Airbnb New Orleans, Louisiana: Market Data, Laws & Investor Guide

New Orleans, Louisiana is a top destination for starting a lucrative Airbnb business in 2024. The Big Easy's vibrant culture, world-famous festivals, and booming tourism industry make it an ideal location for short-term rentals. In 2019 alone, New Orleans welcomed 19.75 million visitors who spent $10.05 billion, demonstrating the massive potential for Airbnb hosts.

The city's relaxed short-term rental regulations and high demand for authentic, local accommodations further boost its appeal. As of June 2024, the average daily rate for an Airbnb in New Orleans is $224, with an impressive 74% occupancy rate. This allows hosts to potentially earn $60,508 in annual revenue, according to recent data.

Moreover, New Orleans offers a diverse range of profitable Airbnb niches, from historic homes in the French Quarter to trendy apartments in the Warehouse District. With the right strategy and location, Airbnb hosts can tap into various traveler segments, including leisure tourists, business travelers, and festival-goers attending events like Mardi Gras and Jazz Fest.

As the travel industry continues to rebound, experts predict that New Orleans will see a surge in visitors seeking unique, immersive experiences. Airbnb's focus on providing authentic, localized stays perfectly aligns with this trend, positioning the platform as a top choice for travelers.

In this guide, we'll dive into the essential steps for launching a successful Airbnb business in New Orleans, Louisiana. From crafting a solid business plan to optimizing your listing for maximum visibility, we've got you covered.

New Orleans Short-Term Rental Market Analysis

New Orleans has a thriving short-term rental market, with strong demand from tourists and a growing number of Airbnb listings. Here's a detailed analysis of the city's Airbnb performance:

New Orleans Airbnb Occupancy Rate, Nightly Rate, and Seasonality

• As of 2024, the average Airbnb occupancy rate in New Orleans is 74%, with a median daily rate of $224.
• In the past year, New Orleans saw a 3% increase in average monthly occupancy and a 5% increase in average daily rate.
• The city experiences seasonality, with peak demand during Mardi Gras (February/March), Jazz Fest (April/May), and the holiday season (December).

New Orleans, Louisiana Market Growth and Tourism Industry

1. New Orleans' Airbnb market has grown significantly in recent years. The number of active listings increased by 8% in the past year, reaching 10,145 as of August 2024.
2. The city's tourism industry is also expanding. In 2022, New Orleans welcomed 17.53 million visitors who spent $9.1 billion. This is approaching the pre-pandemic levels of 19.75 million visitors and $10 billion in spending seen in 2019.

New Orleans, Louisiana Key Events and Festivals

New Orleans hosts numerous festivals and events throughout the year that attract visitors and boost short-term rental demand:

1. Mardi Gras (February/March)
2. French Quarter Festival (April)
3. New Orleans Jazz & Heritage Festival (April/May)
4. Essence Festival (July)
5. Voodoo Music + Arts Experience (October)
6. New Year's Eve (December)

New Orleans, Louisiana Booking Durations and Mid-Term Rentals

1. The most common minimum stay for Airbnb listings in New Orleans is 2 nights (31.7% of listings), followed by 30+ nights (47.9% of listings).
2. The strong presence of 30+ night minimum stays suggests a healthy mid-term rental market in the city.
3. Airbnb's website features numerous furnished monthly rentals in New Orleans, further indicating demand for extended stays.

In conclusion, New Orleans' short-term rental market is growing and performing well, with high occupancy rates, increasing average daily rates, and a robust mid-term rental segment. The city's vibrant tourism industry and numerous festivals throughout the year contribute to the strong demand for Airbnb accommodations.

Best Neighborhoods in New Orleans for an Airbnb Business

When starting an Airbnb business in New Orleans, selecting the right neighborhood is crucial for success. Hosts should consider factors such as proximity to popular attractions, tourist hotspots, and up-and-coming areas with growing demand. Here are the top 5 neighborhoods in New Orleans for an Airbnb business, based on a combination of data-driven insights and local knowledge.

1. French Quarter

The French Quarter is the heart of New Orleans' tourism industry, attracting millions of visitors each year with its historic architecture, vibrant nightlife, and world-famous restaurants.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $220
3. Airbnb Seasonality: High demand year-round, with peaks during Mardi Gras and Jazz Fest
4. Estimated Annual Revenue: $57,800

Housing prices in the French Quarter are among the highest in the city, with a median home value of $631,000 for a single-family house. Condos and apartments are more affordable options, with a median price of $375,000. One-bedroom and studio units provide the best return on investment due to high demand from solo travelers and couples.

