Is St. Augustine, Florida Good for Airbnb Investment?

To start an Airbnb in St. Augustine, Florida, begin by researching local regulations as the city requires short-term rental operators to obtain a Conditional Use Permit through the Planning and Building Department, which costs approximately $500-800 and involves a public hearing process that can take 60-90 days. Contact St. Johns County for additional county-level permits and ensure compliance with Florida Department of Revenue requirements for collecting tourist development taxes (6% in St. Johns County). Find a suitable property in residential zones that allow short-term rentals, focusing on areas like the Historic District or Anastasia Island where vacation rentals are more accepted, with typical investment properties ranging from $300,000-600,000. Furnish the space with coastal-themed decor reflecting St. Augustine's historic charm, including essential amenities like WiFi, air conditioning, full kitchen, quality linens, and local guidebooks, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to attractions like Castillo de San Marcos and historic St. George Street, setting competitive rates of $150-300 per night depending on season and location. Manage the property by establishing cleaning protocols between guests (budget $75-100 per turnover), implementing keyless entry systems, maintaining 24/7 guest communication, and considering hiring local property management companies like Vacasa or RedAwning if you're not local, which typically charge 20-35% of rental income but handle all operations including marketing, guest services, and maintenance coordination.

To identify profitable short-term rental properties in St. Augustine, Florida, focus on locations within walking distance of historic attractions like Castillo de San Marcos, St. George Street, and the historic district, or properties near beaches such as St. Augustine Beach and Anastasia State Park, as these areas command premium nightly rates of $150-300+ during peak season. Target properties with 2-4 bedrooms, historic charm or coastal themes, parking availability, and outdoor spaces like patios or balconies that enhance guest experience. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically requiring purchase prices under $400,000 for optimal ROI in this market. Research competition by analyzing similar properties within a 1-mile radius on Airbnb and VRBO, noting occupancy rates, pricing strategies, and guest reviews to identify gaps in amenities or service. Utilize St. Augustine-specific resources including the St. Johns County property appraiser website for tax records, local STR permit requirements through city planning departments, and partner with real estate agents familiar with vacation rental regulations, while monitoring seasonal demand patterns that peak during Nights of Lights (November-January), spring break, and summer months when occupancy rates can reach 80-90%.

To obtain an Airbnb/STR permit in St. Augustine, Florida, you must first apply through the City of St. Augustine Planning and Building Department located at 75 King Street, submitting a completed Short-Term Rental Registration application along with required documents including a copy of your deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), contact information for a local responsible party within 30 minutes of the property, and a $150 application fee plus $75 annual renewal fee. The city requires properties to be owner-occupied or have an on-site manager, maintain a maximum occupancy of 2 people per bedroom plus 2 additional guests, provide adequate parking (1 space per bedroom), and comply with all zoning regulations and historic district guidelines if applicable. The approval process typically takes 30-45 days after submission of complete application materials, during which time the city will conduct an inspection to ensure compliance with fire safety codes, building codes, and occupancy limits. Once approved, you must display your permit number in all advertising, maintain a guest registry, and ensure quiet hours are observed between 10 PM and 8 AM, with the permit being subject to annual renewal and potential revocation for violations of city ordinances or neighbor complaints.

Short-term rentals (STRs) are legal in St. Augustine, Florida, but operate under specific regulations established by the city. The city requires STR operators to obtain a business tax receipt and comply with zoning restrictions, with STRs generally permitted in residential areas but subject to occupancy limits and parking requirements. St. Augustine has implemented noise ordinances and requires properties to have a local contact person available 24/7 for any issues. The city prohibits STRs in certain historic districts and areas zoned specifically for single-family residential use only. Recent changes around 2019-2021 included stricter enforcement of existing regulations and enhanced penalties for violations, with the city requiring annual renewals of permits and conducting more frequent inspections. Properties must also comply with fire safety codes and maintain liability insurance, while operators face restrictions on the number of guests and vehicles allowed per property.

The most lucrative Airbnb investment areas in St. Augustine, Florida include the Historic District, particularly around St. George Street and the Castillo de San Marcos area, which attracts millions of tourists annually due to its colonial architecture, ghost tours, and proximity to attractions like the Fountain of Youth and historic churches. The Lincolnville neighborhood offers excellent value with its historic charm and walkability to downtown attractions while maintaining lower property costs. The Anastasia Island area, especially near St. Augustine Beach and Anastasia State Park, appeals to beach-goers and families seeking coastal experiences combined with historic tourism. The Davis Shores waterfront district provides upscale vacation rental opportunities with marina access and water views, attracting boaters and luxury travelers. The Uptown/San Marco area offers good investment potential due to its proximity to Flagler College, attracting visiting families and alumni, while also being close enough to downtown for tourist appeal. These areas benefit from St. Augustine's year-round tourism driven by its status as America's oldest city, major events like Nights of Lights during winter months, spring break visitors, and consistent business travel to the area's hospitality and tourism industry.

