Is Dayton, Ohio Good for Airbnb Investment?

To start an Airbnb in Dayton, Ohio, begin by researching local regulations as Dayton requires short term rental operators to obtain a business license through the City of Dayton's Department of Planning, Communities & Development.

Launch checklist

• Next, secure necessary permits including a Certificate of Occupancy if needed, ensure your property meets fire safety codes.
• Find a suitable property in popular Dayton neighborhoods like Oregon District, Oakwood, or near Wright Patterson Air Force Base, considering proximity to attractions like the National Museum of the U.S.
• Air Force, University of Dayton, and downtown entertainment venues.
• Furnish the space with essential amenities including reliable Wi Fi, comfortable bedding, kitchen supplies, and local guidebooks, ensuring the property can accommodate typical guest needs while reflecting Dayton's aviation heritage or local character.
• Create your Airbnb listing with professional photos, competitive pricing (typically $60 to 120 per night in Dayton depending on location and amenities), and detailed descriptions highlighting nearby attractions and accessibility to major highways like I 75 and I 70.
• Finally, establish management systems for guest communication, cleaning between stays, key exchange (consider smart locks), and maintain compliance with local tax requirements including Ohio's 5.75% sales tax and any applicable Montgomery County lodging taxes.

To identify profitable short term rental properties in Dayton, Ohio, focus on locations near Wright Patterson Air Force Base, the University of Dayton campus, downtown's Oregon District entertainment area, and the Dayton Convention Center, as these generate consistent demand from military personnel, students, families.

What to prioritize

• Target 2 to 4 bedroom properties built after 1950 with modern amenities, parking, and outdoor spaces, particularly in neighborhoods like Oakwood, Kettering, Centerville, and the historic South Park area where property values range from $80,000 to $200,000.
• Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue of $1,800 to $3,500 monthly can cover mortgage, utilities, cleaning, and maintenance costs while maintaining 60 to 75% occupancy rates.
• Research competition by analyzing existing Airbnb and VRBO listings within a 3 mile radius, noting their pricing ($75 to $150/night), amenities, and booking patterns, while using tools like Rabbu, BiggerPockets calculators.
• Additionally, verify Dayton's STR regulations, consider properties near major employers like Premier Health and Kettering Health, and factor in seasonal demand fluctuations tied to university schedules and military training cycles.

To obtain an Airbnb/STR permit in Dayton, Ohio, you must first register your property with the City of Dayton's Planning and Community Development Department by visiting their office at 101 W Third Street or applying online through the city's permitting portal.

Documents and approvals

• Required documents include a completed short term rental registration application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the Dayton Fire Department.
• The registration fee is approximately $150 annually with additional inspection fees of $75 to 100.
• You must also obtain a business license from the City Clerk's office for around $25 and ensure compliance with zoning requirements (STRs are typically permitted in residential zones with restrictions).
• The property must pass safety inspections including smoke detectors in all bedrooms, carbon monoxide detectors, fire extinguishers, and emergency exit plans posted in each unit.
• The timeline is typically 4 to 6 weeks from application submission to approval, provided all inspections pass and documentation is complete.
• Dayton requires STRs to maintain a guest registry, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking, and maintain quiet hours from 10 PM to 7 AM, with the responsible party responding to complaints within 30 minutes.

Short term rentals (STRs) are legal in Dayton, Ohio, but operate under specific regulations established by the city.

Core operating requirements

• As of 2023, Dayton requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short term rentals to certain residential districts while prohibiting them in some historic neighborhoods and areas with homeowner association restrictions.
• The city implemented registration requirements around 2021 to 2022 that mandate operators to register their properties, maintain liability insurance, and follow occupancy limits typically capped at two guests per bedroom plus two additional guests.
• Recent legal changes have included stricter enforcement of noise ordinances, parking requirements (usually one space per bedroom), and safety standards including smoke and carbon monoxide detectors.
• Properties must also comply with health department regulations and cannot operate in areas zoned exclusively for single family residential use without proper permits, with violations subject to fines ranging from $100 to $500 per day.

The best Airbnb investment areas in Dayton, Ohio include the Oregon District, which attracts tourists with its historic charm, walkable entertainment venues, restaurants, and proximity to downtown events; the Wright Dunbar Village area.

In Dayton, Ohio, Airbnb hosts are subject to multiple lodging taxes including the state of Ohio's 5.75% lodging tax, Montgomery County's 3% bed tax, and the City of Dayton's 3% transient occupancy tax, totaling approximately 11.75% in combined lodging taxes on short term rental stays.