2. Marigny

Located just east of the French Quarter, Marigny is a trendy, bohemian neighborhood known for its colorful shotgun houses, live music venues, and thriving arts scene.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $180
3. Airbnb Seasonality: Consistent demand throughout the year, with slight increases during major events
4. Estimated Annual Revenue: $44,676

Marigny offers more affordable housing options compared to the French Quarter, with a median home value of $450,000 for a single-family house. Two-bedroom units are the most popular among Airbnb guests, providing a balance between space and affordability.

3. Garden District

The Garden District is a picturesque, upscale neighborhood known for its antebellum mansions, lush gardens, and proximity to popular attractions like the Lafayette Cemetery No. 1 and Magazine Street.

1. Average Occupancy Rate: 65%
2. Average Daily Rate: $200
3. Airbnb Seasonality: Higher demand during spring and fall, with a slight dip in summer
4. Estimated Annual Revenue: $47,450

Housing prices in the Garden District are relatively high, with a median home value of $875,000 for a single-family house. However, the neighborhood's charm and proximity to attractions make it a desirable location for Airbnb guests. Two-bedroom and three-bedroom units offer the best return on investment, catering to families and groups.

4. Bywater

Bywater is an up-and-coming neighborhood known for its eclectic mix of restaurants, bars, and art galleries. Its proximity to the French Quarter and lower housing prices make it an attractive option for Airbnb hosts.

1. Average Occupancy Rate: 62%
2. Average Daily Rate: $150
3. Airbnb Seasonality: Steady demand year-round, with slight increases during major events
4. Estimated Annual Revenue: $33,945

Bywater offers more affordable housing options, with a median home value of $350,000 for a single-family house. One-bedroom and two-bedroom units are the most popular among Airbnb guests, providing a balance between affordability and space.

5. Mid-City

Mid-City is a diverse, residential neighborhood known for its proximity to City Park, the New Orleans Museum of Art, and the Fairgrounds, home to the annual Jazz Fest.

1. Average Occupancy Rate: 60%
2. Average Daily Rate: $130
3. Airbnb Seasonality: Higher demand during Jazz Fest and other events at the Fairgrounds
4. Estimated Annual Revenue: $28,470

Mid-City offers the most affordable housing options among the top 5 neighborhoods, with a median home value of $325,000 for a single-family house. Two-bedroom and three-bedroom units provide the best return on investment, catering to families and groups attending events at the Fairgrounds.

By focusing on these top 5 neighborhoods and considering factors such as housing prices, bedroom count, and proximity to attractions, Airbnb hosts can maximize their chances of success in the competitive New Orleans market.

Maximizing Your Revenue Through In-Demand Amenities and Properties in New Orleans

To maximize your revenue as an Airbnb host in New Orleans, it's crucial to set competitive prices and offer in-demand amenities that appeal to guests. By analyzing the top-performing listings in the city, you can identify key features and strategies to implement in your own property.

Setting Competitive Prices

When determining your nightly rate, consider the following factors:

• Location: Properties in popular neighborhoods like the French Quarter, Garden District, and Marigny can command higher prices.
• Seasonality: Adjust your rates based on peak travel seasons, such as Mardi Gras, Jazz Fest, and summer months.
• Occupancy rates: Monitor your competition's occupancy and adjust your prices accordingly to maintain a high occupancy rate.
• Amenities: Listings with sought-after amenities can justify higher nightly rates.

In-Demand Amenities from New Orleans Airbnb Listings

Based on an analysis of top-performing Airbnb listings in New Orleans, the following amenities are highly desirable:

• Private outdoor space: Balconies, patios, or courtyards are a major draw for guests seeking a taste of New Orleans' outdoor lifestyle.
• Unique decor: Listings with authentic New Orleans-style decor, such as exposed brick, vintage furnishings, and local artwork, stand out to guests.
• Self check-in: Convenient check-in options, like lockboxes or smart locks, are increasingly popular among guests.
• Air conditioning: Given New Orleans' humid climate, air conditioning is a must-have amenity, especially during the summer months.
• Fully equipped kitchen: Listings with well-stocked kitchens, including appliances, cookware, and dining essentials, appeal to guests who want to prepare meals or entertain.

