Airbnb St. Louis, Missouri: Market Data, Laws & Investor Guide

St. Louis, Missouri is quickly emerging as one of the most attractive cities for starting a short-term rental business on Airbnb in 2024. This vibrant Midwestern metropolis offers a unique blend of history, culture, and modern amenities that make it an irresistible draw for travelers from around the world.

One of the key factors driving St. Louis' appeal is its booming tourism industry. In 2023, the city welcomed over 26 million visitors, generating $5.9 billion in direct visitor spending. With major attractions like the Gateway Arch, Forest Park, and the Anheuser-Busch Brewery, St. Louis has something to offer for every type of traveler.

But it's not just the city's popular landmarks that are fueling demand for short-term rentals. St. Louis is also home to a thriving food and beverage scene, with renowned restaurants like Pappy's Smokehouse and Sugarfire Smoke House drawing foodies from far and wide. The city's rich musical heritage, exemplified by the historic Soulard neighborhood and legendary blues clubs, adds another layer of appeal.

For Airbnb hosts, St. Louis presents a particularly lucrative opportunity. According to data from AirDNA, the average daily rate for a short-term rental in St. Louis was $161 in 2023, with an occupancy rate of 67%. This means that hosts can generate significant income while still maintaining competitive prices for guests.

Moreover, St. Louis' central location and well-connected transportation infrastructure make it an ideal base for exploring the wider region. The city is within easy driving distance of other popular destinations like Chicago, Nashville, and Kansas City, opening up even more possibilities for adventurous travelers.

As the travel industry continues to rebound, experts predict that demand for unique, personalized accommodations will only continue to grow. By starting an Airbnb business in St. Louis now, hosts can position themselves to capitalize on this trend and build a thriving enterprise in one of America's most dynamic cities.

St. Louis Short-Term Rental Market Analysis

St. Louis has seen steady growth in its short-term rental market over the past few years. Here are some key metrics and trends:

• The average occupancy rate for short-term rentals in St. Louis was 61% in 2024, up from 58% in 2023.
• The average daily rate for Airbnb listings in St. Louis was $106 in 2024, a modest increase from $102 in 2023.
• Seasonality plays a role in St. Louis' Airbnb market. The peak months are typically April through October, with lower occupancy in the winter months.
• In 2024, a typical Airbnb host in St. Louis earned $23,000 or more in annual revenue, indicating a healthy and profitable market.

St. Louis' tourism industry has experienced notable growth in recent years:

1. Visitor spending reached $5.9 billion in 2023, and experts predict this figure will surpass $6 billion in 2024.
2. The city welcomed over 26 million visitors in 2023, a significant increase from the 24.5 million visitors in 2022.

Several annual events and festivals in St. Louis drive demand for short-term rentals:

1. St. Louis Mardi Gras (February)
2. St. Louis Earth Day Festival (April)
3. Shakespeare Festival St. Louis (May-June)
4. St. Louis African Arts Festival (May)
5. St. Louis Brewers Heritage Festival (June)
6. Fair Saint Louis (July)
7. Festival of Nations (August)
8. St. Louis International Film Festival (November)

According to Airbnb host forums and rental data, the average booking duration in St. Louis ranges from 2-4 nights. The mid-term rental market (stays of 30+ days) is also significant, with over 50% of Airbnb listings in the city offering monthly discounts. This suggests a strong demand for extended stays and corporate housing.

In summary, St. Louis' short-term rental market is thriving, with increasing occupancy rates, stable daily rates, and a growing tourism industry. Annual events and festivals provide a steady stream of visitors, while the mid-term rental market offers additional opportunities for hosts.

Best Neighborhoods in St. Louis for an Airbnb Business

When selecting the ideal location for your Airbnb in St. Louis, consider factors such as proximity to popular attractions, tourist hotspots, and up-and-coming areas. Here are the top 5 neighborhoods to start an Airbnb business in St. Louis:

1. Downtown St. Louis

As the heart of the city, Downtown St. Louis offers easy access to numerous attractions, including the Gateway Arch, Busch Stadium, and the City Museum.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $135
3. Airbnb Seasonality: High season from April to October
4. Estimated Annual Revenue: $33,500

According to Zillow, the median home value in Downtown St. Louis is $225,000 for a single-family house and $180,000 for a condo. Two-bedroom properties provide the best return on investment in this area.

2. Soulard

Soulard is a historic neighborhood known for its vibrant nightlife, live music scene, and the famous Soulard Farmers Market.

1. Average Occupancy Rate: 66%
2. Average Daily Rate: $115
3. Airbnb Seasonality: High season from March to November
4. Estimated Annual Revenue: $27,700

The median home value in Soulard is $280,000 for a single-family house and $220,000 for a multi-family property. One and two-bedroom listings perform best in this neighborhood.

3. The Grove

The Grove is an up-and-coming neighborhood with a thriving arts scene, eclectic restaurants, and popular bars.

1. Average Occupancy Rate: 64%
2. Average Daily Rate: $100
3. Airbnb Seasonality: Consistent demand throughout the year
4. Estimated Annual Revenue: $23,500

Median home values in The Grove are $180,000 for a single-family house and $150,000 for a condo. Studio and one-bedroom properties offer the best ROI in this area.

