Published December 10, 2025

Are Airbnbs & Short-Term Rentals Good Investments in Highlands County, FL?

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Written by Josephine Cruz

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🏡 Are Airbnbs & Short-Term Rentals Good Investments in Highlands County, FL?

With its scenic lakes, small-town charm, and growing tourism appeal, Highlands County, Florida—including Sebring, Lake Placid, and Avon Park—has become an increasingly popular area for Airbnb and short-term rental (STR) investors.
But is it actually a good investment? Let’s break down the factors that matter most: profitability, demand, regulations, taxes, and long-term outlook.

📈 Short-Term Rental Demand in Highlands County

Highlands County attracts a variety of visitors throughout the year, including:

  • Snowbirds escaping northern winters

  • Families visiting the lakes and state parks

  • Golf and motorsport enthusiasts (thanks to Sebring International Raceway)

  • Seasonal workers and traveling nurses
  • Fishing tournaments & weekend retreat travelers

This mix creates a steady year-round demand, not just a seasonal spike.

Average Occupancy Rates:

For well-located homes (near lakes or downtown), occupancy often sits around 55–75% depending on amenities and pricing.

Higher-Demand Areas:

  • Lake Jackson (Sebring)
  • Lake June-in-Winter (Lake Placid)

  • Downtown Sebring

  • Near Sebring Raceway

  • Lake Placid town center

💰 Is an Airbnb Profitable in Highlands County?

In most cases—yes, especially for lakefront or renovated homes.

Key factors that boost profitability:

  • Lakefront homes command premium nightly rates
  • Updated kitchens & baths improve bookings

  • Homes with docks, hot tubs, or outdoor spaces perform best

  • Pet-friendly listings see higher occupancy
  • Proximity to downtown or lakes increases value

Average nightly rates:

  • Standard 2–3 bedroom home: $120–$175/night
  • Renovated or lakefront home: $200–$350/night
  • Large lakefront homes (groups): $350–$500+/night


The right home can outperform long-term rentals, often generating higher monthly income even after expenses.

⚖️ Airbnb Pros & Cons in Highlands County

✅ Pros

  • Strong tourist and seasonal visitor base

  • Lower purchase prices than coastal Florida
  • High demand for lakefront stays

  • No countywide ban on STRs

  • Year-round events (races, festivals, fishing tournaments)

❌ Cons

  • Some HOAs restrict short-term rentals

  • Increased cleaning & maintenance costs

  • Slower appreciation than coastal markets

  • Requires more hands-on management

 

📜 Regulations & Rules to Know

While STR rules can change, here are the essentials:

1. Highlands County Regulations

Currently, Highlands County allows short-term rentals in most residential zones, but:

  • The property must comply with safety standards

  • No excessive occupancy

  • Guests must follow noise ordinances

2. City Rules (Sebring, Lake Placid, Avon Park)

Some cities may require:

  • Local business tax receipt

  • Fire or safety inspection

  • Registration for tourist development tax

3. HOA/Deed Restrictions

Many lake communities allow STRs, but some HOA neighborhoods prohibit them—always verify before purchasing.

💸 Taxes to Consider

Airbnb owners must account for:

  • Florida Sales Tax (state requirement)
  • Tourist Development Tax (county requirement)
  • Property taxes (STRs do not qualify for Homestead Exemption)

Platforms like Airbnb often collect the taxes automatically, but owners are responsible for compliance.

⭐ Best Areas in Highlands County for Airbnb Investment

  • Lake Jackson (Sebring) – most consistent demand

  • Lake June-in-Winter (Lake Placid) – top-tier nightly rates
  • Downtown Sebring – walkable, charming, near Raceway

  • Lake Placid – peaceful and popular for week-long stays

  • Near Sebring International Raceway – peak event bookings

 

🏁 So—Are Airbnbs Good Investments Here?

Yes—when purchased in the right area, at the right price, and with STR-friendly zoning.
Highlands County offers strong rental demand, affordable home prices, and growing tourism—making it appealing for both new and experienced investors.

If you're looking for a market with lower entry costs and strong cash-flow potential, Highlands County is a smart place to explore.

📲 Ready to Find an STR-Friendly Property?

I can help you identify:

  • STR-approved neighborhoods

  • High-performing lakefront homes

  • Best ROI opportunities

Message me for a list of Airbnb-friendly properties currently available in Sebring, Lake Placid, and Avon Park.

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Highlands County Updates, Common Buyer Questions, Common Seller Questions, First Time Home Buyers, Highlands County Real Estate News, Home Buying Tips, Home Seller tips, Home Selling Tips
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