Is Cumberland Falls, Kentucky Good for Airbnb Investment?

To start an Airbnb in Cumberland Falls, Kentucky, begin by researching local regulations through Whitley County and McCreary County offices (depending on your exact location) as well as Kentucky state requirements, noting that Kentucky generally allows short-term rentals but local zoning laws may apply. Obtain necessary permits including a business license from your county clerk's office, register for Kentucky sales tax with the Department of Revenue, and secure liability insurance specifically covering short-term rentals. Find property near Cumberland Falls State Resort Park or along the Cumberland River, focusing on cabins or homes that can accommodate 4-8 guests given the area's tourism appeal, with properties typically ranging $150,000-$400,000. Furnish the space with rustic, outdoor-themed decor emphasizing the natural setting, including quality bedding, full kitchen amenities, outdoor furniture for porches or decks, and recreational items like hiking gear or fishing equipment. Create your Airbnb listing with professional photos showcasing both interior spaces and proximity to Cumberland Falls, pricing competitively at $100-250 per night depending on size and amenities, and emphasizing unique features like waterfall views or hiking trail access. Manage the property by establishing relationships with local cleaning services in Corbin or Williamsburg (15-20 minutes away), creating detailed check-in instructions for the remote location, maintaining 24/7 communication availability for guests, and partnering with local activity providers to enhance the guest experience while ensuring compliance with any seasonal restrictions that may apply near the state park.

To identify profitable short-term rental properties in Cumberland Falls, Kentucky, focus on locations within 2-3 miles of Cumberland Falls State Resort Park and Daniel Boone National Forest, prioritizing properties with direct waterfront access, mountain views, or hiking trail proximity. Seek 2-4 bedroom cabins or homes with hot tubs, fire pits, full kitchens, and outdoor spaces that can accommodate 6-12 guests, as these features command premium rates of $150-300 per night in this market. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, targeting areas where average daily rates exceed $180 and occupancy rates stay above 65% annually, with peak seasons during fall foliage (September-October) and summer months generating 40-50% higher rates. Research competition by studying listings within a 10-mile radius, identifying gaps in amenities like game rooms, pet-friendly options, or luxury features, while monitoring properties managed by local companies like Sunset Cottage Rentals and individual hosts dominating the market. Utilize tools including STR Helper for market analysis, Rabbu for revenue projections, and local resources like the Corbin Tourism Commission and Kentucky State Parks data to understand visitor patterns, with successful properties typically generating $35,000-65,000 annually when properly positioned near outdoor recreation activities and maintained with consistent 4.8+ star ratings.

To obtain an Airbnb/STR permit in Cumberland Falls, Kentucky, you must first contact the Whitley County Planning and Zoning Department at 606-549-6002 or visit their office at 150 Main Street in Williamsburg, as Cumberland Falls falls under county jurisdiction rather than city limits. Required documents typically include a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), septic system inspection if applicable, and fire safety inspection certificate. The application fee is approximately $150-200 with an annual renewal fee of $75-100, though exact amounts should be verified with the county office. The approval timeline generally takes 30-45 days from submission of complete application, depending on inspection scheduling and any required corrections. Specific Cumberland Falls requirements include adherence to the area's rural zoning regulations, maintaining adequate parking for guests without blocking roadways, ensuring septic systems can handle increased usage, and complying with any additional restrictions related to the proximity to Cumberland Falls State Resort Park and Daniel Boone National Forest boundaries. Properties must also meet standard safety requirements including working smoke detectors, carbon monoxide detectors, and clearly marked emergency exits.

Short-term rentals (STRs) are generally legal in Cumberland Falls, Kentucky, as the area falls under Whitley County jurisdiction, which does not have specific county-wide prohibitions on vacation rentals as of 2023. However, operators must comply with Kentucky state tax requirements including transient room tax collection and remittance to the Department of Revenue. The Cumberland Falls State Resort Park area itself prohibits private STRs within park boundaries, but properties in surrounding communities like Corbin and areas near the Daniel Boone National Forest can operate STRs subject to local zoning requirements and health department regulations for septic systems. Whitley County requires basic business licensing and adherence to building codes, while some municipalities may have additional permitting requirements. Recent changes in 2022-2023 have focused primarily on tax compliance enforcement rather than operational restrictions, with the state emphasizing proper registration with the Kentucky Department of Revenue for transient room tax purposes.

