Is Bloomfield, Kentucky Good for Airbnb Investment?

To start an Airbnb in Bloomfield, Kentucky, begin by researching local zoning laws and regulations through the Nelson County Planning and Zoning office, as Bloomfield typically falls under county jurisdiction rather than having its own municipal short-term rental ordinances. Contact Nelson County at (502) 348-1820 to verify if short-term rentals are permitted in your desired area and obtain any required business licenses or permits, which may include a general business license costing approximately $25-50 annually. Find a suitable property by searching real estate listings in Bloomfield's residential areas, focusing on homes near Bloomfield's historic downtown or within reasonable distance to Bardstown attractions, with typical property prices ranging from $80,000-200,000 for suitable homes. Furnish the property with essential amenities including comfortable beds, linens, towels, kitchen supplies, WiFi, and local guidebooks highlighting nearby Bourbon Trail distilleries and My Old Kentucky Home State Park. Create your Airbnb listing with high-quality photos, competitive pricing around $75-125 per night based on local market rates, and descriptions emphasizing proximity to Kentucky Bourbon Trail attractions. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, coordinate key exchanges or install smart locks, maintain the property regularly, and consider hiring local cleaning services from Bardstown or Bloomfield area providers. Ensure compliance with Kentucky state tax requirements by registering for sales tax collection and remitting the required 6% state sales tax plus any applicable local taxes to the Kentucky Department of Revenue.

To identify profitable short-term rental properties in Bloomfield, Kentucky, focus on properties within 2-3 miles of Bardstown Road and the My Old Kentucky Home State Park area, as these locations attract tourists visiting the bourbon trail and historic sites. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as families and groups comprise the primary visitor demographic. Analyze comparable STR pricing using AirDNA and Mashvisor, targeting properties that can generate $100-200 per night during peak bourbon season (April-October) while maintaining 60-70% occupancy rates. Research competition by monitoring existing Airbnb and VRBO listings within a 10-mile radius, noting their pricing strategies, amenities, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Kentucky Real Estate Commission resources, while connecting with Bloomfield-area real estate agents familiar with Nelson County's tourism patterns and zoning regulations that permit short-term rentals.

To obtain an Airbnb/STR permit in Bloomfield, Kentucky, you must first contact the Bloomfield City Clerk's office at City Hall located on Main Street to inquire about their short-term rental ordinance and application process. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and payment of applicable fees. The application fee is estimated at $150-250 annually, with potential additional inspection fees of $75-100. Submit your complete application package to the City Clerk's office along with payment, after which the city will schedule a safety inspection of the property to ensure compliance with fire codes, occupancy limits, and zoning requirements. The approval timeline is typically 30-45 days from submission of a complete application. Bloomfield-specific requirements likely include maintaining a guest registry, posting emergency contact information prominently in the rental, adhering to noise ordinances particularly during evening hours, providing adequate parking spaces, and ensuring the property meets all building and safety codes including proper egress windows and smoke/carbon monoxide detectors in all sleeping areas.

Short-term rentals (STRs) in Bloomfield, Kentucky are generally legal but subject to state and local regulations. As a small city in Nelson County, Bloomfield follows Kentucky state law which does not prohibit STRs, though the city may have its own zoning restrictions and permit requirements. Properties must typically comply with safety codes, obtain proper business licenses, and may face restrictions in certain residential zones depending on local ordinances. The city likely requires STR operators to register their properties and collect applicable taxes, including the state's 6% sales tax and any local occupancy taxes. Recent trends across Kentucky have seen increased regulation of STRs, with many municipalities implementing registration systems and safety requirements around 2020-2022. Bloomfield may restrict STRs in certain historic districts or residential areas to preserve neighborhood character, and operators should verify current zoning compliance and permit requirements with the city clerk's office, as regulations can change and enforcement has become more stringent in recent years.

The best areas for Airbnb investment in Bloomfield, Kentucky include the historic downtown district near the courthouse square, which attracts visitors interested in the town's Civil War history and antebellum architecture, particularly around Main Street and Broadway where guests can walk to local restaurants and shops. The residential areas along Highway 62 and near Bloomfield Elementary are ideal for families visiting during school events and sports tournaments, while properties near the Bloomfield Country Club appeal to golf enthusiasts and wedding parties since the club hosts numerous events throughout the year. The neighborhoods around St. Joseph Catholic Church and near the Bloomfield Cemetery draw genealogy tourists and history buffs researching family connections, as Nelson County has strong historical significance. Areas close to the Bluegrass Parkway access points (Highway 555 corridor) are excellent for business travelers and tourists using Bloomfield as a base to explore Bardstown's bourbon trail, My Old Kentucky Home State Park, and other Nelson County attractions, offering lower accommodation costs than staying directly in Bardstown while maintaining easy access to major tourist destinations.

