Introduction
Key Largo, located in the beautiful Florida Keys, is a popular destination known for its stunning natural beauty, vibrant marine life, and wide range of outdoor activities. The region’s thriving short-term rental market has attracted numerous investors seeking to capitalize on the area’s tourist appeal and favorable investment conditions.
In this guide, we will explore the key factors that make Key Largo an attractive location for short-term (Airbnb) rentals, analyze the market data, and provide insights into the local economy and tourism industry.
Key Largo’s Real Estate Market
Key Largo’s real estate market has shown promising growth in recent years, making it an enticing prospect for investors. According to Zillow, homes in Key Largo appreciated by 4.60% in the past year, highlighting the potential for property value appreciation. The median home value in Key Largo stands at $1,076,362, showcasing the upscale nature of the local real estate market.
Short-Term Rental Market Overview
With 1,173 active short-term rentals, Key Largo offers a substantial inventory for visitors seeking alternative accommodation options. Chalet, a leading provider of vacation rental data and analytics, reports that the average daily rate for short-term rentals in Key Largo is $514.70. This indicates a lucrative income potential for property owners and investors.
Furthermore, the occupancy rate of short-term (Airbnb) rentals in Key Largo is 57%. This high occupancy rate suggests a consistent demand for vacation rentals in the area, ensuring a steady stream of rental income for property owners. The annual revenue generated by Airbnb rentals in Key Largo is estimated to be $90,800, providing an attractive return on investment.
Gross Yield
The average gross yield, an important indicator of investment profitability, stands at an impressive 8.44% in Key Largo. This figure demonstrates that short-term (Airbnb) rentals in the area can generate a healthy return on investment for property owners.
Investor-Friendly Regulations
Key Largo offers a somewhat investor-friendly environment for short-term rentals. While there are zoning regulations and limitations in place, the area’s current regulations generally support the operation of short-term (Airbnb) rentals. Additionally, there are new laws in the pipeline that may make it even easier for investors to own and operate short-term (Airbnb) rentals in Key Largo, further enhancing the investment potential of the market.
