Is Bowling Green, Kentucky Good for Airbnb Investment?

To start an Airbnb in Bowling Green, Kentucky, begin by researching local regulations through the Bowling Green Planning and Zoning Commission, as the city requires short-term rental operators to obtain a Conditional Use Permit (CUP) for properties in residential zones, with applications costing approximately $200-300 and requiring neighbor notification. Contact the Warren County Health Department for any required health permits and register with the Kentucky Department of Revenue for state tax collection, as Kentucky imposes a 6% sales tax on short-term rentals. Find a suitable property in permitted zones, focusing on areas near Western Kentucky University or downtown attractions, with purchase prices ranging from $80,000-200,000 depending on size and location. Furnish the space with essential amenities including Wi-Fi, linens, kitchen supplies, and safety equipment like smoke detectors and fire extinguishers, budgeting $5,000-15,000 for initial setup. Obtain proper insurance coverage through companies like Proper Insurance or CBIZ, as standard homeowner's policies typically exclude short-term rental activities. Create your listing on Airbnb, Vrbo, and Booking.com with professional photos highlighting proximity to WKU campus, Corvette Museum, or Lost River Cave. Set competitive pricing around $60-120 per night based on local market analysis, and establish management procedures including guest communication, cleaning protocols between stays, and maintenance schedules, or consider hiring local property management companies like RedAwning or Vacasa if managing remotely.

To identify profitable STR 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, as these areas generate consistent demand from students, tourists, and business travelers. Target 2-4 bedroom properties built after 1990 with modern amenities, parking, and outdoor spaces, particularly those in neighborhoods like Fairview, Indian Hills, or near Scottsville Road corridor. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $80-150 per night depending on size and location, with occupancy rates typically ranging 60-75% annually. Research competition by analyzing existing Airbnb and VRBO listings within 3-mile radius, identifying gaps in amenities or underserved areas, while monitoring properties near WKU during peak academic periods and summer tourist season. Utilize tools like Rabbu, STR Helper, and local MLS data through Bowling Green Board of Realtors, while connecting with local property management companies like RedAwning or Vacasa for market insights, and consider properties in emerging areas like Plum Springs or near the upcoming development projects along Interstate 65 corridor for long-term appreciation potential.

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, compliance with fire safety codes verified by the Fire Department, and adherence to the International Property Maintenance Code. The application fee is approximately $100-200 with annual renewal fees around $50-100. Bowling Green requires STRs to maintain residential character, provide adequate parking (typically 2 spaces per unit), limit occupancy to 2 people per bedroom plus 2 additional guests, display the permit number in all advertisements, and maintain a complaint log. The approval timeline is typically 30-60 days depending on completeness of application and any required inspections. Properties must also comply with state tax requirements and register with the Kentucky Department of Revenue for transient room tax collection.

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 are required to maintain liability insurance. The city has implemented occupancy limits based on property size and requires designated parking spaces for guests. Recent changes around 2022-2023 included stricter enforcement of noise ordinances and enhanced penalties for violations, with the city establishing a complaint system for neighbors to report issues. STRs are prohibited in areas zoned specifically for single-family residential use in certain historic districts, and operators must register with the city annually while paying applicable taxes including transient room tax, with violations potentially resulting in fines or license revocation.

The most promising Airbnb investment areas in Bowling Green, Kentucky include the Historic Downtown District, which attracts visitors to the National Corvette Museum, Historic RailPark, and various cultural events throughout the year. The Western Kentucky University area offers strong rental demand from visiting families, prospective students, and academic conference attendees, particularly during graduation ceremonies and sporting events. The Fairview Avenue corridor near the medical district provides opportunities for medical tourism and business travelers visiting The Medical Center and other healthcare facilities. The Scottsville Road commercial zone appeals to business travelers due to its proximity to major employers like General Motors and numerous corporate offices, while also offering easy access to shopping and dining. The Riverfront area along Barren River is emerging as an attractive location for leisure travelers seeking scenic accommodations near outdoor recreation activities, and the neighborhoods surrounding Beech Bend Amusement Park and Raceway benefit from seasonal tourism spikes during racing events and summer park operations.

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% transient room tax, bringing the total occupancy tax to approximately 4%. The City of Bowling Green also levies a 3% local occupancy tax on short-term rentals under 30 days. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system for properties within the city limits, though hosts may need to register directly with local tax authorities and remit taxes quarterly or monthly depending on volume. Hosts must obtain a transient room tax license from both the Kentucky Department of Revenue and Warren County Clerk's office, with registration required within 30 days of beginning operations. Exemptions generally apply to stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organization bookings. Airbnb began collecting and remitting these taxes automatically for most Bowling Green properties around 2019-2020, but hosts remain responsible for ensuring compliance and may need to file returns even when Airbnb collects taxes on their behalf.

The total cost to start an Airbnb in Bowling Green, Kentucky is approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,200 depending on local regulations. Insurance for short-term rental coverage costs $1,200-$2,000 annually, with the first year paid upfront. Utilities including electricity, water, gas, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services, supplies, maintenance, platform fees, and marketing total $3,000-$5,000. Additional working capital of $2,000-$3,000 should be reserved for unexpected expenses and vacancy periods during the initial launch phase.

Airbnb properties in Bowling Green, Kentucky typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with occupancy rates averaging 45-65% throughout the year. Operating expenses generally include mortgage payments ($800-$1,200 monthly), utilities ($150-$250), cleaning fees ($40-$60 per turnover), property management (10-20% of revenue), insurance ($1,200-$2,000 annually), and maintenance costs ($2,000-$4,000 yearly), resulting in total annual expenses of $18,000-$28,000 for typical properties. Profit margins range from 15-35%, with successful hosts near Western Kentucky University achieving higher occupancy during the academic year and football season, particularly properties within 2-3 miles of campus commanding premium rates of $80-$150 per night compared to $45-$85 for properties further out. Success factors include proximity to WKU, the National Corvette Museum, and downtown attractions, professional photography, competitive pricing strategies, and maintaining superhost status through consistent 4.8+ ratings. Properties purchased specifically for Airbnb investment in desirable neighborhoods like Fairview or near the university district have shown ROI of 8-15% annually, while homeowners converting existing properties often see 20-40% returns on their initial setup investment of $3,000-$8,000 for furnishing and preparation.

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 and Mammoth Cave National Park which creates consistent demand from students, families, and tourists. Properties near WKU campus or downtown areas generally achieve higher occupancy rates of 65-75% annually, with average daily rates between $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors seeing break-even on cash invested typically by month 20-28. The market benefits from relatively low property acquisition costs compared to larger Kentucky cities like Louisville or Lexington, with average investment properties ranging from $120,000-200,000, allowing for faster capital recovery and stronger overall returns in this emerging short-term rental market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Bowling Green, Kentucky. Local real estate agents like Coldwell Banker Legacy Group, RE/MAX Real Estate Professionals, and Keller Williams First Choice Realty have agents experienced in investment properties and vacation rentals in the Bowling Green market. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and Awning for turnkey Airbnb investment properties. Local property management companies such as RedAwning and Vacasa can help investors manage their Airbnb properties once purchased. Additional national platforms like Roofstock, which expanded into short-term rental investments around 2021, and AvantStay, which focuses on group vacation rentals, also serve the Kentucky market. Local investment groups and real estate meetups in Bowling Green often connect investors with agents and services specializing in vacation rental properties, while companies like AirBnB Automated and Hostfully provide property management and automation services for investors in the area.