Taxes and filing responsibilities

• These taxes apply to rentals of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking for properties listed on their platform, with Airbnb remitting payments quarterly to the appropriate tax authorities.
• Hosts operating independently or through other platforms must register with the Ohio Department of Commerce, Montgomery County, and the City of Dayton to collect and remit these taxes monthly or quarterly depending on volume.
• The state lodging tax became applicable to short term rentals around 2019, while local jurisdictions began enforcing collection from platforms like Airbnb between 2018 to 2020.
• Exemptions typically include stays of 30 days or longer, certain government and non profit travelers, and in some cases properties rented fewer than a specified number of days per year.

To start an Airbnb in Dayton, Ohio, expect total costs of approximately $180,000 to $220,000.

Cost breakdown

• Property purchase costs around $140,000 based on Dayton's median home price as of 2023.
• Furnishing a 2 to 3 bedroom property requires $8,000 to $12,000 for quality furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and local stores.
• Initial setup costs include $2,000 to $3,000 for professional photography, listing optimization, smart locks, and security systems.
• Permits and fees total $500 to $800, covering business licenses, short term rental permits, and city registration requirements.
• Insurance runs $1,200 to $2,000 annually for landlord and short term rental coverage through companies like Proper Insurance or CBIZ.
• Utility setup and deposits cost $500 to $800 for electricity, gas, water, internet, and cable.
• First six months operating costs include $3,600 for utilities, $1,800 for cleaning services, $1,200 for maintenance and supplies, $600 for Airbnb host fees, and $1,000 for marketing and miscellaneous expenses, totaling approximately $8,200.
• Additional considerations include $2,000 to $4,000 for any necessary property improvements or repairs to meet rental standards.

Airbnb properties in Dayton, Ohio typically generate average monthly revenues of $1,200 to $2,800 depending on property type and location, with downtown and University of Dayton area properties commanding higher rates around $80 to 120 per night compared to suburban locations at $45 to 75 per night.

Profitability indicators

• Operating expenses generally run 40 to 60% of gross revenue, including cleaning fees ($25 to 40 per turnover), utilities ($150 to 250 monthly), property management (10 to 20% of revenue), insurance ($100 to 200 monthly), and maintenance costs ($200 to 400 monthly).
• Properties near Wright Patterson Air Force Base and downtown business district show stronger occupancy rates of 65 to 75% annually due to consistent business travel demand, while residential areas average 45 to 60% occupancy.
• Successful Dayton Airbnb operators typically achieve net profit margins of 15 to 25% after all expenses, with a 3 bedroom home near UD generating approximately $28,000 annual revenue against $20,000 in expenses for an 8% return on investment.
• Key success factors include strategic location within 10 minutes of major employers like Premier Health or Kettering Health, professional photography, competitive pricing 10 to 15% below hotels, and maintaining 4.8+ star ratings through consistent cleanliness and guest communication.

Airbnb investments in Dayton, Ohio typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 14% based on current market conditions.

Return planning figures

• Properties in desirable neighborhoods like Oregon District and Oakwood can achieve higher returns of 15 to 20% annually, while suburban areas average 10 to 15%.
• Initial profitability usually occurs within 6 to 12 months for well positioned properties, with full investment recovery expected in 5 to 7 years.
• The Dayton market benefits from steady demand from Wright Patterson Air Force Base personnel, University of Dayton visitors, and business travelers, with average daily rates of $75 to 120 and occupancy rates of 65 to 75% annually.
• Properties purchased in the $80,000 to 150,000 range typically generate $800 to 1,500 monthly gross revenue after accounting for seasonal fluctuations, with net cash flow of $300 to 700 monthly after expenses including property management, utilities.

STRSearch is a national platform that helps investors identify profitable short term rental properties in Dayton, Ohio by providing market data and investment analysis.

Companies and resources

• Local real estate agents specializing in Airbnb investments in Dayton include Keller Williams agents who focus on investment properties, RE/MAX professionals with short term rental expertise, and Coldwell Banker agents experienced in the vacation rental market.
• National services include Awning (formerly RedAwning) which offers full service Airbnb property management and acquisition assistance, Mashvisor for property analysis and market research, AirDNA for short term rental data and insights.
• Local property management companies like Dayton Property Management and Ohio Property Brothers can assist with identifying investment opportunities.
• Real estate investment groups in the Dayton area, including the Dayton Real Estate Investors Association, often have members who specialize in Airbnb property acquisition and can provide local market insights and deal flow opportunities.