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Airbnb Orlando, Florida: Market Data, Laws & Investor Guide

Jeremy Werden

Written by:

Jeremy Werden

August 28, 2024

Orlando, Florida

⚡️
Reveal your property's rental profitability

Buy this property and list it on Airbnb.

Are you looking to start a profitable Airbnb business in a thriving market? Look no further than Orlando, Florida! This vibrant city is not only home to world-renowned theme parks and attractions but also boasts a booming short-term rental market that continues to grow year after year.

In 2022, Orlando welcomed a staggering 74 million visitors, nearly reaching its pre-pandemic levels and solidifying its position as America's most-visited destination. With its unique blend of exhilarating attractions, diverse annual events, and one-of-a-kind experiences, Orlando offers something for everyone, making it an ideal location for your Airbnb business.

The numbers speak for themselves. According to AirDNA, the average daily rate for an Orlando Airbnb is $206, with an impressive occupancy rate of 75%. This translates to an average monthly revenue of $4,700, showcasing the incredible earning potential in this market.

Orlando's strategic location is another key factor in its success as an Airbnb hotspot. Situated in the heart of Florida, Orlando provides easy access to the state's stunning beaches on both the Atlantic Coast and the Gulf of Mexico. This prime positioning attracts travelers looking for extended stays and road trips, increasing booking periods and overall profitability.

Moreover, Orlando offers a diverse range of accommodation options, from luxurious condos to spacious vacation homes, catering to various traveler demographics. This versatility allows you to target a wide audience and maximize your occupancy rates throughout the year.

As we move into 2024, the future looks brighter than ever for Orlando's short-term rental market. With a constant influx of tourists, steady annual growth, and unparalleled earning potential, now is the perfect time to invest in an Airbnb property in this dynamic city.

In the following sections, we'll dive deeper into the specifics of starting an Airbnb business in Orlando, including legal requirements, top neighborhoods, and proven strategies for success. Get ready to embark on an exciting journey in one of the world's most magical destinations!

Orlando Short-Term Rental Market Analysis

The Orlando short-term rental market has been thriving in recent years, driven by the city's unparalleled tourist attractions and steady population growth. This section delves into the key metrics and trends that shape Orlando's Airbnb landscape, providing valuable insights for investors and hosts alike.

Orlando Airbnb Occupancy Rate

  • In 2022, Orlando's average Airbnb occupancy rate was 70%, a significant increase from the 64% recorded in 2021.
  • As of March 2024, the occupancy rate has reached 73%, indicating a strong and growing demand for short-term rentals in the city.

Orlando Airbnb Nightly Rate

  1. The average daily rate (ADR) for Orlando Airbnbs in 2022 was $200, a notable rise from the $190 average in 2021.
  2. As of February 2024, the ADR has climbed to $233, with March 2024 seeing a peak of $234, showcasing the increasing value of Orlando's short-term rental market.

Orlando Airbnb Seasonality

Orlando's Airbnb market experiences seasonal fluctuations, with peak demand occurring during the spring and summer months. March, in particular, stands out as the best month for Airbnb hosting in Orlando, with the highest occupancy rates and revenue. The demand remains relatively stable throughout the year, driven by a mix of families, theme park enthusiasts, and business travelers attending conferences and conventions.

Orlando, Florida Short-Term Rental Growth Rate

  1. Orlando's population has been growing steadily, with a 5.59% increase since the 2020 census, reaching 325,044 in 2024.
  2. The city welcomed a staggering 74 million visitors in 2023, nearly reaching its pre-pandemic levels and solidifying its position as America's most-visited destination.

Orlando, Florida Key Local Events and Festivals

  1. EPCOT International Food and Wine Festival at EPCOT (October 1-2, 2024)
  2. Central Florida Fair and WJRR Present Rocktoberfest 2024 at Central Florida Fair (October 25-26, 2024)
  3. Rock The Universe at Universal Studios Florida (January 24-25, 2025)
  4. Welcome to Rockville 2025 at Daytona International Speedway (May 15-18, 2025)

Orlando Mid-Term Rental Market

Orlando's mid-term rental market, characterized by stays of one month or longer, is gaining traction. Many travelers, especially families, and remote workers, are opting for extended stays to fully immerse themselves in the city's attractions and amenities. According to discussions on Airbnb host forums, the demand for monthly rentals in Orlando has been on the rise, with many hosts reporting consistent bookings for stays ranging from one to three months.

