Is Chillicothe, Ohio Good for Airbnb Investment?

To start an Airbnb in Chillicothe, Ohio, begin by researching local regulations through the City of Chillicothe Planning Department and Ross County offices, as Ohio allows short-term rentals but municipalities can impose restrictions. Contact the Chillicothe Building Department at (740) 773-1191 to obtain necessary permits including a business license, occupancy permit, and potential zoning compliance certificate, which typically costs $50-200 total. Find a suitable property in desirable areas like downtown historic district or near Adena Mansion, considering proximity to attractions like Hopewell Ceremonial Earthworks and Paint Creek State Park, with average property prices ranging $80,000-150,000 for suitable homes. Furnish the space with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $3,000-8,000 for a complete setup. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting unique features and proximity to local attractions like the Majestic Theatre and Chillicothe Paints baseball games. Set competitive rates around $75-120 per night based on local market analysis, and establish management systems including automated messaging, cleaning protocols with local services like Molly Maid, and 24/7 guest communication, while ensuring compliance with Ohio's 7% sales tax and potential local lodging taxes that may apply to short-term rentals in Ross County.

To identify profitable short-term rental properties in Chillicothe, Ohio, focus on locations within walking distance of Adena Mansion and Gardens, near the historic downtown district, or close to Great Seal State Park and Scioto Trail State Forest for outdoor enthusiasts. Target 2-4 bedroom single-family homes or historic properties built between 1900-1950 that offer character, full kitchens, dedicated parking, and outdoor spaces like patios or fire pits. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for nightly rates between $80-150 depending on size and amenities, with occupancy rates of 60-70% being realistic for this market. Research competition by examining existing Airbnb and VRBO listings within a 5-mile radius, noting their pricing, amenities, and guest reviews to identify gaps in the market. Utilize tools like Rabbu, BiggerPockets market analysis, and local Ross County tourism data to understand seasonal demand patterns, particularly during summer months when Tecumseh outdoor drama runs and fall foliage attracts visitors. Consider properties near Ohio University Chillicothe campus for potential extended stays, and leverage local Facebook groups, MLS data through Realtor.com, and connections with RE/MAX or Century 21 agents familiar with the Chillicothe market to identify undervalued properties with STR potential.

To obtain an Airbnb/STR permit in Chillicothe, Ohio, you must first contact the Chillicothe Building Department at City Hall located at 35 S. Paint Street to determine if short-term rentals are permitted in your zoning district, as the city requires compliance with local zoning ordinances. You'll need to submit an application for a business license through the City of Chillicothe, providing required documents including proof of property ownership or lease agreement, property insurance documentation, floor plans showing maximum occupancy, contact information for a local property manager if you're not local, and a site plan. The application fee is estimated at $75-150 annually, and you must also obtain a state of Ohio vendor's license for tax collection purposes. Additionally, ensure your property meets all building and fire safety codes by scheduling inspections with the Ross County Health Department for septic and water systems if applicable, and verify compliance with parking requirements typically requiring one space per bedroom. The approval timeline is generally 30-45 days from submission of complete application materials, and you must display your permit number in all online listings and maintain guest registration records as required by Ohio state law.

Short-term rentals (STRs) are generally legal in Chillicothe, Ohio, as the city has not enacted specific prohibitions against them, though they must comply with standard zoning regulations and business licensing requirements. Properties operating as STRs typically need to obtain proper business licenses and may be subject to occupancy limits, parking requirements, and noise ordinances that apply to all residential properties. The city's zoning code generally allows STRs in residential areas as long as they don't violate single-family residential use restrictions, though commercial zoning areas may have different requirements. There have been no major recent legal changes specifically targeting STRs in Chillicothe as of 2023-2024, but operators should verify current zoning compliance and obtain necessary permits through the city's building and zoning department. Property owners should also ensure compliance with state fire safety codes and local health department regulations, particularly for properties hosting multiple guests, and may need to register with the Ohio Department of Commerce depending on the scale of their operation.

The best areas for Airbnb investment in Chillicothe, Ohio include the Historic Downtown District near Paint Street and Main Street, which attracts visitors to the Majestic Theatre, Chillicothe Brewing Company, and various festivals throughout the year. The Adena Mansion and Gardens area on Adena Road draws history enthusiasts and tourists visiting this historic estate and the nearby Hopewell Culture National Historical Park. The Paint Creek area and neighborhoods near Great Seal State Park appeal to outdoor enthusiasts, hikers, and families seeking recreational activities. Properties near the Chillicothe VA Medical Center on Veterans Drive capture business travelers, medical professionals, and families visiting patients. The Tecumseh outdoor drama area southeast of downtown benefits from seasonal tourism during the summer performance season at the Sugarloaf Mountain Amphitheatre, with visitors seeking accommodations from June through early September. Additionally, areas near Ohio University Chillicothe campus attract visiting families during graduation, orientation, and sporting events, while the proximity to US Route 35 makes these locations accessible for travelers passing through southern Ohio.

