Is Bourbon, Indiana Good for Airbnb Investment?

To start an Airbnb in Bourbon, Indiana, begin by researching local zoning laws and regulations through Marshall County's planning department, as Bourbon falls under their jurisdiction, and contact the town clerk to understand any specific short-term rental ordinances, business license requirements, and tax obligations including Indiana's 7% sales tax and any local lodging taxes. Obtain necessary permits such as a business license from the town, ensure your property meets fire safety codes, and consider liability insurance coverage of at least $1 million through companies like Proper Insurance or CBIZ. Find a suitable property by analyzing local demand near attractions like the nearby lakes, Culver Academies area, or agricultural tourism spots, ensuring the property has good internet connectivity and parking availability. Furnish the space with quality basics including comfortable bedding, essential kitchen appliances, WiFi, smart TV, and local guidebooks highlighting attractions like Lake Maxinkuckee and Plymouth's Marshall County Historical Museum. List your property on Airbnb and VRBO with professional photos showcasing the rural Indiana charm, competitive pricing around $75-125 per night based on local market rates, and detailed descriptions emphasizing proximity to outdoor activities and peaceful countryside setting. Manage the property by establishing cleaning protocols between guests, creating a digital guidebook with local restaurant recommendations like nearby Culver or Plymouth establishments, implementing keyless entry systems, and maintaining responsive communication with guests while monitoring reviews to ensure consistent quality service in this small Marshall County community.

To identify profitable short-term rental properties in Bourbon, Indiana, focus on properties within 2-3 miles of major attractions like lakes, state parks, or recreational areas, as this rural market likely attracts outdoor enthusiasts and weekend getaways. Target 2-4 bedroom homes or cabins with unique features such as waterfront access, fire pits, hot tubs, or rustic charm that appeal to families and groups seeking rural retreats. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($80-150 estimated for this market) and occupancy rates, while researching comparable properties within a 10-mile radius to understand seasonal demand patterns and pricing strategies. Competition research should include analyzing existing STR listings on Airbnb and VRBO within Marshall County, noting their amenities, booking calendars, and guest reviews to identify market gaps. Utilize tools like Rabbu and STR Helper for local market analysis, connect with Marshall County tourism boards for visitor data, monitor local Facebook groups and community forums for insights, and consider properties near popular fishing spots, hunting areas, or within driving distance of larger cities like South Bend or Fort Wayne to capture both leisure and business travelers seeking rural accommodations.

To obtain an Airbnb/STR permit in Bourbon, Indiana, contact the Marshall County Building Department at 112 West Jefferson Street, Plymouth, IN 46563, as Bourbon falls under county jurisdiction for rental regulations. Submit a completed short-term rental application along with proof of property ownership, a floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million coverage), a safety inspection certificate from the local fire department, and a septic system inspection if applicable. Required documents also include a business license from the Indiana Secretary of State, tax identification number, and emergency contact information for a local representative available 24/7. The application fee is typically $150-200 with an annual renewal fee of $100, though Marshall County may have specific fee structures. The approval process generally takes 30-45 days after submission of complete documentation, including time for required inspections. Bourbon-specific requirements include maintaining adequate parking for guests without impacting neighboring properties, ensuring the property meets all residential building codes, and complying with any homeowner association restrictions if applicable. Properties must also meet Indiana state fire safety standards including working smoke detectors in all bedrooms and common areas, carbon monoxide detectors if gas appliances are present, and clearly marked emergency exits.

Short-term rentals (STRs) are generally legal in Bourbon, Indiana, as the small unincorporated community in Marshall County operates under Indiana state law, which does not prohibit STRs at the state level, leaving regulation primarily to local municipalities. Since Bourbon is unincorporated, it falls under Marshall County's jurisdiction, which as of 2023 has not implemented specific countywide STR restrictions, though operators must comply with standard zoning regulations, health department requirements, and tax obligations including Indiana's innkeeper's tax. Property owners should ensure compliance with any applicable homeowners association rules and verify that their insurance covers short-term rental activities. The legal landscape remains relatively permissive compared to larger Indiana cities like Indianapolis or Bloomington, which have implemented more stringent registration requirements, occupancy limits, and operational restrictions in recent years. Marshall County has not followed the trend of some Indiana counties that have enacted specific STR ordinances with registration requirements, noise restrictions, or parking mandates, making Bourbon's regulatory environment fairly straightforward for STR operators who primarily need to focus on state tax compliance and basic property maintenance standards.