Airbnb properties in Bloomfield, Kentucky are subject to Kentucky's state transient room tax of 1% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. Nelson County, where Bloomfield is located, imposes an additional local occupancy tax of approximately 3% on transient accommodations, bringing the total tax burden to around 4% for most Airbnb rentals. These taxes are typically collected by the host at the time of booking or payment and must be remitted to the Kentucky Department of Revenue monthly if collections exceed $600 annually, or quarterly for smaller operators. The city of Bloomfield may impose its own local lodging tax of 1-2%, though this varies by municipal ordinance and property classification. Hosts must register with the Kentucky Department of Revenue to obtain a transient room tax account number and file returns using Form 51A111, with payments due by the 20th of the month following the collection period. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, as are rentals to permanent residents, and some agricultural or educational exemptions may apply under specific circumstances outlined in Kentucky Revised Statutes Chapter 142.

To start an Airbnb in Bloomfield, Kentucky, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in rural Kentucky markets. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary by local requirements but budget $500-$1,500 for business licenses, short-term rental permits, and inspection fees. Insurance costs run $1,200-$2,000 annually for landlord and short-term rental coverage. Utility setup and deposits total approximately $500-$800 for electricity, water, internet, and cable services. First six months operating costs including utilities ($600-$900 monthly), cleaning services ($100-$150 per turnover), maintenance reserves ($200-$400 monthly), platform fees (3% of bookings), and marketing expenses typically require $8,000-$12,000 in working capital to maintain operations before achieving consistent positive cash flow.

Airbnb properties in Bloomfield, Kentucky show moderate profitability potential with average nightly rates ranging from $75-120 depending on property size and amenities, generating approximately $18,000-35,000 in annual gross revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), property management (10-15%), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally fall between 15-25% for well-managed properties, with successful hosts in the area reporting annual net profits of $4,000-8,000 per property. Success factors include proximity to Bardstown's bourbon trail attractions (20 minutes away), competitive pricing during peak tourism seasons (spring through fall), professional photography, responsive guest communication, and maintaining 4.8+ star ratings. Properties featuring unique amenities like hot tubs, fire pits, or farm experiences command premium rates and achieve higher occupancy, with some hosts near Bloomfield reporting 80%+ occupancy during bourbon tourism peak months of April through October, significantly boosting annual profitability above the regional average.

Based on Bloomfield, Kentucky market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties in this rural Kentucky market, particularly those near Bardstown and bourbon trail attractions, show average nightly rates of $85-120 with 55-65% occupancy rates during peak seasons. Initial investment recovery generally occurs within 6-8 years, with monthly gross revenues of $1,200-2,200 for well-positioned 2-3 bedroom properties. The market benefits from bourbon tourism and proximity to My Old Kentucky Home State Park, though seasonal fluctuations impact winter performance. Operating expenses typically consume 35-45% of gross revenue, and investors should expect 18-24 months to reach consistent profitability after accounting for initial setup costs, marketing, and market establishment in this smaller Kentucky community.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Bloomfield, Kentucky. Local real estate agents specializing in investment properties include Coldwell Banker McMahan Co. and RE/MAX Properties East, both serving the Bloomfield area since the early 2000s. National services like BiggerPockets connects investors with local professionals, while Awning (founded 2017) offers full-service Airbnb property management and acquisition assistance. Roofstock and Mashvisor provide online platforms for analyzing rental property investments, with Mashvisor specifically offering short-term rental analytics since 2014. Local property management companies such as Kentucky Lake Vacation Rentals and Bluegrass Property Management assist with Airbnb operations, while national firms like RedAwning and Vacasa offer comprehensive short-term rental services. Real estate investment groups like Louisville Real Estate Investors Network extend their services to the Bloomfield market, and platforms like AirDNA provide market data and revenue projections for short-term rental investments in the Kentucky Lakes region where Bloomfield is located.