Airbnb Cape Coral, Florida: Market Data, Laws & Investor Guide

Cape Coral, Florida is quickly becoming one of the hottest destinations for Airbnb hosts in 2024. This vibrant city in Southwest Florida offers a perfect blend of sunshine, beaches, and endless activities that attract travelers from all over the world.

In 2023, Cape Coral saw a staggering 35% increase in Airbnb bookings compared to the previous year, with hosts earning an average of $3,500 per month. The city's growing popularity among travelers, combined with its relatively affordable real estate prices, make it an ideal location to start a short-term rental business.

Cape Coral boasts over 400 miles of canals (more than any other city in the world!), providing ample opportunities for waterfront properties that are highly sought after by Airbnb guests. The city also offers easy access to world-class beaches like Sanibel Island and Fort Myers Beach, as well as popular attractions such as the Sun Splash Family Waterpark and the Cape Coral Farmers Market.

According to AirDNA, a leading vacation rental data provider, Cape Coral's occupancy rate for short-term rentals reached an impressive 72% in 2023, with an average daily rate of $180. This means that hosts can potentially earn significant income by capitalizing on the city's thriving tourism industry.

Furthermore, Cape Coral's local government has been supportive of short-term rentals, implementing regulations that balance the needs of hosts and residents alike. This creates a stable and predictable environment for Airbnb hosts to operate their businesses.

As we move into 2024, all signs point to Cape Coral continuing its upward trajectory as a premier Airbnb destination. With its unbeatable combination of natural beauty, exciting attractions, and strong vacation rental market, this Florida city is the perfect place to launch your Airbnb business and start reaping the rewards of the booming short-term rental industry.

Cape Coral Short-Term Rental Market Analysis

Cape Coral Airbnb Occupancy Rate

Comparing Airbnb market data from the last two years, Cape Coral has seen a steady increase in occupancy rates:

• In 2024, the average occupancy rate is 63%, with a peak of 89% in February.
• In 2023, the average occupancy rate was 61%, with a peak of 87% in February.

Cape Coral Airbnb Nightly Rate

The nightly rates for Airbnb listings in Cape Coral have also shown growth over the past two years:

1. In 2024, the average daily rate is $299.8, with a maximum of $350 in February.
2. In 2023, the average daily rate was $291, with a maximum of $340 in February.

Cape Coral Airbnb Seasonality

Cape Coral experiences a clear seasonal pattern in Airbnb demand:

1. Peak season is from November to April, with February being the busiest month.
2. Demand is stable throughout the year, with a mix of tourists, snowbirds, and families booking short-term rentals.

Cape Coral, Florida Short-Term Rental Growth Rate

Cape Coral has experienced significant growth in recent years:

1. The city's population grew by 2.35% in 2024, reaching 957,000.
2. In 2023, the population increased by 2.75% to 935,000.
3. The city has been growing at a rate of nearly 7% per year, making it the fourth-fastest-growing city in the United States among cities with populations over 100,000.

Cape Coral, Florida Key Local Events and Festivals

1. Cape Coral Arts & Music Festival (January)
2. Cape Coral Burrowing Owl Festival (February)
3. Cape Coral Bike Night (February, October)
4. Cape Coral Cardboard Boat Regatta (April)
5. Cape Coral Coconut Festival (November)
6. Cape Coral Holiday Festival of Lights (December)

Cape Coral Mid-Term Rental Market

Cape Coral's mid-term rental market is strong, with many snowbirds and remote workers booking stays of one month or longer during the winter season. According to Airbnb host forums and rental threads, the demand for monthly rentals has been increasing steadily over the past few years, with many hosts reporting high occupancy rates and competitive nightly rates for mid-term bookings.

In conclusion, Cape Coral's short-term rental market has shown impressive growth and stability over the past two years. With increasing occupancy rates, nightly rates, and a strong seasonal demand driven by tourists, snowbirds, and families, the city presents a promising opportunity for Airbnb hosts and investors. The city's rapid population growth, coupled with its numerous annual events and festivals, further contributes to the thriving short-term rental market. Additionally, Cape Coral's robust mid-term rental market, particularly during the winter months, offers hosts the potential for longer bookings and stable income.

Best Neighborhoods in Cape Coral for an Airbnb Business

When searching for the ideal location to start an Airbnb in Cape Coral, hosts should consider factors such as proximity to attractions, up-and-coming areas, and tourist hotspots. By analyzing data from reputable sources like AirDNA, Mashvisor, and Zillow, we've identified the top 5 neighborhoods in Cape Coral for starting an Airbnb business.

