Investment opportunity in Savannah is anchored by two distinct product clusters. First, the historic core (zip 31401) is the operational heart of the market, with 1,400 listings generating a median annual revenue of $47,146 at a $270 ADR and 50% occupancy. Home values here are higher ($553,788 median), but the location’s walkability and historic cachet drive year-round bookings and a stable 8.5% gross yield. For investors seeking a lower entry point with strong yield, zip 31404 stands out: 157 listings average $30,564 in annual revenue, but with a much lower median home value of $247,380, gross yields reach 12.4%. Both clusters are well served by local Chalet agent expertise for acquisition and management.
On the product side, bedroom count is a clear revenue lever. Three-bedroom properties (503 listings) average $43,500 in annual revenue at a $305 ADR, while four-bedrooms (180 listings) jump to $68,019 with a $503 ADR—both segments offering occupancy rates near the market median. Larger homes (5BR+, though thinner in supply) see six-figure average revenues, but require careful underwriting given their higher price points and thinner sample sizes. For most investors, the 2–4BR range balances acquisition cost, occupancy stability, and operational flexibility.
At scale, Savannah’s winners are professional operators who can capture drive-market demand—Atlanta, New York, Charlotte, and Jacksonville are the top origin markets, with international guests representing just 1.1% of stays. The average booking lead time is 51 days (median 32), and the average stay is 4.4 nights, favoring operators who optimize for medium-length visits and can flex minimum-night requirements. Top hosts like Lucky Savannah and Southern Belle have built defensible portfolios, but the market remains accessible: the top 5 hosts control just 23% of inventory. For underwriting, the Chalet ROI calculator is essential to model returns against Savannah’s evolving regulatory and tax environment.
Risks are concentrated around rising compliance costs and softening home values. Year-over-year, revenue per listing is up +12.0%, ADR has climbed +8.4%, and supply has grown +5.3%, while occupancy is flat (+0.1%). However, home values have declined -3.5% YoY, signaling potential entry opportunities but also warranting caution on asset appreciation. The seasonal trough in December (41% occupancy) requires cash flow planning. Regulatory risk is non-trivial: Savannah’s STRs are legal with a required city-issued certificate and business license, but density caps in historic districts and proactive enforcement—including software monitoring and a $5/night state fee—raise the bar for compliance. Review the latest Savannah STR regulations before acquisition.
