Southeast8.1% avg cap rate

New Orleans, LA

The Big Easy — events-driven STR demand year-round

New Orleans is one of the most event-dense STR markets in the US — Mardi Gras, Jazz Fest, French Quarter Fest, and dozens of conventions fill hotel rooms (and STRs) year-round. The French Quarter and Marigny neighborhoods carry the most demand, though city regulations require an STR permit and limit licenses in residential areas. Approved properties perform at some of the highest occupancy rates nationally.

8.1%
Avg Cap Rate
Net operating income / price
71%
Avg Occupancy
Annual average
$320
Avg Nightly Rate
All property types
$480K
Median Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
71% occ × $320/night
$82,928
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
– $33,171
Est. net operating income
Before mortgage & depreciation
$49,757
At median price
Implied cap rate
10.4%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose New Orleans

Mardi Gras weeks see 4-6× normal ADR
Jazz Fest and major conventions drive consistent annual demand
Historic character (Creole cottages, shotgun houses) drives booking appeal
STR permit required — non-owner-occupied limited in residential zones
Peak season: Feb (Mardi Gras), Apr–May (Jazz Fest), Oct
Top property types: Shotgun House, Creole Cottage, Condo, Townhouse
Primary zip: 70116, 70117, 70119, 70130

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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