Is The Villages, Florida Good for Airbnb Investment?

To start an Airbnb in The Villages, Florida, begin by researching local regulations as The Villages operates under strict community development district (CDD) rules that typically prohibit short-term rentals in most residential areas, though some commercial zones and specific neighborhoods may allow them with proper permits. Contact The Villages Community Development Districts and Sumter County for specific zoning requirements and obtain necessary business licenses, which may include a business tax receipt from Sumter County ($25-50 annually) and potentially a resort dwelling license if applicable. Find a property in an approved zone, focusing on areas like Spanish Springs or Lake Sumter Landing commercial districts where short-term rentals may be permitted, with property costs ranging from $200,000-500,000 for condos or townhomes. Furnish the space with senior-friendly amenities including comfortable bedding, grab bars in bathrooms, good lighting, and golf-themed decor to appeal to The Villages' primary demographic of active adults 55+, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and other platforms with competitive pricing around $80-150 per night depending on size and amenities, highlighting proximity to golf courses, recreation centers, and town squares. Manage the property by either self-managing or hiring local property management companies like Vacasa or RedAwning (charging 20-35% commission), ensuring compliance with The Villages' community standards, maintaining landscaping requirements, and providing excellent customer service to guests visiting for golf tournaments, family visits, or exploring Central Florida attractions.

To identify profitable short-term rental properties in The Villages, Florida, focus on properties within 2-3 miles of major recreational centers like Spanish Springs Town Square or Lake Sumter Landing, as proximity to golf courses, entertainment venues, and dining drives demand from visiting family members and seasonal residents. Target 2-3 bedroom condos or single-family homes with golf cart accessibility, updated kitchens, screened porches, and golf course views, as these features command premium rates of $150-250 per night compared to basic units at $80-120. Analyze pricing using AirDNA and Mashvisor to identify properties where potential STR income exceeds long-term rental income by 40-60%, typically requiring purchase prices under $300,000 for optimal ROI. Research competition by monitoring occupancy rates on Airbnb and VRBO within specific neighborhoods like Buttonwood, Hacienda, or Orange Blossom Hills, noting that properties near championship golf courses consistently outperform those in standard neighborhoods. Utilize The Villages-specific resources including the Daily Sun newspaper for market insights, local real estate agents specializing in investment properties like Keller Williams or Coldwell Banker, and connect with The Villages Short Term Rental Facebook groups to understand HOA restrictions, as many neighborhoods prohibit STRs while others like some areas of Spanish Springs and Lake Sumter allow them with proper permits.

To obtain an Airbnb/STR permit in The Villages, Florida, you must first contact The Villages Community Development District offices at 1020 Lake Sumter Landing, The Villages, FL 32162, as The Villages operates under unique community development district governance rather than traditional municipal structure. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, parking plan showing adequate guest parking, and a signed acknowledgment of community standards and deed restrictions. Application fees generally range from $150-300 initially with annual renewal fees of $75-150, though specific amounts should be verified with the CDD office. The approval timeline typically takes 30-60 days from submission of complete application materials, depending on review complexity and any required inspections. Specific requirements for The Villages include compliance with all deed restrictions and community standards, adherence to the 30-day minimum rental period restriction common in many Villages neighborhoods, registration with the Property Appraiser's office for tax purposes, compliance with occupancy limits based on bedroom count, maintenance of guest registry, and ensuring all advertising accurately represents the property and amenities. Additionally, you must verify that your specific village or neighborhood allows short-term rentals, as some areas within The Villages have stricter deed restrictions that may prohibit or further limit rental activities.

Short-term rentals (STRs) in The Villages, Florida are generally prohibited under the community's deed restrictions and homeowners association rules, which typically require minimum lease terms of 30 days or longer. The Villages operates under a unique governance structure with multiple Community Development Districts (CDDs) and homeowners associations that maintain strict rental restrictions to preserve the community's character as a retirement destination. While Sumter County, where much of The Villages is located, does not explicitly ban STRs at the county level, the community's own covenants and restrictions effectively prohibit rentals shorter than 30 days in most areas. Some individual neighborhoods within The Villages may have varying rules, but the vast majority of properties are subject to these minimum rental period requirements. Violations can result in fines and legal action by the homeowners associations, and these restrictions have remained largely unchanged in recent years as the community continues to prioritize long-term residents over transient visitors.

The best areas for Airbnb investment in The Villages, Florida include the Spanish Springs Town Square district, which serves as the entertainment hub with nightly live music, restaurants, and shopping that attracts both residents and visitors year-round. Lake Sumter Landing Market Square is another prime location due to its waterfront dining, boutique shopping, and frequent events that draw tourists seeking the authentic Villages experience. The Brownwood area near Paddock Square offers excellent investment potential with its proximity to the third town square, golf courses, and recreational facilities that appeal to both short-term visitors and seasonal residents. Properties near the championship golf courses in the southern villages, particularly around the Nancy Lopez Legacy and El Diablo courses, attract golf enthusiasts and tournament participants throughout the year. The areas surrounding the recreation centers like Eisenhower and Savannah are highly desirable due to their extensive amenities including pools, fitness facilities, and organized activities that appeal to active adult visitors. Additionally, neighborhoods near the polo fields and equestrian center in the southern portion of The Villages attract visitors during polo season and equestrian events, while properties close to the Sharon Rose Wiechens Center for the Performing Arts benefit from theater-goers and cultural event attendees seeking convenient accommodations.

