Is Caledonia, Missouri Good for Airbnb Investment?

To start an Airbnb in Caledonia, Missouri, begin by researching local zoning laws and regulations through Washington County's planning department, as Caledonia typically falls under county jurisdiction for short-term rental regulations, though you should verify with the city clerk if specific municipal ordinances exist. Obtain necessary permits including a business license from Washington County (approximately $25-50), ensure your property meets fire safety codes, and check if you need a special use permit for short-term rentals. Find a suitable property by searching rural homes, cabins, or properties near the St. Francois River that appeal to tourists visiting the Missouri Ozarks region, with purchase prices typically ranging $80,000-200,000 depending on size and location. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, heating/cooling systems, and outdoor furniture to capitalize on the area's natural attractions like fishing and hiking. Create your Airbnb listing with professional photos highlighting the rural Missouri setting, nearby attractions like Washington State Park (about 30 minutes away), and outdoor activities available in the region. Set competitive pricing around $75-150 per night based on local market research, and manage the property by establishing cleaning protocols, coordinating with local cleaning services in nearby Potosi or Park Hills, installing keyless entry systems, and maintaining responsive communication with guests while highlighting local attractions such as antique shops, wineries, and outdoor recreation opportunities in the St. Francois Mountains area.

To identify profitable short-term rental properties in Caledonia, Missouri, focus on properties within 2-3 miles of Mark Twain Lake and recreational areas, as this small town's STR market relies heavily on fishing, boating, and outdoor tourism. Target 2-4 bedroom homes or cabins with lake views, boat access, fishing amenities, and outdoor spaces like decks or fire pits, as these features command premium rates of $150-250 per night during peak season (April-October). Analyze comparable properties using AirDNA and Mashvisor to identify the optimal pricing strategy, noting that occupancy rates typically range 40-60% annually with higher demand during summer months and hunting seasons. Research competition by monitoring existing STR listings within a 10-mile radius, focusing on properties near Unionville, Livonia, and other Mark Twain Lake access points, as there are typically 15-25 active listings in the broader area. Utilize tools like STR Helper for market analysis, Zillow and Realtor.com for property identification, and local Facebook groups like "Mark Twain Lake Community" for insider market knowledge, while considering properties priced between $80,000-200,000 that can generate 12-18% annual returns when properly managed and marketed to Missouri's weekend warriors and Iowa/Illinois tourists seeking lake getaways.

To obtain an Airbnb/STR permit in Caledonia, Missouri, contact the Caledonia City Clerk's office at City Hall located at 101 Main Street or call (573) 779-3434 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, emergency contact information, and a $150 application fee payable by check or money order. Submit your application along with all required documents to the City Clerk during regular business hours (Monday-Friday 8:00 AM to 4:00 PM), and the review process generally takes 2-3 weeks for approval. Caledonia requires STR operators to maintain a current business license ($50 annually), limit occupancy to 2 guests per bedroom plus 2 additional guests, provide adequate parking spaces, maintain quiet hours from 10:00 PM to 7:00 AM, and display the permit number in all online listings. Properties must pass a safety inspection conducted by the city's building inspector, include working smoke and carbon monoxide detectors in all bedrooms and common areas, and operators must respond to complaints within 2 hours and be available 24/7 for emergencies.

Short-term rentals (STRs) are generally legal in Caledonia, Missouri, as the city does not have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with Missouri state regulations and local zoning requirements, which typically restrict STRs to residential areas and require proper business licensing and tax registration with the Missouri Department of Revenue. Properties must meet basic safety standards including smoke detectors and occupancy limits, and hosts are required to collect and remit local lodging taxes where applicable. While Washington County, where Caledonia is located, has not implemented county-wide STR restrictions, operators should verify current zoning compliance and may need special use permits depending on the property's zoning classification. Recent trends in Missouri show increasing local regulation of STRs, with some municipalities implementing registration requirements and occupancy limits, though Caledonia has remained relatively permissive compared to larger cities like St. Louis or Kansas City which have enacted more restrictive frameworks since 2022-2023.

