Is Bowling Green, Kentucky Good for Airbnb Investment?

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Bowling Green, Kentucky Airbnb Investment Overview

Is Airbnb a Good Investment in Bowling Green, Kentucky?

Investing in Airbnb properties in Bowling Green, Kentucky, presents a generally favorable outlook. The city's current market conditions are supported by a stable economy and a growing tourism sector, largely driven by attractions such as Mammoth Cave National Park, the National Corvette Museum, and Western Kentucky University, which consistently draw visitors. This steady influx of tourists ensures a consistent demand for short-term rentals, contributing to solid occupancy rates. While property values in Bowling Green are more affordable compared to larger metropolitan areas, they have shown a steady appreciation, offering a reasonable entry point for investors and potential for capital gains. The investment potential is further enhanced by local events and university-related activities that provide seasonal boosts to demand.

How Much Does an Average Airbnb Earn in Bowling Green?

Based on available market data and rental analytics, Airbnb hosts in Bowling Green, Kentucky typically earn between $800 to $2,200 per month, with the average falling around $1,400 monthly for a standard two-bedroom property. Seasonal variations show peak earnings during Western Kentucky University's academic calendar, particularly during graduation ceremonies, homecoming, and major sporting events, when nightly rates can increase by 30-50% above the typical $65-85 base rate. Summer months generally see higher occupancy rates due to tourism at nearby Mammoth Cave National Park and Corvette Museum visitors, while winter months typically experience a 20-25% decrease in bookings. Key factors affecting earnings include proximity to WKU campus (properties within two miles command premium rates), property amenities such as parking availability and modern furnishings, guest capacity with larger homes accommodating families earning significantly more, and host responsiveness ratings which directly correlate with booking frequency. Properties near the historic downtown area and those offering unique features like hot tubs or game rooms consistently outperform standard listings, with top-performing hosts reporting monthly revenues exceeding $3,000 during peak periods.

Airbnb Return on Investment in Bowling Green

Airbnb investments in Bowling Green, Kentucky typically generate ROI between 8-14% annually, with higher-performing properties near Western Kentucky University achieving up to 16% during peak academic periods. The average payback period ranges from 7-10 years, depending on initial investment and property location, with downtown and university-adjacent properties recovering costs faster at 6-8 years. Compared to traditional long-term rentals in Bowling Green that average 6-9% ROI, short-term rentals command premium rates of $75-120 per night versus $800-1200 monthly for long-term leases, though Airbnb properties require higher operational costs including cleaning fees, utilities, and more frequent maintenance. Properties within 2 miles of WKU campus and downtown attractions like the National Corvette Museum perform strongest, with occupancy rates averaging 65-75% annually, while suburban locations typically see 45-60% occupancy and correspondingly lower returns in the 6-10% range.

Average Airbnb Occupancy Rate in Bowling Green

Bowling Green, Kentucky maintains an average Airbnb occupancy rate of approximately 62-68% annually, with significant seasonal variations that peak during Western Kentucky University's academic calendar and local event periods. The highest occupancy rates occur from August through November (75-82%) coinciding with the fall semester, football season, and the National Corvette Museum's anniversary celebrations, while spring months of March through May also see elevated rates of 70-78% due to graduation events and pleasant weather. Winter months typically experience the lowest occupancy at 45-55%, with January and February being particularly slow. Bowling Green's occupancy rates generally outperform the Kentucky state average of 58-63% due to its combination of university activity, tourism attractions like Mammoth Cave proximity, and the National Corvette Museum, though it falls slightly below the national Airbnb average of 68-72%. The city benefits from consistent mid-week bookings from business travelers and university visitors, while weekends see higher rates driven by leisure tourism and sporting events, creating a more stable year-round occupancy pattern compared to purely seasonal tourist destinations.

Best Neighborhoods for Airbnb in Bowling Green

The best Airbnb investment neighborhoods in Bowling Green, Kentucky include Downtown Bowling Green, which offers proximity to the Historic State Theater, Fountain Square Park, and numerous restaurants, attracting both business travelers and tourists with strong pricing power due to walkability and entertainment options. The Western Kentucky University area provides consistent demand from visiting parents, prospective students, and university events, with moderate pricing and year-round occupancy potential. The Corvette Museum District near the National Corvette Museum and GM Assembly Plant draws automotive enthusiasts and industrial visitors, commanding premium rates during peak tourism seasons and special events. The Historic District features charming older homes that appeal to guests seeking authentic experiences, with proximity to antique shops, local eateries, and cultural attractions supporting steady mid-range pricing. The Medical District around The Medical Center benefits from medical tourism, visiting families of patients, and healthcare professionals, providing reliable occupancy with less seasonal variation. The Greenwood area offers newer construction properties that attract families and longer-term stays, with good access to shopping and dining while maintaining competitive rates. Finally, the Fairview Avenue corridor provides a balance of residential charm and commercial accessibility, appealing to both leisure and business travelers with moderate investment costs and solid rental potential due to its central location and proximity to major thoroughfares.