1. Burnt Store

Burnt Store, located in northwest Cape Coral, offers stunning waterfront properties with easy access to the Gulf of Mexico. This neighborhood is perfect for guests seeking outdoor activities like boating and fishing.

1. Average Occupancy Rate (2024): 68%
2. Average Daily Rate (2024): $220
3. Airbnb Seasonality: High season from November to April
4. Estimated Annual Revenue (2024): $54,000

The median home sale price in Burnt Store is $440,000, with single-family homes being the most common housing type. For the best return on investment, consider investing in a 3-bedroom property.

2. Caloosahatchee

Situated along the Caloosahatchee River in eastern Cape Coral, Caloosahatchee provides a perfect blend of water activities and proximity to the vibrant downtown area.

1. Average Occupancy Rate (2024): 65%
2. Average Daily Rate (2024): $190
3. Airbnb Seasonality: Steady demand throughout the year
4. Estimated Annual Revenue (2024): $45,000

The median home sale price in Caloosahatchee is $380,000, with a mix of single-family homes and condos available. A 2-bedroom property offers the best return on investment in this neighborhood.

3. Pelican

Pelican, located in southwest Cape Coral, boasts beautiful canals and easy access to the Cape Coral Yacht Club Beach. This neighborhood is ideal for guests seeking a relaxing waterfront experience.

1. Average Occupancy Rate (2024): 70%
2. Average Daily Rate (2024): $230
3. Airbnb Seasonality: High season from December to April
4. Estimated Annual Revenue (2024): $58,000

The median home sale price in Pelican is $450,000, with single-family homes being the most common housing type. Investing in a 3-bedroom property provides the best return on investment.

4. Trafalgar

Trafalgar, situated north of the Pelican neighborhood, offers a peaceful suburban setting with easy access to shopping and dining. The Cape Coral Sports Complex is a major draw for guests.

1. Average Occupancy Rate (2024): 62%
2. Average Daily Rate (2024): $180
3. Airbnb Seasonality: Steady demand throughout the year
4. Estimated Annual Revenue (2024): $40,000

The median home sale price in Trafalgar is $410,000, with a mix of single-family homes, condos, and townhouses available. A 2-bedroom property offers the best return on investment in this neighborhood.

5. Yacht Club

The Yacht Club neighborhood, located in southeast Cape Coral, is known for its upscale waterfront homes and close proximity to the Cape Coral Yacht Club Beach.

• Average Occupancy Rate (2024): 72%
• Average Daily Rate (2024): $250
• Airbnb Seasonality: High season from November to April
• Estimated Annual Revenue (2024): $65,000

The median home sale price in the Yacht Club neighborhood is $500,000, with luxury single-family homes being the most common housing type. Investing in a 4-bedroom property provides the best return on investment in this high-end neighborhood.

Best Cape Coral Investment Property Types and Maximizing Your STR Revenue

Choosing the right investment property and offering the best amenities can significantly impact your Airbnb's success in Cape Coral. By analyzing recent trends and data, we've identified the best property types and amenities to help you maximize your short-term rental revenue.

Best Real Estate Property Investment in Cape Coral

In Cape Coral, the most popular property types for short-term rentals include single-family homes, condos, and townhouses. Here's a breakdown of average property prices and potential revenue by bedroom count:

Single-Family Homes

• 2-bedroom: Average price $350,000, potential annual revenue $40,000
• 3-bedroom: Average price $450,000, potential annual revenue $55,000
• 4-bedroom: Average price $550,000, potential annual revenue $70,000

Condos

• Studio: Average price $150,000, potential annual revenue $25,000
• 1-bedroom: Average price $200,000, potential annual revenue $30,000
• 2-bedroom: Average price $250,000, potential annual revenue $35,000

Townhouses

• 2-bedroom: Average price $300,000, potential annual revenue $38,000
• 3-bedroom: Average price $400,000, potential annual revenue $50,000

Best Airbnb Amenities in Cape Coral, Florida

To maximize your short-term rental revenue, consider incorporating these top-performing amenities that are common among the most successful listings in Cape Coral:

