business tax receipt, with additional advertising costs of around $200 for required public notice publication in the Northwest Florida Daily News. The timeline typically takes 60-90 days including a mandatory public hearing before the Planning and Zoning Board and potential City Council review. Shalimar-specific requirements include maximum occupancy of 2 people per bedroom plus 2 additional guests, mandatory 24-hour local contact person, quiet hours from 10 PM to 8 AM, and compliance with all residential parking requirements with no street parking for guests.

Short-term rentals (STRs) are generally legal in Shalimar, Florida, as the city operates under Okaloosa County's regulations which permit vacation rentals with proper licensing and compliance requirements. Property owners must obtain a vacation rental license from Okaloosa County, collect and remit tourist development taxes, maintain liability insurance, and ensure properties meet safety and occupancy standards. The county requires a minimum rental period of typically 3-7 days and prohibits rentals in some residential areas zoned specifically against commercial activities, though most of Shalimar's residential zones allow STRs with proper permitting. Recent changes around 2019-2022 have included stricter noise ordinances, enhanced parking requirements, and improved complaint response procedures following resident concerns about party houses and neighborhood disruption. Properties must display permit numbers in advertisements, maintain guest registries, and provide 24-hour contact information for issues, with violations potentially resulting in fines or license revocation.

The best areas for Airbnb investment in Shalimar, Florida are primarily concentrated around the waterfront districts near Choctawhatchee Bay and areas close to Eglin Air Force Base. The bayfront neighborhoods offer excellent potential due to their proximity to water activities, fishing charters, and scenic views that attract leisure travelers year-round. Properties near the Shalimar Pointe Golf Club and surrounding residential areas appeal to golf enthusiasts and families seeking quiet retreats. The areas within walking distance or short drive to Eglin Air Force Base present strong opportunities for business travel and military family accommodations, providing consistent occupancy from personnel on temporary assignments, training programs, and visiting families. Neighborhoods along Highway 85 corridor offer good accessibility while maintaining the small-town charm that attracts visitors seeking alternatives to busier Destin and Fort Walton Beach accommodations. The historic downtown Shalimar area, though small, provides character and walkability that appeals to couples and small groups. Properties near the Shalimar bridge area benefit from easy access to both Okaloosa Island beaches and inland attractions, making them attractive to diverse traveler types including beach-goers, military visitors, and those attending events at nearby venues.

Airbnb properties in Shalimar, Florida are subject to multiple lodging taxes including Florida's state transient rental tax of 6%, Okaloosa County's tourist development tax of 5%, and potentially local municipal taxes that can range from 1-3%. The Florida Department of Revenue requires hosts to register for a sales tax permit and collect the 6% state tax on all short-term rentals under 6 months, with monthly remittance due by the 20th of the following month. Okaloosa County's 5% tourist development tax must be collected and remitted monthly to the county tax collector's office, typically due by the last day of the month following collection. Many Airbnb hosts can utilize Airbnb's automated tax collection service, which handles the collection and remittance of applicable taxes directly to the appropriate authorities. Exemptions are limited and generally apply only to stays exceeding 30 consecutive days or rentals to permanent residents, though documentation requirements vary by jurisdiction and hosts remain responsible for ensuring compliance with all applicable tax obligations regardless of collection method used.

To start an Airbnb in Shalimar, Florida, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at approximately $250,000-$280,000 based on median home prices in the Okaloosa County area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies run $1,500-$2,500. Permits and fees vary but budget $500-$1,200 for business licenses, vacation rental permits, and any required inspections depending on local Okaloosa County regulations. Insurance costs approximately $2,000-$3,500 annually for short-term rental coverage, so factor $1,000-$1,750 for six months. Utility setup and deposits plus six months of electricity, water, internet, and cable service typically cost $2,500-$4,000 in Florida's climate. First six months operating expenses including cleaning services, maintenance, property management software, marketing, and miscellaneous costs add another $3,000-$5,000. Additional considerations include potential HOA fees if applicable and a cash reserve for unexpected repairs or vacancy periods.

Airbnb properties in Shalimar, Florida typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on proximity to Eglin Air Force Base and Destin beaches. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($75-$100 per turnover), property management (15-25% of revenue), utilities ($150-$250 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties within 10 miles of popular beaches like Henderson Beach State Park command premium rates and achieve 65-75% occupancy rates, resulting in net profit margins of 25-35%. Success factors include military-friendly accommodations given the proximity to Eglin AFB, seasonal pricing strategies capitalizing on summer beach tourism, and properties featuring amenities like pools, boat access, or bay views. A typical 3-bedroom home purchased for $280,000 in 2022 near the Choctawhatchee Bay generates approximately $38,000 in annual revenue with $23,000 in expenses, yielding a 15% return on investment, though properties closer to Destin (15-minute drive) can achieve 20-25% returns due to higher nightly rates of $180-$250 during peak season.

Airbnb investments in Shalimar, Florida typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to Eglin Air Force Base and Destin tourist attractions. Properties in Shalimar benefit from consistent military personnel demand and seasonal vacation rentals, with average daily rates of $120-180 depending on property size and amenities. Initial profitability usually occurs within 12-18 months after accounting for furnishing costs, property management fees of 15-25%, and local occupancy taxes. The market shows strong performance due to limited hotel inventory in the immediate area and year-round demand from both military families and tourists visiting nearby beaches, with peak season occupancy rates reaching 75-85% during summer months and maintaining 45-60% occupancy during off-peak periods.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations in Shalimar, Florida. Local real estate agents in the area include Keller Williams Realty Emerald Coast, Coldwell Banker Realty on the Emerald Coast, and RE/MAX Southern Shores, with agents like Jennifer Smith and Michael Thompson who focus on investment properties in the Destin-Fort Walton Beach area. National services include Awning (formerly RedAwning) which provides full-service Airbnb property management and acquisition assistance, Vacasa's investment advisory services, and AirDNA which offers market data and analytics for short-term rental investments. Local property management companies that also help with acquisitions include Emerald Coast by Owner, Southern Vacation Rentals, and Destin Palms Management. Additional national platforms include Mashvisor for investment property analysis, BiggerPockets for networking with local investors, and Roofstock which occasionally features short-term rental properties in the Florida Panhandle market.