Thinking of investing in a short-term rental? Here’s what to consider — backed by 2025 data.
Short-term rentals in and around Orlando remain highly lucrative. Investors are attracted by steady returns, and local families increasingly turn to these rentals during transitions between homes. Today, vacation rentals, especially in Kissimmee, are where the action is. With its famed theme parks and easy access to Disney, Universal, and top resorts, Kissimmee continues to be a vacation rental hotspot.
What Counts as a Short-Term Rental in Florida
In Florida, a short-term rental is any property rented for six months or less. Eligible property types include condos, single-family houses, and multi-family units. Importantly, definitions vary locally:
- In Kissimmee (Osceola County), a property is considered a short-term rental if it is used for no more than 30 days at a time by the same guest or guests in a 12-month period.
- Always check HOA bylaws before buying. County zoning may allow rentals, but HOAs can prohibit them.
Partnering with a local, knowledgeable real estate team like the Erica Diaz Team can help you navigate these rules and avoid costly missteps.
Updated Market Snapshot: 2025 Performance Metrics
Listings and Revenue
- There are approximately 2,313 active Airbnb listings in Kissimmee (as of July 2025).
- Average annual STR revenue is around $41,000, with monthly income averaging $3,433.
- Another estimate shows $33,526 average annual revenue, with ADR at $236, occupancy at 48.3%, and 7,854 active listings.
Daily Rate and Occupancy
- Average Daily Rate is between $169 and $236, depending on the data source.
- Occupancy hovers between 48% and 67%, with the June 2024–May 2025 period showing a median of 67%.
Seasonality Highlights
- Peak months: March, April, and December are the strongest for revenue and bookings.
- Weakest month: September sees notably lower performance.
Property Types and Capacity
- Entire homes dominate, about 93–96% of listings are whole-home rentals.
- Popular property sizes include 3–5 bedrooms, with a strong trend toward 8+ guest capacity and multiple bedrooms to appeal to families and large groups.
Housing Market Trends
- Median home listing price in Kissimmee is approximately $394,900 (July 2025), slightly down year-over-year.
- Zillow reports average home values at about $367,811, down 4.6% over the past year.
- Kissimmee Bay neighborhood home prices are notably down 22%, with a median sale price at $531,000.
Yield and Investment Quality
- Short-term rentals in Kissimmee offer an average gross yield of 11.87%, indicating strong income potential compared to property cost.
What Buyers Should Consider Before Investing
1. Financial Planning
At current home prices (around $370,000–$395,000), evaluate your budget and financing options. With an average STR revenue of about $41,000 per year and yields near 12 percent, returns are attractive, but long-term cash flow needs to be verified after expenses.
2. Property Type and Family Appeal
Listings attracting families and large groups perform better. Look for 3–5-bedroom homes with full kitchens, laundry, and private pools. Features like game rooms or flexible layouts can set your property apart.
3. Seasonality Planning
Use March and April for high-rate planning and budget for softer months like September. Dynamic pricing tools are essential to maximize occupancy year-round.
4. Local Regulations and HOAs
Kissimmee has a relatively low regulation environment, but zoning and permits vary by neighborhood. Familiarize yourself with local ordinances and HOA restrictions.
5. Property Management
Managing bookings, turnover, and guests takes effort. Partnering with a professional manager will save you time, improve reviews, and optimize earnings.
6. Long-Term Flexibility
Should local laws tighten, you can convert to long-term rental. Kissimmee’s average rent of about $2,295 per month (as of September 2025) remains strong.
FAQ: Kissimmee Short-Term Rentals
Ready to Invest? Let’s Make It Happen
Kissimmee’s short-term rental market remains one of Florida’s most profitable opportunities. With strong visitor demand, high returns, and favorable regulation, it is ripe for investors ready to take action.
Next steps:
- Identify neighborhoods with strong yield and resale history.
- Choose property types that appeal to families and groups.
- Implement a dynamic pricing and management strategy.
Our team is here to guide you every step of the way, from investment analysis and financing strategies to HOA walkthroughs and property management. Contact the Erica Diaz Team today at 407-904-2702 to get started