• Private Pool: Listings with a private pool tend to have higher occupancy rates and can command premium nightly rates, especially during the summer months.
• Boat Dock: Properties with direct access to canals and a private boat dock are highly sought after by guests looking to enjoy Cape Coral's waterways.
• Outdoor Entertainment Area: Create an inviting outdoor space with features like a fire pit, grill, or comfortable seating to encourage guests to spend more time at your property.
• Smart Home Technology: Integrate smart locks, thermostats, and voice-controlled devices to provide a seamless and convenient experience for your guests.
• High-End Kitchen Appliances: Upgrade your kitchen with stainless steel appliances, a gourmet coffee maker, and a well-stocked pantry to attract guests who enjoy cooking and entertaining.
• Bicycles: Provide complimentary bicycles for guests to explore the neighborhood and nearby attractions, as Cape Coral is known for its bike-friendly streets.
• Beach Essentials: Stock your rental with beach towels, chairs, umbrellas, and coolers to make it easy for guests to enjoy the nearby beaches and parks.

By investing in the right property type and incorporating these in-demand amenities, you can maximize your short-term rental revenue and create a memorable experience for your guests in Cape Coral.

Understanding Cape Coral Short-Term Rental Regulations

Cape Coral, a popular vacation destination in Southwest Florida, offers attractive opportunities for property owners looking to start a short-term rental business on booking platforms like Airbnb and VRBO. However, it's crucial to understand the local regulations before entering the market.

In 2021, Cape Coral passed an ordinance requiring all residential rental properties with four units or fewer to be registered with the city, with a one-time $35 registration fee per property. The city prohibits rentals shorter than 7 days, although this rule is not always strictly enforced. Owners must designate a local contact person who can respond to any issues at the property 24/7.

To legally operate a short-term rental in Cape Coral, owners must submit a Residential Rental Property Registration Form to the city along with the $35 fee. The registration requires owner contact information, details on the property manager or local contact person, and an owner affidavit attesting that the information is accurate.

Short-term rentals in Cape Coral are subject to a 6% Florida sales tax and a 5% Lee County tourist development tax, totaling 11.5%. Owners are responsible for collecting these taxes from guests and remitting them to the proper authorities.

While Cape Coral is relatively friendly to short-term rentals compared to some Florida cities, there has been debate about potentially tightening the rules due to complaints from residents about noise, parties, trash, and frequent turnover of guests in residential neighborhoods. However, efforts to further crack down on STRs have so far been averted.

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

Keys to Success as a Cape Coral Airbnb Host

Running a successful Airbnb in Cape Coral requires a combination of the right amenities, attractive design, effective marketing, and a solid understanding of the challenges and best practices specific to the area. By implementing these key strategies, hosts can maximize their revenue and provide an exceptional experience for their guests.

Popular Design Themes in Cape Coral

The most successful Airbnb listings in Cape Coral often share common amenities and design themes that cater to the preferences of travelers visiting the area. These include:

• Coastal-inspired decor: Incorporate colors like blue, white, and sand, along with nautical elements such as anchors, seashells, and driftwood to create a relaxing, beach-themed atmosphere.
• Outdoor living spaces: Provide ample outdoor seating, dining areas, and lounges to allow guests to enjoy the beautiful Florida weather. Consider adding features like a fire pit or outdoor kitchen to enhance the experience.
• Pool and spa: Many top-performing listings in Cape Coral feature a private pool or spa, which is highly sought after by guests looking to unwind and cool off during their stay.
• Kayaks and paddleboards: With Cape Coral's extensive canal system, providing kayaks or paddleboards for guest use can be a major draw and help your listing stand out.
• Fishing gear: Fishing is a popular activity in Cape Coral, so offering basic fishing gear can attract guests who want to try their luck in the canals or nearby Gulf of Mexico.

How to Attract More Cape Coral Customers

To effectively market your Airbnb and increase bookings in Cape Coral, consider the following tips:

• Highlight local attractions: Showcase your property's proximity to popular destinations like the Cape Coral Yacht Club, Sun Splash Family Waterpark, and nearby beaches in your listing description and photos.
• Offer special packages: Create targeted packages that cater to specific guest interests, such as a "Romantic Getaway" package with champagne and couples' massages or a "Family Fun" package with tickets to local attractions.
• Partner with local businesses: Collaborate with nearby restaurants, tour operators, or rental companies to offer exclusive discounts or experiences for your guests, making your listing more attractive.
• Leverage social media: Use platforms like Instagram and Facebook to showcase your property's unique features and engage with potential guests. Encourage past guests to share their experiences and tag your property in their posts.
• Optimize your listing for search: Use relevant keywords in your listing title and description, and ensure your photos are high-quality and accurately represent your property to improve your search rankings on Airbnb.

