Is Crawfordsville, Indiana Good for Airbnb Investment?

To start an Airbnb in Crawfordsville, Indiana, begin by researching local zoning laws and regulations through the Montgomery County Planning Department and Crawfordsville City Hall, as Indiana allows short-term rentals but municipalities can impose restrictions. Contact the Crawfordsville Building Department at 765-364-5160 to determine if you need a business license or special permits, and check with the Montgomery County Health Department for any safety requirements. Find a suitable property by working with local real estate agents like Carpenter Realtors or F.C. Tucker, focusing on areas near Wabash College or downtown for higher demand. Furnish the space with essential amenities including Wi-Fi, linens, kitchen supplies, and safety equipment like smoke detectors and fire extinguishers, purchasing from local stores like Walmart or Menards. Create your Airbnb listing with professional photos highlighting proximity to Wabash College, Sugar Creek, and local attractions like the Montgomery County Jail Museum. Set competitive pricing by researching similar properties in the area, typically ranging $60-120 per night depending on size and location. Manage your property by establishing cleaning protocols, coordinating with local cleaning services, installing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with Indiana's 7% state sales tax and Montgomery County's 2% innkeeper's tax requirements.

To identify profitable short-term rental properties in Crawfordsville, Indiana, focus on locations within 2-3 miles of Wabash College campus and downtown historic district, as these areas attract visiting families, alumni, and business travelers year-round. Target 2-4 bedroom single-family homes or duplexes built after 1980 with updated kitchens, reliable WiFi capability, parking spaces, and outdoor areas, as these features command $80-150 per night compared to basic accommodations at $50-80. Analyze pricing using AirDNA and Mashvisor to benchmark against the 15-20 existing STR properties in the market, focusing on occupancy rates of 60-75% that successful properties achieve during peak times like college events, graduation, and fall sports seasons. Research competition through Airbnb, VRBO, and local Facebook groups to identify gaps in amenities or locations, particularly targeting underserved areas near industrial employers like Nucor Steel or the growing logistics sector along I-74. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and connect with Crawfordsville Chamber of Commerce and Montgomery County tourism boards to understand seasonal demand patterns, with properties near recreational areas like Sugar Creek or Shades State Park showing 20-30% higher summer occupancy rates.

To obtain an Airbnb/STR permit in Crawfordsville, Indiana, you must first contact the Crawfordsville Planning Department at City Hall located at 300 East Pike Street to determine current zoning compliance and obtain a Conditional Use Permit application if operating in residential zones. Submit the completed application along with a site plan showing the property layout, proof of property ownership or lease agreement, liability insurance documentation (minimum $1 million coverage), floor plan indicating maximum occupancy, parking plan showing adequate off-street parking, and contact information for a local property manager if you're an absentee owner. The application fee is typically $150-250 for the conditional use permit, plus an annual business license fee of approximately $50-75. You'll also need to register with the Montgomery County Health Department for health and safety inspections, which costs around $100-150. The process includes a public hearing before the Plan Commission, which occurs monthly, and the entire approval timeline ranges from 45-90 days depending on application completeness and any required modifications. Crawfordsville requires STRs to maintain quiet hours from 10 PM to 7 AM, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking (typically 1 space per bedroom), and maintain the property in accordance with residential neighborhood standards. Once approved, you must display your permit number in all online listings and renew annually by December 31st.

Short-term rentals (STRs) are generally legal in Crawfordsville, Indiana, as the city has not enacted specific prohibitions against them, though they must comply with existing 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 accessory uses, but operators should verify compliance with specific zoning districts as some areas may have restrictions on commercial activities in purely residential zones. Indiana state law generally supports property rights for STR operations, and Crawfordsville has not implemented recent restrictive ordinances like some larger Indiana cities have, though operators must still comply with state tax collection requirements and local health and safety codes. Property owners should contact the Crawfordsville Planning Department to confirm current requirements, as local regulations can change and specific properties may have additional restrictions based on homeowners association rules or historic district designations.

