Is Clifford, Indiana Good for Airbnb Investment?

To start an Airbnb in Clifford, Indiana, begin by researching Bartholomew County's zoning regulations and any municipal ordinances specific to short-term rentals, as some Indiana counties require business licenses or special permits for vacation rentals operating under 30 days. Contact the Bartholomew County Planning Department and Clifford town officials to determine if you need a conditional use permit, business license, or zoning compliance certificate, and verify property tax implications as commercial use may affect assessments. Find a suitable property by searching local real estate listings, considering proximity to Columbus (about 15 minutes away) for guest appeal, and ensure the property meets Indiana's residential building codes and fire safety requirements. Furnish the space with essential amenities including reliable internet, heating/cooling systems suitable for Indiana's climate, quality bedding, kitchen appliances, and consider adding local touches like information about nearby Brown County State Park or Columbus architecture tours. Create your Airbnb listing with professional photos highlighting the rural Indiana charm, competitive pricing research based on Columbus area rates (typically $75-150/night for rural properties), and detailed descriptions emphasizing proximity to Indianapolis (45 minutes) and Louisville (90 minutes). Manage your property by establishing cleaning protocols between guests, installing keyless entry systems, maintaining responsive communication with guests, tracking income for Indiana state tax reporting requirements, and consider hiring local cleaning services from Columbus or Edinburgh to maintain consistent quality standards while building relationships with nearby property managers for emergency situations.

To identify profitable short-term rental properties in Clifford, Indiana, focus on properties within 2-3 miles of major attractions like lakes, state parks, or recreational areas, as this small rural community likely attracts visitors for outdoor activities and peaceful retreats. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and reliable internet, as these features appeal to families and groups seeking vacation rentals in rural settings. Analyze pricing by researching comparable STRs within a 15-mile radius using Airbnb and VRBO, aiming for properties that can generate $75-150 per night depending on size and amenities, with potential annual revenues of $15,000-35,000 after accounting for 40-60% occupancy rates typical in smaller Indiana markets. Conduct competition research by examining existing listings in Bartholomew County and surrounding areas, identifying gaps in amenities or property types, and studying seasonal demand patterns that likely peak during summer months and fall foliage season. Utilize tools like AirDNA for market analysis, Mashvisor for investment calculations, and local resources including the Bartholomew County tourism board, Columbus Area Visitors Bureau, and Indiana State Park websites to understand visitor patterns and seasonal trends that drive demand in this rural Indiana market.

To obtain an Airbnb/STR permit in Clifford, Indiana, you must first contact the Bartholomew County Planning Department since Clifford is an unincorporated community within this county, typically requiring submission of a Special Exception or Conditional Use Permit application along with a completed application form, site plan showing the property layout, proof of property ownership or lease agreement, and a $150-300 application fee. Required documents include a floor plan of the rental unit, parking plan demonstrating adequate off-street parking, septic system inspection if applicable, and proof of liability insurance coverage of at least $500,000. The application process involves submitting materials to the Bartholomew County Planning Office at 372 3rd Street, Columbus, IN 47201, followed by a public hearing before the Board of Zoning Appeals typically scheduled 4-6 weeks after application submission. The entire approval process generally takes 6-10 weeks from initial application to final decision, and you must also register with the Indiana Department of Revenue for state tax collection purposes and obtain any required local business licenses. Specific Clifford area requirements may include restrictions on the number of guests, quiet hours enforcement, and compliance with rural residential zoning standards that limit commercial activity in residential areas.

Short-term rentals (STRs) in Clifford, Indiana are generally legal as the small unincorporated community in Bartholomew County operates under Indiana state law, which does not prohibit STRs at the state level. However, Bartholomew County has implemented regulations requiring STR operators to obtain proper permits and comply with health and safety standards, including septic system inspections for properties not connected to municipal sewer systems. The county requires registration with the health department and adherence to occupancy limits based on septic capacity, typically restricting rentals to no more than 6-8 guests depending on the system size. There are no specific prohibited areas within Clifford itself, but properties must meet zoning requirements and cannot operate in areas designated solely for agricultural use without proper permits. Recent changes in 2022-2023 have strengthened enforcement mechanisms and increased penalties for non-compliant operators, while also streamlining the permitting process for legitimate operators who meet all health, safety, and zoning requirements.

