Airbnb Atlanta, Georgia: Market Data, Laws & Investor Guide

Atlanta, Georgia is a prime location to launch a short-term rental business in 2024. As the capital of Georgia and a major hub for business, tourism, and entertainment in the Southeast, Atlanta offers a steady stream of potential guests year-round. The city's diverse attractions, thriving economy, and favorable regulatory environment make it an appealing choice for savvy Airbnb entrepreneurs.

Atlanta welcomed over 57 million visitors in 2019, generating $16 billion in visitor spending. Major attractions like the Georgia Aquarium, World of Coca-Cola, and Martin Luther King Jr. National Historic Site draw tourists from around the globe. With travel rebounding, Atlanta is poised for continued tourism growth in 2024 and beyond.

As home to 16 Fortune 500 headquarters and a key transportation hub, Atlanta hosts a high volume of business travelers. Events at the Georgia World Congress Center and Mercedes-Benz Stadium bring in additional corporate guests. This steady business travel demand can help keep your Airbnb calendar booked, especially during weekdays.

While some cities have cracked down on Airbnb, Atlanta maintains a welcoming stance. The city allows short-term rentals in residential areas as long as hosts obtain a business license and pay the 8% hotel occupancy tax. This regulatory clarity reduces risk for Airbnb operators compared to markets with uncertain or restrictive policies.

Atlanta Airbnb hosts earn an average of $2,695 per month, according to data from Earnest. With a median home price of $400,000 as of April 2024, Atlanta offers an attractive return on investment for short-term rental properties. Savvy hosts can boost earnings by catering to the preferences of business and leisure travelers.

In the following sections, we'll dive into the essential steps for starting your Atlanta Airbnb business, including choosing a profitable property, creating a standout listing, and optimizing your pricing and occupancy. Whether you're an Atlanta local or an out-of-state investor, this guide will help you navigate the path to Airbnb success in this dynamic Southern city.

Atlanta Short-Term Rental Market Analysis

According to data from AirDNA, the short-term rental market in Atlanta has shown strong performance in recent years:

• As of August 2024, the average daily rate for short-term rentals in Atlanta is $200.10, with an occupancy rate of 48% and annual revenue of $35,000 per rental.
• In 2023, the average daily rate was $192, indicating a 4.2% year-over-year increase in nightly rates.
• Occupancy rates have remained relatively stable, with a 54% occupancy rate reported for 2024.

Atlanta's tourism industry has experienced significant growth in the past two years:

1. In 2022, Georgia welcomed a record 167.7 million domestic and international visitors, who spent $39.8 billion. This surpassed the previous record set in 2019 by $2 billion.
2. Total economic impact for Georgia travel and tourism reached $73 billion in 2022, a 13% year-over-year increase.

Several annual events and festivals in Atlanta boost tourism throughout the year:

1. Martin Luther King, Jr. Day (January)
2. Atlanta Dogwood Festival (April)
3. SweetWater 420 Fest (April)
4. Atlanta Food and Wine Festival (May)
5. Atlanta Pride Festival (October)
6. Taste of Atlanta (October)

While exact data on booking durations is limited, Atlanta's short-term rental regulations define stays of less than 30 consecutive days as short-term, suggesting a mix of short stays and month-long bookings. The city's strong economic growth, driven in part by the film industry and corporate relocations, likely contributes to demand for medium-term rentals.

In summary, Atlanta's short-term rental market has demonstrated growth in both nightly rates and overall revenue, supported by record-breaking tourism numbers and a robust events calendar. The city's economic expansion also points to opportunities in the medium-term rental market.

