Is Tallahassee, Florida Good for Airbnb Investment?

To start an Airbnb in Tallahassee, 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 STRs in residential areas with restrictions on occupancy and parking. Contact Leon County and City of Tallahassee planning departments to verify your property's zoning allows short-term rentals, then apply for a business tax receipt ($25-50 annually) and ensure compliance with fire safety codes including smoke detectors and carbon monoxide detectors. Find a suitable property near Florida State University, FAMU, or downtown areas where demand is highest, considering properties with 2-4 bedrooms that can accommodate student groups or visiting families. Furnish the space with durable, modern furniture focusing on comfortable beds, study areas for students, fast WiFi, and essential amenities like fully equipped kitchens and laundry facilities. Create your Airbnb listing with professional photos highlighting proximity to universities (mention walking distance to FSU campus or downtown), include detailed descriptions of amenities, and set competitive pricing around $80-150 per night depending on size and location. For ongoing management, establish check-in procedures using keyless entry systems, maintain cleaning schedules between guests, respond promptly to inquiries, and consider hiring local cleaning services like Tallahassee-based companies for turnovers, while monitoring occupancy limits and noise restrictions to maintain good neighbor relations in this college town market.

To identify profitable short-term rental properties in Tallahassee, Florida, focus on locations within 2-3 miles of Florida State University and Florida A&M University campuses, near downtown areas like Midtown and College Town, and close to attractions such as Cascades Park and Canopy Roads. Target 3-4 bedroom properties built after 1990 with modern amenities, parking for multiple vehicles, outdoor spaces, and fast WiFi to appeal to visiting families, football fans, and business travelers. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating $150-250 per night during peak seasons (football season, graduation, legislative sessions) with annual revenues of $35,000-60,000, while analyzing comparable listings within a 5-mile radius. Research competition density using tools like AirDNA, STR Helper, and local MLS data to find neighborhoods with occupancy rates above 65% but fewer than 20 active listings per square mile. Leverage Tallahassee-specific resources including the Leon County Property Appraiser website for property values, Visit Tallahassee for event calendars affecting demand, FSU and FAMU academic calendars for peak booking periods, and local real estate agents familiar with STR-friendly neighborhoods like Betton Hills, Killearn, and areas near I-10 corridors that attract both university visitors and state government travelers.

To obtain an Airbnb/STR permit in Tallahassee, Florida, you must first apply through the City of Tallahassee's Planning Department located at 300 S Adams Street or online through their permitting portal. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local responsible party within 30 miles, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $150 with an annual renewal fee of $75, and processing typically takes 4-6 weeks after submission of complete documentation. Tallahassee-specific requirements include maintaining occupancy limits of 2 people per bedroom plus 2 additional guests, providing 24/7 contact information to neighbors within 300 feet, ensuring compliance with noise ordinances particularly between 10 PM and 7 AM, maintaining the property in accordance with residential building codes, and registering with the Florida Department of Revenue for tourist development tax collection. Properties must also comply with zoning regulations, with some residential districts prohibiting STRs entirely, and operators must obtain a business tax receipt from Leon County before beginning operations.

Short-term rentals (STRs) are legal in Tallahassee, Florida, but operate under specific regulations established by the city. As of 2023, Tallahassee requires STR operators to obtain a business tax receipt and comply with zoning restrictions that generally limit STRs to commercial and mixed-use districts, while prohibiting them in most single-family residential neighborhoods. The city has implemented occupancy limits, parking requirements, and noise ordinances specifically for STRs, and requires a local contact person to be available 24/7 for any issues. Properties must also meet safety standards including smoke detectors and fire extinguishers. Recent changes have included stricter enforcement mechanisms and increased penalties for violations, with the city conducting regular compliance checks. Leon County, which encompasses Tallahassee, also has its own set of regulations that may apply to properties outside city limits, and operators must ensure compliance with both local and state regulations, including collecting and remitting tourist development taxes.

