Two years after COVID-19 disrupted tourism, more people are traveling again. Is 2022 a great time to invest in an Airbnb Miami property?
Florida has always been and will continue to be a desirable tourist destination this 2022. Florida attracts people year-round with its great weather, beaches, and attractions such as amusement parks.
Though Miami is extremely successful overall in its Airbnb market, not every neighborhood inside the city contributes to this success. There are many aspects to consider when determining how profitable each Miami neighborhood is.
Continue reading to learn about the best Miami Airbnb markets to invest in this year.
Miami Florida Real Estate Market 2022
Before we take a look at the different neighborhoods that make the Miami real estate market successful, let’s take a look at Mashvisor’s data for Airbnb Miami overall:
- Median Property Price: $870,742
- Average Price Per Square Foot: $587
- Airbnb Rental Income: $5,221
- Airbnb Cash on Cash Return: 3.46%
- Airbnb Daily Rate: $221
- Airbnb Occupancy Rate: 71%
People are drawn to Miami at all times of the year as the city sits right on the coast of the Atlantic Ocean. This means there are plenty of beach access points that make it easy for visitors to take advantage of the ocean. The year-round warm weather is what keeps Miami’s Airbnb occupancy rate high.
Though the median property price for Miami might seem out of your budget, don’t feel discouraged and take a look at the Miami neighborhoods to find a property that works for you. Always take into consideration the profit you could make on Miami investment properties as well. Though the upfront cost may cost a bit more, if the data shows room for growth, then you could end up with a large income profit in the end.
Related: Where Should You Invest in Airbnb Rentals in Florida?
What Are the Best Neighborhoods to Invest in Airbnb Miami?
Below, we will look into some of the top neighborhoods in the Miami housing market that you should consider investing in this 2022. We based the list on Mashvisor’s latest data and analytics and sorted it starting with the highest Airbnb cash on cash return.
- Median Property Price: $470,074
- Average Price Per Square Foot: $308
- Airbnb Rental Income: $4,034
- Airbnb Cash on Cash Return: 6.08%
- Airbnb Daily Rate: $155
- Airbnb Occupancy Rate: 55%
The first neighborhood we recommend taking a look at in the Florida housing market is Allapattah, FL. This neighborhood is located right inside the city of Miami and is only a short drive to the coast. This can be a perfect place for visitors who want to be right inside the city so they can experience all of the action.
As an investor, Allapattah can be an extremely profitable location. This neighborhood has an Airbnb cash on cash return of 6.08%. Additionally, Allapattah has a fairly high Airbnb rental income at $4,034 per month. Consider this neighborhood for your next Miami Airbnb property.
- Median Property Price: $529,158
- Average Price Per Square Foot: $284
- Airbnb Rental Income: $3,918
- Airbnb Cash on Cash Return: 4.06%
- Airbnb Daily Rate: $155
- Airbnb Occupancy Rate: 59%
The next neighborhood we recommend for Airbnb Miami is Flagami, FL. This is a tiny neighborhood located in the center of Miami. Though the neighborhood may seem small, there is plenty to do right within the area. A casino sits on the border of the community and there are plenty of restaurants to choose from when dining out. Miami’s most desired beaches are also a driveable distance from Flagami.
If you are looking for Florida investment properties, then definitely consider Flagami. This neighborhood has a high Airbnb occupancy rate of 59% and great cash on cash return at 4.06%. Flagami could be a great place for an investment property as travelers are always looking for an Airbnb in the center of Florida’s most active city.
- Median Property Price: $961,772
- Average Price Per Square Foot: $481
- Airbnb Rental Income: $4,887
- Airbnb Cash on Cash Return: 3.41%
- Airbnb Daily Rate: $141
- Airbnb Occupancy Rate: 69%
The next neighborhood you should consider investing in Miami Airbnb is Coral Way. This neighborhood runs right in the center of Miami and all the way to the coastline.
Coral Way could be a profitable place for Airbnb investing because it is right in the center of Miami. Tourists who stay here can be right in the middle of everything Miami has to offer. Coral Way has a high Airbnb occupancy rate of 69% as well as a high Airbnb rental income of $4,887. Additionally, this neighborhood has the third-highest cash on cash return in Miami at 3.41%.
- Median Property Price: $1,038,790
- Average Price Per Square Foot: $752
- Airbnb Rental Income: $6,434
- Airbnb Cash on Cash Return: 3.19%
- Airbnb Daily Rate: $288
- Airbnb Occupancy Rate: 67%
The last neighborhood you should consider investing in Airbnb Miami in is Brickell. This location attracts both tourists who are looking to visit the coast as well as business travelers visiting the neighborhood for work. Brickell sits right on the coast of Miami, so visitors are within walking distance from some of the most popular beaches. This Miami neighborhood is also home to the second-largest baking center in America. Business travelers will want to stay in this exciting city.
Investors should consider Brickell as its data holds potential for a successful rental property. The neighborhood has an Airbnb occupancy rate of 67%, which shows that people are staying in Airbnbs in this area. Additionally, the average Airbnb rental income is $6,434. All of this data points to the success of Airbnb in Miami.
Brickell has the fourth-highest cash on cash return for neighborhoods in Miami as well at 3.19%. This metric shows you will generate a profit on your investment.
All of the neighborhoods mentioned above are what make Miami Airbnb so successful.
