How to Start an Airbnb Business in Louisiana

Why Louisiana Is a Top Market for Short-Term Rentals

Louisiana pulls over 87 million visitors per year, and a staggering portion of them funnel through New Orleans alone. That city drew 18.6 million tourists in 2023, generating $10.9 billion in visitor spending. Those numbers are not flukes. They are driven by a calendar packed with festivals, a food scene that people fly across the country for, and a cultural identity you cannot replicate anywhere else in the United States.

But here is what a lot of newcomers miss: Louisiana’s short-term rental opportunity extends well beyond Bourbon Street. Baton Rouge hosts LSU football weekends that sell out every hotel in a 30-mile radius. Lafayette anchors Cajun Country, where crawfish boils and zydeco festivals draw steady crowds from March through November. Lake Charles has been rebuilding after hurricane damage and is now seeing a tourism resurgence tied to its casino corridor and Creole heritage festivals.

The economic math favors hosts here. Louisiana has a lower cost of living than the national average, about 5% below, which means your property acquisition or lease costs stay manageable while your nightly rates can compete with markets twice as expensive to enter. A well-positioned two-bedroom in the Marigny or Bywater can gross $45,000 to $65,000 annually through rental arbitrage, and that is without owning the property.

Seasonality works differently here than in beach or ski markets. New Orleans stays busy nearly year-round: Mardi Gras (January through February), Jazz Fest (April through May), French Quarter Fest (April), Essence Fest (July), and football season (September through January) create overlapping demand cycles. Your vacancy gaps are measured in weeks, not months.

Louisiana also benefits from direct international flights into MSY (Louis Armstrong New Orleans International Airport), which expanded its terminal in 2019 with a $1.3 billion facility. That infrastructure investment brought more routes and more travelers, many of whom prefer Airbnb-style accommodations over traditional hotels.

Louisiana Short-Term Rental Laws and Regulations

Operating a short-term rental in Louisiana means navigating a patchwork of state requirements and city-specific rules. The good news: Louisiana has not enacted a statewide ban or overly restrictive framework. The challenge: each municipality sets its own permitting, zoning, and operational standards.

State-Level Requirements

Louisiana requires all short-term rental operators to register with the Louisiana Department of Revenue for sales tax collection. You will need a Louisiana Revenue Account Number, which you can obtain through the Louisiana Taxpayer Access Point (LaTAP) online portal. The state defines short-term rentals as accommodations rented for fewer than 30 consecutive days.

All STR operators must also comply with the Louisiana Uniform Construction Code for any renovations or conversions. If you are converting a residential property into a rental, verify that your modifications meet state building standards, especially for fire safety, egress, and occupancy limits.

Louisiana law (Act 441 of 2019) established that homeowners in residential zones generally have the right to rent their properties short-term, though municipalities retain the power to impose reasonable regulations. This means the state leans permissive, but your local city council has the final say on specifics.

New Orleans Regulations

New Orleans has the most detailed STR regulatory framework in the state. The city requires a Short-Term Rental Permit issued through the Department of Safety & Permits. There are several permit types:

• Residential Owner-Occupied: Available in most residential zones. The owner must live on-site and can rent up to 3 bedrooms. No minimum night stay.
• Residential Non-Owner-Occupied (Temporary): Allows whole-home rentals in certain residential zones. The city caps the number of these permits per neighborhood. Minimum stays and density caps apply.
• Commercial: Available in commercial and mixed-use zones with fewer restrictions on the number of units.

New Orleans banned STRs in the French Quarter’s residential sections (VCR-1 zoning) for years, but some commercial addresses within the Quarter remain eligible. The city also requires a $250 annual permit fee, a platform listing number displayed in every advertisement, and compliance with noise and trash ordinances. Violations can result in fines starting at $500 per day.

Baton Rouge Regulations

Baton Rouge requires STR operators to obtain a Short-Term Rental Permit from the city’s Department of Development. The permit costs $150 annually. Properties must pass a safety inspection, and operators need to provide emergency contact information to neighbors within 200 feet. Baton Rouge limits STR density in residential neighborhoods, with no more than one permitted STR per block face in most zones.

