Is Tybee Island, Georgia Good for Airbnb Investment?

To start an Airbnb in Tybee Island, Georgia, begin by researching the city's short-term rental regulations, which require a business license and short-term rental permit from Tybee Island City Hall, with properties limited to specific zoning districts and subject to occupancy limits typically based on bedrooms plus two additional guests. Obtain necessary permits including the city business license ($50-100 annually), short-term rental permit ($200-300), and register for Georgia state sales tax collection through the Department of Revenue. Find a suitable property in approved residential zones, ensuring it meets fire safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the property with quality linens, towels, kitchen essentials, beach equipment like chairs and umbrellas (popular for Tybee's beach location), and coastal-themed decor to attract tourists visiting the barrier island. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting beach proximity, include detailed descriptions of nearby attractions like Tybee Island Light Station and Fort Pulaski, and set competitive rates considering seasonal demand with higher prices during summer months and special events. Manage the property by establishing cleaning protocols between guests, coordinating key exchanges or installing smart locks, maintaining responsive communication with guests, and ensuring compliance with Tybee Island's noise ordinances and parking restrictions while providing local recommendations for restaurants, beach access points, and activities specific to the island's offerings.

To identify profitable short-term rental properties on Tybee Island, Georgia, focus on oceanfront or ocean-view locations within walking distance of the beach, particularly along Butler Avenue, Strand Avenue, and the North Beach area, as these command premium rates year-round. Target properties with 3-4 bedrooms, multiple bathrooms, outdoor spaces like decks or patios, parking availability, and beach-friendly amenities such as outdoor showers and storage for beach gear. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($150-400+ depending on season and proximity to beach), occupancy rates (typically 60-75% annually), and seasonal demand patterns, with peak seasons being summer months and holiday weekends. Research competition by analyzing similar properties within a 0.5-mile radius using Airbnb and VRBO listings, noting their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize Tybee Island-specific resources including the city's STR regulations and permit requirements, local property management companies like Tybee Vacation Rentals and Oceanfront Cottage Rentals for market insights, and tools like Rabbu and Pricelabs for dynamic pricing optimization while monitoring the island's limited inventory of approximately 1,500 permitted STR units to assess market saturation and opportunity.

To obtain an Airbnb/STR permit in Tybee Island, Georgia, you must first apply through the City of Tybee Island Planning and Zoning Department located at 403 Butler Avenue, submitting a completed Short-Term Rental License application along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage naming the city as additional insured, floor plan showing maximum occupancy, contact information for a local representative within 30 minutes of the property, and business license if operating as a business entity. The application fee is approximately $200 annually, with additional inspection fees of around $100, and you must also obtain a business license from the city clerk's office for an additional $50-75 fee. Required documents include a site plan, parking plan showing required spaces, waste management plan, and signed affidavit acknowledging compliance with noise ordinances and occupancy limits. The timeline typically takes 30-45 days for processing once all documents are submitted, including a mandatory inspection by city officials. Tybee Island specific requirements include maximum occupancy of 2 people per bedroom plus 2 additional guests, minimum 2 parking spaces per unit, quiet hours from 10 PM to 8 AM, no events or parties allowed, and mandatory posting of house rules including emergency contact information and maximum occupancy limits, with properties limited to residential zoning districts and subject to a cap on total STR permits issued citywide.

Short-term rentals (STRs) are legal in Tybee Island, Georgia, but operate under specific municipal regulations established around 2019-2020. The city requires STR operators to obtain a business license and comply with occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards including smoke detectors and emergency egress requirements. Tybee Island restricts the total number of guests based on bedroom count and requires designated parking spaces for each rental unit. The city prohibits STRs in certain residential zones and has implemented a cap on the total number of permits issued to preserve neighborhood character. Recent changes include stricter enforcement of noise violations, enhanced inspection requirements, and increased penalties for non-compliance. Property owners must also collect and remit local accommodation taxes, maintain liability insurance, and provide 24-hour contact information for guests and neighbors. The regulations aim to balance tourism revenue with resident quality of life concerns on this barrier island community.

The most lucrative Airbnb investment areas on Tybee Island include the North Beach district near the pier and pavilion, which attracts the highest foot traffic due to its proximity to restaurants, shops, and entertainment venues, generating consistent year-round bookings from tourists seeking walkable beach access. The Mid Beach area along Butler Avenue offers excellent investment potential with its mix of historic cottages and newer developments, appealing to families and groups who want beach access while being close to popular dining spots like The Crab Shack and Fannie's on the Beach. South Beach presents opportunities for higher-end vacation rentals, particularly properties with ocean views, as this quieter area attracts couples and upscale travelers seeking a more secluded beach experience while still being within walking distance of the lighthouse and museum. The Back River area, while slightly inland, offers unique waterfront properties that appeal to fishing enthusiasts and boaters, often commanding premium rates during fishing tournaments and summer boating season, with properties here benefiting from both river and potential ocean access.

