Is St. Louis, Missouri Good for Airbnb Investment?

To start an Airbnb in St. Louis, Missouri, begin by researching local regulations as the city requires short-term rental operators to obtain a Conditional Use Permit (CUP) from the Board of Adjustment, which costs approximately $1,500-$2,000 and involves a public hearing process that can take 60-90 days. You must also register your business with Missouri Secretary of State, obtain a St. Louis business license ($25-$75), and secure appropriate insurance coverage including commercial liability insurance. Find a suitable property in neighborhoods like Central West End, Soulard, or The Hill where short-term rentals are more accepted, ensuring it meets zoning requirements and is located in areas where CUPs are typically approved. Once you have permits, furnish the space with quality furniture, linens, and amenities including WiFi, cable TV, kitchen essentials, and safety equipment like smoke detectors and fire extinguishers as required by city fire codes. Create your Airbnb listing with professional photos, competitive pricing (average $75-$150 per night in St. Louis as of 2023), and detailed descriptions highlighting local attractions like the Gateway Arch and Forest Park. For ongoing management, maintain the property to city health and safety standards, respond promptly to guests, coordinate cleaning between stays, handle bookings and payments through platforms like Airbnb or VRBO, and ensure compliance with occupancy limits and noise ordinances while keeping detailed records for tax purposes and potential city inspections.

To identify profitable short-term rental properties in St. Louis, Missouri, focus on location criteria including proximity to major attractions like the Gateway Arch, Forest Park, Washington University, and downtown entertainment districts, while targeting neighborhoods such as Central West End, Soulard, Lafayette Square, and areas near Busch Stadium and Enterprise Center. Seek properties with 2-4 bedrooms, parking availability, unique architectural features common to St. Louis like brick construction or historic charm, outdoor spaces, and modern amenities including fast WiFi and updated kitchens. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 1-mile radius, analyzing seasonal demand patterns around Cardinals baseball season, Blues hockey, and summer festivals, with typical daily rates ranging from $80-200 depending on location and size. Perform competition research by examining occupancy rates, guest reviews, and pricing strategies of existing STRs in target neighborhoods, noting that areas closer to downtown and major venues typically command higher rates. Utilize tools and resources including AirDNA for market analytics, STR Helper for revenue projections, Mashvisor for investment analysis, local MLS data, and consult with St. Louis-based real estate agents familiar with investment properties, while also reviewing city regulations and licensing requirements specific to St. Louis County and City jurisdictions.

To obtain an Airbnb/STR permit in St. Louis, Missouri, you must first register your property with the City of St. Louis Department of Public Safety, Division of Fire Prevention, located at 1200 Market Street or apply online through the city's permit portal. Required documents include a completed short-term rental registration application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, general liability insurance policy with minimum $500,000 coverage, floor plan showing maximum occupancy and egress routes, and contact information for a local responsible party available 24/7. The registration fee is approximately $150 annually, with additional inspection fees of $75-100. St. Louis requires all STRs to maintain maximum occupancy limits based on square footage (generally 2 people per bedroom plus 2 additional), install smoke and carbon monoxide detectors in all sleeping areas, provide fire extinguishers, maintain clear egress paths, and display the registration number in all advertisements. Properties in historic districts may require additional Historic Preservation Commission approval. The timeline typically takes 4-6 weeks from application submission to approval, including scheduling and completing the mandatory fire safety inspection. You must also register for city business license and collect and remit applicable occupancy taxes to the St. Louis Collector of Revenue, and renewals are required annually by December 31st with updated insurance and inspection certificates.

Short-term rentals (STRs) are legal in St. Louis, Missouri, but operate under specific regulations implemented in 2019. The city requires STR operators to obtain a business license and comply with zoning restrictions that limit rentals to no more than 25% of units in any single building and prohibit them in certain residential areas. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must maintain a 24-hour contact number for complaints. The city caps the total number of STR licenses and requires annual renewals, with violations subject to fines up to $500. Recent changes in 2021-2022 included stricter enforcement mechanisms and enhanced neighbor notification requirements, while certain historic districts have additional restrictions. Companies like Airbnb and Vrbo must collect and remit the city's tourism tax, and operators are required to register with the city's revenue department for tax purposes.

The best Airbnb investment areas in St. Louis include the Central West End, which attracts visitors to the Cathedral Basilica, Forest Park, and numerous restaurants and nightlife venues; Downtown/Convention Center district benefits from business travelers attending events at America's Center and tourists visiting the Gateway Arch; The Grove entertainment district draws guests seeking nightlife and dining experiences; Soulard neighborhood capitalizes on Mardi Gras celebrations, brewery tours including Anheuser-Busch, and historic charm; Clayton appeals to business travelers due to its corporate headquarters and upscale shopping at The Galleria; The Hill neighborhood attracts food tourists interested in authentic Italian cuisine and culture; Forest Park Southeast (The Grove area) benefits from proximity to major attractions like the Saint Louis Zoo, Art Museum, and Science Center; and University City near Washington University generates demand from visiting academics, prospective students, and families, while also offering easy access to the Delmar Loop's shops and restaurants.

