Introduction
Tallahassee, the vibrant capital city of Florida, boasts a unique blend of history, culture, and natural beauty. With its rich tapestry of attractions, this city attracts a steady stream of visitors year-round. For homeowners looking to capitalize on this tourism influx, the Airbnb and short-term rental market in Tallahassee offers a promising opportunity. In this blog post, we will delve into the key data points that characterize this market, while also addressing the important questions that potential investors or hosts might have.
Tallahassee Real Estate Market
Before we dive into the world of Airbnb and short-term rentals, let’s take a quick look at the real estate landscape in Tallahassee. According to Zillow, homes in Tallahassee have seen a modest appreciation of 6.00%. The median home value stands at $280,791, making it an attractive destination for potential real estate investors.
Airbnb and Short-term Rental Market Data
Now, let’s shift our focus to the thriving Airbnb and short-term rental market in Tallahassee, where homeowners are capitalizing on the city’s allure.
Inventory and Rates
- Tallahassee boasts a significant presence in the short-term rental market, with a total of 1,036 active listings, as reported by Chalet.
- The average daily rate for these short-term rentals is a noteworthy $207.60, making it a competitive market for hosts looking to maximize their earnings.
Occupancy and Revenue
- The occupancy rate for short-term rentals in Tallahassee stands at 46%, indicating a healthy demand for these accommodations.
- The annual revenue generated from short-term rentals in the city averages an impressive $28,000, showcasing the financial potential for homeowners in this market.
Returns and Taxes
- The average gross yield for short-term rental properties in Tallahassee is calculated at 9.97%, a favorable figure for investors looking for lucrative returns.
- Property taxes in Tallahassee are relatively low, with an average rate of 0.82%, making it an appealing destination for property owners.
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Demographic Insights
Understanding the local demographics and dynamics can be crucial for anyone considering entering the Airbnb or short-term rental market in Tallahassee.
- The median household income in Tallahassee, FL, plays a role in determining the affordability and demand for short-term accommodations. As of my last knowledge update in January 2022, the median household income was $44,038.
- Tallahassee enjoys a pleasant climate, characterized by hot summers and mild winters, which makes it an attractive year-round destination for travelers.
- The population size of Tallahassee, FL, was estimated to be around 194,500 residents in 2020, creating a built-in local market for short-term rentals.
Local Highlights
Tallahassee has more to offer than just its Airbnb and short-term rental market. It’s a city with a diverse array of attractions and features.
- Sports enthusiasts can cheer on the Florida State University Seminoles, a prominent collegiate athletics program based in Tallahassee.
- The city is home to several prestigious colleges and universities, including Florida State University and Florida A&M University.
- It’s worth noting that Tallahassee, like many urban areas, has had its share of crime issues, so potential hosts should consider local safety and security measures.
Tourist Insights
Understanding the source and volume of visitors to Tallahassee is key for those in the short-term rental business.
- Visitors come to Tallahassee from various regions, including other parts of Florida, neighboring states, and even international locations.
- The total number of visitors to Tallahassee can vary depending on the time of year and special events, but the city sees a steady influx of tourists throughout the year.
- Tallahassee’s biggest tourist attractions include the Florida State Capitol, Tallahassee Museum, and Alfred B. Maclay Gardens State Park, among others.
- The peak season in Tallahassee often coincides with special events, legislative sessions, and college activities, so short-term rental hosts should plan accordingly.
In Conclusion
The Airbnb and short-term rental market in Tallahassee, FL, presents a promising opportunity for investors and homeowners. With a competitive daily rate, healthy occupancy rates, and attractive returns, it’s an enticing market to explore. However, potential hosts should consider factors such as local demographics, safety, and the city’s tourism dynamics when making investment decisions. By staying informed and proactive, hosts can tap into the full potential of this thriving market in Florida’s capital city.