Airbnb properties on Tybee Island, Georgia are subject to multiple lodging taxes including the Georgia state sales tax of 4%, Chatham County hotel/motel tax of 6%, and the Tybee Island accommodations tax of 5%, totaling approximately 15% in combined taxes on short-term rental stays. The Georgia Department of Revenue requires hosts to register for a sales tax permit and collect the 4% state sales tax, which must be remitted monthly if collections exceed $300 or quarterly for smaller amounts. Chatham County's 6% hotel/motel tax is collected by the county and must be remitted monthly by the 20th of the following month, with hosts required to register with the Chatham County Tax Commissioner's office. Tybee Island's 5% accommodations tax is administered by the city and collected through their local tax office, typically remitted monthly along with required occupancy reports. Airbnb may collect and remit some of these taxes automatically through their platform depending on current agreements with local jurisdictions, but hosts remain ultimately responsible for compliance and should verify which taxes are being handled by the platform versus requiring direct remittance. Exemptions are generally limited to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb on Tybee Island, Georgia requires significant upfront investment with property purchase being the largest expense at approximately $650,000 for a median-priced home near the beach. Furnishing costs typically range from $15,000-25,000 for a complete setup including beds, linens, kitchen essentials, outdoor furniture, and coastal-themed decor. Initial setup expenses include professional photography ($500), listing optimization ($300), welcome materials ($200), and basic supplies ($800), totaling around $1,800. Permits and fees include a Tybee Island short-term rental license ($200 annually), business license ($50), and potential HOA approval fees ($100-500). Insurance costs approximately $2,500-4,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, water, internet, cable, and trash service average $300-450 monthly. First six months operating costs encompass utilities ($2,400), cleaning services ($3,600 assuming $150 per turnover), maintenance and repairs ($1,500), marketing and platform fees ($2,000), and miscellaneous supplies ($1,000), totaling approximately $10,500. The complete startup investment ranges from $680,000-690,000, with ongoing monthly operating expenses of approximately $1,750-2,000 excluding mortgage payments.

Airbnb properties on Tybee Island, Georgia demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for typical 2-3 bedroom beach homes, driven by the island's peak summer season (May-September) when nightly rates can reach $200-$400. Operating expenses typically consume 40-50% of gross revenue, including property management fees (20-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$300 monthly), insurance ($2,000-$3,500 annually), and maintenance reserves, resulting in net profit margins of 25-35% for well-managed properties. Success factors include proximity to the beach (properties within 2 blocks command 30-40% premium rates), professional photography, responsive guest communication, and strategic pricing during events like the Tybee Island Pirate Fest and summer holidays. Properties like oceanfront condos at The Breakers or beach houses near the pier consistently outperform inland properties, with some owners reporting ROI of 12-18% annually when factoring in appreciation, though newer investors since 2021 face higher acquisition costs and increased competition from the 800+ active Airbnb listings on the island.

Airbnb investments in Tybee Island, Georgia typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, depending on property location and proximity to the beach. Properties within walking distance of the beach command premium nightly rates of $200-400 during peak summer season (May-September) and $120-200 during off-season, with average occupancy rates of 65-75% annually. Initial investment for a typical 2-3 bedroom beach cottage ranges from $400,000-$700,000, with investors typically reaching profitability within 18-24 months after accounting for renovation costs, furnishing, and initial marketing expenses. The strongest performing properties are those within 0.5 miles of the beach or historic downtown area, generating gross rental income of $60,000-$90,000 annually, while factoring in expenses like property management (20-25%), maintenance, insurance, and local occupancy taxes leaves net returns in the 10-14% range for well-positioned properties purchased since 2020.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties including Airbnb investments in Tybee Island, Georgia. Local real estate agents serving the area include Tybee Island Realty, Oceanfront Cottage Realty, and agents from Keller Williams Coastal Area Partners who have experience with vacation rental properties. National services like AirDNA provide market analytics for Tybee Island's short-term rental performance, while Mashvisor offers investment property analysis tools for the Georgia coastal market. Local property management companies such as Tybee Vacation Rentals and Mermaid Cottages can provide insights into profitable rental properties, and regional firms like Savannah-based Celia Dunn Sotheby's International Realty have agents specializing in coastal investment properties. Additional national platforms include BiggerPockets for investor networking, Roofstock for turnkey rental properties, and local mortgage brokers like Coastal Empire Mortgage who understand the vacation rental financing landscape in the Tybee Island market.