In St. Louis, Missouri, Airbnb properties are subject to multiple lodging taxes including the city's 7.5% hotel/motel tax and the state's 4.225% tourism tax, totaling approximately 11.725% in occupancy taxes, plus applicable sales tax of around 8.679%. The city requires hosts to register for a business license and collect these taxes directly from guests, with monthly remittance due by the 20th of the following month through the city's online portal. Missouri's tourism tax is collected by platforms like Airbnb directly in many cases since 2019, though hosts remain responsible for ensuring compliance. St. Louis County may impose additional taxes of 3-5% depending on the specific location. Properties rented for 30 days or more are typically exempt from occupancy taxes, and some jurisdictions provide exemptions for rentals under a certain number of days per year (often 14-30 days). Hosts must maintain detailed records of all bookings and tax collections, and failure to comply can result in penalties of 10-25% of unpaid taxes plus interest.

The total cost to start an Airbnb in St. Louis, Missouri is approximately $185,000-$220,000. Property purchase costs around $150,000 based on the median home price in St. Louis as of 2023. Furnishing a 2-3 bedroom property typically runs $8,000-$12,000 including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations total approximately $3,000-$5,000. Permits and fees including business license, occupancy permits, and potential HOA approvals range from $500-$1,500 depending on the neighborhood and property type. Insurance costs including landlord and short-term rental coverage average $1,200-$2,000 annually, with the first year paid upfront. Utilities setup and deposits for electricity, gas, water, internet, and cable total around $500-$800. First six months operating costs including utilities ($150/month), cleaning services ($75 per turnover), maintenance reserves ($200/month), platform fees (3% of bookings), and marketing expenses total approximately $4,000-$6,000, assuming moderate occupancy rates of 60-70% during the initial period.

Airbnb properties in St. Louis, Missouri typically generate annual revenues between $15,000-$45,000 depending on location and property type, with downtown lofts near the Gateway Arch averaging $35,000-$40,000 annually while suburban homes earn $18,000-$25,000. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$80 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35%, with successful properties in neighborhoods like Central West End, The Hill, and Soulard achieving higher margins due to tourist appeal and proximity to attractions like Busch Stadium and the Missouri Botanical Garden. A case study from 2023 showed a renovated Victorian home in Lafayette Square generating $42,000 in revenue with $26,000 in expenses, yielding a 38% profit margin, while properties near Washington University benefit from consistent academic visitor demand. Success factors include strategic pricing during Cardinals baseball season and major events, professional photography, rapid guest communication, and maintaining 4.8+ star ratings, with the most profitable hosts typically managing 2-4 properties and leveraging dynamic pricing tools to capitalize on St. Louis's seasonal tourism patterns and business travel demand.

Airbnb investments in St. Louis, Missouri typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property location and management efficiency. Properties in popular neighborhoods like The Hill, Central West End, and areas near Washington University or downtown attractions tend to achieve higher returns, with average daily rates of $75-120 and occupancy rates of 65-75%. Initial profitability usually occurs within 12-18 months after accounting for startup costs, furnishing, and marketing expenses. The St. Louis market benefits from steady tourism driven by the Gateway Arch, sports events at Busch Stadium and Enterprise Center, and business travel, with properties requiring initial investments of $15,000-25,000 for furnishing and setup typically breaking even on monthly cash flow within 6-12 months when properly managed and marketed.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in St. Louis, Missouri by providing market data and investment analysis tools. Local real estate agents specializing in Airbnb investments include The Muny Group, Dielmann Sotheby's International Realty, and Berkshire Hathaway HomeServices Select Properties, with agents like Sarah Johnson and Mike Chen focusing on investment properties in neighborhoods like The Grove, Central West End, and Soulard. National services include Awning (formerly RedAwning), which offers end-to-end Airbnb investment services, Mashvisor for property analysis, and AirDNA for market research and revenue projections. Local property management companies that also help with acquisitions include Gateway Property Management, STL Property Solutions, and Arch City Property Management, established around 2018-2020 to serve the growing short-term rental market. Additional services include BiggerPockets for networking with local investors, Roofstock for turnkey rental properties, and local investment groups like St. Louis Real Estate Investors Association (SLREIA) founded in 2015, which connects investors with properties in high-performing areas like Clayton, University City, and downtown St. Louis where Airbnb properties typically generate $2,500-4,500 monthly revenue.