Short-term Rental Regulations in Bowling Green

Short-term rental regulations in Bowling Green, Kentucky require property owners to obtain a business license and comply with zoning ordinances that typically restrict rentals to certain residential districts, with many areas requiring conditional use permits or special exceptions. Properties must adhere to occupancy limits based on bedroom count (generally 2 persons per bedroom plus 2 additional), maintain proper safety equipment including smoke detectors and fire extinguishers, and pass periodic inspections. While owner-occupancy is not universally required, some zoning districts mandate that properties serve as the owner's primary residence, and rentals are generally prohibited in single-family residential zones without special approval. The registration process involves submitting applications to the city's planning and zoning department, paying associated fees (estimated $100-300 annually), and providing proof of insurance and safety compliance. Recent regulatory changes around 2022-2023 have included stricter enforcement of existing zoning laws, enhanced noise ordinances with specific quiet hours, mandatory registration with the city, and increased penalties for non-compliance, reflecting the city's effort to balance tourism revenue with neighborhood preservation as platforms like Airbnb and VRBO have expanded in the area.

Short-term Rental Fees and Taxes in Bowling Green

Short-term rentals in Bowling Green, Kentucky are subject to several fees and taxes including a 6% Kentucky state sales tax, a 3% transient room tax collected by the city, and an estimated $50-100 annual business license fee. Property owners must obtain a short-term rental permit which typically costs around $75-150 annually, and may be required to pay a one-time registration fee of approximately $25-50. Additional costs may include a $25-75 inspection fee for initial permit approval, and properties may be subject to regular property taxes at standard residential rates. The city also requires compliance with zoning regulations which may involve additional administrative fees of $25-100 depending on the specific requirements and inspections needed.

Is Airbnb a Good Investment in Bowling Green, Kentucky?

Investing in Airbnb properties in Bowling Green, Kentucky, presents a generally favorable outlook. The city's current market conditions are supported by a stable economy and a growing tourism sector, largely driven by attractions such as Mammoth Cave National Park, the National Corvette Museum, and Western Kentucky University, which consistently draw visitors. This steady influx of tourists ensures a consistent demand for short-term rentals, contributing to solid occupancy rates. While property values in Bowling Green are more affordable compared to larger metropolitan areas, they have shown a steady appreciation, offering a reasonable entry point for investors and potential for capital gains. The investment potential is further enhanced by local events and university-related activities that provide seasonal boosts to demand.

How Much Does an Average Airbnb Earn in Bowling Green?

Based on available market data and rental analytics, Airbnb hosts in Bowling Green, Kentucky typically earn between $800 to $2,200 per month, with the average falling around $1,400 monthly for a standard two-bedroom property. Seasonal variations show peak earnings during Western Kentucky University's academic calendar, particularly during graduation ceremonies, homecoming, and major sporting events, when nightly rates can increase by 30-50% above the typical $65-85 base rate. Summer months generally see higher occupancy rates due to tourism at nearby Mammoth Cave National Park and Corvette Museum visitors, while winter months typically experience a 20-25% decrease in bookings. Key factors affecting earnings include proximity to WKU campus (properties within two miles command premium rates), property amenities such as parking availability and modern furnishings, guest capacity with larger homes accommodating families earning significantly more, and host responsiveness ratings which directly correlate with booking frequency. Properties near the historic downtown area and those offering unique features like hot tubs or game rooms consistently outperform standard listings, with top-performing hosts reporting monthly revenues exceeding $3,000 during peak periods.

Airbnb Return on Investment in Bowling Green

Airbnb investments in Bowling Green, Kentucky typically generate ROI between 8-14% annually, with higher-performing properties near Western Kentucky University achieving up to 16% during peak academic periods. The average payback period ranges from 7-10 years, depending on initial investment and property location, with downtown and university-adjacent properties recovering costs faster at 6-8 years. Compared to traditional long-term rentals in Bowling Green that average 6-9% ROI, short-term rentals command premium rates of $75-120 per night versus $800-1200 monthly for long-term leases, though Airbnb properties require higher operational costs including cleaning fees, utilities, and more frequent maintenance. Properties within 2 miles of WKU campus and downtown attractions like the National Corvette Museum perform strongest, with occupancy rates averaging 65-75% annually, while suburban locations typically see 45-60% occupancy and correspondingly lower returns in the 6-10% range.