Best Neighborhoods in Atlanta for an Airbnb Business

When searching for the ideal location to start an Airbnb in Atlanta, consider factors such as proximity to popular attractions, up-and-coming areas with growing demand, and established tourist hotspots. Analyzing key metrics like occupancy rates, daily rates, and seasonality can help you identify the most profitable neighborhoods. Here are the top five neighborhoods in Atlanta for starting an Airbnb business:

1. Midtown

Midtown is a vibrant, centrally-located neighborhood known for its arts, culture, and dining scene. Its proximity to attractions like the Fox Theatre, High Museum of Art, and Piedmont Park makes it a popular choice for tourists.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $152
3. Airbnb Seasonality: High season from March to July, with peak occupancy in April at 81%
4. Estimated Annual Revenue: $40,000

Housing Prices:

1. Median Property Price: $249,000
2. Best Performing Bedroom Count: 2 Bedrooms

2. Old Fourth Ward

The historic Old Fourth Ward neighborhood has undergone significant revitalization, attracting visitors with its unique blend of history, art, and cuisine. The neighborhood's main draw is the Beltline, a popular walking and biking trail lined with parks, restaurants, and shops.

1. Average Occupancy Rate: 74%
2. Average Daily Rate: $265.9
3. Airbnb Seasonality: High season from March to June, with peak occupancy in April at 83%
4. Estimated Annual Revenue: $71,800

Housing Prices:

1. Median Property Price: $485,000
2. Best Performing Bedroom Count: 2 Bedrooms

3. Inman Park

Inman Park, Atlanta's first planned suburb, is now a trendy neighborhood known for its Victorian homes, tree-lined streets, and thriving food scene. Its annual Inman Park Festival and proximity to the Beltline make it a popular destination for visitors.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $185
3. Airbnb Seasonality: High season from March to June, with peak occupancy in May at 78%
4. Estimated Annual Revenue: $45,900

Housing Prices:

1. Median Property Price: $325,000
2. Best Performing Bedroom Count: 1 Bedroom

4. Sweet Auburn

Sweet Auburn, a historically significant neighborhood, is home to the Martin Luther King Jr. National Historic Site and the iconic Sweet Auburn Curb Market. Its rich history and cultural attractions draw visitors from around the world.

• Average Occupancy Rate: 57%
• Average Daily Rate: $164.1
• Airbnb Seasonality: High season from March to July, with peak occupancy in June at 68%
• Estimated Annual Revenue: $34,150

Housing Prices:

• Median Property Price: $350,000
• Best Performing Bedroom Count: 2 Bedrooms

5. Cabbagetown

Cabbagetown, a former mill town, has transformed into a quirky, artistic neighborhood known for its colorful shotgun houses and vibrant street art. Its proximity to Oakland Cemetery and the Krog Street Tunnel makes it an attractive destination for tourists seeking a unique experience.

• Average Occupancy Rate: 62%
• Average Daily Rate: $230
• Airbnb Seasonality: High season from March to June, with peak occupancy in April at 72%
• Estimated Annual Revenue: $52,049

Housing Prices:

• Median Property Price: $655,000
• Best Performing Bedroom Count: 3 Bedrooms

When choosing a neighborhood for your Airbnb business in Atlanta, consider your target audience, budget, and the unique characteristics of each area. By analyzing the data and understanding the local market, you can make an informed decision and maximize your potential for success.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Atlanta

Setting competitive prices is crucial for maximizing your Airbnb revenue in Atlanta. Consider factors such as location, property type, amenities, and seasonality when determining your rates. Analyze the prices of similar listings in your area using tools like AirDNA and adjust your prices accordingly. Offering dynamic pricing, which automatically adjusts rates based on demand, can help you stay competitive and optimize your earnings.

To stand out in Atlanta's Airbnb market, incorporate these in-demand amenities found in the city's top-performing listings:

• High-speed Wi-Fi and dedicated workspaces for remote workers
• Smart home features like keyless entry, smart thermostats, and voice assistants
• Outdoor spaces such as balconies, patios, or rooftop decks
• Fully-equipped kitchens with modern appliances and cooking essentials
• Stylish and comfortable furnishings that reflect Atlanta's unique character
• Luxury touches like high-end linens, plush towels, and premium toiletries
• Pet-friendly accommodations to cater to the growing number of travelers with furry companions

In terms of property types, apartments and condos are the most popular choices for Airbnb rentals in Atlanta, followed by single-family homes and townhouses. Here's a breakdown of average property prices and potential STR revenue by bedroom count, based on recent data from Mashvisor:

Apartments/Condos:

• Studio: Median Property Price - $180,000 | Potential Annual Revenue - $28,000
• 1 Bedroom: Median Property Price - $230,000 | Potential Annual Revenue - $36,000
• 2 Bedrooms: Median Property Price - $320,000 | Potential Annual Revenue - $48,000