The best areas for Airbnb investment in Crawfordsville, Indiana include the Historic Downtown District near Main Street, which attracts visitors to the General Lew Wallace Study & Museum and hosts various festivals throughout the year, plus offers proximity to restaurants and antique shops. The area around Wabash College campus is highly attractive due to consistent demand from visiting parents, prospective students, alumni during homecoming events, and academic conferences, providing year-round occupancy potential. Properties near Sugar Creek and the surrounding recreational areas appeal to outdoor enthusiasts visiting for fishing, canoeing, and camping activities. The neighborhoods close to Nuclear Fuel Services facility and other industrial employers generate steady business travel demand from contractors, consultants, and temporary workers. Areas within walking distance of the Montgomery County Fairgrounds benefit from increased bookings during the annual county fair and other events held throughout the year, while properties near the Crawfordsville Regional Airport serve business travelers and those attending corporate meetings at local manufacturing facilities.

In Crawfordsville, Indiana, Airbnb hosts are subject to Indiana's state innkeeper's tax of 8% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. Montgomery County may impose an additional local innkeeper's tax of up to 5%, bringing the total potential tax rate to approximately 13%. These taxes are typically 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. Hosts must register with the Indiana Department of Revenue to obtain an innkeeper's tax permit and may need to file monthly returns even when Airbnb collects taxes automatically. The city of Crawfordsville may require additional business licenses or permits for short-term rental operations, and some exemptions may apply for rentals to permanent residents or stays exceeding 30 consecutive days. Property taxes on the underlying real estate are separate from occupancy taxes and are assessed by Montgomery County based on the property's assessed value and local tax rates.

The total cost to start an Airbnb in Crawfordsville, Indiana is approximately $185,000-$220,000. Property purchase costs around $140,000-$160,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for furniture, appliances, linens, and decor 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 including business license, short-term rental permit, and inspection fees range from $500-$1,500 depending on local regulations. Insurance for short-term rental coverage costs $2,000-$3,000 annually. Utility deposits and connections for electricity, gas, water, internet, and cable total $1,000-$2,000. First six months operating costs including utilities ($900), cleaning supplies ($300), maintenance reserves ($1,500), marketing ($600), and platform fees on estimated bookings ($2,400) amount to approximately $5,700. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and vacancy periods during the initial launch phase.

Airbnb properties in Crawfordsville, Indiana typically generate modest returns with average daily rates ranging from $65-85 for entire homes and $35-50 for private rooms, resulting in monthly revenues of $800-1,500 for well-managed properties with 60-70% occupancy rates. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($80-120 monthly), property management (15-25% if outsourced), insurance ($200-400 annually), and maintenance costs averaging $100-200 monthly. Net profit margins typically range from 15-25% for owner-operated properties, with successful hosts near Wabash College or downtown areas achieving higher occupancy during academic events and local festivals. Properties within walking distance of the college campus or historic downtown perform best, with some hosts reporting annual profits of $3,000-8,000 on modest 2-3 bedroom homes purchased for $80,000-120,000. Success factors include competitive pricing during Wabash College events, maintaining high cleanliness standards, providing local recommendations, and offering amenities like WiFi and parking, though the limited tourism market and seasonal demand fluctuations present challenges for consistent year-round profitability compared to larger Indiana markets like Indianapolis or Bloomington.

Based on Crawfordsville, 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 city. Properties near Wabash College and downtown areas tend to perform better, with investors seeing profitability within 18-24 months of initial investment. The average daily rate in Crawfordsville ranges from $75-120, with occupancy rates averaging 55-65% annually due to college events, business travelers to local manufacturing facilities like Nucor Steel, and visitors to Sugar Creek and nearby recreational areas. Initial investment costs are relatively low compared to larger Indiana markets, with typical rental properties ranging from $80,000-150,000, allowing for faster break-even periods and stronger cash flow once established in the market.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Crawfordsville, Indiana. Local real estate agents like Coldwell Banker Shook in Crawfordsville and RE/MAX Results have experience with investment properties in Montgomery County. National services include AirDNA for market analysis, Mashvisor for property investment analytics, and BiggerPockets for connecting with local investors and agents. Awning provides short-term rental property management services that extend to smaller Indiana markets. Local property management companies like Montgomery County Property Management can assist with Airbnb operations, while national platforms like RedAwning and Vacasa offer comprehensive short-term rental management. Real estate investment companies such as Roofstock and Fundrise, though primarily focused on traditional rentals, occasionally feature properties suitable for Airbnb conversion in secondary markets like Crawfordsville. Local mortgage brokers and lenders familiar with investment properties include First Financial Bank and Merchants Bank, both with Indiana presence and experience in investment property financing for short-term rental ventures.