Is South Daytona, Florida Good for Airbnb Investment?

To start an Airbnb in South Daytona, Florida, begin by researching local regulations as the city requires short-term rental operators to obtain a business tax receipt and comply with zoning ordinances that typically allow vacation rentals in residential areas with proper permits. Contact South Daytona's Planning and Zoning Department at (386) 322-3016 to verify specific zoning requirements for your target property location and obtain necessary permits, which may include a Certificate of Use and annual inspections. Find a suitable property by searching areas near the beach or Daytona International Speedway, considering properties with 2-3 bedrooms that can accommodate families, with average purchase prices ranging from $200,000-$400,000 as of 2023. Furnish the property with coastal-themed décor, essential amenities like high-speed internet, air conditioning, and safety equipment including smoke detectors and fire extinguishers, budgeting approximately $15,000-$25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to Daytona Beach (3 miles away) and local attractions, setting competitive rates around $100-$200 per night depending on season and events at the speedway. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, and maintaining compliance with South Daytona's 6% tourist development tax collection requirements while ensuring you register with the Florida Department of Revenue for sales tax purposes.

To identify profitable short-term rental properties in South Daytona, Florida, focus on locations within 1-2 miles of the beach, particularly near Bethune Beach and areas with easy access to International Speedway Boulevard for Daytona International Speedway events. Target 2-4 bedroom single-family homes or condos built after 1990 with pools, updated kitchens, and parking for 4+ vehicles, as race fans and beach visitors prioritize these amenities. Analyze pricing using AirDNA and Mashvisor to identify properties generating $150-250 per night during peak seasons (February-March for racing, June-August for summer tourism) with 60-75% occupancy rates annually. Research competition by monitoring 50+ active STR listings within a 3-mile radius using tools like AirDNA, AllTheRooms, and local Facebook groups like "Daytona Beach Vacation Rentals" to understand pricing strategies and guest preferences. Utilize Volusia County's STR permit database to verify legal compliance, partner with local property management companies like RedAwning or Vacasa for market insights, and leverage the South Daytona Chamber of Commerce and Visit Daytona Beach tourism data to understand seasonal demand patterns driven by NASCAR events, Bike Week, and beach tourism, ensuring properties are positioned to capture both motorsports enthusiasts and traditional beach vacationers year-round.

To obtain an Airbnb/STR permit in South Daytona, Florida, you must first contact the City of South Daytona Planning and Zoning Department at City Hall located at 1672 South Ridgewood Avenue to determine if short-term rentals are permitted in your specific zoning district, as the city requires a Conditional Use Permit for most STR operations. Submit an application for a Conditional Use Permit along with required documents including a site plan, proof of property ownership or lease agreement, floor plans, parking plan showing adequate off-street parking, contact information for a local property manager if you're an absentee owner, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $500-800 for the Conditional Use Permit process, plus additional fees for public hearing notices estimated at $200-300. You must also obtain a business tax receipt from the city for approximately $50-100 annually and register with the Florida Department of Revenue for tourist development tax collection. The timeline typically takes 60-90 days from application submission, including a mandatory public hearing before the Planning and Zoning Board and potentially the City Commission. South Daytona specific requirements include maintaining a guest registry, posting maximum occupancy limits, providing 24-hour contact information to neighbors, ensuring compliance with noise ordinances, and adhering to parking restrictions that typically limit occupancy based on available parking spaces at a ratio of one space per two guests.

Short-term rentals (STRs) are generally legal in South Daytona, Florida, but are subject to local regulations and zoning restrictions. The city typically requires STR operators to obtain proper business licenses and comply with occupancy limits, parking requirements, and noise ordinances. Most residential areas allow STRs, though some neighborhoods may have homeowners association restrictions or specific zoning limitations that prohibit commercial activities in certain residential districts. Property owners must also comply with state requirements including collecting tourist development taxes and registering with the Florida Department of Revenue. Recent years have seen increased scrutiny of STR operations in many Florida coastal communities due to concerns about housing availability and neighborhood character, with some municipalities implementing stricter registration requirements and enforcement mechanisms. South Daytona generally follows Volusia County guidelines while maintaining local oversight through code enforcement and business licensing departments, requiring operators to maintain properties in compliance with health and safety standards and respond to neighbor complaints promptly.