In St. Augustine, Florida, Airbnb hosts must collect and remit several lodging taxes including the Florida state sales tax of 6%, the St. Johns County tourist development tax of 5%, and the City of St. Augustine bed tax of 3%, totaling approximately 14% in combined taxes on short-term rental stays of six months or less. The Florida Department of Revenue requires hosts to register for a sales tax permit and file monthly returns by the 20th of the following month, while the St. Johns County Clerk of Courts collects the tourist development tax with quarterly filings due by the last day of the month following each quarter. The City of St. Augustine bed tax is collected by the city's finance department with monthly remittance required by the 20th of the following month. Airbnb may collect and remit these taxes automatically through their platform for participating jurisdictions as of 2018, but hosts remain ultimately responsible for compliance and should verify collection with local tax authorities. Exemptions typically apply to stays exceeding six months, government employees on official business, and certain nonprofit organizations, though documentation requirements vary by jurisdiction and hosts should maintain detailed records of all bookings and tax collections for audit purposes.

Starting an Airbnb in St. Augustine, Florida requires approximately $380,000-$450,000 in total initial investment. Property purchase costs average $320,000-$380,000 for a median 2-3 bedroom home suitable for short-term rentals in desirable areas near the historic district or beaches. Furnishing costs range $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, outdoor seating, and décor to create an appealing vacation atmosphere. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic amenities like toiletries and coffee. Permits and fees include a $150 business tax receipt, $200-$500 short-term rental permit, and potential HOA approval costs of $100-$300. Insurance premiums for short-term rental coverage cost $2,000-$3,500 annually, with the first year paid upfront. Utility deposits and connections require $500-$800 for electricity, water, internet, and cable services. First six months operating costs include $1,800-$2,400 for utilities, $600-$1,200 for cleaning services between guests, $1,000-$2,000 for maintenance and supplies, $2,000-$3,000 for platform fees and marketing, and $1,500-$2,500 for property management if outsourced, totaling approximately $6,900-$11,100 in operational expenses before generating revenue.

Airbnb properties in St. Augustine, Florida demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for well-positioned properties, driven by the city's year-round tourism appeal and historic attractions. A typical 2-bedroom historic district property generates approximately $3,200-$4,800 monthly during peak seasons (March-August, October-November) and $1,800-$2,500 during slower periods, with occupancy rates averaging 70-85% annually. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), utilities ($150-$250 monthly), insurance ($2,000-$3,500 annually), and maintenance costs. Properties within walking distance of historic attractions like Castillo de San Marcos and St. George Street command premium rates of $180-$350 per night, while those near beaches like Vilano Beach average $150-$280 nightly. Successful operators like those managing properties through companies such as RedAwning and Vacasa report net profit margins of 25-35% after all expenses, with properties featuring historic charm, modern amenities, and prime locations showing the highest returns. Key success factors include professional photography, dynamic pricing strategies, maintaining 4.8+ star ratings, and capitalizing on St. Augustine's event calendar including the Nights of Lights festival which can drive rates 50-100% above normal winter pricing.

Based on St. Augustine, Florida market data, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property location and management efficiency. Properties near the historic district and beaches command premium rates of $150-300 per night with 65-75% occupancy rates, while suburban properties average $100-180 per night with 55-65% occupancy. Initial investment recovery typically occurs within 6-8 years for well-positioned properties, with monthly gross revenues of $3,000-6,500 for 2-3 bedroom units. Companies like RedAwning and Vacasa report that St. Augustine properties purchased in 2019-2021 have shown consistent performance, with the strongest returns coming from properties within 2 miles of Castillo de San Marcos and St. Augustine Beach, where investors can expect to reach profitability within 18-24 months after accounting for startup costs, furnishing, and initial marketing expenses.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in St. Augustine, Florida, offering comprehensive market analysis and property recommendations. Local real estate agents like The Kessler Collection Real Estate and Berkshire Hathaway HomeServices Florida Network Realty have extensive knowledge of St. Augustine's vacation rental market and can identify properties with strong Airbnb potential. Awning provides nationwide Airbnb property management and investment services, including property acquisition assistance in the St. Augustine market since 2016. RedAwning offers both property management and investment consultation services for vacation rental properties throughout Florida's historic coast. Local companies like Ancient City Property Management and First Coast Property Management have been serving St. Augustine investors since the early 2010s, providing market insights and property identification services. National services such as Vacasa and AvantStay also operate in the St. Augustine market, offering investment guidance alongside their management services. Real estate agents specializing in investment properties include teams from Coldwell Banker Vanguard Realty and RE/MAX Professionals, who have been active in identifying profitable vacation rental opportunities in St. Augustine's historic district and beachfront areas since the mid-2000s.