Related: How to Find the Best Area for Airbnb Investment
What Licenses Do I Need for an Airbnb In Miami?
If you are interested in Miami as an Airbnb location, you need to look at the different licenses and registrations needed in order to run an Airbnb property. Both Florida state laws, as well as Miami-Dade county laws, can be applicable to your Airbnb.
Airbnb Rental Requirements Of Florida:
- Lodging Business License
One of the first things you will need to obtain to operate your Airbnb Miami is a lodging business license. No matter your county in Florida, all short-term rental properties will need this license. This is issued by the Florida DBPR (Department of Business and Professional Regulation). You will have to renew this annually.
Investors looking to have an Airbnb Miami will also need to register their property with the Florida Department of Revenue. This is for the purpose of reporting and remitting sales tax.
The state will also issue you a permit for your Airbnb property. There are two different kinds of permits that you can be given, and that solely depends on the style of Airbnb you have. The first permit, which is a rental dwelling license, is issued to more traditional-style Airbnb properties such as townhouses, single-family homes, duplexes, etc. If you have a condominium for an Airbnb, you will be issued a vacation rental condo license.
Requirements For Miami-Dade County:
If your Airbnb Miami is a condominium, you will need to provide a written authorization letter to the HOA. The letter essentially says you are planning on operating a short-term vacation rental in the county.
Any Airbnb in Miami will need a Certificate of Use from the Miami-Dade County. This can be obtained at the Permitting and Inspection Center. This will cost a total of $137—$37 for the certificate itself, $90 for an inspection, and a $10 surcharge.
- Warrant Permit and/or Exemption Permit
You must make sure your Airbnb falls within the proper transect zones of Miami. This will tell you if your Airbnb is in a permitted zone. You will then need to apply for a warrant permit to an exemption if your Airbnb does not fall within the proper zone.
If you are interested in operating an Airbnb in Miami, it is essential to obtain all of the required licenses. Without these documents, you will not be able to run an official Airbnb business.
Learn More: What You Need to Know About Airbnb Miami Regulations
How Do I Know My Property Will Be Successful?
Though Miami is overall a great location for a profitable investment, as an investor, it is important to get data specific to your property to determine if it will really make you money in real estate.
Mashvisor knows how difficult figuring out all of this data can be. It may take you hours and too many websites to try to collect all of this data yourself. Even if you succeed, keeping track of all of the spreadsheets with confusing data can be overwhelming. That’s why we have created different tools and services to help you through your difficult investment decisions.
The Investment Property Calculator
Even if you are confident your location is profitable, it is good to ensure your specific property will be as well. An apartment Airbnb could make thousands of dollars, but a single-family home could make you nothing. We know it may be hard to figure out how your property will perform, so we have created the Investment Property Calculator tool.
This tool allows you to enter your own data and specific property information to calculate estimates. Here, you can fine-tune real estate costs such as property tax, interest rate, and maintenance. All of this is useful when determining a budget.
Additionally, with our Airbnb Calculator tool, you can see a comprehensive rental strategy. This means our data will tell you how your property will perform as a traditional rental vs. as an Airbnb. This helps you make the best investment decisions that will make you money, whether you start an Airbnb business or a traditional lease.
The Property Finder
If you are considering the Flordia real estate market for an Airbnb Miami, you may need help finding a property to invest in. Mashvisor’s The Property Finder tool is a great way to find an Airbnb for sale throughout any neighborhood in Miami.
Other ways of finding available properties could mean searching through newspapers, reaching out to agents, or searching through every website you can find. To save you time, our Property Finder tool collects data from reliable sources such as Airbnb and the MLS to show you available properties in one location.
We also offer different filters to use so you are only looking at listings that fit your criteria. There is no need to spend hours searching through every property available in Miami. Below are some of the filters to use to specify your search:
- Property Type
- Location (you can search through multiple cities at once)
- Rental Strategy (Traditional vs Airbnb)
- Number of Bathrooms
- Number of Bedrooms
We want to make your investment property search as efficient as possible.
The Real Estate Heatmap
Even though we mentioned some of the most profitable neighborhoods in Miami, consider using our Real Estate Heatmap tool to explore all of the options. Our map can help you identify the most affordable listings in the area that will provide you with the highest Airbnb rental income.
Our heatmap tool conducts a neighborhood analysis that will show you the best areas in Miami to invest in for your Airbnb property. We provide key real estate metrics such as cash on cash return, cap rate, and rental income to determine how profitable an area can be.
Real Estate Agent Directory
If you have found your perfect property but don’t know how to put in an offer, we offer a great Real Estate Agent Directory tool. This lets you look through available real estate agents in any area of the U.S. You can view different information on each agent such as their real estate experience or the areas they serve to determine if they could work well with you to purchase your dream investment property.
Should You Invest in Miami?
This article has looked at some of the most profitable neighborhoods that make up the successful short-term rental market in Miami. Florida’s year-round warm weather attracts visitors from all over the nation. Meanwhile, Miami has plenty of attractions and beaches that tourists desire.
If you are looking for an investment property, all of the data points to Airbnb Miami as a profitable investment opportunity. Make sure to obtain all of the licenses needed in order to run a short-term vacation rental in Florida.
You can use Mashvisor’s tools to look for Airbnbs for sale in the area. Our tools will also provide you with accurate and reliable data that ensures your Airbnb business will be successful.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.