Average Airbnb Occupancy Rate in Bowling Green

Bowling Green, Kentucky maintains an average Airbnb occupancy rate of approximately 62-68% annually, with significant seasonal variations that peak during Western Kentucky University's academic calendar and local event periods. The highest occupancy rates occur from August through November (75-82%) coinciding with the fall semester, football season, and the National Corvette Museum's anniversary celebrations, while spring months of March through May also see elevated rates of 70-78% due to graduation events and pleasant weather. Winter months typically experience the lowest occupancy at 45-55%, with January and February being particularly slow. Bowling Green's occupancy rates generally outperform the Kentucky state average of 58-63% due to its combination of university activity, tourism attractions like Mammoth Cave proximity, and the National Corvette Museum, though it falls slightly below the national Airbnb average of 68-72%. The city benefits from consistent mid-week bookings from business travelers and university visitors, while weekends see higher rates driven by leisure tourism and sporting events, creating a more stable year-round occupancy pattern compared to purely seasonal tourist destinations.

Best Neighborhoods for Airbnb in Bowling Green

The best Airbnb investment neighborhoods in Bowling Green, Kentucky include Downtown Bowling Green, which offers proximity to the Historic State Theater, Fountain Square Park, and numerous restaurants, attracting both business travelers and tourists with strong pricing power due to walkability and entertainment options. The Western Kentucky University area provides consistent demand from visiting parents, prospective students, and university events, with moderate pricing and year-round occupancy potential. The Corvette Museum District near the National Corvette Museum and GM Assembly Plant draws automotive enthusiasts and industrial visitors, commanding premium rates during peak tourism seasons and special events. The Historic District features charming older homes that appeal to guests seeking authentic experiences, with proximity to antique shops, local eateries, and cultural attractions supporting steady mid-range pricing. The Medical District around The Medical Center benefits from medical tourism, visiting families of patients, and healthcare professionals, providing reliable occupancy with less seasonal variation. The Greenwood area offers newer construction properties that attract families and longer-term stays, with good access to shopping and dining while maintaining competitive rates. Finally, the Fairview Avenue corridor provides a balance of residential charm and commercial accessibility, appealing to both leisure and business travelers with moderate investment costs and solid rental potential due to its central location and proximity to major thoroughfares.

Short-term Rental Regulations in Bowling Green

Short-term rental regulations in Bowling Green, Kentucky require property owners to obtain a business license and comply with zoning ordinances that typically restrict rentals to certain residential districts, with many areas requiring conditional use permits or special exceptions. Properties must adhere to occupancy limits based on bedroom count (generally 2 persons per bedroom plus 2 additional), maintain proper safety equipment including smoke detectors and fire extinguishers, and pass periodic inspections. While owner-occupancy is not universally required, some zoning districts mandate that properties serve as the owner's primary residence, and rentals are generally prohibited in single-family residential zones without special approval. The registration process involves submitting applications to the city's planning and zoning department, paying associated fees (estimated $100-300 annually), and providing proof of insurance and safety compliance. Recent regulatory changes around 2022-2023 have included stricter enforcement of existing zoning laws, enhanced noise ordinances with specific quiet hours, mandatory registration with the city, and increased penalties for non-compliance, reflecting the city's effort to balance tourism revenue with neighborhood preservation as platforms like Airbnb and VRBO have expanded in the area.

Short-term Rental Fees and Taxes in Bowling Green

Short-term rentals in Bowling Green, Kentucky are subject to several fees and taxes including a 6% Kentucky state sales tax, a 3% transient room tax collected by the city, and an estimated $50-100 annual business license fee. Property owners must obtain a short-term rental permit which typically costs around $75-150 annually, and may be required to pay a one-time registration fee of approximately $25-50. Additional costs may include a $25-75 inspection fee for initial permit approval, and properties may be subject to regular property taxes at standard residential rates. The city also requires compliance with zoning regulations which may involve additional administrative fees of $25-100 depending on the specific requirements and inspections needed.

* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.

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Everything Smart Investors Ask About STR Wealth Building

How to start an Airbnb in Bowling Green, Kentucky?

