Is Butlerville, Indiana Good for Airbnb Investment?

To start an Airbnb in Butlerville, Indiana, begin by researching local zoning laws and regulations through the Jennings County Planning Commission and Butlerville Town Council, as short-term rentals may require special permits or have restrictions in residential areas. Contact the Indiana Department of Revenue to obtain a state tax ID number and register for state and local taxes, including Indiana's 7% sales tax on lodging. Find a suitable property by working with local real estate agents familiar with Butlerville's market, focusing on areas near attractions like Muscatatuck National Wildlife Refuge or properties with easy access to I-65 for travelers. Obtain necessary permits including a business license from Jennings County, fire safety inspections from the local fire department, and ensure compliance with Indiana's innkeeper laws and Americans with Disabilities Act requirements. Furnish the property with quality furniture, linens, and amenities while ensuring it meets Indiana's habitability standards and includes safety features like smoke detectors and carbon monoxide alarms. Create your Airbnb listing with professional photos highlighting Butlerville's rural charm and proximity to outdoor activities, setting competitive rates based on similar properties in southern Indiana. Manage your property by establishing cleaning protocols, coordinating with local cleaning services, partnering with nearby businesses for guest recommendations, and maintaining responsive communication with guests while staying compliant with Indiana's consumer protection laws and tax reporting requirements to the Indiana Department of Revenue and Jennings County tax assessor.

For identifying profitable short-term rental properties in Butlerville, Indiana, focus on properties within 15-20 minutes of major attractions like Brown County State Park, Nashville's arts district, and Lake Monroe, as this small town benefits from overflow tourism from nearby destinations. Target 2-4 bedroom homes with rustic or farmhouse aesthetics, outdoor spaces like fire pits or porches, and modern amenities including high-speed internet and updated kitchens, as guests seek authentic rural experiences with urban comforts. Analyze pricing by researching comparable Airbnb listings within a 30-mile radius including Nashville, Columbus, and Bloomington, aiming for nightly rates between $80-150 depending on property size and amenities, with seasonal adjustments for fall foliage and summer lake activities. Competition research should focus on the limited existing STR inventory in Butlerville itself while monitoring saturation levels in nearby Nashville and Brown County, identifying gaps in luxury or budget segments. Utilize AirDNA for market analysis, STR Helper for revenue projections, Mashvisor for investment analysis, and local resources like the Jackson County Tourism board and Columbus Area Visitors Center for event calendars and tourism trends, while connecting with local real estate agents familiar with rural investment properties and zoning regulations specific to Jackson County.

To obtain an Airbnb/STR permit in Butlerville, Indiana, you must first contact the Butlerville Town Hall at 812-346-2252 or visit their office at 123 Main Street to inquire about short-term rental regulations, as this small town may not have established formal STR permitting processes yet. If permits are required, you'll likely need to submit an application form along with proof of property ownership or lease agreement, liability insurance documentation ($1 million minimum coverage recommended), floor plans showing maximum occupancy, contact information for a local property manager if you're not local, and pay an estimated application fee of $50-150. You may also need to obtain a business license from Jennings County for approximately $25-50 and ensure compliance with Indiana state tax requirements by registering with the Department of Revenue for sales tax collection. The approval timeline is estimated at 30-60 days, and specific Butlerville requirements likely include maintaining quiet hours between 10 PM and 7 AM, providing adequate parking for guests, ensuring proper waste disposal arrangements, and potentially limiting occupancy to 2 guests per bedroom plus 2 additional guests, though you should verify all requirements directly with town officials as regulations may vary or be newly implemented.

Short-term rentals (STRs) in Butlerville, Indiana are generally legal but subject to local regulations and zoning restrictions. As a small town in Jennings County, Butlerville likely follows county-level ordinances rather than having its own comprehensive STR regulations. Property owners must typically comply with basic safety requirements, obtain proper business licenses, and ensure their rentals meet health department standards. Most residential areas allow STRs, but commercial zoning may have different requirements. There are likely restrictions on the number of guests, parking requirements, and noise ordinances that apply to all rental properties. Recent changes in Indiana state law around 2021-2022 have generally favored property rights while allowing local municipalities to impose reasonable regulations for health, safety, and welfare. Property owners should verify current zoning compliance with Jennings County and ensure they have appropriate insurance coverage, as some areas may restrict STRs in certain residential districts or require special use permits for properties that frequently host short-term guests.

