Is Draffenville, Kentucky Good for Airbnb Investment?

To start an Airbnb in Draffenville, Kentucky, begin by researching local regulations through Marshall County and the City of Draffenville offices, as Kentucky generally allows short-term rentals but local ordinances may apply specific zoning restrictions or require business licenses. Contact Marshall County Planning and Zoning (270-527-4740) to verify your property is in an appropriate zone and obtain any necessary permits, which typically cost $50-150 annually. Find a suitable property near Kentucky Lake or Lake Barkley, as Draffenville's tourism centers around these water attractions, with properties ranging from $150,000-400,000 depending on lake proximity. Furnish the space with lake-themed decor, quality linens, full kitchen amenities, and outdoor furniture to capitalize on the area's recreational appeal, budgeting $15,000-25,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting lake views and proximity to Kentucky Dam Village State Resort Park, pricing competitively at $100-250 per night depending on size and amenities. For management, either handle bookings personally or hire local property management companies like Lake Barkley Vacation Rentals, ensure compliance with Kentucky's 6% sales tax and 1% transient room tax, maintain proper insurance coverage, and provide guests with information about nearby attractions like Kenlake State Resort Park and Land Between the Lakes National Recreation Area.

To identify profitable short-term rental properties in Draffenville, Kentucky, focus on locations within 10-15 minutes of Kentucky Lake and Lake Barkley, as proximity to these major recreational areas drives 70-80% of STR demand in the region. Target 3-4 bedroom properties with 2+ bathrooms, waterfront access or lake views, boat parking/docks, outdoor spaces, and modern amenities, as these typically command $150-300 per night compared to $80-120 for standard properties. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Aurora and Grand Rivers, aiming for properties under $200,000 that can generate 15-20% annual returns with 60-70% occupancy rates during peak season (May-September). Research competition by monitoring active listings within a 5-mile radius on Airbnb and VRBO, noting that the market currently has approximately 50-75 active STRs with highest demand during fishing tournaments, boating season, and Land Between the Lakes events. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and connect with local property managers like Kentucky Lake Vacation Rentals who understand Marshall County regulations and seasonal demand patterns, while ensuring compliance with local zoning laws and obtaining necessary business licenses through Marshall County offices.

To obtain an Airbnb/STR permit in Draffenville, Kentucky, you must first contact the Marshall County Planning and Zoning Office since Draffenville falls under county jurisdiction, as the city does not have its own zoning department. Begin by submitting a conditional use permit application to Marshall County at their courthouse located at 1101 Main Street in Benton, Kentucky, which typically costs between $150-300. Required documents include a completed application form, property deed or lease agreement, site plan showing parking areas and property boundaries, proof of liability insurance (minimum $1 million), contact information for a local property manager if you're not local, and a floor plan indicating maximum occupancy. You must also obtain a business license from the Kentucky Secretary of State (approximately $15) and register for state and local taxes. The property must meet all building and fire codes, have working smoke and carbon monoxide detectors, provide adequate parking (typically 2 spaces minimum), and comply with septic system requirements if not on city sewer. The approval process typically takes 30-60 days and requires a public hearing before the planning commission. Once approved, you'll need to renew the permit annually for approximately $50-100 and maintain compliance with all health department regulations and noise ordinances that restrict excessive noise between 10 PM and 7 AM.

Short-term rentals (STRs) in Draffenville, Kentucky are generally legal but subject to local regulations and zoning restrictions. As a small city in Marshall County, Draffenville follows Kentucky state law which allows STRs, but the city has implemented basic registration requirements and safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. STRs are typically permitted in residential zones but may face restrictions in certain neighborhoods or historic districts, and operators must comply with occupancy limits, parking requirements, and noise ordinances. The city requires STR operators to obtain a business license and collect local occupancy taxes, with recent changes around 2020-2022 focusing on improved registration processes and enhanced safety inspections. Properties near Kentucky Lake are particularly popular for STRs given the area's tourism appeal, but operators must ensure compliance with both city ordinances and any applicable homeowners association rules, with violations potentially resulting in fines or permit revocation.

The best areas for Airbnb investment in Draffenville, Kentucky are primarily concentrated around Kentucky Lake and Lake Barkley waterfront properties, particularly in the neighborhoods near Kentucky Dam Village State Resort Park and the Draffenville Marina area, as these locations attract year-round tourism for fishing, boating, and water recreation activities. The areas closest to Land Between the Lakes National Recreation Area, especially properties within 2-3 miles of the park entrance, offer strong rental potential due to outdoor enthusiasts visiting for camping, hiking, and wildlife viewing throughout spring, summer, and fall seasons. Properties near the intersection of US-62 and US-641 provide convenient access for business travelers working at nearby industrial facilities including Honeywell and other manufacturing plants in the region, while also serving tourists heading to both lake areas. The residential areas around Draffenville Elementary School and along Olive Road offer family-friendly accommodations for visitors attending events at nearby Kentucky Dam Village or exploring the region's outdoor attractions, with these properties typically generating steady bookings from March through October when lake activities and tourism peak.