Popular Property Types For New Orleans Airbnbs

In New Orleans, the following property types are most popular among Airbnb guests:

Apartments

• 1 Bedroom: Median Property Price: $200,000 | Potential Annual Revenue: $32,000
• 2 Bedroom: Median Property Price: $300,000 | Potential Annual Revenue: $48,000

Condos

• 1 Bedroom: Median Property Price: $250,000 | Potential Annual Revenue: $36,000
• 2 Bedroom: Median Property Price: $350,000 | Potential Annual Revenue: $52,000

Townhouses

• 2 Bedroom: Median Property Price: $400,000 | Potential Annual Revenue: $56,000
• 3 Bedroom: Median Property Price: $500,000 | Potential Annual Revenue: $68,000

Single-Family Homes

• 2 Bedroom: Median Property Price: $350,000 | Potential Annual Revenue: $52,000
• 3 Bedroom: Median Property Price: $450,000 | Potential Annual Revenue: $64,000
• 4+ Bedroom: Median Property Price: $600,000 | Potential Annual Revenue: $80,000+

By offering competitive prices, in-demand amenities, and investing in popular property types, Airbnb hosts in New Orleans can maximize their revenue potential and attract a steady stream of guests year-round. Stay attuned to market trends and guest preferences to continually refine your listing and maintain a competitive edge in this dynamic market.

Understanding New Orleans Short-Term Rental Regulations

New Orleans has strict regulations for short-term rentals, which are enforced by the city council. As of March 2023, the city enacted a law that sharply limits short-term rentals, including a one-per-square-block limit on permits, a lottery system for awarding permits, and a ban on corporate ownership. These regulations apply to residential zones, while commercial areas have different rules.

To operate a short-term rental in New Orleans, hosts must obtain the necessary permits and licenses from the Short Term Rental Administration (STR Office) under the Department of Safety and Permits. As of August 31, 2023, all existing Residential Short-Term Rental (RSTR) and Interim (ISTR) permits will expire, and hosts must apply for a Non-Commercial Short-Term Rental (NSTR) license to operate legally in non-residential zones.

Hosts must also provide an affidavit from their landlord granting permission to operate a short-term rental if they are tenants. The city has zoning restrictions limiting the number of short-term rentals to three per square block.

Short-term rentals in New Orleans are subject to a 6.75% tax, effective September 1, 2020. Hosts must collect applicable taxes from guests and remit them to the proper authorities.

The STR Office enforces these regulations, targeting properties with noise or trash complaints first. Hosts must comply with local regulations and obtain necessary permits and licenses to ensure a fair and sustainable short-term rental market in the city.

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

Keys to Success as a New Orleans Airbnb Host

Running a successful Airbnb business in New Orleans requires a combination of strategic planning, attention to detail, and a deep understanding of the local market. By focusing on popular amenities, design themes, and effective marketing strategies, hosts can attract a steady stream of guests and maximize their revenue potential. However, it's equally important to be aware of the unique challenges and risks associated with operating a short-term rental in the Big Easy.

Popular Amenities and Design Themes in New Orleans

• Embrace the city's unique architectural styles, such as French Quarter cottages, shotgun houses, and Creole townhouses, by incorporating authentic design elements and decor.
• Provide outdoor spaces like balconies, courtyards, or patios, which are highly sought-after by guests looking to immerse themselves in New Orleans' vibrant atmosphere.
• Offer amenities that cater to the city's festive spirit, such as well-stocked bars, entertainment systems, and local artwork or music collections.

How to Attract New Orleans Customers

• Highlight your property's proximity to popular attractions, such as Bourbon Street, Frenchmen Street, or the Garden District, in your listing description and photos.
• Showcase your local expertise by providing personalized recommendations for restaurants, bars, music venues, and other hidden gems in your guidebook or welcome package.
• Leverage social media platforms like Instagram and Facebook to showcase your property's unique features and engage with potential guests.