In conclusion, Orlando's short-term rental market presents a promising opportunity for investors and hosts. With high occupancy rates, increasing nightly rates, and a thriving tourism industry, the city is poised for continued growth in the Airbnb sector. By understanding the market's seasonality, key local events, and the emerging trend of mid-term rentals, hosts can optimize their strategies to maximize returns in this dynamic and lucrative market.

Best Neighborhoods in Orlando for an Airbnb Business

When searching for the ideal location to start an Airbnb in Orlando, hosts should consider several factors, such as proximity to popular attractions, tourist hotspots, and up-and-coming areas. Analyzing key metrics like occupancy rates, average daily rates, seasonality, and estimated annual revenue can help identify the most profitable neighborhoods. Here are the top 5 neighborhoods in Orlando for starting an Airbnb business:

1. Colonialtown North

Colonialtown North is a trendy, centrally-located neighborhood known for its vibrant arts scene and proximity to downtown Orlando.

  1. Average Occupancy Rate: 57%
  2. Average Daily Rate: $138
  3. Airbnb Seasonality: High demand from March to July
  4. Estimated Annual Revenue: $28,710
  5. Median Property Price: $676,250
  6. Best Performing Bedroom Count: 2-3 bedrooms

2. Lake Weldona

Lake Weldona offers a peaceful, lakeside setting while still being close to major attractions like Universal Studios and the Orlando International Premium Outlets.

  1. Average Occupancy Rate: 62%
  2. Average Daily Rate: $127
  3. Airbnb Seasonality: Consistent demand throughout the year
  4. Estimated Annual Revenue: $27,200
  5. Median Property Price: $425,000
  6. Best Performing Bedroom Count: 1-2 bedrooms

3. Doctor Phillips

Doctor Phillips is a luxurious neighborhood known for its upscale dining, shopping, and proximity to popular theme parks like Disney World and Universal Studios.

  1. Average Occupancy Rate: 59%
  2. Average Daily Rate: $135
  3. Airbnb Seasonality: Peak demand from December to April
  4. Estimated Annual Revenue: $29,100
  5. Median Property Price: $798,700
  6. Best Performing Bedroom Count: 3-4 bedrooms

4. Colonialtown South

Colonialtown South is an up-and-coming neighborhood with a mix of residential and commercial areas, offering easy access to downtown Orlando and popular attractions.

  1. Average Occupancy Rate: 58%
  2. Average Daily Rate: $131
  3. Airbnb Seasonality: High demand during summer months
  4. Estimated Annual Revenue: $27,750
  5. Median Property Price: $550,000
  6. Best Performing Bedroom Count: 2-3 bedrooms

5. Lawsona-Fern Creek

Lawsona-Fern Creek is a historic neighborhood with charming bungalows and tree-lined streets, located just minutes from downtown Orlando and the Orlando Science Center.

  1. Average Occupancy Rate: 56%
  2. Average Daily Rate: $129
  3. Airbnb Seasonality: Steady demand year-round
  4. Estimated Annual Revenue: $26,500
  5. Median Property Price: $475,000
  6. Best Performing Bedroom Count: 1-2 bedrooms

When choosing a neighborhood for your Airbnb business in Orlando, consider your target audience, budget, and the type of experience you want to offer your guests. Each neighborhood has its unique charm and advantages, so it's essential to research and analyze the data to make an informed decision that aligns with your investment goals.

Best Orlando Investment Property Types and Maximizing Your STR Revenue

Choosing the right investment property and incorporating sought-after amenities can significantly impact your short-term rental revenue in Orlando. This section explores the best property types for STR investments and provides insights on how to maximize your earnings.