Airbnb properties in Draffenville, Kentucky are subject to Kentucky's 6% state sales tax on transient accommodations, which applies to rentals of less than 30 consecutive days, and this tax is collected by the host and remitted monthly to the Kentucky Department of Revenue if gross receipts exceed $4,000 annually. Marshall County imposes an additional 3% transient room tax on short-term rentals, bringing the total occupancy tax rate to approximately 9%, with this county tax also collected by the host and remitted quarterly to the Marshall County Clerk's office. The City of Draffenville does not currently impose a separate municipal lodging tax as of 2023, though hosts should verify current local ordinances as these can change. Kentucky requires hosts to register for a sales tax permit and file returns even if no tax is owed, with penalties for late filing ranging from $25 to $500, and exemptions typically apply only to rentals exceeding 30 consecutive days to the same guest, certain government employees on official business, and properties rented to permanent residents, while most standard vacation and short-term business rentals remain fully taxable under both state and county regulations.

The total cost to start an Airbnb in Draffenville, Kentucky is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in the Kentucky Lake area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials total $1,500-$2,500. Permits and fees vary but typically include business license ($50-$100), short-term rental permit if required ($200-$500), and potential HOA approval fees. Insurance for short-term rentals costs $1,200-$2,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, internet, and cable run $500-$800. First six months operating costs including utilities ($150/month), cleaning services ($75 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total approximately $3,000-$4,500. Additional considerations include potential property improvements, emergency fund reserves, and local tax obligations which could add $5,000-$10,000 to initial investment requirements.

Airbnb properties in Draffenville, Kentucky, show moderate profitability potential with average nightly rates ranging from $75-$150 depending on property size and lake proximity, given the town's location near Kentucky Lake and Land Between the Lakes recreation area. Properties typically achieve 40-60% occupancy rates during peak summer months (May-September) and 20-35% during off-season, generating annual revenues of $15,000-$35,000 for well-positioned 2-3 bedroom homes. Operating expenses including cleaning fees ($40-60 per turnover), utilities ($150-250/month), property management (20-25% of revenue), insurance ($1,200-2,000 annually), and maintenance ($2,000-4,000 yearly) typically consume 60-70% of gross revenue. Successful properties leverage the area's fishing, boating, and outdoor recreation appeal, with lakefront or lake-view homes commanding premium rates and achieving net profit margins of 25-35%, while inland properties typically see 15-25% margins. Key success factors include professional photography highlighting outdoor amenities, competitive pricing during Kentucky Lake's fishing tournaments and summer vacation season, and maintaining high cleanliness standards to compete with established vacation rental markets in nearby Murray and Aurora.

Airbnb investments in Draffenville, Kentucky typically generate annual ROI of 12-18% due to the area's proximity to Kentucky Lake and Land Between the Lakes recreational area, which drives consistent tourist demand year-round. Cash-on-cash returns generally range from 8-14% annually, with properties near the lake commanding premium rates of $120-180 per night during peak season (May-September) and $80-120 during off-season months. Most investors achieve profitability within 18-24 months, with initial investment costs averaging $150,000-250,000 for suitable vacation rental properties in the area. The market benefits from steady demand from fishing enthusiasts, boaters, and families visiting the recreational facilities, with occupancy rates typically running 65-75% annually for well-managed properties, though seasonal fluctuations can impact winter months when occupancy may drop to 40-50%.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In the Draffenville, Kentucky area, local real estate agents like Century 21 Service Realty and Coldwell Banker McMahan Co. have experience with vacation rental properties near Kentucky Lake. RE/MAX agents in nearby Murray and Benton also serve the Lake Barkley region where Draffenville is located. National services include Mashvisor for property analytics, AirDNA for short-term rental market data, and Awning for full-service Airbnb property management and investment guidance. Local property management companies such as Kentucky Lake Vacation Rentals and Lake Barkley Properties assist with both acquisition and ongoing management of short-term rental investments. BiggerPockets marketplace and Roofstock also feature investment properties in western Kentucky markets, while companies like RedAwning and Vacasa provide market analysis and property management services that extend to the Kentucky Lake tourism corridor where Draffenville benefits from seasonal rental demand.