Is Treme, Louisiana Good for Airbnb Investment?

To start an Airbnb in Treme, Louisiana, begin by researching New Orleans' short-term rental regulations, which require a Conditional Use Permit (CUP) from the City Planning Commission if operating in a residential zone, along with a business license and occupancy permit from the Department of Safety and Permits. Find a suitable property in Treme's historic neighborhoods, ensuring it meets the city's requirement that short-term rentals be owner-occupied or in commercially zoned areas, with properties typically ranging from $150,000-$400,000 for historic Creole cottages or shotgun houses. Obtain necessary permits including the CUP ($1,685 application fee), business license ($75 annually), and fire department inspection, while ensuring compliance with the 90-day annual rental limit for non-owner-occupied properties in residential zones. Furnish the property with period-appropriate decor reflecting Treme's rich cultural heritage, including jazz memorabilia and Creole-inspired furnishings, budgeting $15,000-$25,000 for a complete setup. List your property on Airbnb and VRBO with professional photography highlighting the neighborhood's proximity to the French Quarter, Congo Square, and historic jazz venues, setting competitive rates of $120-$250 per night depending on property size and amenities. Manage the property by hiring local cleaning services ($40-$60 per turnover), installing keyless entry systems, maintaining 24/7 guest communication, and ensuring compliance with New Orleans' 10% hotel occupancy tax collection and remittance requirements while building relationships with neighbors to address any concerns about short-term rental activity in this culturally significant neighborhood.

To identify profitable short-term rental properties in Treme, Louisiana, focus on properties within 3-4 blocks of major attractions like Congo Square, the Backstreet Cultural Museum, and Louis Armstrong Park, as proximity to French Quarter (0.5-1 mile) drives higher occupancy rates. Target 2-3 bedroom Creole cottages or shotgun houses built pre-1950 with original architectural details like exposed brick, hardwood floors, and high ceilings, ensuring properties have off-street parking and outdoor space which command 15-20% premium rates. Analyze comparable properties using AirDNA and Mashvisor to identify the $150-250 nightly rate sweet spot, with annual revenue potential of $45,000-75,000 for well-positioned properties. Research competition by monitoring 50+ active listings within 0.5-mile radius, noting that properties emphasizing authentic New Orleans character and cultural heritage outperform generic renovations by 25-30% in booking rates. Utilize STR Helper for New Orleans-specific regulations compliance, partner with local property management companies like AvantStay or RedAwning familiar with Treme's unique zoning requirements, and leverage neighborhood Facebook groups and Treme Sidewalk Steppers community connections to identify off-market opportunities, while ensuring properties meet the city's short-term rental licensing requirements and 90-day annual rental cap for non-owner occupied units.

To obtain an Airbnb/STR permit in Treme, Louisiana (New Orleans), you must first register with the City of New Orleans Department of Safety and Permits by submitting an application online through the city's portal or in person at 1340 Poydras Street. Required documents include a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, liability insurance policy ($500,000 minimum), floor plan showing maximum occupancy, and a $150 application fee plus $50 annual renewal fee. The process typically takes 30-45 days for approval after submitting all required documentation. Specific Treme requirements include adherence to the French Quarter/Vieux Carré Commission guidelines for historic properties, compliance with residential density limits (maximum 25% of residential units per block face can be STRs), mandatory 24/7 contact information posting, noise ordinance compliance, and parking requirements of one off-street space per unit. You must also obtain a business license from Louisiana Secretary of State, register for state and local taxes, and ensure the property meets all building and fire codes before beginning operations.

Short-term rentals (STRs) are legal in the Treme neighborhood of New Orleans, Louisiana, but operate under the city's comprehensive STR regulations established around 2016-2017. The City of New Orleans requires STR operators to obtain proper permits, pay occupancy taxes, and comply with safety requirements including smoke detectors and emergency exits. In Treme specifically, STRs face additional scrutiny due to the neighborhood's historic significance and ongoing gentrification concerns, with the city implementing caps on STR density in residential areas and requiring that commercial STR operators (those owning multiple properties) obtain conditional use permits. Recent changes around 2019-2021 have tightened enforcement and increased penalties for unpermitted operations, while also establishing buffer zones around schools and limiting the total number of STR licenses citywide. The neighborhood has seen significant debate over STRs' impact on housing affordability and community displacement, leading to stricter monitoring by the city's Short-Term Rental Administration, though properly licensed and compliant STRs remain legal to operate with appropriate permits and adherence to occupancy limits, noise ordinances, and parking requirements.