The best areas for Airbnb investment in Caledonia, Missouri would be properties near Mark Twain Lake and the surrounding recreational areas, as this region attracts significant tourism for fishing, boating, and water sports activities year-round. The historic downtown district of Caledonia offers charm for visitors interested in small-town Missouri culture and serves as a base for exploring nearby attractions. Properties within a 10-15 minute drive of major highways like US-36 would appeal to business travelers and those passing through the region. Areas near local parks and hunting grounds would attract outdoor enthusiasts, particularly during hunting seasons in fall and winter. The residential neighborhoods closest to any local festivals or community events venues would see seasonal demand spikes, while properties offering rural charm with modern amenities could capture the growing market of urban visitors seeking peaceful retreats from larger Missouri cities like Columbia or Kansas City.

Airbnb properties in Caledonia, Missouri are subject to Missouri state sales tax of 4.225% on lodging accommodations, which applies to short-term rentals under 31 days. Washington County, where Caledonia is located, may impose an additional local sales tax of up to 3%, bringing the potential combined rate to approximately 7.225%. The City of Caledonia does not currently impose a specific lodging or occupancy tax beyond standard local sales taxes. Airbnb typically collects and remits these taxes automatically for hosts through their platform as of 2018, though hosts should verify this arrangement and may need to register with the Missouri Department of Revenue if collecting taxes independently. Tax remittance is generally due monthly by the 20th of the following month when collected independently. Exemptions may apply for stays exceeding 31 consecutive days, which are considered long-term rentals rather than transient accommodations, and for certain government or charitable organization bookings, though hosts should confirm current exemption criteria with local tax authorities.

To start an Airbnb in Caledonia, Missouri, the total estimated costs would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Missouri markets. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor typically costs $15,000-$25,000. Initial setup including professional photography, listing creation, and basic renovations runs $2,000-$4,000. Permits and fees including business license, occupancy permits, and potential zoning approvals cost $500-$1,500 depending on local requirements. Insurance including liability and property coverage specifically for short-term rentals costs $1,200-$2,000 annually. Utilities setup and deposits for electricity, water, internet, and cable total $500-$800. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and marketing budget approximately $3,000-$5,000. Additional considerations include potential HOA fees if applicable and emergency repair fund of $2,000-$3,000 for unexpected issues during the initial operating period.

Airbnb properties in Caledonia, Missouri 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 revenue based on 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-3,500 yearly. Properties near Mark Twain Lake and within 30 minutes of Hannibal tend to perform better, with profit margins of 25-35% after expenses, while rural properties further from attractions may see margins of 15-25%. Success factors include proximity to recreational areas, professional photography, competitive pricing during peak summer months (May-September), and maintaining high cleanliness standards. A typical 3-bedroom lake-adjacent property purchased for $180,000 and generating $24,000 annually could yield net profits of $6,000-8,400, representing a 3.3-4.7% return on investment before mortgage considerations, making the market viable for investors with realistic expectations and proper property selection.

Airbnb investments in Caledonia, Missouri typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, based on the area's proximity to Mark Twain Lake and seasonal tourism patterns. Properties averaging $150,000-$250,000 purchase price can expect gross rental income of $25,000-$40,000 annually, with occupancy rates of 60-75% during peak seasons (May through September). After accounting for property management fees (15-25%), maintenance, insurance, and local taxes, net annual returns generally fall between $18,000-$28,000. Most investors reach profitability within 18-24 months, particularly those targeting lakefront or lake-view properties that command premium nightly rates of $120-$180. The market benefits from consistent demand from Kansas City and St. Louis visitors, with companies like Vacasa and Awning reporting strong performance metrics for northeastern Missouri lake properties, though success heavily depends on property condition, amenities, and effective marketing through platforms like Airbnb and VRBO.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for investors seeking profitable short-term rental opportunities in Caledonia, Missouri. Local real estate agents specializing in investment properties include Keller Williams Lake of the Ozarks (2018-present), RE/MAX Lake of the Ozarks, and Century 21 Community Realty who understand the vacation rental market dynamics in the region. National services like Awning (founded 2020), RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management services for Missouri markets. AirDNA offers detailed market analytics and revenue projections for the Caledonia area, while Mashvisor provides investment property analysis tools specifically for short-term rental properties. Local property management companies such as Lake Area Property Management and Ozark Mountain Property Services assist investors with ongoing Airbnb operations, and investment-focused real estate firms like BiggerPockets-affiliated agents and HomeVestors franchisees actively work with investors seeking profitable vacation rental properties in the Lake of the Ozarks region where Caledonia is located.