One of Florida’s hottest real estate marketplaces is Jacksonville. But should real estate investors opt for investing in Airbnb Jacksonville FL?
Table of Contents
- Why Investing in Airbnb Jacksonville FL Is a Good Idea in 2022
- Airbnb Laws and Regulations in Jacksonville Florida
- The Top 5 Neighborhoods in Jacksonville for Airbnb
- Why Consider Investing in Airbnb Near Jacksonville FL Instead of in It?
Jacksonville, situated in the state’s northeastern corner, is frequently overlooked by other Florida’s more popular locations. Still, its diverse industry and location make it a favorite spot for investors.
Although record-low mortgage rates are encouraging homebuyers to enter the market, Jacksonville, Florida, is experiencing limited real estate inventory, increasing demand for new construction homes.
So, let’s see what the current real estate market has when it comes to houses for rent in Jacksonville FL and how investors can make the most of it.
Why Investing in Airbnb Jacksonville Is a Good Idea in 2022
Jacksonville is home to one of the best-performing economies in the country, and its low unemployment rate reflects the strength of the labor market.
Moreover, Florida was faster in reducing COVID-19 restrictions, allowing companies to resume full operations and the area’s major tourist attractions to restore to pre-pandemic levels, assisting in the economic recovery of towns across the state, including Jacksonville.
Here is the most recent data provided by Mashvisor as of June 2022 for the state of Florida:
- Median Property Price: $686,642
- Average Price per Square Foot: $430
- Days on Market: 72
- Monthly Airbnb Rental Income: $3,247
- Airbnb Cash on Cash Return:77%
- Airbnb Cap Rate:84%
- Airbnb Daily Rate: $222
- Airbnb Occupancy Rate: 53%
- Walk Score: 49
Moving on, let’s see if the investment in Airbnb in Jacksonville FL is a good idea considering the following factors and trends.
Jacksonville’s Real Estate Market Situation
The Jacksonville real estate market remains a silver lining as the economy continues to improve. According to the Jacksonville Business Journal 2021 report, Jacksonville is one of the top in-migration metro regions, with more individuals relocating to the city for a more modern lifestyle in a smaller, cheaper market rather than busy urban living in an expensive major metropolis.
According to NEFAR, in April 2022, average single-family house prices in Jacksonville were up by more than 23.4% from the previous year’s peak, with more than 41.5% of houses listed for purchase selling for more than the asking price. For those who can’t afford to buy one, a house for rent Jacksonville FL is the next viable alternative.
Moreover, the city’s real estate market and the rest of Northeast Florida are at an all-time high, with Rocket Mortgage naming Jacksonville as one of the top eight real estate areas in 2022. In Jacksonville, declining inventory paired with strong demand is anticipated to drive up house prices even more in 2022.
Appealing Rental Market
Jacksonville is considered one of the best spots to buy a rental property in 2022, partly in response to the city’s fast-rising population and above-average appreciation rate. In 2021, Jacksonville’s equity growth was 25.2%, nearly 31% more than the national average.
Over the past two years, the city’s witnessed exceptional growth in single-family (SFR) construction licenses. Single-family houses now account for about 60% of housing distribution in the Jacksonville region. In addition, suburban townhomes for rent Jacksonville FL are in high demand, as in many other cities around the country.
Job Market State
Jacksonville, Florida, is ranked by Forbes as the 22nd greatest place in the United States for businesses and employment and one of the top areas for career development.
The city’s pro-business and pro-development policies boost the economy and offer chances for the workforce and small business formation. The blooming business industry is another reason for investing in Jacksonville FL Airbnb this year.
According to a 2020 Jacksonville Business Journal report, Jacksonville, Florida, is one of the nation’s fastest-growing cities. The city was ranked 25th among the fastest-growing in the United States, adding about 60,000 citizens in the last five years.
As Florida’s housing market 2022 remains strong, many projects and investments are expected for Jacksonville. The various development initiatives in the city’s future will aid in that expansion. The projects include scheduled to bring housing properties, hotels, restaurants, and retail shops to the city’s downtown region
1. Development Projects
More than 10 projects are anticipated to happen during 2022, boosting the demand for Airbnb rentals Jacksonville FL. They are expected to strengthen the real estate investors’ thoughts about investing in an Airbnb in the city.
- Adventure Landing: Trevato paid $7.87 million for the 22 acres that feature a park. The plan is about a 427-unit market-rate apartment development. Moreover, the construction budget is projected to be around $80 million.
- Apartments: There were 28 multi-family homes under construction and 15 that finished in the first half of 2021. Another 8,574 additional units are anticipated to be built by 2023. In addition, monthly rentals are rising, while vacancy rates are falling. So, it is truly a landlord’s market.
- One Riverside: One Riverside will enable the city to expose McCoys Creek’s mouth and rehabilitate and repair the river tributary’s greenway. The 1 Riverside Ave construction will provide access to the anticipated 30-mile Emerald Trail and a unique 2.5-acre city park northeast of the stream.
- VA Clinic: North Florida/South Georgia Veterans Health System is currently working on a $64.2 million Department of Veterans Affairs outpatient facility and home care in North Jacksonville. The facility will provide MRI, CT scanning, and more. There will be programs for rehabilitation, homelessness, and PTSD. The project is expected to be completed in the summer of 2023.
2. Population Growth
Experts predict that the city will continue to develop during the next decade. Over the next 10 years, Jacksonville is forecast to gain more than 800,000 new citizens. As Jacksonville’s population expands, so does the city’s job market, making it an attractive location for real estate investors when it comes to investing in the best Airbnb Jacksonville FL.