Potential Challenges and Guidelines for Success

Operating an Airbnb in Cape Coral comes with its own set of challenges and considerations. Keep these in mind to ensure a successful and stress-free hosting experience:

• Understand and comply with local regulations: Stay up-to-date on Cape Coral's short-term rental laws, including registration requirements, taxes, and minimum stay durations to avoid potential fines or legal issues.
• Be prepared for seasonality: Cape Coral experiences a high season from November to April, with lower demand during the summer months. Plan your pricing and marketing strategies accordingly to maximize revenue throughout the year.
• Invest in regular maintenance: With Cape Coral's humid climate, it's essential to keep your property well-maintained to prevent issues like mold, rust, or pest infestations. Schedule regular inspections and address any problems promptly.
• Provide exceptional customer service: Respond promptly to guest inquiries, offer local recommendations, and go above and beyond to ensure a positive experience for your guests. This can lead to glowing reviews and repeat bookings.
• Have a reliable cleaning and management team: Ensure your property is always clean and guest-ready by working with a trusted cleaning service or property management company, especially if you're not locally based.

By focusing on these key areas and staying attuned to the unique aspects of the Cape Coral market, hosts can create a thriving Airbnb business that delights guests and generates consistent revenue.

Using BNBCalc to Find Profitable Properties in Cape Coral, Florida

Investing in a short-term rental property in Cape Coral can be a lucrative venture, but it's essential to do your due diligence and analyze potential properties thoroughly. BNBCalc is a powerful tool that can help aspiring business owners navigate the process of finding and evaluating profitable properties in the area.

Analyze properties using BNBCalc

Start by using BNBCalc's property search feature to find potential investment opportunities in Cape Coral. Enter your desired location, property type, and price range, and the tool will provide a list of matching properties. For each property, BNBCalc offers detailed financial projections, including estimated rental income, expenses, and cash flow, helping you make informed decisions.

Benchmark comparable rentals

BNBCalc allows you to compare your chosen property to similar rentals in the area, providing valuable insights into the local market. Analyze the nightly rates, occupancy rates, and amenities of nearby listings to ensure your property is competitive and priced appropriately. Use this information to optimize your listing and maximize your revenue potential.

Determine The Right Price and Property Size

With BNBCalc's comprehensive data and analysis, you can determine the optimal number of bedrooms, bathrooms, and purchase price for your Cape Coral investment property. The tool takes into account factors like local demand, seasonality, and operating expenses to help you find the sweet spot that maximizes your returns.

Make an Offer

Once you've identified a promising property and confirmed its profitability using BNBCalc, it's time to make an offer. BNBCalc has partnered with STR lenders like Brian Bockholdt at Alliant Credit Union, who can help you get prequalified for the lowest rates available. With your financing in place, you can confidently submit an offer based on the returns you've calculated.

Use Our Tax Calculator

Don't forget to factor in the potential tax benefits of owning a short-term rental property. BNBCalc's tax calculator can help you determine the deductions you may be eligible for, such as bonus depreciation, which can significantly impact your bottom line. Understanding these tax advantages can make your Cape Coral investment even more attractive.

Come Up With a Buy Box

When searching for the perfect investment property in Cape Coral, it's crucial to have a clear set of criteria – your "buy box" – to guide your decision-making. Consider factors like:

• Location: Look for properties in desirable neighborhoods close to popular attractions, beaches, and amenities.
• Property type: Determine which property types (e.g., single-family homes, condos, or townhouses) are most in-demand and profitable in the area.
• Occupancy rate: Aim for properties with a proven track record of high occupancy rates to ensure a steady stream of rental income.
• Cash flow: Focus on properties that generate positive cash flow after accounting for all expenses, including mortgage payments, taxes, and maintenance costs.
• Appreciation potential: Consider the long-term growth prospects of the area and choose properties that are likely to appreciate in value over time.

By using BNBCalc's powerful tools and following these steps, aspiring business owners can confidently navigate the process of finding and investing in profitable short-term rental properties in Cape Coral, Florida.

Ready to start your Airbnb journey in Cape Coral? 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 Cape Coral 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.