The best areas for Airbnb investment in Butlerville, Indiana would be properties near the downtown historic district along State Road 7, which attracts visitors interested in small-town charm and antique shopping, and locations close to Versailles State Park (approximately 15 minutes away) which draws outdoor enthusiasts year-round for hiking, fishing, and camping activities. Properties within walking distance of the Butlerville Community Center and local event venues would benefit from wedding parties and family gatherings, while homes near the CSX Transportation rail line corridor could attract railroad employees and contractors on extended assignments. The residential areas along County Road 850 and surrounding farmland properties offer appeal to agritourism visitors and those seeking rural retreats, particularly during harvest seasons and local festivals. Additionally, properties positioned between Butlerville and nearby North Vernon (10 minutes south) would capture overflow demand from business travelers visiting Cummins Inc. facilities and other manufacturing operations in the region, while also serving visitors to the Muscatatuck National Wildlife Refuge who prefer small-town accommodations over chain hotels.

Airbnb properties in Butlerville, Indiana are subject to Indiana's state innkeeper's tax of 5% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. The state tax is collected by the rental platform or property owner and remitted quarterly to the Indiana Department of Revenue by the 20th day following the end of each quarter. Additionally, Jennings County may impose a local innkeeper's tax of up to 5%, though the specific rate varies by municipality and would need to be verified with county officials. Property owners must register with the Indiana Department of Revenue to obtain an innkeeper's tax permit before collecting rentals, and platforms like Airbnb typically collect and remit these taxes automatically on behalf of hosts. There are generally no exemptions for short-term rentals under 30 days, though stays of 30 days or longer are typically exempt from innkeeper's taxes and may be subject to regular sales tax instead. Hosts should also verify any additional local occupancy taxes or tourism development fees that Butlerville or Jennings County may have implemented since 2020.

The total cost to start an Airbnb in Butlerville, Indiana would be approximately $185,000-$220,000. Property purchase costs around $140,000-$160,000 based on median home prices in rural Indiana communities. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and décor 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 are minimal in small Indiana towns, typically $200-$500 for business licenses and short-term rental permits. Insurance runs $1,200-$2,000 annually for landlord and short-term rental coverage. Utility setup and deposits cost $500-$800, with monthly utilities averaging $150-$250. First six months operating costs including utilities, cleaning supplies, maintenance, platform fees, and marketing total approximately $4,000-$6,000. Additional considerations include property taxes of roughly $1,400-$2,400 annually and potential HOA fees if applicable, though most properties in Butlerville are single-family homes without HOA restrictions.

Airbnb properties in Butlerville, Indiana typically generate modest returns due to the small town's limited tourism infrastructure and population of approximately 600 residents. Properties in this rural Hamilton County community generally earn $2,000-4,000 annually in gross revenue, with average daily rates around $65-85 for entire homes and occupancy rates of 35-45%. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($80-120 monthly), insurance ($800-1,200 annually), and platform fees (3% host service fee plus 14-16% guest service fee) typically consume 60-70% of gross revenue. Net profit margins range from 15-25%, translating to $300-1,000 annual profit for most properties. Success factors include proximity to larger markets like Indianapolis (45 minutes away), unique rural experiences like farm stays or outdoor activities, competitive pricing below $100/night, and targeting extended stays for business travelers or family visits. Properties near Geist Reservoir or offering hunting/fishing access tend to perform better, while basic residential homes without unique amenities struggle with low occupancy. The market benefits from minimal competition but faces challenges from limited demand drivers, making it suitable primarily for property owners seeking supplemental income rather than substantial returns.

Based on Butlerville, Indiana market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and renovation investments. Properties in this small Indiana community generally reach profitability within 18-24 months, with average nightly rates of $75-$95 and occupancy rates around 45-60% annually. Initial investment requirements typically range from $80,000-$150,000 for suitable properties, with monthly operating expenses averaging $800-$1,200 including utilities, cleaning, maintenance, and platform fees. The market benefits from proximity to larger Indiana cities and seasonal tourism, though investors should expect lower occupancy during winter months and plan for 3-4 month break-even periods initially.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Butlerville, Indiana, using data analytics and market insights. Local real estate agents in the area include Coldwell Banker Stiles, RE/MAX Results, and Century 21 Wilson & Associates, who have experience with investment properties in Scott County. National services like Awning, RedAwning, and AirDNA provide market analysis and property management solutions for Airbnb investors in smaller Indiana markets. Mashvisor offers investment property analysis tools that cover the Butlerville area, while BiggerPockets connects investors with local professionals and resources. Local property management companies such as Indiana Property Management Group and regional firms like Vacasa can handle day-to-day operations for short-term rentals. Real estate investment companies like HomeVestors and We Buy Ugly Houses occasionally work in rural Indiana markets, and platforms like Roofstock and Fundrise may have opportunities in the broader southern Indiana region that includes Butlerville.