(Gross Yields from 20.93%, 55% Occupancy Rate)
This is the latest in our series of investor guides we release for free to our investors and everyone interested in Short-Term (Airbnb) Rentals.
For this analysis, we have used the trailing twelve months (July 1st, 2021 to June 30th, 2022). See our previous post for historical data.
See our post on regulation in these markets.
Active Rentals
There are 16120 active rentals in Broward County. Almost 69% of all listings are 1 and 2 bedrooms.
Larger homes catering to bigger parties and families are potentially undersupplied. There are only 1321 active 4 & 5-bedroom homes.
Average Daily Rate (Nightly Price)
The Average Daily Rate for rentals in Fort Lauderdale is $186 dollars.
Throughout the year, the rate fluctuates by $36 from that average with the highest Average Daily in April of 2022 ($211) and the lowest in September of 2021 ($150).
Occupancy Rate
Occupancy Rates in Broward County were high in the winter through this spring. The Occupancy Rate at an annual level is 66%.
The lowest occupancy rate was in September of 2021 (36%) and the highest was in March (95%).
The average occupancy rate is the highest for 2 and 3-bedroom homes, at 67%.
Get projections on revenue, average daily rate, cap rates, and a lot more.
High-Performance Properties
Chalet’s research shows that studios have the highest percentage of homes in high-yield territory* (55.32%) therefore could be a good strategy for this market.
Chalet considers properties with a gross yield greater than 15% as high-yield properties. Gross yield equals Gross Income/Purchase Price
Demand
The majority of the Broward County short-term rental guests are domestic guests from the United States, though March is when the presence of international guests is most noticeable.
International guests in March barely cross the 8% threshold of total guests. The majority of international guests visit from Canada, Argentina, Germany, Brazil, and Colombia.
The majority of Broward County guests come from U.S. cities located within driving distance. We expect drive-to locations/cities to continue to do well in the post-covid world.
Annual Revenue
The median revenue is the highest in March of 2022 at $5900 and the lowest in September 2021 at $1600.
Short-term rentals in Broward County generate a median revenue of $73,986 annually. The highest median revenue for rentals in Broward County is for 5 bedrooms at $331000.
Throughout the year, monthly revenue fluctuates the most for 5-bedroom homes and the least for 1-bedroom homes. More conservative investors should look into 1 bedroom investment properties as data shows they are the most stable and predictable.
Market Facts
Population: – City – 1,953,000 (2020)
- The largest city is Fort Lauderdale with a population of 189,000.
- The surge in demand for homes can be due to low-interest rates and residents turning to renting rather than buying after the economic crash in the 2000s. However, residents have begun to shift back to owning homes in recent years, as opposed to the rental trend since the crash. COVID and the “Work From Home” culture have brought an influx of buyers from the Northeast.
- The population is expected to grow at 3.3% from 2020 to 2045.
- Fort Lauderdale-Hollywood International Airport (FLL), is ranked 18th in the U.S. in total passenger traffic and 10th in international traffic. With more than 350 average daily flights, FLL offers non-stop service to more than 85 U.S. cities and global connectivity to more than 62 international destinations in 33 countries.
Cost of Living: Payscale ranks the cost of living in Fort Lauderdale to be 16% higher than the national average. Fort Lauderdale has 51% higher housing expenses than the national average.
Other Facts
The average property tax rate is 1.00% which is double the state average according to SmartAsset. That’s slightly lower than the 1.07% national average.
According to Zillow, homes in Broward County appreciated 28.8% year-over-year (YoY) and the median home price for active listings was $886,167 (as of September 2022).
Homes in Broward County average 42 days on the market according to data from Redfin.
The BLS reported that the unemployment rate in Fort Lauderdale fell to 2.8% in August of 2022, which is lower than the national average of 3.8%.
Short-Term Rental Regulation
Some areas of Broward County are very friendly to short-term rentals.
- Short-term rentals in Fort Lauderdale must be registered with the city’s program on an annual basis. The registration fee is $350 and is outlined below.
- In addition, renewals for owner-occupied vacation rentals are $80 or $160 for non-owner-occupied vacation rentals.
- A Vacation Rental must be registered annually on or before September 30th of each year.
See Chalet’s detailed analysis of short-term rental regulation in Greater Fort Lauderdale.