Single-Family Homes:

• 2 Bedrooms: Median Property Price - $380,000 | Potential Annual Revenue - $52,000
• 3 Bedrooms: Median Property Price - $450,000 | Potential Annual Revenue - $65,000
• 4+ Bedrooms: Median Property Price - $600,000 | Potential Annual Revenue - $80,000

Townhouses:

• 2 Bedrooms: Median Property Price - $350,000 | Potential Annual Revenue - $48,000
• 3 Bedrooms: Median Property Price - $420,000 | Potential Annual Revenue - $60,000

Trends show that properties with 2-3 bedrooms generate the highest occupancy rates and revenue in Atlanta, as they cater to a wide range of travelers, from couples and small families to groups of friends. Investing in these property types and incorporating sought-after amenities can help you maximize your Airbnb earnings in this thriving market.

Understanding Atlanta Short-Term Rental Regulations

Atlanta has implemented regulations for short-term rentals, such as those listed on Airbnb and Vrbo, through licensing requirements. All short-term rental hosts in Atlanta must obtain an annual rental license and be a resident of the city. Hosts are limited to owning two short-term rental properties, with one being their primary residence. The annual license fee is $150, and hosts must also pay an 8% rental tax for each property. The ordinance aims to curb noise and parties to maintain the peace in communities where short-term rentals are located.

To acquire a license, hosts must submit proof of property ownership, a government ID, and a notarized short-term rental Homeowner's Affidavit form. If applying on behalf of the primary owner, additional affidavits are required. The licensing process can take up to 10 business days. Hosts can apply through the city's Department of City Planning website, which also allows for submitting complaints and viewing the number of permitted rentals in each district.

Under the new regulations, short-term rental hosts in Atlanta must collect and remit the city's hotel-motel tax and state sales tax from guests. While Airbnb and Vrbo automatically collect state sales tax on behalf of hosts, they do not collect Atlanta's hotel-motel tax. Hosts are responsible for registering with the city, collecting the hotel-motel tax, and paying it monthly.

Read our full STR regulations guide for more detailed information on Atlanta short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as an Atlanta Airbnb Host

Becoming a successful Airbnb host in Atlanta requires a combination of strategic planning, local market knowledge, and exceptional hospitality skills. By understanding the preferences of Atlanta's diverse visitor population and tailoring your property to meet their needs, you can create a thriving short-term rental business. In this section, we'll explore the key factors that contribute to Airbnb success in Atlanta.

Popular Amenities and Design Themes in Atlanta

To attract guests and stand out in Atlanta's competitive Airbnb market, consider incorporating these popular amenities and design elements:

1. Outdoor spaces: Atlanta's mild climate makes outdoor living spaces like balconies, patios, and rooftop decks highly desirable among guests.
2. Local artwork: Showcase Atlanta's vibrant art scene by featuring works from local artists throughout your property.
3. Cozy and inviting decor: Create a warm and welcoming atmosphere with plush furnishings, soft lighting, and thoughtful touches like throw blankets and pillows.
4. High-end finishes: Upgrade your property with luxury finishes like quartz countertops, hardwood floors, and premium appliances to attract discerning guests.

Attracting Atlanta's Diverse Customer Base

To appeal to Atlanta's wide range of visitors, consider targeting specific guest segments with your marketing and amenities:

• Business travelers: Offer amenities like high-speed Wi-Fi, dedicated workspaces, and proximity to public transportation or major business districts.
• Families: Provide family-friendly amenities such as cribs, high chairs, and games, and highlight nearby attractions like the Georgia Aquarium and Zoo Atlanta.
• Couples: Create a romantic atmosphere with amenities like a private hot tub, cozy fireplace, or gourmet kitchen for intimate dining experiences.
• Event attendees: Target visitors attending major events like DragonCon, Music Midtown, or sporting events by offering flexible check-in times and transportation information.

