Pompano Beach, FL is a beautiful coastal city located in Broward County, Florida. It is a popular tourist destination due to its sandy beaches, crystal-clear waters, and laid-back atmosphere. The city is also attracting real estate investors who are capitalizing on the short-term rental market in Pompano Beach, FL. In this article, we will discuss the various aspects of the short-term (Airbnb) rental market in Pompano Beach, FL, including the growth in supply, the performance of the rental market, and the regulatory environment.
Growth in the Supply of Airbnb Rentals
According to Chalet, there are 2,711 active short-term (Airbnb) rentals in Pompano Beach, FL. This growth can be attributed to the increasing popularity of Pompano Beach as a tourist destination and the lucrative investment opportunities that short-term rentals offer. Investors are attracted to Pompano Beach’s median home value, which according to Zillow, is $362,239. Additionally, the appreciation rate of homes in Pompano Beach, FL is 5.00%, which is a strong indicator of the potential for a profitable short-term rental market.
Performance of the Short-term (Airbnb) Rental Market
The performance of the short-term rental market in Pompano Beach, FL is impressive. According to Chalet, the average daily rate for short-term rentals in the city is $302.20. The occupancy rate is also healthy, standing at 57%. This has resulted in an average annual revenue of $48,800 for short-term (Airbnb) rentals in Pompano Beach, FL.
The gross yield for Airbnb rentals in Pompano Beach, FL is also high, standing at an average of 13.47%. This performance reflects the strong demand for short-term rentals in the city.
Property Taxes
Property taxes are a significant expense for short-term rental investors. In Pompano Beach, FL, the average property tax rate is 1.20%, according to SmartAsset. This rate is relatively low compared to other cities in the US, making Pompano Beach an attractive location for Airbnb rental investors.
Regulatory Environment for Airbnb Rentals
The regulatory environment for short-term rentals in Pompano Beach, FL is investor-friendly. The city has a vacation rental ordinance that regulates the operation of short-term rentals. The ordinance requires hosts to obtain a vacation rental license and comply with specific regulations, such as maintaining insurance and paying tourist development taxes. However, there are no restrictions on the number of days a property can be rented out, making Pompano Beach an attractive location for Airbnb rental investors.
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Population and Median Household Income
According to the US Census Bureau, the population of Pompano Beach, FL is 112,806. The median household income in the city is $56,109. The city has a diverse population, with a mix of locals and visitors from different parts of the world.
Climate
Pompano Beach, FL, enjoys a tropical climate with an average temperature of 75°F. The city experiences long, hot summers and mild winters. The average high temperature in the summer is 90°F, while the average low temperature in the winter is 59°F. Pompano Beach, FL, is known for its sunny and warm weather, making it an ideal destination for beach lovers.
Sports Teams and Colleges
Pompano Beach, FL, is home to several sports teams, including the Pompano Beach Piranhas, a professional swim team, and the Pompano Beach Baseball Club, a youth baseball league. The city also has two colleges, Florida College of Natural Health and Cross International Training Center.
Crime Rate
The crime rate in Pompano Beach, FL is higher than the national average. According to NeighborhoodScout, the city’s crime rate is 34 per 1,000 residents. However, the city has taken measures to improve its public safety, including investing in more police officers and installing surveillance cameras.
Tourism
Pompano Beach, FL is a popular tourist destination, attracting visitors from different parts of the world. The city is famous for its stunning beaches, clear water, and water activities, such as fishing, snorkeling, and scuba diving. Visitors can also enjoy a variety of cultural and recreational activities, including museums, parks, and live music.
Visitor Statistics
According to Visit Florida, the number of visitors to Pompano Beach, FL in 2019 was 1.12 million. The majority of visitors came from within the United States, with a significant number coming from Canada and Europe.
Tourist Attractions
Pompano Beach, FL has several attractions that draw visitors to the city. One of the most popular attractions is Pompano Beach Pier, where visitors can enjoy breathtaking ocean views, fishing, and shopping. Another attraction is the Pompano Beach Amphitheater, which hosts concerts, festivals, and other events throughout the year. The Butterfly World and the Pompano Beach Cultural Center are also popular tourist attractions.
Peak Season
The peak season in Pompano Beach, FL is from November to April, when the weather is mild and sunny. During this time, visitors can enjoy various outdoor activities, such as water sports and beach activities. The off-season is from May to October, the city’s rainy season, with frequent thunderstorms and high humidity.
Conclusion
Pompano Beach, FL, offers a lucrative investment opportunity for Airbnb rental investors. The supply growth, the impressive performance of the short-term rental market, and the investor-friendly regulatory environment are all factors that make Pompano Beach an attractive location for short-term rental investment. As the city continues to attract more tourists, we can expect the short-term rental market to continue to grow, providing investors with a profitable investment opportunity.