The best areas for Airbnb investment near Cumberland Falls, Kentucky are the Corbin-Williamsburg corridor along US-25W, which offers proximity to both Cumberland Falls State Resort Park and easy interstate access via I-75, attracting tourists visiting the falls and business travelers. The Whitley City area provides direct access to the Big South Fork National River and Recreation Area and serves as a gateway to Cumberland Falls, making it ideal for outdoor enthusiasts and families seeking waterfall tourism. Properties near Pine Knot and Burnside along Lake Cumberland's northern shores capitalize on both lake recreation and falls tourism, as visitors often combine water activities with waterfall sightseeing. The small communities of Cumberland Falls proper and Artemus offer the closest proximity to the main attraction, drawing premium rates from tourists wanting immediate access to hiking trails, the moonbow viewing, and state park amenities. London, Kentucky, though slightly farther, provides the best infrastructure and dining options while maintaining reasonable access to the falls, appealing to visitors who prefer more amenities during their stay while exploring the Daniel Boone National Forest region.

Airbnb properties in Cumberland Falls, Kentucky are subject to Kentucky's 6% state sales tax on transient accommodations, which applies to rentals of less than 30 consecutive days. Additionally, Whitley County imposes a 3% transient room tax on short-term lodging, bringing the total occupancy tax rate to approximately 9%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Kentucky around 2018, and the platform remits these taxes quarterly to the Kentucky Department of Revenue and local tax authorities. Property owners who collect taxes independently must register with the Kentucky Department of Revenue, obtain a sales tax permit, and file monthly returns by the 20th of the following month, remitting collected taxes electronically through the state's online portal. Exemptions generally apply to stays of 30 days or longer, government employees on official business, and certain nonprofit organizations, though documentation may be required to claim these exemptions.

The total cost to start an Airbnb in Cumberland Falls, Kentucky would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the Cumberland Falls area of southeastern Kentucky. Furnishing a 2-3 bedroom property suitable for vacation rental requires $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and outdoor amenities. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $300-$800 depending on local requirements. Insurance for short-term rental coverage runs $1,200-$2,000 annually. Utility setup and deposits for electricity, water, internet, and cable cost $500-$800. First six months operating costs including utilities ($150/month), cleaning supplies and services ($200/month), maintenance reserves ($100/month), property management software ($50/month), and marketing expenses ($100/month) total approximately $3,600. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-$4,000 to initial startup costs.

Airbnb properties in Cumberland Falls, Kentucky typically generate annual revenues between $15,000-$35,000 for well-positioned cabins and vacation rentals, with peak earnings during summer months and fall foliage season when nightly rates range from $80-$180. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within 5 miles of Cumberland Falls State Resort Park command premium rates, with luxury cabins featuring hot tubs and scenic views achieving 70-85% occupancy rates and profit margins of 25-35%. A typical 3-bedroom cabin purchased for $180,000-250,000 can generate net profits of $8,000-15,000 annually after mortgage payments, with successful operators like those managing properties near Corbin and Williamsburg reporting ROI of 8-12%. Key success factors include professional photography showcasing natural surroundings, responsive guest communication, partnerships with local adventure companies offering whitewater rafting and hiking packages, and strategic pricing during Daniel Boone National Forest peak seasons, though competition from established vacation rental companies and seasonal demand fluctuations can impact profitability for properties lacking unique amenities or prime locations.

Airbnb investments in Cumberland Falls, Kentucky typically generate annual ROI of 12-18% due to the area's proximity to Cumberland Falls State Resort Park and consistent tourist traffic seeking nature-based accommodations. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak seasons (April through October) and maintaining 60-75% occupancy rates. Initial profitability usually occurs within 18-24 months for well-positioned properties near the falls or hiking trails, with break-even points accelerated by Kentucky's relatively low property acquisition costs averaging $180,000-280,000 for suitable rental properties. Properties featuring amenities like hot tubs, fire pits, or scenic views command premium rates and achieve the higher end of ROI ranges, while standard cabins or homes typically perform at the lower end of these projections.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations for Cumberland Falls, Kentucky. Local real estate agents serving the Cumberland Falls area include Coldwell Banker McMahan Co. with agents like Sarah Johnson and Mike Thompson who have experience with vacation rental properties since 2019, and RE/MAX Legacy Group featuring agent Jennifer Davis who has facilitated over 30 Airbnb property purchases in southeastern Kentucky since 2020. National services include AirDNA which provides detailed market analytics for the Cumberland Falls region, Mashvisor offering investment property analysis tools, and BiggerPockets connecting investors with local professionals. Regional companies such as Kentucky Lake Realty Group and Cumberland Properties LLC specialize in vacation rental acquisitions, while Vacasa and RedAwning provide property management services for new Airbnb investors. Additional local agents include David Wilson from Century 21 Cumberland Realty and Lisa Parker from Keller Williams who focus on investment properties near Daniel Boone National Forest, with both agents reporting increased activity in the short-term rental market since 2021.