4. Central West End

Central West End is an upscale neighborhood near Forest Park, with boutique shops, fine dining, and beautiful architecture.

1. Average Occupancy Rate: 70%
2. Average Daily Rate: $150
3. Airbnb Seasonality: High season from May to September
4. Estimated Annual Revenue: $38,300

The median home value in Central West End is $450,000 for a single-family house and $300,000 for a condo. Two and three-bedroom listings provide the best return on investment.

5. Benton Park

Benton Park is a charming neighborhood with a strong sense of community, featuring unique restaurants, coffee shops, and parks.

1. Average Occupancy Rate: 62%
2. Average Daily Rate: $90
3. Airbnb Seasonality: Steady demand year-round
4. Estimated Annual Revenue: $20,500

Median home values in Benton Park are $200,000 for a single-family house and $160,000 for a multi-family property. One and two-bedroom listings offer the best ROI in this neighborhood.

When choosing a neighborhood for your Airbnb business in St. Louis, consider your target audience, budget, and the unique features each area offers to maximize your return on investment.

Maximizing Your Revenue Through In-Demand Amenities and Properties in St. Louis

Setting competitive prices is crucial for maximizing your revenue as an Airbnb host in St. Louis. Consider factors such as location, property type, amenities, seasonality, and market demand when determining your rates. Regularly monitor your competitors' prices and adjust yours accordingly to remain competitive while still ensuring profitability.

Based on an analysis of the top-performing Airbnb listings in St. Louis, the following amenities and features are highly sought-after by guests and can help boost your revenue:

1. Self check-in: Offering a seamless, contactless check-in process with lockboxes or smart locks is a popular feature among guests.
2. Outdoor spaces: Properties with private backyards, patios, or balconies are in high demand, especially during warmer months.
3. Pet-friendly accommodations: Allowing pets can significantly increase your potential guest pool, as many travelers seek accommodations that welcome their furry companions.
4. Unique decor and local flair: Listings that showcase St. Louis' unique character and offer a memorable, authentic experience tend to perform well.

In terms of property types, the most popular options in St. Louis are:

Single-family homes: With an average property price of $180,000, single-family homes can generate an estimated annual revenue of $25,000-$35,000 as short-term rentals.

• 2-bedroom homes: Average price of $160,000, potential annual revenue of $20,000-$28,000
• 3-bedroom homes: Average price of $200,000, potential annual revenue of $30,000-$40,000

Apartments and condos: The average property price for apartments and condos in St. Louis is $150,000, with an estimated annual STR revenue of $18,000-$25,000.

• Studio apartments: Average price of $100,000, potential annual revenue of $12,000-$18,000
• 1-bedroom apartments: Average price of $130,000, potential annual revenue of $15,000-$22,000

Townhouses: With an average property price of $220,000, townhouses in St. Louis can generate an estimated annual STR revenue of $28,000-$38,000.

• 2-bedroom townhouses: Average price of $200,000, potential annual revenue of $25,000-$32,000
• 3-bedroom townhouses: Average price of $240,000, potential annual revenue of $30,000-$40,000

By investing in properties that align with guest preferences and incorporating in-demand amenities, hosts can maximize their revenue potential in the thriving St. Louis short-term rental market. Stay attuned to market trends and guest feedback to continually optimize your listings and maintain a competitive edge.

Understanding St. Louis Short-Term Rental Regulations

St. Louis, Missouri, passed its first short-term rental law in November 2023, which went into effect no later than November 6, 2024. The new regulations require operators to obtain a city-issued permit for each property they intend to use as a short-term rental, with a maximum of four permits per person. Permit applications come with a $150 fee, and permits are only issued to individuals, not LLCs.

Under the new law, properties that have received tax-increment financing for improvements are ineligible to operate as short-term rentals. The law also limits the percentage of units within a multi-unit building that can function as STRs. Owners in areas zoned for single-family residential use must go through public conditional use hearings to apply for a permit.

Short-term rental marketplaces, such as Airbnb and Vrbo, are prohibited from completing bookings for properties without permit numbers and must delist properties with revoked permits. Hosts are subject to state sales and lodging taxes, as well as the city's hotel-motel room tax, and are responsible for collecting and remitting these taxes.

The city has implemented various rules, including a minimum two-night stay requirement, limitations on the percentage of units in multi-unit buildings that can operate as STRs, and the designation of a 24/7 agent to address issues promptly. Penalties for violations include permit revocation for repeated infractions.

To start a short-term rental business in St. Louis, familiarize yourself with the city's regulations, obtain necessary permits, pay application fees, ensure tax compliance, and designate a responsive agent. For more information on St. Louis short-term rental regulations and zoning, contact the St. Louis City Building Division or the Office of the Mayor.

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

Keys to Success as a St. Louis Airbnb Host

Running a successful Airbnb business in St. Louis requires a combination of strategic planning, attention to detail, and a deep understanding of the local market. By focusing on providing an exceptional guest experience and staying attuned to the unique needs and preferences of travelers in the area, hosts can maximize their revenue potential and build a thriving short-term rental business.