To start an Airbnb in Bowling Green, Kentucky, begin by researching local regulations through the Bowling Green Planning and Zoning Department, as the city requires short-term rental operators to obtain a Conditional Use Permit (CUP) and business license, with properties needing to be at least 300 feet apart from other short-term rentals in residential zones. Contact the Warren County Health Department for any required health permits and ensure compliance with fire safety codes through the Bowling Green Fire Department. Find a suitable property by working with local real estate agents familiar with STR-friendly neighborhoods like the historic downtown area or near Western Kentucky University, ensuring the property meets zoning requirements and HOA restrictions if applicable. Furnish the space with quality furniture, linens, and amenities targeting your market (business travelers, university visitors, or tourists exploring Mammoth Cave area), installing keyless entry systems and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by city code. Create your Airbnb listing with professional photography highlighting local attractions, set competitive pricing based on comparable properties in the $75-150 per night range typical for Bowling Green, and establish house rules complying with the city's noise ordinances and occupancy limits. Manage the property by maintaining regular cleaning schedules, responding promptly to guest communications, coordinating check-ins/check-outs, and ensuring ongoing compliance with annual permit renewals and tax obligations including Kentucky's 6% sales tax and local occupancy taxes collected through Airbnb's platform.

What's the best way to identify good STR properties in Bowling Green, Kentucky?

To identify profitable short-term rental properties in Bowling Green, Kentucky, focus on locations within 2-3 miles of Western Kentucky University campus, downtown historic district, and near Corvette Museum and Lost River Cave attractions. Target 2-4 bedroom properties built after 1990 with modern amenities, parking, and outdoor spaces that can accommodate 4-8 guests. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $80-150 nightly rates depending on size and location. Research competition through Airbnb, VRBO, and local property management companies like RedAwning to identify market gaps and optimal pricing strategies. Utilize tools such as AirDNA for market analytics, Mashvisor for investment analysis, and local resources including Bowling Green Area Convention and Visitors Bureau data, Warren County property records, and networking with local real estate agents familiar with STR regulations. Consider properties near Beech Bend Amusement Park during summer months and ensure compliance with city zoning laws and HOA restrictions before purchasing.

How to get an Airbnb permit in Bowling Green, Kentucky?

To obtain an Airbnb/STR permit in Bowling Green, Kentucky, you must first contact the Bowling Green Planning and Development Services Department at City Hall located at 1001 College Street to determine if short-term rentals are permitted in your specific zoning district, as the city implemented STR regulations around 2019-2020. Submit an application through the Planning Department including a completed STR permit application form, proof of property ownership or lease agreement, floor plan of the rental unit, parking plan showing adequate off-street parking, contact information for a local responsible party available 24/7, proof of liability insurance (typically $1 million minimum), and a site plan. Required documents also include a business license from the City Clerk's office, state and local tax registration, and compliance with fire safety codes verified by the Bowling Green Fire Department. The application fee is approximately $100-200 with annual renewal fees around $50-100, and the review process typically takes 30-45 days depending on completeness of application and any required inspections. Bowling Green specific requirements include maintaining a guest registry, posting maximum occupancy limits, providing adequate parking (usually 1 space per bedroom plus 1), ensuring the property meets residential building codes, and having a designated local contact person who can respond to issues within 30 minutes, with properties limited to no more than 8 overnight guests and quiet hours typically enforced from 10 PM to 7 AM.

Is it legal to operate a short-term rental in Bowling Green, Kentucky?

Short-term rentals (STRs) are legal in Bowling Green, Kentucky, but operate under specific regulations established by the city. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential areas while prohibiting them in some neighborhoods to preserve residential character. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators must provide emergency contact information to the city. Bowling Green has implemented occupancy limits based on property size and requires adequate parking for guests. The city has been actively updating its STR ordinances since around 2019-2020 to address neighborhood concerns about noise, parking, and property maintenance, with recent changes focusing on stricter enforcement mechanisms and clearer operational standards. Violations can result in fines and license revocation, and the city maintains a registry of approved short-term rental properties to ensure compliance with local regulations.

What are the best places to invest in Airbnb in Bowling Green, Kentucky?

The best areas for Airbnb investment in Bowling Green, Kentucky include the Historic Downtown District, which attracts tourists visiting the National Corvette Museum and Beech Bend Amusement Park while offering walkable access to restaurants and entertainment venues. The Western Kentucky University area presents strong rental demand from visiting families, prospective students, and academic conference attendees, with consistent bookings during the school year from 2019-2024. The Fairview Avenue corridor near Interstate 65 appeals to business travelers and tourists seeking convenient highway access while remaining close to major attractions like the Historic RailPark and Train Museum. The Dishman Lane/Scottsville Road area offers proximity to both WKU and the medical district, attracting medical professionals, university visitors, and families attending events at the E.A. Diddle Arena. Finally, properties near the National Corvette Museum and GM Bowling Green Assembly Plant benefit from automotive enthusiasts, corporate visitors, and tourists participating in plant tours and Corvette experiences, creating year-round demand with peak seasons during car shows and racing events at nearby tracks.