Navigating Challenges and Ensuring Success

While Atlanta offers significant opportunities for Airbnb hosts, it's essential to be aware of potential challenges and follow best practices for success. Here are some insights from experienced Atlanta hosts:

• Noise and party control: "Be proactive in setting clear house rules and enforcing quiet hours to maintain good relationships with neighbors and avoid complaints." - John, Airbnb host in Midtown
• Parking limitations: "In some neighborhoods, parking can be a challenge. Be upfront about parking availability and provide alternatives like nearby garages or public transportation options." - Sarah, Airbnb host in Old Fourth Ward
• Regulatory compliance: "Stay informed about Atlanta's evolving short-term rental regulations and ensure you have all necessary licenses and permits to avoid fines or legal issues." - Michael, Airbnb host in Inman Park
• Maintenance and cleanliness: "Invest in regular maintenance and professional cleaning services to keep your property in top condition and maintain high guest ratings." - Emily, Airbnb host in Sweet Auburn

By focusing on these key areas and learning from the experiences of successful Atlanta hosts, you can position yourself for long-term success in this dynamic and rewarding market.

Using BNBCalc to Find Profitable Properties in Atlanta, Georgia

Investing in a short-term rental property can be a lucrative venture, but it requires careful research and analysis to ensure profitability. BNBCalc is a powerful tool that can help aspiring Airbnb business owners in Atlanta, Georgia, navigate the process of finding and evaluating potential properties. By following these steps, you can leverage BNBCalc to make informed decisions and maximize your chances of success.

1. Analyze Properties Using BNBCalc

Start by entering the address of a potential property into BNBCalc's search bar. The tool will provide a detailed analysis of the property's estimated revenue, occupancy rates, and expenses based on historical data and market trends. BNBCalc's interactive dashboard allows you to adjust variables like nightly rates, occupancy, and operating costs to create custom projections and compare different scenarios.

2. Benchmark Comparable Rentals

BNBCalc enables you to view other short-term rentals in the same area as your potential property. Analyze the amenities, pricing, and occupancy rates of these comparable listings to gain insights into the local market. Use this information to identify opportunities to differentiate your property and optimize your pricing strategy to maximize revenue.

3. Determine the Right Price and Property Size

Use BNBCalc's filters to narrow down your search based on the number of bedrooms, bathrooms, and purchase price. The tool's advanced algorithms will help you determine the optimal property size and price range for maximizing your return on investment. Consider factors like the average nightly rate, occupancy rate, and operating expenses in your target neighborhood to ensure your property aligns with market demand.

4. Make an Offer

Once you've identified a property that meets your investment criteria, use BNBCalc's financial projections to determine a fair purchase price. BNBCalc has partnered with STR lenders like Brian Bockholdt at Alliant Credit Union to provide investors with access to competitive financing options. Get prequalified for a loan and work with your real estate agent to submit a strong offer based on your desired returns.

5. Use Our Tax Calculator

BNBCalc's built-in tax calculator can help you estimate the potential tax deductions available through bonus depreciation. Enter your property's details, including the purchase price, closing costs, and renovation expenses, to calculate your projected tax savings. Understanding the tax benefits of owning a short-term rental can help you optimize your investment strategy and maximize your overall returns.

6. Come Up with a Buy Box

A buy box is a set of criteria that defines your ideal investment property. When creating your buy box, focus on the following qualities:

1. Location: Look for properties in high-demand neighborhoods with easy access to popular attractions, public transportation, and amenities.
2. Property Type: Consider the most popular property types in Atlanta, such as apartments, condos, and single-family homes, based on your budget and target guest demographics.
3. Occupancy Rate: Aim for properties with a projected occupancy rate of at least 65% to ensure a steady stream of bookings and revenue.
4. Cash Flow: Prioritize properties that generate positive cash flow after accounting for all expenses, including mortgage payments, property management fees, and maintenance costs.
5. Cap Rate: Look for properties with a cap rate of 6% or higher to ensure a strong return on investment relative to the local market.

By using BNBCalc to analyze properties, benchmark comparable rentals, determine the right price and size, and estimate tax savings, you can create a data-driven buy box that aligns with your investment goals. This strategic approach will help you find profitable short-term rental properties in Atlanta and build a successful Airbnb business.

Ready to start your Airbnb journey in Atlanta? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Atlanta Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.