Is Bremen, Indiana Good for Airbnb Investment?

To start an Airbnb in Bremen, Indiana, begin by researching local zoning laws and regulations through the Marshall County Planning Department and Bremen Town Council, as short-term rentals may require special permits or fall under specific zoning classifications. Contact the Indiana Department of Revenue to understand state tax obligations including the 7% state sales tax on lodging, and register for a retail merchant certificate if required. Find a suitable property by searching local real estate listings or considering converting existing residential property, ensuring it meets safety standards and has adequate parking. Obtain necessary permits including a business license from Bremen Town Hall, fire safety inspection from the local fire department, and potentially a food service permit if offering breakfast services. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers, while ensuring compliance with Americans with Disabilities Act requirements where applicable. Create your Airbnb listing with professional photos, competitive pricing based on similar properties in the South Bend-Elkhart metropolitan area, and detailed descriptions highlighting proximity to Notre Dame University (30 minutes away) and local attractions. Manage your property by establishing check-in procedures, cleaning protocols between guests, maintaining responsive communication, and keeping detailed records for tax purposes while monitoring local ordinance changes that may affect short-term rental operations in this small northern Indiana community.

To identify profitable short-term rental properties in Bremen, Indiana, focus on properties within 2-3 miles of Tippecanoe Lake and nearby recreational areas, as these locations attract weekend visitors and fishing enthusiasts year-round. Target 2-4 bedroom single-family homes or lakefront cabins with amenities like boat access, fire pits, and updated kitchens, as these features command premium rates of $120-180 per night compared to basic properties at $80-120. Analyze pricing by monitoring Airbnb and VRBO listings within a 15-mile radius, noting that properties near lakes typically achieve 60-75% occupancy rates during peak season (May-September) versus 35-45% for standard residential areas. Research competition by identifying the 20-30 existing STR properties in Marshall County, focusing on their amenities, pricing strategies, and guest reviews to find market gaps. Utilize tools like AirDNA for Bremen market data, STR Helper for occupancy projections, and the Marshall County Assessor's website for property values, while monitoring local Facebook groups and tourism boards for seasonal event calendars that drive demand spikes, particularly during summer lake season and fall hunting periods.

To obtain an Airbnb/STR permit in Bremen, Indiana, contact the Bremen Town Hall at 219-546-2944 or visit their office at 118 South Center Street to inquire about short-term rental regulations, as the town may require a business license and zoning compliance verification. You'll likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and pay an estimated application fee of $50-100 plus annual renewal fees of $25-75. The approval process typically takes 2-4 weeks after submitting complete documentation, and you must ensure the property complies with residential zoning requirements, meets fire safety codes, has working smoke and carbon monoxide detectors, provides adequate parking for guests, and maintains the property according to local housing standards. Contact the Marshall County Health Department at 574-936-3777 for any additional health permits that may be required, and verify with the Bremen Planning Commission if your property location allows short-term rentals under current zoning ordinances.

Short-term rentals (STRs) are generally legal in Bremen, Indiana, as the town does not have specific municipal ordinances prohibiting them as of 2024. However, STR operators must comply with Indiana state regulations and local zoning requirements, which typically allow short-term rentals in residential areas with proper registration and adherence to safety standards including smoke detectors, carbon monoxide detectors, and occupancy limits. Bremen follows Marshall County zoning guidelines, and operators should verify compliance with residential zoning restrictions that may limit the number of unrelated occupants or require special use permits for commercial activities in residential zones. The town has not implemented recent changes specifically targeting STRs, but operators must obtain proper business licenses, collect and remit Indiana state sales tax and local innkeeper's tax, and ensure compliance with health department regulations. While there are no explicitly prohibited areas within Bremen's city limits, properties must meet standard residential safety codes and cannot violate homeowners association rules where applicable.

The most promising Airbnb investment areas in Bremen, Indiana include the downtown historic district near the town center, which attracts visitors interested in local heritage and small-town charm, and properties within walking distance of the Amish country attractions that draw tourists year-round seeking authentic cultural experiences. The area near US Highway 6 corridor offers good accessibility for business travelers and those visiting nearby industrial facilities, while neighborhoods close to Pretty Lake provide appeal for recreational visitors and families seeking lakefront activities. Properties near the Bremen Public Library and community center benefit from local events and gatherings, and the residential areas along State Road 331 offer convenient access for visitors exploring the broader Michiana region, including those attending events at nearby universities or conducting business in South Bend and Elkhart areas.

