Is South Miami, Florida Good for Airbnb Investment?

To start an Airbnb in South Miami, Florida, begin by researching local regulations as Miami-Dade County requires short-term rental operators to obtain a Resort Dwelling License through the county's Regulatory and Economic Resources Department, which costs approximately $500-800 annually and requires property inspections, fire safety compliance, and proof of liability insurance of at least $500,000. Next, secure the necessary permits including a business tax receipt from Miami-Dade County ($50-150), ensure your property meets zoning requirements (most residential areas allow short-term rentals with proper licensing), and obtain a certificate of use if required. Find a suitable property by researching high-demand areas like Brickell, Coral Gables borders, or near the University of Miami, considering factors like proximity to attractions, parking availability, and neighborhood safety. Furnish the space with quality furniture, essential amenities (WiFi, kitchen supplies, linens, toiletries), and safety equipment including smoke detectors, carbon monoxide detectors, fire extinguisher, and first aid kit as required by county regulations. Create your Airbnb listing with professional photos, competitive pricing (average $80-200 per night in South Miami as of 2023), detailed descriptions highlighting local attractions like Fairchild Tropical Botanic Garden and proximity to Miami Beach. Finally, manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, collecting and remitting the 7% Florida sales tax plus 1% Miami-Dade tourist development tax, and ensuring ongoing compliance with annual license renewals and any updated county regulations.

To identify profitable short-term rental properties in South Miami, Florida, focus on locations within 1-2 miles of key attractions like Fairchild Tropical Botanic Garden, The Falls shopping center, and major business districts, while prioritizing properties near Miami-Dade transit lines and within 15-20 minutes of Miami International Airport. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, pools, parking, and outdoor spaces that appeal to both business travelers and tourists, ensuring properties are in HOA-friendly buildings or neighborhoods that permit short-term rentals. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $150-300/night in South Miami) exceeds long-term rental income by 40-60%, while factoring in higher operating costs of 35-45% including cleaning, maintenance, and management fees. Research competition within a 2-mile radius using Airbnb and VRBO searches to identify market saturation levels, optimal pricing strategies, and service gaps you can fill, aiming for areas with less than 15-20 active listings per square mile. Utilize tools like Rabbu, AirDNA, and local MLS data through partnerships with South Miami realtors familiar with STR regulations, while consulting Miami-Dade County zoning requirements and building-specific STR policies, as many condominiums and HOAs in South Miami have varying restrictions on short-term rentals that could impact profitability.

To obtain an Airbnb/STR permit in South Miami, Florida, you must first apply through the City of South Miami's Building and Zoning Department located at City Hall on Sunset Drive, as South Miami requires a Certificate of Use and Occupancy specifically for short-term rentals. Required documents include a completed application form, proof of property ownership or lease agreement with landlord consent, floor plan of the property, certificate of insurance with minimum $1 million liability coverage naming the city as additional insured, fire safety inspection certificate, and business tax receipt from Miami-Dade County. The application fee is approximately $150-200 plus a $75 inspection fee, with additional costs for the business tax receipt around $50-100 annually. The timeline typically takes 4-6 weeks from submission to approval, including scheduling and completing the required inspections. South Miami specific requirements include maintaining the property as your primary residence if operating a homestay, limiting occupancy to no more than 2 guests per bedroom with maximum 8 guests total, providing adequate parking spaces, ensuring compliance with noise ordinances, and maintaining a local contact person available 24/7 if you're not on-site. Properties must also meet all building, fire, and safety codes, and operators must renew their permits annually while maintaining current insurance and business tax receipts.

Short-term rentals (STRs) are currently prohibited in South Miami, Florida, as the city enacted a comprehensive ban on STRs in residential areas in 2019 following community concerns about noise, parking, and neighborhood character disruption. The city's ordinance specifically prohibits the rental of residential properties for periods of less than 30 days, effectively eliminating platforms like Airbnb and VRBO from operating in residential zones throughout South Miami. While some commercial zones may allow short-term accommodations under specific hotel or lodging classifications, the vast majority of the city's residential neighborhoods are off-limits to STR operations. The ban was implemented after extensive public hearings where residents complained about party houses and transient populations affecting their quality of life, and the city has maintained strict enforcement of these regulations with significant fines for violations. Property owners seeking to operate short-term rentals must look to neighboring municipalities with more permissive regulations, as South Miami has shown no indication of reversing its restrictive stance on STRs in recent years.