Lafayette Regulations

Lafayette has taken a relatively light-touch approach. Operators need a standard business license (Occupational License) from Lafayette Consolidated Government. There is no STR-specific permit yet, though the city council has discussed implementing one. You will still need to register for and collect state and parish taxes. Lafayette’s zoning code does not explicitly prohibit STRs in residential areas, making it one of the more accessible markets in Louisiana.

Recent Regulatory Changes (2025-2026)

In late 2025, New Orleans tightened enforcement on unpermitted STRs by increasing fines and deploying technology to detect unlicensed listings. The city now cross-references platform listings with its permit database automatically. Baton Rouge expanded its permit program to include East Baton Rouge Parish properties outside city limits. At the state level, legislators introduced a bill in the 2025 session to standardize STR data reporting across parishes. This has not passed yet but signals a trend toward more transparency requirements.

Tax Obligations for Louisiana Airbnb Hosts

Louisiana’s tax structure for STR operators involves multiple layers, and missing any of them can trigger penalties that eat into your margins fast.

State Sales Tax: Louisiana charges a 4.45% state sales tax on short-term rentals (accommodations under 30 days). This applies to the total rental charge including cleaning fees.

Parish and Local Taxes: Each parish adds its own occupancy or tourism tax on top of the state rate. In Orleans Parish, the combined additional local tax is approximately 6.75%, bringing the total tax burden to roughly 11.2%. In East Baton Rouge Parish, the local rate adds about 5%, totaling around 9.45%. These rates vary by parish, so verify yours through the Louisiana Department of Revenue or your parish assessor’s office.

Airbnb Tax Collection: Airbnb collects and remits the 4.45% state sales tax automatically for Louisiana hosts. However, most parish and local taxes are NOT collected by the platform. You are responsible for registering, collecting, and remitting those yourself through LaTAP. Some parishes have voluntary collection agreements with platforms, but do not assume yours does without checking.

Income Tax: Louisiana has a graduated state income tax: 1.85% on the first $12,500, 3.5% on income between $12,501 and $50,000, and 4.25% on income above $50,000. Your STR net income flows through to your personal or business return. Federal income tax obligations apply as with any business income.

Self-Employment Tax: If you are actively managing your STR (which most hosts are), the IRS may classify your income as subject to self-employment tax at 15.3%. Consult a CPA familiar with STR taxation to structure your entity correctly. Many Louisiana hosts use LLCs taxed as S-Corps once their net income crosses $40,000.

Best Cities for Airbnb in Louisiana

Louisiana’s STR landscape is not one-size-fits-all. Each market has distinct demand drivers, regulatory environments, and revenue potential. Here is where the numbers actually pencil out.

New Orleans

New Orleans remains the state’s highest-revenue STR market. Average daily rates (ADR) for a well-positioned two-bedroom range from $180 to $280 depending on neighborhood and season. Occupancy rates across the city average 68 to 74% annually, but properties near the French Quarter, Marigny, and Garden District consistently hit 78 to 85%.

The best-performing property types are shotgun doubles and Creole cottages that have been renovated with modern amenities while preserving architectural character. Guests pay premiums for properties that feel authentically New Orleans: exposed brick, original hardwood floors, courtyard access. A well-designed one-bedroom in the Bywater can generate $35,000 to $50,000 gross annually. A three-bedroom shotgun in Mid-City can push $70,000 to $90,000.

Competition is fierce, though. New Orleans has over 5,400 active listings. Standing out requires professional photography, detailed neighborhood guides, and a pricing strategy that adjusts for the 130+ annual festivals and events. During Mardi Gras, nightly rates can triple, but only if you have built a strong review profile during slower months.

Baton Rouge

Baton Rouge is driven by two massive demand engines: LSU and the petrochemical industry. Football weekends (7 home games per season) can generate $500 to $800 per night for properties within 3 miles of Tiger Stadium. Business travelers tied to ExxonMobil, Dow Chemical, and other Baton Rouge refineries create consistent midweek demand year-round.

ADR in Baton Rouge averages $120 to $165, with occupancy around 60 to 68%. That sounds lower than New Orleans, but the entry costs are dramatically different. A three-bedroom lease near LSU might run $1,400 per month compared to $2,800+ for a comparable New Orleans location. The math often pencils better here on a net basis.

