In-depth analysis

Should you buy an STR in Savannah in 2026?

Only if you’re buying an existing permitted property or operating outside the historic-district cap zone. Savannah’s $248 ADR and 65% occupancy make the underlying market math attractive, and ghost-tour / Historic District / SCAD tourism is durable demand. But the city’s 2017 non-owner-occupied STR cap — limited to 20% of dwellings per ward in the historic district — means the legal supply is essentially fixed. New permits in capped wards are issued only when an existing one is surrendered, and the waitlist runs years long.

Regulation: where the city stands

Savannah’s STR ordinance distinguishes between owner-occupied (Type 1) and non-owner-occupied (Type 2) operations:

Type 1 (homestay) is widely permitted with annual certificate, occupancy tax registration, and standard safety compliance.
Type 2 (whole-home, non-owner-occupied) is capped at 20% of dwelling units per ward in the National Historic Landmark District. Most wards are at or near cap.
Outside the historic district, Type 2 rules are more permissive — registration and tax, no hard cap in most areas.
Tybee Island is a separate jurisdiction with its own ordinance; STRs broadly permitted with permit and occupancy tax.

The city’s STR registry is public. Verify any property’s current permit status before offer. A property advertising “STR-conforming” without an active certificate has nothing to transfer.

The market by the numbers

Metric	Savannah	Tybee Island
Avg ADR	$248	$310-$380 (varies by season)
Occupancy	65%	70%+ in summer
RevPAR	$161	Higher peak, lower shoulder

Demand is strong year-round with peaks in spring (March-May, St. Patrick’s Day is the single highest-revenue weekend), fall (September-November), and a holiday December bump. Summer is slower than spring/fall due to heat and humidity.

Submarkets that matter

Historic District (Districts 1-4, Wards capped) — premium ADR ($300+), permits unavailable except by transfer. Acquisition includes a permit premium baked into asking price.
Starland / Thomas Square / Victorian District — adjacent to historic, residential character, more permit availability, lower entry cost.
Tybee Island — separate ordinance, beach demand, higher seasonal swing, lower acquisition cost than historic Savannah.
Pooler / Garden City / outlying Chatham County — long-term workforce housing more profitable than STR; STR works only at the right price.

The 3 mistakes buyers make here

Paying a permit premium without verifying transferability. Permits in capped wards are valuable, but the city’s transfer rules have shifted. Confirm in writing with the Revenue Department that the certificate transfers at closing.
Underwriting Tybee as Savannah. Different jurisdiction, different rules, different demand curve (beach-seasonal, not historic-year-round). Tybee runs hot in summer; the historic district runs hot in spring and fall.
Ignoring HOA covenants in condo buildings. Several historic-district condo conversions explicitly prohibit STR use regardless of city permitting.

What to do next

Run a Market Score on the specific ward, not the metro.
Triangulate ADR with the Comp Analyzer — same ward, same bedroom count.
Permit-premium purchases inflate the basis; model debt service realistically with the DSCR Loan Calculator.
Furnishing for the Southern-design Savannah aesthetic is a meaningful spend — model with the Year 1 Cash Needs Calculator.
Read Reading an STR Ordinance Before You Buy — Savannah is one of the cleaner examples of cap-driven regulation.

Not investment advice. Verify all regulatory and tax information with local authorities and licensed professionals before committing capital.