Another interesting fact is that in 2021, lesser-known financial technology firm Project End Game proposed relocating its main offices to Jacksonville and requested $4.5 million in local and state incentives. If the firm expands into Jacksonville, it will create 673 full-time positions with an average annual compensation of $97,000 by the end of 2024.
Airbnb Laws and Regulations in Jacksonville Florida
Though there are no strict laws and regulations restricting the activity of homes for rent in Jacksonville FL, per se, the state of Florida recognizes you as the authorized agent – the one managing the short-term vacation rental. As such, you are responsible for ensuring that the property you handle in Jacksonville complies with all municipal and state laws and regulations governing short-term rentals.
A vacation rental is defined by Florida law as:
“Any unit or group of units in a condominium or cooperative or any individually or collectively owned single-family, two-family, or four-family house or dwelling unit that is also a transient public lodging establishment but that is not a timeshare project.”
When it comes to licensing and regulations, you can learn more about it on the Florida DBPR site.
How to Start an Airbnb Jacksonville FL Business
Follow the steps below to start an Airbnb business in Jacksonville, FL, successfully:
- Prepare your Airbnb venture
- Create a legal foundation for your Airbnb business
- Register your Airbnb for taxes and other charges
- Get the permits and licenses you need
- Acquire Airbnb business insurance
- Start searching for properties
Consider the two key factors below if you want to start an Airbnb business in Jacksonville:
In Jacksonville, Airbnb rentals are only authorized in general commercial and historic core zones.
Rentals of 30 days or more are allowed in other zones (residential, multi-family, and more). Moreover, bed and breakfast establishments can apply for a conditional use license if they are owner-occupied houses on the Jacksonville Contributing Historic Landmark listing, subject to approval by the city’s Planning Commission.
2. Searching for Properties
If you are searching for houses for rent Jacksonville FL or potential investments in Airbnb near Jacksonville, FL, but you are stuck with all the researching and real estate homework you need to get it done by the traditional method. Consider using an online real estate platform to shorten the entire process to 10-15 minutes.
There are various online resources available that might be of assistance with real estate investments and purchases. It may be smart to try or use an online real estate platform, such as Mashvisor.
The Top 5 Neighborhoods in Jacksonville for Airbnb
All of the newest data below is provided by Mashvisor, a real estate company specializing in property location and real estate market research. From the highest to the lowest, we focus on the neighborhoods with the highest cash on cash return. With that in mind, here are the best five neighborhoods for finding the potential Airbnb monthly rentals Jacksonville FL.
1. Mixon Town
- Median Property Price: $183,180
- Average Price per Square Foot: $133
- Days on Market: 97
- Monthly Airbnb Rental Income: $2,531
- Airbnb Cash on Cash Return:34%
- Airbnb Cap Rate: 71%
- Airbnb Daily Rate: $125
- Airbnb Occupancy Rate: 47%
- Walk Score: 21
2. 29th and Chase
- Median Property Price: $139,833
- Average Price per Square Foot: $123
- Days on Market: 51
- Monthly Airbnb Rental Income: $1,935
- Airbnb Cash on Cash Return:90%
- Airbnb Cap Rate: 36%
- Airbnb Daily Rate: $113
- Airbnb Occupancy Rate: 55%
- Walk Score: 48
3. New Town
- Median Property Price: $109,540
- Average Price per Square Foot: $127
- Days on Market: 65
- Monthly Airbnb Rental Income: $1,369
- Airbnb Cash on Cash Return:85%
- Airbnb Cap Rate: 64%
- Airbnb Daily Rate: $113
- Airbnb Occupancy Rate: 49%
- Walk Score: 56
4. East Jacksonville
- Median Property Price: $183,400
- Average Price per Square Foot: $160
- Days on Market: 46
- Monthly Airbnb Rental Income: $2,134
- Airbnb Cash on Cash Return:69%
- Airbnb Cap Rate: 00%
- Airbnb Daily Rate: $113
- Airbnb Occupancy Rate: 51%
- Walk Score: 23
- Median Property Price: $210,327
- Average Price per Square Foot: $195
- Days on Market: 46
- Monthly Airbnb Rental Income: $2,193
- Airbnb Cash on Cash Return:99%
- Airbnb Cap Rate: 24%
- Airbnb Daily Rate: $105
- Airbnb Occupancy Rate: 49%
- Walk Score: 38
Why Consider Investing in Airbnb Near Jacksonville FL?
There is one strong reason to do so, and that is the increase in home prices. The current market options in Jacksonville are expensive because the city did not develop enough houses in the previous years to keep up with population growth.
Another factor driving up demand is extremely low interest rates. Investors and homeowners alike are using the chance to lock in low-interest financing to acquire properties.
So, the combination of a lack of supply to satisfy the growing population and historically inexpensive interest rates are driving housing prices up and boosting home price appreciation.
Jacksonville, the biggest city in the Sunshine State and the entire continental United States, holds much promise for anyone prepared to invest their money in Airbnb Jacksonville FL.
Undoubtedly, it is one of the finest moments to invest in Jacksonville. With numerous tax breaks, investing in Jacksonville, FL, means being a part of the city’s rapid growth and, as a result, receiving attractive returns on investment. Overall, with its close beach and warm tropical environment, Jacksonville is an excellent spot to invest in and own real estate.
Now, if you are wondering where to search for the best investment properties, Mashvisor got you covered.
We recommend using our Property Finder tool to identify lucrative properties. The tool allows you to look through all existing listings in Jacksonville to discover the place that meets your demands.
In addition, consider using our Real Estate Heatmap tool to examine lucrative neighborhoods in Jacksonville. We give important real estate data about your preferred city here – the app makes it simple to identify profitable investment properties.
To begin your Airbnb investing journey now, sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.