Airbnb and lodging taxes in Bowling Green, Kentucky

In Bowling Green, Kentucky, Airbnb hosts are subject to both state and local lodging taxes. The Kentucky state transient room tax is 1% on gross rental receipts, while Warren County imposes an additional 3% occupancy tax, bringing the total to approximately 4% on short-term rental income. The City of Bowling Green also levies a 3% restaurant and hotel tax that applies to short-term rentals, making the combined rate around 7%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system for participating jurisdictions, though hosts may need to register directly with local authorities and remit taxes manually if automatic collection isn't available. Hosts must register with the Kentucky Department of Revenue and obtain a transient vendor license, filing monthly returns by the 20th of the following month. Warren County requires separate registration and monthly remittance by the 15th of each month. Exemptions generally apply to rentals of 30 days or longer, which are considered long-term stays rather than transient accommodations, and some jurisdictions may exempt rentals under certain dollar thresholds or owner-occupied properties rented fewer than 14 days per year.

Total cost to purchase, furnish and operate an Airbnb in Bowling Green, Kentucky

To start an Airbnb in Bowling Green, Kentucky, the total initial investment would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property completely would cost $8,000-$12,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,500 depending on local regulations. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility deposits and connections cost approximately $500-$800. First six months of operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees (3% of bookings estimated at $300/month), and marketing budget ($100/month) total around $5,100. Additional considerations include property taxes, HOA fees if applicable, and a cash reserve for unexpected expenses, bringing the comprehensive startup investment to the upper end of the estimated range.

Are Airbnb properties in Bowling Green, Kentucky profitable?

Airbnb properties in Bowling Green, Kentucky typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $65-$120 depending on proximity to Western Kentucky University and local attractions like the National Corvette Museum. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,200 annually), and maintenance costs. Properties near WKU campus achieve higher occupancy rates of 65-75% during the academic year, while those closer to downtown or the Corvette Museum maintain steadier 50-60% year-round occupancy. Net profit margins typically range from 15-25% for owner-operated properties, with successful hosts reporting annual profits of $8,000-$15,000 on properties valued at $150,000-$250,000. Key success factors include strategic location within 3 miles of major attractions, professional photography, competitive pricing during university events and Corvette Museum activities, and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. Properties that cater to families visiting students or automotive enthusiasts tend to outperform generic listings, with some hosts reporting 20-30% higher revenues through targeted marketing and themed accommodations.

What is the expected return on investment for an Airbnb in Bowling Green, Kentucky?

Airbnb investments in Bowling Green, Kentucky typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the city's proximity to Western Kentucky University, Mammoth Cave National Park tourism, and the National Corvette Museum which attracts approximately 200,000 visitors annually. Properties within 2-3 miles of WKU campus or downtown areas generally achieve occupancy rates of 65-75% with average daily rates of $85-120, while investors can expect to reach profitability within 18-24 months given the market's average property acquisition costs of $120,000-180,000 for suitable rental properties. The presence of major employers like General Motors Bowling Green Assembly Plant and consistent student housing demand creates a stable rental market, with successful Airbnb operators reporting gross rental yields of 15-22% annually, though net returns after expenses, property management fees, and local taxes typically settle in the 10-16% range for well-positioned properties purchased since 2020.

What company can help me find and buy a profitable Airbnb in Bowling Green, Kentucky?

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Bowling Green, Kentucky, using data analytics and market insights. Local real estate agents specializing in investment properties include Coldwell Banker Legacy Group, RE/MAX Real Estate Professionals, and Keller Williams First Choice Realty, with agents like those at Bowling Green Investment Properties focusing specifically on rental income opportunities. National services include AirDNA for market analysis, Mashvisor for property investment analytics, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as Bowling Green Property Management and Red Door Property Management can assist with Airbnb operations, while national services like AvantStay, RedAwning, and Vacasa provide full-service short-term rental management. Additional resources include local investment groups through the Bowling Green Real Estate Investors Association, and platforms like Roofstock and HomeUnion that specialize in turnkey rental properties, though investors should verify current availability of properties suitable for short-term rentals in Bowling Green's specific zoning areas near Western Kentucky University and the downtown district.

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