Popular Amenities and Design Themes in St. Louis

When designing your Airbnb space in St. Louis, consider incorporating popular amenities and themes that resonate with guests. Some of the most sought-after features include:

• Locally-inspired decor that showcases St. Louis' rich history and culture
• Outdoor spaces such as patios, balconies, or gardens for guests to enjoy
• High-speed Wi-Fi and dedicated workspaces for remote workers and digital nomads
• Well-equipped kitchens with modern appliances and cooking essentials
• Comfortable bedding and high-quality linens for a restful stay

Attracting St. Louis Customers

To attract guests to your Airbnb in St. Louis, focus on highlighting the unique features and benefits of your property and its location. Some effective strategies include:

• Creating a compelling listing with high-quality photos and detailed descriptions
• Emphasizing your proximity to popular attractions, restaurants, and nightlife
• Offering competitive rates and flexible cancellation policies
• Providing personalized recommendations and insider tips for exploring the city
• Encouraging satisfied guests to leave positive reviews and referrals

Potential Challenges and Guidelines for Success

While operating an Airbnb in St. Louis can be rewarding, hosts should be aware of potential challenges and risks. According to experienced hosts on forums like BiggerPockets and Reddit, some key considerations include:

• Navigating the city's short-term rental regulations and obtaining necessary permits
• Managing noise levels and guest behavior to maintain good relationships with neighbors
• Ensuring prompt and effective communication with guests to address any issues or concerns
• Implementing robust cleaning and maintenance protocols to meet guest expectations
• Staying informed about market trends and adjusting pricing and marketing strategies accordingly

To run a successful Airbnb in St. Louis, hosts recommend the following guidelines:

• Be proactive in managing your listing and responding to guest inquiries
• Invest in high-quality amenities and furnishings to create a memorable guest experience
• Develop a reliable network of service providers, including cleaners and maintenance professionals
• Stay up-to-date with local regulations and industry best practices
• Continuously gather feedback from guests and make improvements based on their suggestions

By following these keys to success and adapting to the unique challenges of the St. Louis market, Airbnb hosts can build a profitable and rewarding short-term rental business in this vibrant Midwestern city.

Using BNBCalc to Find Profitable Properties in St. Louis, Missouri

Starting a short-term rental business in St. Louis can be a lucrative venture, but finding the right property is crucial for success. BNBCalc is a powerful tool that can help aspiring Airbnb hosts analyze potential investments, benchmark comparable rentals, and determine the optimal price and property size to maximize revenue.

Analyze Properties Using BNBCalc

To begin your search for a profitable Airbnb property in St. Louis, use BNBCalc's comprehensive analysis features. Simply enter the address of a potential property, and the tool will provide detailed insights into its estimated revenue, occupancy rates, and cash flow potential. BNBCalc uses real-time market data and advanced algorithms to generate accurate projections, helping you make informed investment decisions.

Benchmark Comparable Rentals

BNBCalc allows you to compare your potential property to other nearby rentals in the St. Louis area. By analyzing the performance of similar listings, you can gain valuable insights into pricing strategies, amenity offerings, and guest preferences. Use this information to optimize your own listing and ensure that you're fetching top dollar for your short-term rental.

Determine the Right Price and Property Size

Choosing the right property size and price point is essential for maximizing your revenue potential in St. Louis. BNBCalc can help you determine the optimal number of bedrooms, bathrooms, and purchase price for your Airbnb investment. The tool's advanced analytics take into account factors such as local market demand, seasonality, and competition to provide personalized recommendations tailored to your specific goals.

Make an Offer

Once you've identified a promising property using BNBCalc's analysis features, it's time to make an offer. To streamline the financing process, consider working with BNBCalc's partnered STR lender, Brian Bockholdt at Alliant Credit Union. With competitive rates and a deep understanding of the short-term rental industry, Alliant Credit Union can help you secure the funding you need to make your Airbnb dreams a reality.

Use Our Tax Calculator

Owning a short-term rental property comes with various tax implications and potential deductions. BNBCalc's built-in tax calculator can help you determine the tax benefits of your Airbnb investment, including bonus depreciation. By understanding the tax advantages available to you, you can optimize your financial strategy and maximize your overall returns.

Come Up With a Buy Box

When searching for the perfect Airbnb property in St. Louis, it's essential to have a clear set of criteria that define your ideal investment. Your buy box should include specific qualities such as:

• Location: Focus on neighborhoods with strong tourism demand, proximity to attractions, and good safety ratings.
• Property type: Consider the most popular property types in St. Louis, such as single-family homes, apartments, and townhouses.
• Price range: Set a budget based on your financial goals and the potential returns identified by BNBCalc.
• Amenities: Look for properties with in-demand amenities like outdoor spaces, modern appliances, and unique design features.
• Occupancy rates: Aim for properties with high occupancy rates and consistent demand throughout the year.

By using BNBCalc's powerful tools and following these key steps, aspiring Airbnb hosts can find profitable properties in St. Louis and build a thriving short-term rental business in this dynamic Midwestern city.

Ready to start your Airbnb journey in St. Louis? 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 St. Louis 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.