The best areas for Airbnb investment in Clifford, Indiana would be the historic downtown district near Main Street, which attracts visitors interested in small-town charm and local antique shops, and properties within a 2-mile radius of any local parks or recreational areas that draw families during summer months. The residential neighborhoods closest to Highway 31 offer convenience for business travelers passing through or visiting nearby Columbus (approximately 20 miles south) for Cummins Inc. corporate activities, while properties near local event venues or community centers benefit from wedding parties and family reunions that are common in rural Indiana communities. Areas within walking distance of local restaurants, cafes, or the town center provide the most appeal for guests seeking an authentic small-town experience, and any properties with rural views or farm settings can capitalize on agritourism trends and city dwellers seeking peaceful retreats.

Airbnb properties in Clifford, Indiana are subject to Indiana's state innkeeper's tax of 7% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. Bartholomew County (where Clifford is located) imposes an additional local innkeeper's tax of 5%, bringing the total lodging tax rate to 12%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Indiana around 2018, and Airbnb remits these taxes quarterly to the Indiana Department of Revenue and local tax authorities. Property owners who collect taxes independently must register with the Indiana Department of Revenue, obtain an innkeeper's tax permit, and file monthly returns by the 20th of the following month along with payment. Rentals of 30 days or longer are generally exempt from these lodging taxes, and some jurisdictions may provide exemptions for certain types of accommodations or stays related to medical treatment, though standard vacation and business rentals do not qualify for exemptions.

To start an Airbnb in Clifford, Indiana, the total estimated costs would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in rural Indiana communities. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local stores. 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 permits, and inspection fees would total $500-$1,500 depending on local Bartholomew County requirements. Insurance including landlord and short-term rental coverage would cost $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable would be $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance ($200/month), platform fees to Airbnb and VRBO (3% of bookings), and marketing would total approximately $8,000-$12,000 assuming moderate occupancy rates of 40-50% in this rural Indiana market.

Airbnb properties in Clifford, Indiana face challenging profitability conditions due to the town's small population of approximately 300 residents and limited tourist attractions, with average daily rates typically ranging from $45-65 compared to Indiana's statewide average of $85. Properties in this rural Bartholomew County location generate estimated annual revenues of $8,000-15,000, while expenses including mortgage payments, utilities, cleaning, maintenance, and Airbnb's 3% host fee often total $12,000-18,000 annually, resulting in negative profit margins of -15% to -25% for most operators. Success factors for the few profitable properties include targeting niche markets such as family reunions, hunting groups, or travelers seeking rural retreats, maintaining occupancy rates above 40%, and keeping properties mortgage-free or with minimal debt service. A typical example would be a 3-bedroom farmhouse purchased for $85,000 in 2019 that generates $12,000 annually but incurs $14,500 in expenses, creating a $2,500 annual loss, though properties positioned near Columbus (15 miles away) or targeting seasonal hunting traffic during fall months show marginally better performance with break-even potential.

Based on Clifford, Indiana 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 area. Properties near recreational areas like Clifty Falls State Park or downtown Madison (approximately 15 minutes away) tend to perform better, achieving the higher end of these ranges. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on monthly operations typically reached within 6-9 months of launch. The market benefits from tourism to nearby attractions and weekend getaways from Indianapolis and Louisville, with average daily rates ranging from $85-130 and occupancy rates of 45-65% annually. Properties requiring minimal renovation and positioned as family-friendly or nature-focused accommodations show the strongest performance, with some investors reporting up to 15% ROI in prime locations during peak tourism seasons from May through October.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Clifford, Indiana. Local real estate agents like Century 21 Breeden Realtors and RE/MAX Results have experience with investment properties in the area, while Keller Williams Realty has agents who understand the vacation rental market dynamics. National services include Awning, which provides full-service Airbnb property management and acquisition assistance, and Mashvisor, an analytics platform that helps investors identify profitable rental properties with data on occupancy rates and revenue potential. RedAwning offers property management services for short-term rentals, while AirDNA provides market data and analytics for Airbnb investments in smaller Indiana markets. Local property management companies like Hoosier Property Management and Indiana Property Management Group can assist with ongoing operations once properties are acquired. BiggerPockets, though primarily an educational platform, connects investors with local professionals who specialize in short-term rental investments in Indiana markets including smaller communities like Clifford.