Best Real Estate Property Investment in Orlando

Single-Family Homes

  • Average Property Price (2023): $450,000
  • Potential STR Revenue (2-bedroom): $50,000 annually
  • Potential STR Revenue (3-bedroom): $65,000 annually
  • Potential STR Revenue (4-bedroom): $80,000 annually

Condominiums

  • Average Property Price (2023): $250,000
  • Potential STR Revenue (Studio): $30,000 annually
  • Potential STR Revenue (1-bedroom): $40,000 annually
  • Potential STR Revenue (2-bedroom): $55,000 annually

Townhouses

  • Average Property Price (2023): $350,000
  • Potential STR Revenue (2-bedroom): $45,000 annually
  • Potential STR Revenue (3-bedroom): $60,000 annually

Apartments

  • Average Property Price (2023): $200,000
  • Potential STR Revenue (Studio): $25,000 annually
  • Potential STR Revenue (1-bedroom): $35,000 annually
  • Potential STR Revenue (2-bedroom): $50,000 annually

Best Airbnb Amenities in Orlando, Florida

Private Pool: Orlando's warm climate makes a private pool a highly desirable amenity for guests looking to cool off and relax after a day at the theme parks.

  • Game Room: Listings with dedicated game rooms featuring arcade machines, pool tables, or gaming consoles appeal to families and groups looking for entertainment options within the rental.
  • Themed Decor: Incorporating decor that complements Orlando's theme parks, such as Disney or Universal Studios-inspired artwork and furnishings, can create a unique and immersive experience for guests.
  • Fully-Equipped Kitchen: Providing a well-stocked kitchen with modern appliances, cooking essentials, and ample dining space allows guests to prepare meals and save on dining out expenses.
  • Home Office Setup: With remote work becoming increasingly common, offering a dedicated workspace with a comfortable desk, ergonomic chair, and high-speed internet can attract business travelers and digital nomads.
  • Outdoor Entertainment Area: An inviting outdoor space with comfortable seating, a fire pit, or a BBQ grill can serve as an additional gathering area for guests to enjoy Orlando's pleasant evenings.
  • Proximity to Attractions: Listings located within a short drive or with easy access to popular theme parks, shopping centers, and dining districts tend to perform well due to their convenience.

By investing in the right property type and incorporating these in-demand amenities, hosts can maximize their short-term rental revenue in Orlando. Continuously monitoring market trends and guest preferences can help you stay ahead of the curve and maintain a competitive edge in this thriving market.

Understanding Orlando Short-Term Rental Regulations

Orlando, Florida, a popular tourist destination, has implemented strict regulations for short-term rentals like Airbnb and VRBO. Ever since July 1, 2021, new ordinances require all short-term rental businesses to register with the city and pay an annual fee of $275 for the first year and $125 for subsequent years. The regulations also limit hosts to accepting one booking at a time, with a maximum of two guests per bedroom and a total occupancy cap of four guests.

To legally operate a short-term rental in Orlando, hosts must apply for a permit from the city council, which involves submitting an application, paying the registration fee, and passing a code enforcement inspection. However, compliance has been low, with only 116 registered rentals as of March 2023, despite an estimated 8,000+ active listings.

Hosts must also collect and remit several taxes, including a 6% Florida Sales Tax, 0.5% Orange County Discretionary Sales Surtax, and 6% Orange County Tourist Development Tax, totaling 12.5% of the booking amount.

Additional rules include limiting rentals to one booking at a time, a maximum occupancy of two people per bedroom plus two additional guests (up to four total), and the rental space must be 50% or less of the property's total livable square footage. Owners or long-term tenants must occupy the property for at least 51% of the year.

Orlando strictly enforces these rules through a complaint-based system, with code officers investigating potential violations and issuing fines starting at $250 per day, up to $500 for repeat offenses.

Read our full STR regulations guide for more detailed information about Orlando's short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as an Orlando Airbnb Host

Becoming a successful Airbnb host in Orlando requires a combination of strategic design choices, effective marketing, and a thorough understanding of the unique challenges and opportunities within the city. By implementing the following tips and guidelines, hosts can maximize their revenue and provide an exceptional experience for their guests.

Popular Design Themes in Orlando

  • Disney-Inspired: Incorporate subtle Disney-themed elements, such as artwork, color schemes, and decor that evoke the magic of the parks without being overly kitschy.
  • Tropical Oasis: Embrace Orlando's lush landscapes and warm climate with a tropical-inspired design featuring natural materials, vibrant colors, and plenty of indoor-outdoor living spaces.
  • Modern Minimalism: Appeal to a wide range of guests with a sleek, modern design that prioritizes functionality, clean lines, and a neutral color palette.
  • Vintage Florida: Pay homage to Orlando's rich history with a vintage-inspired design that incorporates retro furnishings, local artwork, and nostalgic touches.
  • Luxury Retreat: Create a high-end experience with upscale finishes, premium amenities, and a focus on comfort and relaxation.