In Bremen, Indiana, Airbnb properties are subject to Indiana's state innkeeper's tax of 8% on gross rental receipts, which applies to lodging accommodations rented for periods of less than 30 days. Marshall County, where Bremen is located, imposes an additional local innkeeper's tax of 5%, bringing the total lodging tax rate to 13%. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Indiana Department of Revenue on a monthly basis for properties that qualify under their voluntary collection agreement program. For hosts not covered by Airbnb's automatic collection, they must register with the Indiana Department of Revenue, collect the taxes from guests, and remit payments monthly by the 20th of the following month using Form IT-9. Properties rented for 30 days or longer are exempt from these taxes, as are accommodations provided to permanent residents, and certain properties may qualify for exemptions if they meet specific criteria such as serving primarily long-term tenants or operating under certain agricultural exemptions.

To start an Airbnb in Bremen, Indiana, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Indiana generally cost $200-$500 for business licenses and short-term rental permits, though Bremen may have specific requirements. Insurance premiums for short-term rental coverage run $1,200-$2,400 annually, with the first year paid upfront. Utility deposits and setup fees total approximately $500-$800 for electricity, gas, water, internet, and cable services. First six months of operating costs including utilities ($150-$250 monthly), cleaning supplies ($50-$100 monthly), maintenance reserves ($100-$200 monthly), and platform fees (3% of bookings) typically amount to $3,000-$5,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Bremen, Indiana show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-200 monthly), property management (10-15% if outsourced), insurance ($800-1,200 annually), and maintenance costs ($2,000-3,500 yearly). Net profit margins generally fall between 15-25% after expenses, translating to $3,000-6,000 annual profit for well-managed properties. Success factors in this small Indiana market include proximity to Chain O'Lakes State Park and Pokagon State Park which drive summer tourism, competitive pricing against nearby Angola and Fort Wayne markets, and maintaining high guest ratings above 4.7 stars. Properties within 10 miles of recreational lakes or featuring amenities like hot tubs, fire pits, or boat access command premium rates of $130-180 nightly. A case example would be a renovated 3-bedroom lakefront property purchased for $180,000 in 2022, generating $32,000 gross revenue with $21,000 net income after a $45,000 renovation, achieving 18% ROI. Market challenges include seasonal demand fluctuations with 70% of bookings occurring May through September, requiring hosts to optimize pricing strategies and potentially pivot to monthly rentals during slower winter months.

Airbnb investments in Bremen, Indiana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, given the town's proximity to recreational areas like Tippecanoe Lake and its position along major highways connecting to larger markets such as South Bend and Fort Wayne. Properties in Bremen generally achieve profitability within 18-24 months, with average nightly rates of $85-120 for well-appointed 2-3 bedroom homes, occupancy rates averaging 55-65% annually due to seasonal lake tourism and business travelers. The lower property acquisition costs in Bremen, typically $120,000-180,000 for investment-suitable properties, combined with moderate operating expenses and Indiana's favorable landlord laws, contribute to these returns, though investors should expect higher performance during summer months (June-August) when lake activities drive premium pricing of $130-160 per night.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Bremen, Indiana, by analyzing market data and rental potential. Local real estate agents in Bremen and nearby South Bend include Coldwell Banker Residential Brokerage, Century 21 C. Howard, and RE/MAX 100, with agents like those at Berkshire Hathaway HomeServices Indiana Realty specializing in investment properties. National services include Mashvisor, which provides Airbnb analytics for Bremen properties, AirDNA for market research and revenue projections, and Awning for turnkey Airbnb investment opportunities. RedAwning offers property management and investment services, while local property management companies like Northern Indiana Property Management and Michiana Property Solutions can assist with Airbnb operations. BiggerPockets connects investors with Bremen-area professionals, and companies like Vacasa and AvantStay provide full-service Airbnb management. Local mortgage brokers such as First Source Bank and 1st Source Bank offer investment property financing, while Roofstock occasionally features short-term rental properties in the northern Indiana market including the Bremen area.