The best areas for Airbnb investment in South Daytona, Florida include the beachfront corridor along Atlantic Avenue and areas near the Daytona International Speedway, particularly neighborhoods within 2-3 miles of the track such as those around LPGA Boulevard and International Speedway Boulevard. The beachfront properties attract year-round tourism with peak seasons during spring break, summer months, and major racing events, offering proximity to pristine beaches, fishing, and water sports activities. Properties near the speedway capitalize on NASCAR events including the Daytona 500 in February, Coke Zero Sugar 400 in August, and various racing weekends throughout the year that draw hundreds of thousands of visitors seeking accommodations. The Reed Canal Park area and neighborhoods around Sunshine Park Boulevard offer attractive investment opportunities due to their proximity to both beach access and the speedway while maintaining lower property acquisition costs. Areas near the Halifax River provide unique waterfront experiences for guests interested in boating, fishing, and scenic views, particularly around the South Daytona boat ramps and marinas. The corridor along US-1 offers strategic positioning for business travelers visiting local companies like NASCAR teams, automotive businesses, and the growing logistics sector, while maintaining easy access to both Daytona Beach attractions and Orlando's theme parks within an hour's drive.

In South Daytona, Florida, Airbnb hosts are subject to multiple lodging taxes including the Florida state tourist development tax at 6%, Volusia County's tourist development tax at 5%, and the state sales tax at 6% on short-term rentals under 6 months. The city of South Daytona may impose an additional local business tax or occupancy fee of approximately 1-2%. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties listed on their platform, with Airbnb remitting payments monthly to the appropriate tax authorities including the Florida Department of Revenue and Volusia County. For hosts managing their own bookings outside of Airbnb's collection service, they must register with the Florida Department of Revenue, obtain a sales tax permit, collect taxes from guests, and remit payments monthly by the 20th of the following month. Exemptions generally apply to stays exceeding 30 consecutive days, rentals to permanent residents, and certain government or charitable organization bookings, though hosts should verify current exemption criteria as tax laws were updated significantly between 2018-2023 to address the growing short-term rental market.

The total cost to start an Airbnb in South Daytona, Florida is approximately $285,000-$315,000. Property purchase costs around $220,000-$250,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property ranges from $15,000-$25,000 including beds, living room furniture, kitchen essentials, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, vacation rental permit, and inspection fees cost approximately $500-$1,500 depending on local requirements. Insurance for short-term rentals runs $2,000-$3,000 annually, with the first year paid upfront. Utilities setup and deposits for electricity, water, internet, and cable cost around $500-$800. First six months operating costs including utilities ($1,200), cleaning services ($1,800), maintenance ($1,000), property management software ($300), and marketing ($500) total approximately $4,800. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and initial vacancy periods while building reviews and bookings.

Airbnb properties in South Daytona, Florida typically generate annual revenues between $18,000-$35,000 for standard 2-3 bedroom homes, with oceanfront or canal-front properties commanding $45,000-$65,000 annually according to AirDNA market data from 2023. Operating expenses generally run 35-45% of gross revenue, including cleaning fees ($75-125 per turnover), property management (15-25%), utilities ($150-250/month), insurance ($2,000-4,000 annually), and maintenance costs. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts like those featured in Bigger Pockets case studies achieving 20-30% margins by optimizing pricing strategies and maintaining high occupancy rates of 65-75%. Key success factors include proximity to Daytona Beach (properties within 2 miles of beach average 40% higher revenue), professional photography, dynamic pricing tools like PriceLabs or Wheelhouse, and maintaining 4.8+ star ratings. Properties near Daytona International Speedway see significant revenue spikes during race weekends in February and July, with some hosts reporting $400-600 nightly rates compared to typical $85-150 rates, while canal-front properties with boat access in areas like Spruce Creek attract premium guests year-round with average daily rates 25-35% above market average.

Airbnb investments in South Daytona, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to Daytona Beach and motorsports events at Daytona International Speedway. Properties within 2-3 miles of the beach command premium nightly rates of $120-180 during peak season (February-April, July-August) and $80-120 during off-peak periods, with average occupancy rates of 65-75% annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically seeing break-even on cash invested by month 20-28. The market benefits from consistent demand from NASCAR events, Bike Week, and beach tourism, with 2-3 bedroom condos and single-family homes near the Halifax River or beach access performing strongest, generating gross rental yields of 15-22% before expenses.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in South Daytona, Florida. Local real estate agents like those at Realty Pros Assured and Ocean Properties Group have expertise in the Daytona Beach area vacation rental market and can help identify properties with strong Airbnb potential. National services include Mashvisor, which provides rental property analytics and market data for the South Daytona area, and BiggerPockets, which connects investors with local agents experienced in short-term rentals. AirDNA offers market research and revenue projections specifically for Airbnb properties in the region. Local property management companies like Vacasa and RedAwning can provide insights into which neighborhoods and property types perform best for short-term rentals in South Daytona. Real estate investment firms such as Roofstock and Arrived Homes occasionally feature properties in the Central Florida market suitable for Airbnb conversion. Additionally, local agents at RE/MAX and Coldwell Banker in the Daytona Beach area often work with investors seeking vacation rental properties, while services like Awning and AvantStay provide comprehensive market analysis and property management solutions for Airbnb investors in the South Daytona market.