Savannah, Georgia is a city of charm, history, and immense rental income potential. With its cobblestone streets, year-round tourism, and growing population, Savannah offers great opportunities for both short-term vacation rental hosts and long-term property investors. If you’re a beginner looking to invest in Savannah’s real estate market, this guide walks you through the best strategies, legal considerations, and investment tips for earning rental income in Savannah, GA.
Why Savannah is a Great Market for Rental Income
- High Tourism Volume: Savannah attracts over 14 million visitors each year, creating consistent demand for vacation rentals.
- Affordable Property Prices: Compared to other tourist-driven cities, Savannah offers relatively low property prices and higher cap rates.
- Strong Rental Demand: Both tourists and locals — including students and professionals — drive year-round demand for rentals.
- Historic Preservation District Appeal: Homes in the Historic District and Victorian District are particularly attractive to tourists and mid-term renters.
Best Strategies to Generate Rental Income in Savannah
1. Short-Term Vacation Rentals (Airbnb, Vrbo)
Savannah is a hot spot for STRs — especially in the Landmark Historic District, Victorian District, and Starland. However, strict licensing and zoning rules apply. You must obtain a Short-Term Vacation Rental (STVR) certificate and comply with city zoning codes.
2. Long-Term Residential Rentals
Areas like Midtown, Southside, and Garden City are ideal for long-term rentals to families, students, and professionals. These provide consistent income without the need for frequent tenant turnover or licensing hurdles.
3. Mid-Term Furnished Rentals
Furnished rentals for 30–90 days are in demand among travel nurses, visiting professors, and digital nomads. These leases bypass many STR restrictions and offer flexibility and lower vacancy risk.
4. Student Rentals
Savannah College of Art and Design (SCAD) and other institutions drive demand for student housing. Properties near downtown or the Victorian District can be rented by the room or unit for strong cash flow.
5. Duplexes & House Hacking
Buying a duplex and living in one unit while renting the other is a great entry strategy. Many older homes in Savannah are already configured this way and are located in zones that allow STR or long-term leasing.
Licensing & Legal Requirements in Savannah
- Short-Term Vacation Rental Certificate (STVR): Required for any rental of fewer than 30 days. STVRs are only permitted in certain zones and capped in residential districts.
- Business Tax Certificate: All landlords (STR and long-term) must obtain this from the City of Savannah.
- Sales & Hotel/Motel Taxes (STRs): STR owners must collect and remit:
- Georgia State Sales Tax (4%)
- Chatham County Hotel-Motel Tax (6%)
- Savannah Local Tax (1% or more)
- Zoning Compliance: STVRs are only allowed in specific zones (e.g., TN-2, TN-3, D-R) and often subject to spacing rules (e.g., 400-foot buffer between STVRs).
- Lease Regulations: Use Georgia-compliant leases. Security deposit rules, tenant notice requirements, and eviction laws must be followed.
Estimated Monthly Costs for Savannah Rentals
| Expense Type | Monthly Estimate |
|---|---|
| Property Taxes | $150 – $600 |
| Homeowners/STR Insurance | $60 – $150 |
| Maintenance & Repairs | $100 – $300 |
| Property Management (optional) | 8% – 12% of rental income |
| STVR Licensing Fees & Taxes | $250 – $500/year + monthly/quarterly tax filings |
Best Neighborhoods in Savannah for Rental Investment
- Historic District: Top STR location — legal only in certain blocks. High occupancy and nightly rates.
- Victorian District: Popular with tourists and students. Offers STR, mid-term, and long-term potential.
- Starland District: Artsy and walkable — ideal for furnished mid-term or STR setups.
- Midtown & Southside: Affordable homes ideal for long-term tenants and families.
- West Savannah & Garden City: Budget-friendly with long-term rental appeal and development growth.
Tax Benefits for Savannah Landlords
Georgia taxes rental income, but landlords can take advantage of valuable federal deductions, including:
- Mortgage interest
- Depreciation
- Property taxes & insurance
- Repairs & utilities (if landlord-paid)
- HOA fees, legal fees, and property management
- STR-related taxes and license costs
STR operators must register with the Georgia Department of Revenue and file regular sales and lodging tax returns.
Tips to Maximize Rental Income in Savannah
- Verify Zoning Before Buying: STVR rules are strict — purchase only where licenses are available or go with mid/long-term models.
- Invest in Furnishings: Furnished rentals (STR or mid-term) attract higher rates and better reviews.
- Price Seasonally: Increase STR pricing during peak events like St. Patrick’s Day, Spring Break, and Fall festivals.
- Work with Local Experts: Property managers and real estate agents familiar with STVR caps and zoning maps can guide your investment.
Conclusion
Whether you’re launching a vacation rental near Forsyth Park or leasing a single-family home in Midtown, Savannah provides an excellent environment for earning steady rental income. With proper licensing, neighborhood selection, and management, even first-time investors can thrive in Georgia’s most charming and profitable real estate market.
Need help with STVR licensing, rental tax registration, or investment consulting in Georgia?
Contact PEAK Business Consultancy Services — your trusted partner for rental compliance, licensing, and income growth in Savannah, GA.
