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 codes and has adequate parking, with many successful properties located within walking distance of the beach or downtown area. Furnish the space with coastal-themed decor, essential amenities like linens, kitchen supplies, WiFi, and safety equipment including smoke detectors and fire extinguishers as required by local codes. Create listings on platforms like Airbnb and VRBO with high-quality photos showcasing the beach proximity, include detailed descriptions of local attractions like the Tybee Island Light Station and Fort Pulaski, and set competitive rates typically ranging $150-400 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or lockbox systems, and ensuring compliance with the city's noise ordinances and parking requirements while building relationships with local cleaning services and maintenance contractors familiar with Tybee Island's coastal environment and tourism patterns.

For identifying profitable short-term rental properties in 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 3-4 bedroom single-family homes or condos with outdoor spaces, parking, and beach access, as families and groups are the primary market driving $200-400+ nightly rates during peak summer season (May-September). Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that beachfront properties can achieve 70-80% occupancy rates with average daily rates of $250-350, while properties 2-3 blocks from beach typically see $150-250 rates with 60-70% occupancy. Research competition through Airbnb, VRBO, and local management companies like Tybee Vacation Rentals and Ocean Breeze Vacation Rentals to understand market saturation and identify gaps in amenities or pricing. Utilize STR-specific tools like Rabbu, PriceLabs, and local market reports from Tybee Island's tourism board, while considering seasonal fluctuations where winter months (November-February) see significant rate drops but still maintain steady bookings from visitors to nearby Savannah, making properties within 15 minutes of downtown Savannah particularly attractive for year-round profitability.

To obtain an Airbnb/STR permit in Tybee Island, Georgia, you must first apply through the City of Tybee Island's Planning and Zoning Department located at 403 Butler Avenue, as the city requires all short-term rentals to obtain a Short-Term Rental License. Required documents include a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local responsible party within 30 minutes of the property, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $200 annually, with additional inspection fees of around $100. The timeline typically takes 4-6 weeks for processing after submitting a complete application, including required inspections by the building and fire departments. Specific Tybee Island requirements include maximum occupancy limits based on bedrooms and square footage, mandatory registration with the Georgia Department of Revenue for hotel/motel tax collection, compliance with parking requirements (typically 1 space per bedroom), adherence to noise ordinances with quiet hours from 10 PM to 8 AM, proper waste management with designated pickup schedules, and maintaining a local contact person available 24/7 who can respond to the property within 30 minutes for any issues or complaints.

Short-term rentals (STRs) are legal in Tybee Island, Georgia, but operate under strict regulations implemented by the city. As of 2023, Tybee Island requires all STR operators to obtain a business license and comply with occupancy limits, parking requirements, and noise ordinances. The city has implemented a cap on the total number of STR permits available and requires properties to have designated local contacts for issues. STRs are prohibited in certain residential zoning districts, and the city has established specific operational standards including trash collection schedules, maximum occupancy based on bedrooms and septic capacity, and mandatory safety equipment. Recent changes around 2021-2022 included stricter enforcement mechanisms and increased penalties for violations, as the city has worked to balance tourism revenue with resident quality of life concerns. Properties must also comply with Georgia state tax requirements and local occupancy taxes, and the city conducts regular inspections to ensure compliance with health and safety standards.

The most lucrative Airbnb investment areas on Tybee Island include the North Beach district near the pier and pavilion, which attracts tourists seeking proximity to the main beach attractions, restaurants, and the historic Tybee Island Light Station. The Mid Beach area along Butler Avenue offers excellent rental potential due to its central location with easy beach access and walkability to shops and dining establishments. The South Beach/Back River area provides a quieter alternative that appeals to families and groups seeking more secluded accommodations while still maintaining beach access. The Fort Screven Historic District near the north end commands premium rates due to its unique historical significance, proximity to the lighthouse and museum, and distinctive architecture that attracts history enthusiasts and photographers. Properties near Jaycee Park and the fishing pier area perform well due to their appeal to fishing enthusiasts and families with children who enjoy the playground facilities. The areas closest to the main public beach accesses along 16th Street and Tybrisa Street are particularly attractive for short-term rentals as they minimize guests' walking distance to the beach, which is the primary draw for most Tybee Island visitors during the peak summer season from May through September.

