Thinking about a beach place you can enjoy and rent on the side? Jekyll Island can be a smart play, but it is not a typical Georgia market. The island’s leasehold structure, Jekyll Island Authority licensing, and layered taxes make it different from nearby communities. In this guide, you’ll learn the rules, typical performance, and how to model ROI so you can invest with confidence. Let’s dive in.
How Jekyll STRs are regulated
Jekyll Island is unique because all residential land sits on long ground leases administered by the Jekyll Island Authority. If you plan to rent your home overnight, you must secure a JIA rental license and remit percentage rent to the Authority. JIA’s page outlines the license, inspections, and the current 3 percent percentage rent on gross rental revenue. Review the requirements on the JIA site’s Property Ownership and Rental Info page for exact steps and forms.
You will also see Glynn County’s short‑term rental program referenced online. That program applies to unincorporated county areas, but Jekyll Island STR licensing runs through the JIA. You still need to confirm which entity collects local occupancy taxes for your specific property and booking date. The county portal explains how local taxes are administered across the county and is the right place to verify current rates and reporting.
- Jekyll Island Authority rental licensing and percentage rent requirements: see the JIA’s official resident and rental page at Property Ownership and Rental Info.
- Glynn County STR information and tax portal guidance: see Short‑Term Rental Property Information.
Permits, inspections and leaseholds
Before you list, you must obtain a JIA rental license. The Authority requires an initial inspection and documentation, and it provides monthly reporting templates. Safety items and a local contact are part of compliance, and renewals can include follow‑up inspections. You can find applications and checklists on the JIA site.
Budget for both the JIA percentage rent and your ground‑lease rent. The percentage rent is 3 percent of gross short‑term rental revenue. The annual ground‑lease rent has historically followed a formula that references the fair market value of the leased land, often cited around 0.4 percent, but you should confirm the exact figure in the specific lease.
Lease terms matter for financing and resale. Current residential ground leases on Jekyll Island expire in windows such as 2049 to 2088 per published materials. Some master leases note that improvements may vest to the Authority at expiration. Always confirm the exact expiration, renewal mechanics, and any reversion language as part of due diligence.
Finally, check community rules. Many condos and planned neighborhoods on the island have covenants that set minimum stays or require registration. Review the CC&Rs and any rental program guidelines before you underwrite returns.
Taxes and fees that affect cash flow
Short‑term rental taxes on Jekyll Island stack in layers. Understanding who collects each item is key, since platforms may collect some taxes but not all.
- State sales tax on lodging. Georgia applies sales tax to short‑term stays. See the definition of taxable lodging in the Georgia Code, Title 48‑8‑2.
- State hotel/motel fee. Georgia charges a flat 5 dollars per room per night for short stays. This fee is separate from sales or occupancy taxes and is defined in O.C.G.A. 48‑13‑50.3.
- Local occupancy excise tax. In 2025 the Georgia General Assembly authorized Glynn County to levy up to a 7 percent accommodations excise. Local adoption and implementation can vary by jurisdiction and date, so confirm whether a Jekyll booking is subject to the county rate or a different arrangement for the island. You can review the 2025 authorization in the state’s acts and resolutions archive here.
- JIA percentage rent. In addition to taxes and fees, JIA requires 3 percent of gross short‑term rental revenue. Details are on the JIA resident and rental page.
Platforms sometimes collect state sales tax and the state hotel fee, and may collect local occupancy tax in some jurisdictions. JIA percentage rent is typically an owner remittance. Do not assume full coverage by the platform. Reconcile monthly returns against the county or JIA portals to stay compliant. Glynn County’s STR information page offers reporting guidance.
Market performance and seasonality
Third‑party snapshots show that Jekyll Island’s STR performance varies widely by unit type and location. Recent market estimates put typical Average Daily Rates in the high 300s to 400s and occupancy in the low to mid 30 percent range. Median annual revenue across listings often falls in the 30 to 40 thousand dollar band. You can review a current snapshot at AirROI’s Jekyll Island analysis.
Seasonality is pronounced. Peak months cluster in early summer, with strong shoulder demand in March and April. Late fall and mid‑winter slow down outside of special events. Jekyll also benefits from nature‑driven interest and convention business at the island’s conference center, which can add spikes to bookings. For broader visitor context within the Golden Isles, see this regional overview from Georgia Trend on Brunswick and the islands’ mix of beauty and industry here.
Supply is naturally constrained. State policy and the JIA Master Plan limit developed acreage on the island to preserve conservation areas, with a long‑standing split of roughly one‑third developed and two‑thirds preserved. That cap restrains future supply and can support long‑term scarcity. You can read about the conservation framework in the Jekyll Island Master Plan appendices.
Sample pro‑forma and ROI
Use property‑level data when you underwrite. Start with gross revenue from verified sources like paid STR analytics or manager statements rather than listed nightly rates. Then build an expense stack that reflects how you plan to operate.
Here is a conservative example using a rounded market median gross revenue of 34,600 dollars per year.