The best areas for Airbnb investment in Treme, Louisiana are the blocks closest to the French Quarter boundary along Rampart Street and North Rampart Street, which benefit from overflow tourism from the Quarter while offering more affordable property prices. The area near Louis Armstrong Park and Congo Square attracts cultural tourists interested in jazz history and hosts frequent festivals and events. Properties within walking distance of the Backstreet Cultural Museum and the New Orleans African American Museum capture heritage tourism traffic. The residential blocks along Esplanade Avenue offer charm for visitors seeking authentic neighborhood experiences while remaining close to major attractions. Areas near the Mahalia Jackson Theater benefit from performing arts audiences and cultural events. The neighborhoods around St. Augustine Church attract religious and historical tourism. Properties close to Tremé Community Center and surrounding blocks appeal to visitors interested in local culture and community events, while the proximity to downtown business district makes these areas suitable for business travelers seeking alternatives to expensive French Quarter accommodations.

Airbnb properties in Treme, Louisiana are subject to multiple lodging taxes including the Louisiana state sales tax of 4.45%, Orleans Parish hotel occupancy tax of 13% plus $1-3 per night depending on room rate, and the New Orleans Tourism Marketing Corporation fee of 0.75%. The City of New Orleans also imposes a short-term rental license fee of approximately $150-400 annually and requires hosts to collect and remit a 13.25% combined hotel/motel tax. These taxes are typically collected from guests at the time of booking through Airbnb's platform, which automatically calculates and remits most occupancy taxes to local authorities on behalf of hosts as of 2018-2019. Hosts must register with the Louisiana Department of Revenue and the City of New Orleans, obtain proper permits, and file monthly returns by the 20th of each month for any taxes not automatically collected by Airbnb. Properties rented for 30 days or longer may be exempt from occupancy taxes but still subject to regular sales tax, and some exemptions exist for certain government or charitable bookings.

The total cost to start an Airbnb in Treme, Louisiana is approximately $285,000-$335,000. Property purchase costs around $200,000-$250,000 based on median home prices in the historic neighborhood. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor that appeals to tourists visiting New Orleans. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees include a $150 short-term rental permit from New Orleans, $100 business license, and approximately $1,500 in various city inspections and compliance costs. Insurance runs $2,500-$4,000 annually for short-term rental coverage. Utilities including electricity, water, gas, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), property management software ($50/month), maintenance reserves ($200/month), and marketing ($100/month) total approximately $4,500-$6,000. Additional startup costs for security systems, keyless entry, and emergency repairs add another $2,000-$3,000 to the initial investment.

Airbnb properties in Treme, Louisiana typically generate annual revenues of $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on proximity to the French Quarter and property amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-300 monthly), insurance ($2,000-4,000 annually), and maintenance costs. Properties within 0.5 miles of major attractions like Congo Square or the Backstreet Cultural Museum command premium rates, with some Victorian shotgun houses achieving 70-80% occupancy rates and net profit margins of 25-35%. Success factors include authentic local design reflecting Treme's rich musical heritage, partnerships with local tour companies, and strategic pricing during peak periods like Jazz Fest and Mardi Gras when rates can triple. A renovated 1920s Creole cottage near Esplanade Avenue reportedly generated $52,000 in 2023 revenue with $31,000 in expenses, yielding a 40% profit margin, while properties further from tourist corridors typically see 15-25% margins due to lower occupancy rates of 50-65% and reduced pricing power.

Airbnb investments in Treme, Louisiana typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the neighborhood's proximity to the French Quarter and strong tourism demand. Properties in Treme, particularly renovated Creole cottages and shotgun houses, can achieve profitability within 18-24 months due to average daily rates of $120-180 and occupancy rates of 65-75% annually. The market benefits from year-round tourism, with peak seasons during Mardi Gras, Jazz Fest, and summer months generating higher returns, while investors should expect initial renovation costs of $40,000-80,000 for historic properties to meet short-term rental standards and capitalize on the area's cultural significance and walkability to major New Orleans attractions.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including New Orleans' Treme neighborhood. Local New Orleans real estate agents specializing in Airbnb investments include Keller Williams Realty New Orleans agents who focus on investment properties, Latter & Blum agents with short-term rental expertise, and independent agents like those at French Quarter Realty Partners who understand the unique zoning and regulations in historic neighborhoods like Treme. National services include Mashvisor for property analysis and market data, AirDNA for short-term rental analytics, Awning for turnkey Airbnb property management and acquisition, Roofstock for online real estate investing, and BiggerPockets for networking with local investors. Local property management companies that also help with acquisitions include RedAwning, AvantStay, and New Orleans-based Airbnb management firms like NOLA Short Term Rentals and Crescent City Stays, which often have insights into profitable properties coming to market in areas like Treme where they manage existing portfolios.