How to Attract More Orlando Customers

  • Highlight proximity to theme parks and attractions in your listing description and photos.
  • Offer special amenities tailored to theme park visitors, such as complimentary shuttle services, discount tickets, or insider tips.
  • Target family travelers by emphasizing child-friendly features and amenities, such as bunk beds, game rooms, or pool safety fences.
  • Leverage social media platforms to showcase your property and engage with potential guests, using hashtags related to Orlando tourism.
  • Encourage guest reviews and maintain a high rating by providing exceptional service and promptly addressing any concerns or issues.

Potential Challenges and Guidelines to Success for Orlando Airbnb Hosts

  • Seasonality: Orlando's tourism industry experiences seasonal fluctuations, with peak demand during summer and holiday periods. Hosts should adjust their pricing and marketing strategies accordingly to maintain consistent occupancy rates throughout the year.
  • Competition: With a high concentration of short-term rentals in Orlando, hosts must differentiate their properties through unique design, amenities, and personalized service to stand out from the crowd.
  • Regulations: Stay informed about Orlando's evolving short-term rental regulations and ensure compliance with all necessary permits, licenses, and safety requirements to avoid potential fines or legal issues.
  • Maintenance and Cleaning: Maintain a rigorous cleaning and maintenance schedule to ensure your property remains in top condition and meets guests' expectations for cleanliness and comfort.
  • Guest Communication: Provide prompt, clear, and friendly communication with guests throughout the booking process and their stay to foster positive relationships and encourage repeat business.

By implementing these design strategies, marketing tips, and guidelines for success, Orlando Airbnb hosts can navigate the challenges and opportunities within the city's thriving short-term rental market, ultimately maximizing their revenue and providing an unforgettable experience for their guests.

Using BNBCalc to Find Profitable Properties in Orlando, Florida

BNBCalc is a powerful tool that can help aspiring short-term rental business owners find and analyze profitable properties in Orlando, Florida. By leveraging the platform's features and following a strategic approach, investors can make informed decisions and maximize their returns in this thriving market.

1. Analyze properties using BNBCalc

To get started, input the property details, such as address, number of bedrooms, and bathrooms, into BNBCalc. The platform will generate a comprehensive report on the property's potential revenue, occupancy rates, and expenses, allowing you to quickly assess its viability as a short-term rental investment.

2. Benchmark comparable rentals

BNBCalc enables users to compare their property with other nearby rentals in the area. By analyzing the performance of similar listings, you can gain valuable insights into pricing strategies, amenities, and design choices that can help you maximize your rental income and stay competitive in the market.

3. Determine The Right Price and Property Size

Using BNBCalc's data-driven insights, you can determine the optimal number of bedrooms, bathrooms, and purchase price for your Orlando short-term rental. The platform's analysis takes into account factors such as local demand, seasonality, and market trends to help you make informed decisions that maximize your revenue potential.

4. Make an Offer

Once you've identified a promising property based on the returns projected by BNBCalc, it's time to make an offer. BNBCalc has partnered with STR lenders like Brian Bockholdt at Alliant Credit Union, who can help you get prequalified for the lowest rates, ensuring you secure the best possible financing for your investment.

5. Use Our Tax Calculator

BNBCalc's tax calculator is a valuable tool for determining potential tax deductions from bonus depreciation. By inputting your property details and financial information, you can estimate your tax savings and optimize your investment strategy accordingly.

6. Come Up With a Buy Box

When creating a buy box for your Orlando short-term rental investment, consider the following qualities:

  • Properties located in high-demand neighborhoods, such as those near theme parks, attractions, or downtown areas
  • Listings with a proven track record of strong occupancy rates and daily rates
  • Homes with unique selling points, such as private pools, themed decor, or spacious outdoor entertainment areas
  • Properties that require minimal renovations or upgrades to meet guest expectations
  • Investments that offer a healthy balance between purchase price, projected revenue, and ongoing expenses

By focusing on properties that meet these criteria, investors can create a buy box that helps them identify worthwhile investments and maximize their returns in the Orlando short-term rental market.

Ready to start your Airbnb journey in Orlando? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Orlando Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.

⚡️
Reveal your property's rental profitability

Buy this property and list it on Airbnb.