Operating expense assumptions:
- Professional management: 25 percent of revenue
- Cleaning and turnover: 8 percent
- Routine maintenance: 8 percent
- Insurance, utilities, HOA, property tax, admin: 8 percent
- JIA percentage rent: 3 percent
- Capital reserve: 5 percent
Illustrative math:
- Gross revenue: 34,600 dollars
- Management (25%): 8,650 dollars
- Cleaning (8%): 2,768 dollars
- Maintenance (8%): 2,768 dollars
- Insurance/HOA/taxes/utilities (8%): 2,768 dollars
- JIA percentage rent (3%): 1,038 dollars
- Capital reserve (5%): 1,730 dollars
- Estimated total operating outflows: about 19,722 dollars
- Net operating cash before debt service: about 14,878 dollars
Financing example:
- Purchase price: 400,000 dollars
- Loan: 300,000 dollars at 6.5 percent, 30 years
- Estimated monthly principal and interest: about 1,894 dollars
- Estimated annual debt service: about 22,730 dollars
Takeaway: with these conservative inputs, debt service can exceed the example net operating income. That is why purchase price, financing terms, and revenue optimization are crucial on Jekyll Island. Some buyers increase down payments, focus on top‑performing product types, or accept lower near‑term cash flow in exchange for personal use and long‑term value. If you are evaluating a condo‑hotel or non‑warrantable condo, plan to speak with lenders who offer portfolio or specialty programs. For an overview of condotel lending considerations, see this summary of condotel loans.
How to underwrite your unit
- Pull real gross revenue. Get trailing 12‑month payouts from the current owner or manager and compare them to a paid market report for similar bedroom count and location.
- Map seasonality. Expect your cash flow to skew to spring and early summer. Stress test slower months with conservative pricing.
- Align pricing to costs. Taxes and the state 5 dollar fee are often paid by the guest, but they still affect your all‑in nightly rate. Compare your final price with similar units.
- Budget for operations. Cleaning, maintenance, utilities, HOA dues, insurance, and the JIA percentage rent are real cash outflows. Keep a capital reserve for appliances, roofs, and HVAC.
- Choose the right manager. A local manager who knows JIA compliance and guest expectations can improve reviews and revenue. If you self‑manage, set aside time for guest communications and vendor coordination.
Due diligence checklist
Work through these items before you make an offer or project returns:
- Ground lease details. Confirm your exact lease expiration window and whether improvements revert at the end of term. See the JIA’s Property Ownership and Rental Info.
- JIA rental license. Review application steps, inspection requirements, and monthly reporting forms on the JIA site above.
- Taxes and who collects. Verify which local occupancy tax applies to your unit and booking date and whether your platform collects it. Review Glynn County’s STR information.
- HOA and condo rules. Read CC&Rs for minimum stays, registration, or required rental programs. The JIA site notes that some communities have added covenants.
- Revenue comps. Pull a paid market snapshot for your address or bedroom count, such as AirROI’s Jekyll Island report, and request manager statements when available.
- Insurance requirements. Price property, liability, wind, and flood coverage. Confirm any JIA or HOA coverage requirements.
- Financing path. Ask lenders early if the project is warrantable or if you will need portfolio or non‑QM options. For context on condos with hotel‑like features, see condotel lending basics.
Work with a local guide
Jekyll Island rewards careful underwriting. Licenses, leaseholds, inspections, and layered taxes add complexity, but they are manageable when you know the steps. If you want a second home with rental potential, a clear plan and local insight can save you time and money.
When you are ready to explore the best streets, buildings, and comps for your goals, reach out to Mackay Cate. As a lifelong Golden Isles real estate professional, Mackay offers boutique, full‑service guidance to help you evaluate options, understand JIA requirements, and move forward with confidence.
FAQs
Jekyll Island STR legality: can you rent your home overnight?
- Yes. You must obtain a JIA rental license, pass required inspections, maintain a local contact, and remit the 3 percent JIA percentage rent plus applicable taxes. Start with the JIA’s resident and rental page.
Taxes for Jekyll Island STRs: which ones apply?
- Expect state sales tax on lodging, the statewide 5 dollar per‑night hotel fee, a local occupancy tax that can be up to 7 percent in Glynn County, and the JIA 3 percent percentage rent. See O.C.G.A. 48‑8‑2, the state hotel fee statute, and the 2025 county authorization summary.
Jekyll Island STR performance: what ADR and occupancy should you expect?
- Market snapshots show typical ADRs in the high 300s to 400s, occupancy in the low to mid 30 percent range, and median annual revenue around 30 to 40 thousand dollars. See AirROI’s Jekyll Island analysis.
Leasehold terms on Jekyll: how do they affect value?
- Residential ground leases commonly expire between 2049 and 2088 per published materials. Shorter remaining terms can affect financing, resale, and ROI. Confirm expiration, renewal options, and any reversion clause with the JIA.
Financing for condos and condotels: what should you know?
- Projects with hotel‑like features are often non‑warrantable. You may need portfolio or specialty condotel financing with higher down payments and rates. See an overview of condotel loans.