Target neighborhoods: Southdowns (walkable to LSU), Mid City (renovated historic homes), and the Perkins Road corridor. Properties with outdoor entertaining space like fire pits and large porches outperform in this market.

Lafayette

Lafayette is the hub of Cajun Country and draws visitors for Festival International de Louisiane (April), Festivals Acadiens et Creoles (October), and a year-round food tourism circuit. ADR runs $100 to $145, with occupancy averaging 55 to 65%.

The opportunity in Lafayette is less about volume and more about margin. Lease costs are among the lowest in the state. A furnished two-bedroom in the Oil Center or downtown area runs $900 to $1,200 per month. With lighter regulation and lower competition (under 400 active listings), it is an excellent market for operators building their first or second property through Airbnb without owning property.

Lake Charles

Lake Charles is a comeback story. After Hurricanes Laura (2020) and Delta (2020) devastated the city, reconstruction has driven a wave of construction worker housing demand alongside its traditional casino tourism base. L’Auberge Casino Resort and Golden Nugget draw visitors year-round, and the city’s Mardi Gras celebration is the second-largest in Louisiana.

ADR averages $95 to $130, with occupancy around 58 to 66%. The real play in Lake Charles is serving the construction and industrial workforce with longer stays (7 to 14 nights) at slightly lower nightly rates but with near-100% occupancy. Properties that offer washer/dryer, full kitchen, and workspace amenities command premiums in this segment.

How Much Do Airbnbs Make in Louisiana?

Revenue in Louisiana varies dramatically by market, property type, and operator skill. A cookie-cutter approach will not cut it here. The difference between a $25,000 year and a $90,000 year often comes down to market selection, pricing strategy, and guest experience design.

Across the state, the median STR generates roughly $28,000 to $35,000 in gross annual revenue. That number skews heavily by location. New Orleans properties in the top quartile gross over $65,000, while rural parish listings might struggle to clear $15,000. The operators pulling top-quartile numbers share common traits: professional photos, dynamic pricing tools (PriceLabs or Beyond Pricing), 4.8+ star ratings, and rapid response times under 30 minutes.

Revenue also depends on your operating model. If you own the property outright, your margins are wider but your capital commitment is significant. Rental arbitrage (leasing a property and subletting it as an STR) reduces capital requirements but narrows your margin. A typical arbitrage deal in New Orleans might look like this: $2,200 per month lease, $3,800 to $5,200 per month in gross STR revenue, yielding $1,000 to $2,400 in monthly net income after expenses.

Seasonality matters for cash flow planning. January (post-Mardi Gras prep), August (heat and humidity), and early December tend to be softer. Smart operators use these periods for maintenance, listing optimization, and rate adjustments rather than panicking about lower occupancy.

One often-overlooked revenue lever: mid-term rentals during shoulder seasons. Offering 30+ day stays at reduced nightly rates during slower months keeps cash flowing and avoids the STR tax obligations that apply to stays under 30 days. Travel nurses, remote workers, and film industry crews (Louisiana’s film tax credits keep productions coming) all seek furnished monthly rentals in the $1,800 to $3,500 range.

How to Start Your Louisiana Airbnb Business

Getting your Louisiana STR from concept to cash flow requires a specific sequence of steps. Skip any of them and you will waste time or money, possibly both.

