Is rental arbitrage possible in New Orleans?

Only in narrow cases: a commercially zoned unit that wins conditional-use approval. Residential permits need an owner and an operator living on site.

How does the one-per-block lottery work?

Only one residential short-term rental or B&B is allowed per city square. When more than one applies, the city decides by a quarterly lottery.

What state tax applies to New Orleans stays?

Louisiana's 5% state sales tax on rooms for properties with nine or fewer rooms in Orleans Parish, through 2029, plus city and parish taxes.

Rental Arbitrage in New Orleans, LA

Researched by RentalArbitrage AdminData as of: September 2026

Restricted

Legalized April 2017. Regulated through NSTR (non-commercial) and CSTR (commercial) licenses. NSTR requires homestead exemption. Quarterly application/lottery system. Updated July 1, 2023 with noise monitoring requirement. Owner or operator must be reachable and arrive within 1 hour. Read the rules and sources.

Average daily rate: $258.60
Occupancy: 55%
Annual revenue potential: $44,200

Source: AirDNA Figures for the New Orleans market, trailing 12 months, as of September 2026. Markets are metro areas, not city limits.

Short-Term Arbitrage Isn't an Option Here

New Orleans, LA licenses short-term rentals only in the host's own primary residence, so leasing a separate unit to rent it out to guests isn't possible. That is why this page shows no rent ceiling or short-term calculator. If the lease and building allow furnished stays of 30 days or more, try the mid-term rental calculator.

The New Orleans, LA Market

AirDNA's New Orleans market averaged a $258.60 daily rate at 55% occupancy over the last 12 months, about 16.7 booked nights and $4,800 of booking income a month.
The rules make rental arbitrage hard. In residential areas a permit needs a property owner and an operator living on site during every stay, with one rental per city square chosen by lottery, so a leased unit doesn't qualify. Commercial short-term rentals were the opening, but the city stopped taking new commercial applications in June 2023, and since May 2026 new ones need conditional-use approval. The figures below assume you have a property that clears that bar; confirm the parcel with the city first.

What a Unit Can Earn

At the market averages, a unit breaks even at about $3,760 a month in rent and keeps a 20% margin at about $2,800. That only matters for a commercially zoned unit that can actually be permitted.

Risks to Weigh

Residential permits need an owner and an on-site operator
New commercial rentals need conditional-use approval
One residential rental per city square, by lottery
Taxes on a stay can add up to a large share of the booking

Frequently Asked Questions

Is Rental Arbitrage Possible in New Orleans?: Only in narrow cases: a commercially zoned unit that wins conditional-use approval. Residential permits need an owner and an operator living on site.
What Rent Can a New Orleans Unit Carry?: At the market averages, a unit breaks even at about $3,760 a month in rent and keeps a 20% margin at about $2,800. That only matters for a unit that can actually be permitted.
How Much Does an Average New Orleans Short-Term Rental Earn?: AirDNA's New Orleans market averaged a $258.60 daily rate at 55% occupancy over the last 12 months, with annual revenue of about $44,200.
How Does the One-per-Block Lottery Work?: Only one residential short-term rental or B&B is allowed per city square. When more than one applies, the city decides by a quarterly lottery.
What State Tax Applies to New Orleans Stays?: Louisiana's 5% state sales tax on rooms for properties with nine or fewer rooms in Orleans Parish, through 2029, plus city and parish taxes.