Potential Challenges and Guidelines for New Orleans Airbnb Hosts

Navigating strict short-term rental regulations

• "Make sure you thoroughly understand and comply with all local regulations, permits, and licenses to avoid fines or legal issues." - Airbnb host in New Orleans (BiggerPockets forum)
• "Stay informed about any changes to the city's short-term rental laws, as they can impact your ability to operate legally." - Airbnb host in New Orleans (Reddit)

Managing noise and guest behavior

• "Set clear house rules and expectations regarding noise levels, occupancy limits, and parking to minimize disturbances to neighbors." - Airbnb host in New Orleans (Airbnb Community Center)
• "Install noise monitoring devices and enforce quiet hours to ensure your guests are respectful of the surrounding community." - Airbnb host in New Orleans (Facebook group)

Maintaining a high-quality listing

1. "Invest in professional photography and staging to showcase your property's best features and attract more bookings." - Airbnb host in New Orleans (Twitter)
2. "Regularly update your listing description, amenities, and photos to keep your property competitive and appealing to potential guests." - Airbnb host in New Orleans (Airbnb Community Center)

Ensuring guest satisfaction and positive reviews

1. "Provide exceptional customer service by being responsive, accommodating, and attentive to your guests' needs throughout their stay." - Airbnb host in New Orleans (BiggerPockets forum)
2. "Encourage satisfied guests to leave positive reviews by going above and beyond with personalized touches and thoughtful gestures." - Airbnb host in New Orleans (Reddit)

By addressing these challenges head-on and following the advice of experienced hosts, new Airbnb operators in New Orleans can set themselves up for long-term success in this dynamic and rewarding market.

Using BNBCalc to Find Profitable Properties in New Orleans, Louisiana

Investing in a short-term rental property in New Orleans can be a lucrative venture, but it's crucial to conduct thorough research and analysis before making a purchase. BNBCalc is a powerful tool that can help aspiring business owners identify profitable properties, benchmark comparable rentals, and determine the right price and property size to maximize their returns. By following these steps, you can use BNBCalc to make informed decisions and set yourself up for success in the New Orleans short-term rental market.

1. Analyze Properties Using BNBCalc

To get started, simply enter the address of a potential property into BNBCalc's search bar. The tool will provide you with a detailed analysis of the property's estimated revenue, occupancy rates, and expenses based on historical data and market trends. You can adjust various parameters, such as nightly rates, cleaning fees, and occupancy rates, to see how they impact your potential returns.

2. Benchmark Comparable Rentals

BNBCalc allows you to compare your property to other nearby rentals in the area. By analyzing the performance of similar listings, you can gain valuable insights into pricing strategies, amenities, and design elements that appeal to guests in New Orleans. Use this information to optimize your listing and ensure that you're fetching top dollar for your short-term rental.

3. Determine the Right Price and Property Size

With BNBCalc's advanced analytics, you can determine the optimal number of bedrooms, bathrooms, and purchase price to maximize your revenue potential. The tool takes into account factors such as local market demand, seasonality, and operating expenses to provide you with data-driven recommendations. By focusing on properties that align with these recommendations, you can increase your chances of success in the New Orleans market.

4. Make an Offer

Once you've identified a promising property, use BNBCalc's return projections to determine a fair purchase price. To streamline the buying process, consider getting prequalified with BNBCalc's partnered STR lender, such as Brian Bockholdt at Alliant Credit Union, who offers some of the lowest rates in the industry. With your financing in place, you can confidently make an offer on the property and take the first step towards becoming a successful short-term rental host in New Orleans.

5. Use Our Tax Calculator

BNBCalc's tax calculator is a valuable tool for understanding the potential tax deductions you can claim as a short-term rental owner. By taking advantage of bonus depreciation and other tax benefits, you can significantly reduce your tax liability and increase your overall returns. Be sure to consult with a qualified tax professional to ensure that you're maximizing your deductions and complying with all applicable tax laws.

6. Come Up With a Buy Box

When creating a buy box for your New Orleans short-term rental investment, focus on properties that offer:

1. Proximity to popular attractions, such as the French Quarter, Garden District, or Frenchmen Street
2. Unique architectural features or design elements that appeal to guests seeking an authentic New Orleans experience
3. Outdoor spaces like balconies, courtyards, or patios, which are highly sought-after amenities
4. A favorable price-to-revenue ratio, as determined by BNBCalc's analytics
5. Strong occupancy rates and consistent demand throughout the year

By incorporating these qualities into your buy box, you can narrow your search to properties that have the greatest potential for success in the competitive New Orleans market.

Ready to start your Airbnb journey in New Orleans? 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 New Orleans 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.