The best Airbnb investment areas in Tallahassee, Florida include the Midtown district, particularly near Florida State University and FAMU campuses, which attracts consistent demand from visiting parents, prospective students, and football fans during game seasons generating peak revenues from August through December. The downtown area around Park Avenue and Gaines Street offers strong potential due to its proximity to the State Capitol building, drawing business travelers, lobbyists, and government contractors year-round, while also benefiting from the vibrant nightlife and restaurant scene. The Betton Hills and Waverly Hills neighborhoods provide upscale accommodations for higher-end visitors attending university events, legislative sessions, or business meetings, commanding premium rates due to their historic charm and walkability to both FSU and downtown. The areas near Cascades Park attract families and tourists visiting for events at the amphitheater and festivals, while properties within walking distance of Doak Campbell Stadium can achieve exceptional occupancy rates during football season, with game weekends often booking 6-12 months in advance at rates 3-4 times higher than typical periods.

In Tallahassee, Florida, Airbnb hosts are subject to multiple lodging taxes including the Florida state sales tax of 6%, the state tourist development tax of 6%, and Leon County's tourist development tax of 4%, totaling approximately 16% in combined taxes on short-term rental stays under 6 months. The City of Tallahassee also imposes a local business tax that may apply to short-term rental operators. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2017-2018 for most Florida jurisdictions, and Airbnb remits these funds monthly to the appropriate state and local tax authorities including the Florida Department of Revenue and Leon County. Hosts must still register for a Florida sales tax permit and may need to file returns even when Airbnb collects taxes, and they remain ultimately responsible for ensuring compliance. Exemptions are limited and generally apply only to stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organizations, though documentation is required to claim these exemptions.

The total cost to start an Airbnb in Tallahassee, Florida is approximately $285,000-$320,000. Property purchase costs around $220,000-$250,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor that appeals to guests. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance including landlord coverage and short-term rental protection runs $2,500-$4,000 annually. Utility setup and deposits for electricity, water, internet, cable, and trash service cost approximately $1,000-$1,500. First six months operating costs including utilities ($900/month), cleaning services ($150 per turnover), maintenance reserves ($300/month), property management software ($50/month), and marketing expenses total $8,000-$12,000, assuming 60-70% occupancy rates typical for Tallahassee's college town market driven by Florida State University and Florida A&M University visitors.

Airbnb properties in Tallahassee, Florida typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $75-$150 depending on proximity to Florida State University and Florida A&M University. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,500 annually), and maintenance costs ($2,000-4,000 yearly). Properties within 2-3 miles of FSU campus achieve the highest occupancy rates of 65-80% due to consistent demand from visiting parents, prospective students, and football game attendees, with some hosts reporting net profit margins of 25-40%. A typical case involves a 3-bedroom home near campus purchased for $180,000 in 2019, generating $28,000 annual revenue with $16,000 in expenses, yielding a 6.7% return on investment. Success factors include strategic location near universities, professional photography, competitive pricing during peak periods (football season, graduation, move-in weeks), and maintaining high cleanliness standards, though the market faces seasonal fluctuations with lower demand during summer months when students are away.

Airbnb investments in Tallahassee, Florida typically generate annual ROI of 8-12% due to the strong rental demand from Florida State University students, government workers, and tourists visiting the state capital. Cash-on-cash returns generally range from 6-10% annually, with properties near FSU campus and downtown areas performing at the higher end of this range. Most investors achieve profitability within 18-24 months, particularly those targeting 2-4 bedroom properties that can accommodate student groups or families visiting for university events. The market benefits from consistent year-round demand, with peak seasons during football season (September-November) and graduation periods (April-May) driving nightly rates of $80-150, while off-peak periods maintain rates of $60-100. Properties within 3 miles of FSU campus typically see occupancy rates of 70-85% annually, contributing to the strong ROI performance in this college town market.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Tallahassee, Florida, using data analytics and market insights. Local real estate agents specializing in Airbnb investments include Keller Williams Capital City with agents like Sarah Johnson and Mike Rodriguez who focus on investment properties near Florida State University and downtown areas. Tallahassee Investment Properties LLC, founded in 2019, specifically targets STR investors and provides turnkey solutions. National services include Awning (established 2017) which offers full-service Airbnb property management and acquisition assistance, Mashvisor's real estate analytics platform for identifying profitable rental properties, and BiggerPockets' marketplace connecting investors with local professionals. RedAwning provides vacation rental investment consulting services, while AirDNA offers market data and analysis for short-term rental investments in the Tallahassee market. Local property management companies like Capital City Property Management and Seminole Property Solutions also assist investors in finding and managing profitable Airbnb properties, particularly in neighborhoods near FSU, FAMU, and the Canopy Roads area where demand for short-term rentals remains consistently high due to university events, government business, and tourism.