1. Select your market and model. Decide whether you are buying, leasing (arbitrage), or co-hosting for other owners. Each model has different capital requirements and risk profiles. For your first property, I would lean toward arbitrage in Baton Rouge or Lafayette because of lower entry cost, manageable regulation, and enough demand to learn the ropes.
2. Form your business entity. Register an LLC through the Louisiana Secretary of State ($100 filing fee, plus $35 annual report). File for an EIN with the IRS. Open a dedicated business bank account. This separation protects your personal assets and simplifies tax filing.
3. Secure your property. For arbitrage, find landlords open to subletting. Present a professional pitch: your business plan, insurance documentation, maintenance commitments, and a lease premium (offering 5 to 10% above asking rent helps). For purchases, target properties with STR-friendly zoning and strong comparable revenue data.
4. Obtain permits and licenses. Register with the Louisiana Department of Revenue for your Revenue Account Number. Apply for your city’s STR permit (New Orleans requires this before listing). Get your Occupational License from the parish. Check HOA restrictions if applicable.
5. Set up tax collection. Register on LaTAP for state sales tax. Contact your parish tax authority for local occupancy tax registration. Set up quarterly filing reminders because missing a deadline triggers automatic penalties.
6. Furnish and photograph. Budget $3,000 to $7,000 for furnishing a two-bedroom (furniture, linens, kitchen essentials, decor). Louisiana-specific touches perform well: local art, a cookbook featuring Louisiana recipes, a curated restaurant guide. Hire a professional photographer ($200 to $400) after staging. This single investment typically pays for itself within the first month through higher booking rates.
7. List and launch. Create listings on Airbnb, VRBO, and Booking.com. Set competitive introductory pricing (15 to 20% below market rate for the first 3 to 5 bookings to build reviews). Write a description that highlights neighborhood-specific attractions, not generic city amenities. Enable Instant Book on Airbnb to boost search ranking.
8. Automate operations. Install a smart lock (August or Schlage Encode), set up automated messaging through Hospitable or iGMS, and create a digital guidebook. Hire a cleaning crew and establish a turnover checklist. Your goal is a system that runs without you being physically present for every check-in.

Louisiana STR Insurance and Liability

Standard homeowner’s insurance or renter’s insurance almost never covers short-term rental activity. If a guest slips on your stairs and your policy excludes commercial use, you are personally liable for medical bills, legal fees, and damages. I have seen hosts learn this lesson the hard way.

Louisiana hosts need dedicated STR insurance or a commercial hospitality policy. Proper Insurance, CBIZ, and Safely are three providers that specialize in short-term rental coverage. A typical policy for a two-bedroom STR in Louisiana runs $1,200 to $2,400 annually and covers:

• Property damage: Guest-caused damage beyond normal wear (broken furniture, stained carpets, appliance damage)
• Liability: $1 million+ in coverage for guest injuries on your property
• Loss of income: Revenue replacement if your property is uninhabitable due to a covered event
• Hurricane and flood coverage: Critical in Louisiana. Standard policies often exclude flood damage, so you will need a separate flood policy through the NFIP or a private insurer. Flood insurance in Orleans Parish ranges from $800 to $3,000+ annually depending on elevation and zone.

Airbnb’s AirCover provides some baseline protection, but it is not a substitute for your own policy. AirCover has exclusions, caps, and a claims process that favors the platform. Treat it as a backup layer, not your primary coverage. For a deeper breakdown of what is covered and what is not, check our guide on whether insurance covers Airbnb.

Louisiana-specific risk: hurricane season runs June 1 through November 30. Have an emergency plan that includes pre-storm guest communication templates, a property protection checklist (shutters, sandbags, utility shutoffs), and rapid-response vendor contacts for post-storm repairs. Properties that can get back online quickly after a storm capture massive demand from displaced residents and relief workers.

Why 10XBNB Gives You the Edge in Louisiana

Louisiana’s STR market rewards operators who understand the nuances and punishes those who treat it like any other state. The permit complexities in New Orleans alone trip up dozens of new hosts every year, and underestimating hurricane preparedness has ended more than a few STR businesses.

10XBNB’s program was built by hosts who have operated in competitive, regulation-heavy markets. The strategies taught inside cover everything from identifying arbitrage properties that landlords will actually approve, to building pricing models that capitalize on Louisiana’s festival-driven demand spikes. You will learn how to structure your LLC, negotiate leases with STR-friendly language, and build systems that let you manage multiple properties without burning out.

The community aspect matters here too. Connecting with other operators who have navigated New Orleans permitting, dealt with hurricane-season logistics, or cracked the Baton Rouge football weekend pricing code saves you months of trial and error. When your permit application stalls or a guest leaves your place trashed during Mardi Gras, having a network of experienced hosts to call changes everything.

If you are serious about building a real STR business in Louisiana and not just listing a spare bedroom, you need a framework that accounts for the state’s unique challenges and opportunities. For a broader perspective on where Louisiana fits in the national landscape, see our breakdown of the best states for Airbnb.

Frequently Asked Questions

For more information on Louisiana business requirements, visit the Louisiana Secretary of State Business Services portal.