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. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for most Georgia jurisdictions. Airbnb remits the collected state and local taxes directly to the Georgia Department of Revenue and Chatham County on behalf of hosts on a monthly basis. Property owners must still register with local authorities and may need to obtain a business license from Tybee Island, though the actual tax collection and remittance is handled by the platform. Stays of 30 days or longer are generally exempt from accommodations taxes but may still be subject to regular sales tax, and some exemptions may apply for certain government or military travelers with proper documentation.

Starting an Airbnb on Tybee Island, Georgia requires approximately $650,000-$750,000 in total initial investment. Property purchase costs range from $500,000-$600,000 for a median 2-3 bedroom beach house or condo suitable for short-term rentals. Furnishing costs typically run $25,000-$35,000 for complete setup including beds, linens, kitchen appliances, outdoor furniture, and beach amenities. Initial setup expenses include professional photography ($500), listing optimization ($1,000), and welcome amenities ($500). Permits and fees total approximately $2,500-$3,500, including business license ($100), short-term rental permit from Tybee Island ($500 annually), occupancy tax registration ($50), and potential HOA approval fees ($500-$2,000). Insurance costs $3,000-$5,000 annually for comprehensive short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits require $1,500-$2,500 for electricity, water, internet, cable, and trash services. First six months operating costs include utilities ($3,600), cleaning services ($4,800), property management if outsourced ($7,200), maintenance reserves ($3,000), marketing ($1,200), and occupancy taxes ($2,400), totaling approximately $22,200. Additional considerations include potential property management fees of 15-25% of gross revenue and seasonal fluctuations affecting cash flow during slower winter months.

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 houses, driven by the island's peak summer season (May-September) when nightly rates can reach $200-$400. Operating expenses typically include property management fees (20-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$300 monthly), insurance ($2,000-$3,500 annually), and maintenance ($3,000-$5,000 yearly), resulting in net profit margins of 25-40% for well-managed properties. Success factors include proximity to the beach (properties within 2 blocks command 30-50% premium rates), professional photography, responsive guest communication, and strategic pricing during events like the Tybee Island Pirate Fest and summer holidays. A case study of a 3-bedroom cottage near South Beach purchased for $450,000 in 2019 generated $52,000 in gross rental income in 2022 with $18,000 in operating expenses, yielding a 7.6% return on investment plus property appreciation of approximately 15% annually during 2020-2022, though recent market cooling has moderated both rental rates and property values since late 2022.

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 management efficiency. Properties within 2-3 blocks of the beach command premium rates of $200-350 per night during peak summer months (May-September), while off-beach properties average $150-250 nightly. Most investors achieve profitability within 18-24 months, with oceanfront properties reaching break-even faster at 12-18 months due to year-round demand and higher occupancy rates of 65-75%. The market benefits from Tybee's proximity to Savannah, consistent tourism traffic, and limited hotel inventory, with successful properties maintaining 60-70% annual occupancy rates and generating gross rental yields of 15-22% before expenses, making the timeframe to full investment recovery typically 5-7 years for well-positioned properties.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Tybee Island, Georgia. Local real estate agents who focus on investment properties in the Tybee Island area include Tybee Island Realty, Oceanfront Cottage Realty, and agents from Keller Williams Coastal Area Partners who specialize in vacation rental investments. National services that help investors find Airbnb properties include AirDNA for market analysis, Mashvisor for investment property analytics, BiggerPockets for networking and deal sourcing, and Roofstock which occasionally features short-term rental opportunities. Local property management companies like Tybee Vacation Rentals and Mermaid Cottages can provide insights into profitable areas and sometimes offer properties for sale. Additional national platforms include Awning for turnkey Airbnb investments, RedAwning for vacation rental property listings, and VRBO's investment property section. Local mortgage brokers and real estate investment groups in the Savannah-Tybee Island area, such as those affiliated with the Coastal Empire Real Estate Investors Association, can also provide valuable connections and opportunities for finding profitable Airbnb properties in this popular Georgia coastal destination.