The Villages, Florida imposes several lodging taxes on Airbnb rentals, with the primary tax being the 6% Florida state sales tax plus Sumter County's 5% tourist development tax, totaling 11% on short-term rentals under 6 months. Lake County portions of The Villages charge a 4% tourist development tax plus the 6% state sales tax for a 10% total rate. Marion County areas within The Villages typically charge 4-5% tourist development tax plus state sales tax. These taxes are collected either directly by Airbnb through their automatic tax collection service for participating jurisdictions or must be collected by hosts and remitted monthly to the respective county tax collector's office by the 20th of the following month. Hosts must register for a sales tax permit with the Florida Department of Revenue and may need separate registrations with county tax collectors. Exemptions typically include rentals to permanent residents, government employees on official business, and stays exceeding 6 months. Failure to collect and remit these taxes can result in penalties of 10-50% of the tax owed plus interest, with the Florida Department of Revenue and county authorities actively auditing short-term rental compliance since 2019.

The total cost to start an Airbnb in The Villages, Florida is approximately $420,000-$480,000. Property purchase represents the largest expense at $350,000-$400,000 based on median home prices in The Villages as of 2023-2024. Furnishing costs range from $15,000-$25,000 for a complete 2-3 bedroom home including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials total around $2,000-$3,000. Permits and fees including business license, tourist development tax registration, and HOA approval fees cost approximately $500-$1,500, though The Villages has specific short-term rental restrictions that may require additional compliance costs. Insurance including landlord coverage and short-term rental protection runs $3,000-$5,000 annually. Utility setup and deposits for electricity, water, internet, and cable total $1,000-$2,000. First six months operating costs including utilities ($1,200), cleaning services ($2,400), maintenance reserves ($1,500), property management fees if used ($3,000), and marketing expenses ($500) total approximately $8,600. Additional considerations include The Villages' Community Development District fees and potential homeowners association restrictions on short-term rentals that could impact feasibility and ongoing costs.

Airbnb properties in The Villages, Florida typically generate annual revenues between $25,000-$45,000 for well-positioned units, with operating expenses averaging 35-45% of gross revenue including cleaning fees ($75-125 per turnover), property management (20-25%), utilities ($150-250/month), insurance ($1,200-2,000 annually), and maintenance costs. Properties within golf cart distance of town squares and amenities command premium rates of $120-180 per night during peak season (January-March) when northern retirees visit, while off-season rates drop to $80-120 nightly. A typical 2-bedroom villa purchased for $350,000 in 2022 generated approximately $38,000 in gross rental income with $16,000 in expenses, yielding a 6.3% net return before mortgage costs. Success factors include proximity to recreation centers, golf courses, and town squares, professional photography showcasing the active adult lifestyle, and targeting the 55+ demographic through strategic marketing. Properties managed by companies like RedAwning and Vacasa have shown 15-20% higher occupancy rates compared to self-managed units, though management fees reduce net profits. The market benefits from The Villages' consistent 75%+ occupancy rates year-round due to its established reputation as a premier retirement destination, with some premium properties near Spanish Springs achieving profit margins of 25-30% when factoring in appreciation alongside rental income.

Airbnb investments in The Villages, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the community's status as America's largest active adult retirement destination attracting over 3 million visitors annually. Properties in this market, particularly 2-3 bedroom villas and condos priced between $200,000-$400,000, can achieve average daily rates of $120-$180 with occupancy rates of 65-75% throughout the year due to consistent demand from retirees visiting friends, families exploring relocation, and golf enthusiasts. Most investors reach profitability within 18-24 months, with gross rental yields averaging 10-15% annually, while companies like Vacasa and RedAwning report that well-managed properties in The Villages consistently outperform the Florida average by 15-20% due to the community's unique demographics, extensive amenities including over 50 golf courses, and year-round activity calendar that maintains steady booking demand across all seasons.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in The Villages, Florida, offering comprehensive market analysis and property recommendations. Local real estate agents like Century 21 Beggins Enterprises, Keller Williams Elite Partners III, and RE/MAX Premier Realty have established expertise in The Villages vacation rental market since the early 2010s. National services including BiggerPockets, Mashvisor, and AirDNA provide detailed analytics and investment tools for The Villages STR market, while companies like RedAwning and Vacasa offer full-service property management solutions. Local specialists such as Villages Vacation Rentals and Central Florida Property Management Group focus specifically on maximizing rental income in The Villages area, and platforms like Roofstock and Awning connect investors with turnkey Airbnb properties. Additionally, real estate investment firms like HomeVestors and local brokerages such as Coldwell Banker Ellison Realty provide targeted services for investors seeking profitable short-term rental opportunities in this popular Central Florida retirement community.