The best areas for Airbnb investment in Bourbon, Indiana would be the historic downtown district near the town center, which attracts visitors interested in small-town charm and local events like the annual Bourbon Fun Days festival. Properties near Tippecanoe Lake offer strong rental potential due to seasonal tourism, fishing enthusiasts, and families seeking lakefront getaways during summer months. The residential areas along Old Road 331 and near the Bourbon Community Park provide good investment opportunities for business travelers visiting local agricultural operations and the nearby industrial facilities in Marshall County. Additionally, properties within walking distance of the Bourbon Public Library and community center appeal to visitors attending local events, family reunions, and those exploring the rural heritage tourism circuit that includes nearby Amish communities and historical sites, with peak demand typically occurring during harvest festivals in fall and summer lake activities.

In Bourbon, Indiana, Airbnb properties are subject to Indiana's state innkeeper's tax of 8% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. Marshall County, where Bourbon is located, imposes an additional local innkeeper's tax of 5%, bringing the total lodging tax rate to 13%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Indiana around 2018, and the company remits payments quarterly to the Indiana Department of Revenue and local tax authorities. Property owners who collect taxes independently must register with the Indiana Department of Revenue, file monthly returns by the 20th of the following month, and remit payments electronically through the state's tax portal. Exemptions include stays of 30 days or longer, rentals to permanent residents, and accommodations provided to certain government employees on official business. Local municipalities may have additional registration requirements or business license fees, though specific ordinances vary, and hosts should verify current local regulations with Marshall County and Bourbon town offices as tax rates and collection procedures can change periodically.

The total cost to start an Airbnb in Bourbon, Indiana is approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in rural Indiana markets. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and local compliance requirements. Insurance specifically for short-term rentals costs $1,200-$2,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable run $500-$800 initially. First six months operating costs including utilities ($300-$500 monthly), cleaning services ($75-$100 per turnover), maintenance reserves ($200-$400 monthly), property management software ($30-$50 monthly), and marketing expenses total approximately $8,000-$12,000, assuming 50-60% occupancy rates typical for rural Indiana markets.

Airbnb properties in Bourbon, Indiana, a small town of approximately 1,600 residents in Marshall County, face significant profitability challenges due to limited tourism demand and low nightly rates typically ranging from $60-$120. Properties in this rural market generally achieve occupancy rates of 25-40% annually, generating gross revenues of $8,000-$18,000 per year, while expenses including mortgage payments, utilities, cleaning fees, insurance, and platform commissions typically consume 70-85% of gross income, leaving net profit margins of 15-30% or roughly $1,200-$5,400 annually. Success factors for profitable operations include targeting fishing enthusiasts visiting nearby lakes, hunters during seasonal periods, and families attending events at nearby Notre Dame University (45 minutes away), with properties featuring outdoor amenities, boat access, or hunting lodge aesthetics performing better. A typical 3-bedroom lakefront property purchased for $180,000 in 2022 might generate $15,000 in annual revenue but face $12,000 in expenses including $8,400 in mortgage payments, $1,800 in utilities, $900 in cleaning, and $900 in other costs, yielding a modest $3,000 annual profit representing a 1.7% return on investment, making Bourbon's Airbnb market suitable primarily for local property owners seeking supplemental income rather than dedicated real estate investors.

Airbnb investments in Bourbon, Indiana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are estimates given the small rural market size. Properties in this Marshall County community, with median home values around $120,000-$180,000, can expect initial investment recovery within 7-10 years, assuming average nightly rates of $75-$120 and occupancy rates of 35-50% annually. The proximity to recreational areas like Lake Maxinkuckee and seasonal tourism from nearby Plymouth and Knox markets supports moderate rental demand, with investors typically reaching profitability within 18-24 months after accounting for property acquisition, renovation costs averaging $15,000-$25,000, and ongoing operational expenses including cleaning, maintenance, and platform fees that typically consume 25-35% of gross rental income.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Bourbon, Indiana, local real estate agents like those at F.C. Tucker Company and Century 21 serve the area and can assist with short-term rental investments. Mashvisor provides nationwide Airbnb investment analysis tools and property recommendations for small markets like Bourbon. BiggerPockets connects investors with local agents and provides market data for rural Indiana markets. AirDNA offers short-term rental market analytics for the northern Indiana region including Marshall County where Bourbon is located. Local agents at Coldwell Banker and RE/MAX offices in nearby Plymouth and Warsaw frequently work with investors seeking lake-area properties suitable for vacation rentals. RedAwning provides property management and investment consulting services for short-term rentals in rural Indiana markets. Awning offers end-to-end Airbnb investment services including property identification and management in secondary markets throughout Indiana. Local property management companies like Vacasa and AvantStay have expanded into smaller Indiana markets to serve Airbnb investors, while regional firms such as Great Lakes Property Management assist with vacation rental properties near Indiana's lake regions.