In Chillicothe, Ohio, Airbnb hosts are subject to multiple lodging taxes including the state of Ohio's 5.75% lodging tax on stays under 30 days, Ross County's 3% lodging tax, and potentially a local Chillicothe transient occupancy tax of approximately 2-3%. These taxes are typically collected by Airbnb directly from guests at the time of booking for most jurisdictions through their automatic tax collection service, which began rolling out in Ohio around 2018-2019. Airbnb then remits these taxes quarterly to the appropriate tax authorities on behalf of hosts, though hosts should verify their specific obligations with local tax offices. The state lodging tax applies to all short-term rentals under 30 consecutive days with no standard exemptions for small operators, while county and local taxes may have minimum thresholds or exemptions for properties renting fewer than a certain number of days per year. Hosts who collect taxes independently must register with the Ohio Department of Commerce, obtain necessary permits from Ross County and the City of Chillicothe, and file returns monthly or quarterly depending on volume, with penalties applying for late payments or non-compliance.

To start an Airbnb in Chillicothe, Ohio, the total initial costs would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in the area. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees would total $500-$1,500. Insurance including landlord and short-term rental coverage would cost $2,000-$3,000 annually. Utilities setup and deposits would be $500-$800. First six months operating costs including utilities ($600-$900), cleaning supplies and services ($1,200-$1,800), maintenance ($1,000-$2,000), marketing ($300-$600), and platform fees would total approximately $8,000-$12,000, bringing the complete startup investment to around $185,000-$220,000 depending on property condition and furnishing choices.

Airbnb properties in Chillicothe, Ohio typically generate modest returns with average daily rates ranging from $65-95 depending on property size and amenities, resulting in monthly revenues of $1,200-2,400 for well-managed properties with 60-70% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($800-1,200 annually), and maintenance costs typically consume 45-60% of gross revenue, leaving profit margins of 15-35% for successful operators. Properties near Chillicothe's historic downtown, Paint Creek State Park, or targeting business travelers to local healthcare facilities and manufacturing companies like Kenworth and Glatfelter perform best, with 3-bedroom homes near recreational areas achieving the highest profitability at approximately $8,000-15,000 annual net income. Success factors include competitive pricing against local hotels like Hampton Inn ($89-109 nightly rates), professional photography, responsive communication, and targeting weekend leisure travelers exploring Hopewell Culture National Historical Park and outdoor enthusiasts visiting the Scioto River region, though the market remains seasonal with stronger performance April through October.

Based on Chillicothe, Ohio market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Adena Mansion, downtown historic district, or close to Kenworth truck manufacturing facilities tend to perform better due to business traveler demand. Initial profitability usually occurs within 12-18 months for well-positioned properties priced between $80,000-$150,000, with average daily rates of $75-$110 and occupancy rates of 45-60%. Properties requiring significant renovation may extend profitability timeframe to 24-30 months, while turnkey properties in prime locations can achieve positive cash flow within 6-9 months, particularly those targeting visitors to Hopewell Culture National Historical Park and Great Seal State Park.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Chillicothe, Ohio, using data analytics to evaluate potential returns. Local real estate agents like Coldwell Banker Heritage Realtors and RE/MAX Real Estate Professionals have agents experienced in investment properties who understand the Chillicothe market dynamics. National services include Awning, which provides end-to-end Airbnb investment services including property identification and management, and Mashvisor, an investment property analysis platform that offers market data for Ohio markets. RedAwning specializes in vacation rental property investments and can assist with Chillicothe area properties. Local property management companies like Ross County Property Management and Chillicothe Property Solutions often help investors identify potential rental properties while offering management services. BiggerPockets, while primarily an educational platform, connects investors with local professionals in the Chillicothe area. AirDNA provides market analysis and revenue projections for short-term rentals in smaller Ohio markets like Chillicothe. Century 21 and Keller Williams offices in the region typically have agents familiar with investment property criteria and can help identify properties suitable for Airbnb conversion in Chillicothe's historic downtown area and surrounding neighborhoods.