How to Buy a Short-Term Rental in New Orleans
Why It’s Not as Simple as You Think
Most people assume buying an Airbnb works like buying any other house. You find a property, make an offer, close, and start hosting. In New Orleans, that’s not how it works, and if you don’t understand why, you could buy a property and lose the rental license in the process.
Here’s what you actually need to know.
The license is the asset
As of June 8, 2023, the City of New Orleans no longer accepts new applications for Commercial Short-Term Rental (CSTR) permits. That moratorium is still in place. What that means practically: there is an active moratorium on new CSTRs pending a study on the impact that under-regulated commercial rentals have had on the housing market, local economy, and quality of life.
So if you want to operate a commercial STR in New Orleans today, you’re not getting a new license. You’re acquiring an existing one.
That makes the license itself, not the building, the most valuable part of the deal.
Two types of licenses, two very different situations
New Orleans has two primary permit categories:
Anyone wishing to operate a STR in a residential zone must apply for a Non-Commercial Short-Term Rental Permit (NSTR). These are highly regulated and the process to obtain them are complicated.
Property owners in non-residential zones can apply for a CSTR license. For investors, the CSTR is typically the more attractive structure.
A real example: 2622 Bayou Road
This is where it gets concrete.
A property just hit the market at 2622 Bayou Road in New Orleans, listed at $299,000, that illustrates exactly how this works.
It’s a 1,067-square-foot, two-story commercial STR built in 2015, zoned HU-MU, sitting in an X Flood Zone (no flood insurance required).
It has an active, transferable CSTR license, bookings already on the calendar, and an existing property management company prepared to stay on through the transition. It’s sold fully furnished.
It’s reportedly generating around $50,000 a year in gross rental income.
The key detail: this is structured as a commercial STR, which means the path to acquisition is buying the LLC, not just the deed. You’re not buying a house and hoping the license follows. You’re buying a running business with the property attached.
For a buyer who understands what they’re purchasing, this is a clean entry point into the New Orleans STR market at a price point that rarely comes with this level of existing infrastructure.
What to do if you’re interested
Before you make any move on an STR in New Orleans, you need to know:
Whether the property holds an NSTR or CSTR license
Whether the license is current and in good standing
How the transaction is structured
What the tax obligations look like
If you want to dig into the regulations yourself, the City’s STR Administration office is at 1340 Poydras Street, Suite 800. You can also reach them at (504) 658-7144 or visit nola.gov/short-term-rental-administration.
If you have questions about 2622 Bayou Road or want to talk through how STR acquisitions work in New Orleans, reach out directly.
Philip Ewbank is a licensed Realtor with Keller Williams Realty New Orleans. License #0995700196. Each office independently owned and operated.