Introduction
Pensacola, FL is known for its white sandy beaches, warm weather, and diverse culture. It is located on the Gulf Coast of Florida, making it a popular destination for tourists from all over the world.
In recent years, the short-term (Airbnb) rental market in Pensacola has been booming, with investors and property owners taking advantage of the high demand for vacation rentals in the area.
In this blog post, we will take a closer look at the Airbnb rental market in Pensacola, including key statistics, trends, and regulations.
Market Overview
To understand the dynamics of the short-term rental market in Pensacola, let’s delve into some key statistics and figures.
Supply
AS of October 2024, the most popular homes are 3-bedroom homes, comprising 26.36% of inventory. This is followed by 2 and 4-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Pensacola experienced an depreciation of -0.04%. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Pensacola have depreciated by -0.04%. The median home value in Pensacola is $260,300 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Pensacola boasts a significant Airbnb rental market, with approximately 1,079 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $176. The Average Daily Rate is the highest for 5-bedroom homes $562, followed by 4-bedrooms and 3 bedrooms at $516 and $418 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 58.57% for Airbnb rentals in Pensacola. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Pensacola ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 12.46% in Pensacola. This figure suggests that short-term rentals in the city offer a favorable return on investment. Pensacola is ranked #36 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Pensacola earn an average of $21,912 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Top Places for Airbnb in Pensacola
Pensacola’s top submarkets for Airbnb investments include areas like ZIP code 32505, which has the highest gross yield at 14% and an annual revenue of $19,711. In contrast, ZIP code 32503 offers more extensive opportunities with 518 full-time listings, but a lower gross yield of 9%.
Home values also vary significantly, with properties ranging from $141.7K in 32505 to $330.3K in 32502, making each submarket unique in terms of investment potential and entry cost.
Hosts
The market is dominated by property management firms. The largest host is Southern Vacation with 4.47% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Pensacola is 0.71%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in Pensacola come from Florida and are within driving distance. 2.80% of all guests are from Pensacola followed by Atlanta with 2.10%.
Regulations
Pensacola’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
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Median Household Income
According to the United States Census Bureau, the median household income in Pensacola, FL is $52,394.
Climate
Pensacola has a humid subtropical climate, with hot and humid summers and mild winters. The average temperature in the summer months (June-August) is around 90°F, while the average temperature in the winter months (December-February) is around 60°F.
Population Size
According to the United States Census Bureau, the population of Pensacola, FL is 51,923.
Sports Teams
Pensacola is home to several minor league sports teams, including the Pensacola Blue Wahoos (baseball), the Pensacola Ice Flyers (ice hockey), and the Pensacola FC (soccer).
Colleges
Pensacola is home to several colleges and universities, including the University of West Florida, Pensacola State College, and Troy University.
Crime Rate
According to NeighborhoodScout, the overall crime rate in Pensacola is 44% higher than the national average. However, the crime rate has been decreasing in recent years, making Pensacola a relatively safe place to live and visit.
Visitors
Visitors to Pensacola come from all over the world, but the majority come from other parts of the United States. The top states of origin for visitors to Pensacola are Florida, Alabama, Georgia, Texas, and Louisiana.
Total Number of Visitors
According to Visit Pensacola, the tourism industry in Pensacola has been steadily growing in recent years, with over 3.5 million visitors in 2019. However, the COVID-19 pandemic had a significant impact on tourism in 2020, with a decrease in the number of visitors and revenue generated from tourism. As the pandemic situation improves, the tourism industry is expected to continue to grow in Pensacola.
Tourist Attractions
Pensacola is known for its beautiful beaches, historic sites, and cultural attractions. Some of the most popular tourist attractions in Pensacola include:
- Pensacola Beach: With its white sand and turquoise water, Pensacola Beach is a must-visit destination for tourists. Visitors can enjoy swimming, sunbathing, and a variety of water sports.
- Historic Pensacola Village: This collection of historic homes and buildings offers a glimpse into Pensacola’s rich history and cultural heritage.
- National Naval Aviation Museum: Located on the Naval Air Station Pensacola, this museum showcases the history of naval aviation and features over 150 restored aircraft.
- Gulf Islands National Seashore: This protected area includes over 13 miles of pristine beaches and dunes, as well as hiking trails and campgrounds.
- Pensacola Lighthouse and Museum: Visitors can climb to the top of this historic lighthouse for panoramic views of the Gulf Coast, and explore the museum exhibits on the history of the area.
Peak Season
The peak season in Pensacola typically runs from Memorial Day to Labor Day, with the summer months being the busiest time for tourism. However, with the mild weather in the fall and spring, visitors can enjoy the beaches and outdoor activities year-round. Additionally, the city hosts several events and festivals throughout the year, including the Pensacola Seafood Festival, the Pensacola Beach Air Show, and the Great Gulf Coast Arts Festival.
Conclusion
The short-term rental market in Pensacola, FL is a thriving industry, with high demand for vacation rentals and strong returns on investment for property owners. The growing supply of short-term rental properties in the area, coupled with lenient regulations and a strong real estate market, make Pensacola an attractive destination for investors and vacation rental property owners. With its beautiful beaches, rich history, and cultural attractions, Pensacola is also a popular destination for tourists from all over the world, and the tourism industry is expected to continue to grow in the coming years.