The best Airbnb investment areas in South Miami include Coral Gables, particularly near the University of Miami campus and Miracle Mile, which attracts business travelers, university visitors, and tourists drawn to the upscale shopping and dining scene. Pinecrest offers excellent potential due to its proximity to Dadeland Mall and family-friendly atmosphere that appeals to longer-term stays and visitors attending events at nearby venues. The Roads neighborhood provides strong investment opportunities with its historic charm, walkability to Brickell, and appeal to young professionals and tourists seeking authentic Miami experiences. Coconut Grove, especially areas near CocoWalk and the waterfront, remains highly attractive for its nightlife, marina access, and cultural events that draw both leisure and business travelers year-round. South Beach adjacent areas in South Miami benefit from overflow demand when South Beach properties are fully booked, particularly during Art Basel (December), Ultra Music Festival (March), and the consistent flow of international business travelers using Miami International Airport.

In South Miami, Florida, Airbnb hosts are subject to multiple lodging and occupancy taxes including the Florida state sales tax of 6%, Miami-Dade County tourist development tax of 7%, and a local resort tax that varies but typically ranges from 3-4% for short-term rentals under 30 days. These taxes are generally collected automatically by Airbnb through their platform for most bookings and remitted directly to the appropriate tax authorities on behalf of hosts, though hosts should verify this coverage and may need to register independently with the Florida Department of Revenue and Miami-Dade County tax collector for any gaps in collection. The total effective tax rate typically ranges from 16-17% of the gross rental amount, with exemptions generally limited to stays of 30 days or longer which are considered long-term rentals rather than transient accommodations. Hosts must maintain detailed records of all bookings and tax collections, and while Airbnb handles most remittance through agreements established around 2016-2018 with Florida and Miami-Dade County, hosts remain ultimately responsible for ensuring compliance and may need to file periodic returns even when taxes are collected by the platform.

The total cost to start an Airbnb in South Miami, Florida is approximately $850,000-$950,000. Property purchase represents the largest expense at $650,000-$750,000 based on median home prices in the area. Furnishing costs range from $25,000-$40,000 for a complete setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials total around $3,000-$5,000. Permits and fees including business license, short-term rental permit, and city registration fees cost approximately $1,500-$3,000. Insurance for short-term rentals runs $3,000-$5,000 annually, with the first year paid upfront. Utility deposits and setup fees for electricity, water, gas, internet, and cable total around $2,000-$3,000. First six months of operating costs including utilities ($1,800), cleaning services ($3,600), maintenance and repairs ($2,000), property management software ($300), and marketing ($1,000) add approximately $8,700 to the initial investment.

Airbnb properties in South Miami, Florida demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for one-bedroom units and $45,000-$85,000 for two-bedroom properties, driven by the area's year-round tourist appeal and proximity to Miami Beach. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($150-$250 monthly), insurance ($2,000-$4,000 annually), and maintenance costs. Successful properties achieve net profit margins of 25-35%, with prime locations near Biscayne Bay or within walking distance of restaurants and nightlife commanding premium rates of $150-$300 per night. Key success factors include professional photography, rapid guest communication, maintaining 4.8+ star ratings, and strategic pricing during peak seasons (December-April) and Art Basel events. Properties managed by companies like RedAwning and Vacasa in South Miami's luxury condos such as Icon Brickell and Biscayne Beach have reported occupancy rates of 70-85% with average daily rates 20-30% higher than traditional rentals, while investors who purchased condos in 2019-2020 for $400,000-$600,000 are seeing 8-12% annual returns after accounting for mortgage payments and all operating expenses.

Airbnb investments in South Miami, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property type and location proximity to beaches and downtown areas. Properties within 2-3 miles of South Beach and Brickell Avenue command premium nightly rates of $150-300, while inland properties average $80-150 per night. Initial profitability usually occurs within 18-24 months for well-positioned properties, with luxury condos and single-family homes near Coconut Grove and Coral Gables achieving the higher end of ROI ranges. The market benefits from year-round tourism, Art Basel events, and business travel, with occupancy rates averaging 65-75% annually. Properties purchased in the $300,000-600,000 range typically generate $2,500-5,000 monthly gross revenue after achieving market penetration, with net returns of $1,200-2,800 monthly after expenses including property management fees of 15-25%, cleaning costs, and maintenance.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in South Miami, Florida. Local real estate agents who focus on Airbnb investment properties in the area include Miami Beach Realty Group, Compass Miami, and Douglas Elliman, with agents like Carlos Rodriguez and Maria Fernandez who have expertise in vacation rental markets since 2018. National services that assist investors include AirDNA for market analysis, Mashvisor for property analytics, and BiggerPockets for networking and deal sourcing. Local property management companies such as RedAwning Miami, Vacasa, and AvantStay help investors maximize returns on their Airbnb investments. Additional services include Miami Short-Term Rental Advisors, a boutique consultancy established in 2019, and national platforms like Roofstock and Fundrise that occasionally feature Miami-area properties. Local mortgage brokers specializing in investment properties include Atlantic Coast Mortgage and Miami Investment Lending, while companies like AirHost Academy provide education and coaching specifically for Airbnb investors targeting the South Miami market.