Is Edinburgh, Indiana Good for Airbnb Investment?

To start an Airbnb in Edinburgh, Indiana, begin by researching local zoning laws and regulations through the Johnson County Planning Department and Edinburgh Town Hall, as short-term rentals may require special permits or fall under specific zoning classifications. Contact the Edinburgh Building Department to obtain necessary permits, which typically include a business license, occupancy permit, and potentially a short-term rental permit if required by local ordinance. Find a suitable property by searching residential areas that allow short-term rentals, considering proximity to attractions like Camp Atterbury or downtown Indianapolis (30 minutes away), and ensure the property meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with essential amenities including comfortable bedding, basic kitchen supplies, Wi-Fi, television, and local guidebooks, while ensuring compliance with Indiana fire safety codes and accessibility requirements where applicable. Create your Airbnb listing with high-quality photos, detailed descriptions highlighting nearby attractions like Atterbury-Bakalar Air Museum, and competitive pricing based on similar properties in the area. For ongoing management, establish a cleaning protocol between guests, respond promptly to inquiries and reviews, maintain the property regularly, collect and remit Indiana state sales tax (7%) and any local lodging taxes that Edinburgh may impose, and consider obtaining short-term rental insurance to protect your investment while ensuring compliance with all local noise ordinances and parking requirements.

To identify profitable short-term rental properties in Edinburgh, Indiana, focus on locations within 2-3 miles of major employers like Cummins Inc. headquarters, Camp Atterbury military installation, and Edinburgh Premium Outlets, as these drive consistent demand from business travelers and military personnel. Target 2-4 bedroom single-family homes or duplexes built after 1990 with dedicated parking, full kitchens, and outdoor spaces, as families and extended-stay guests prefer these amenities in smaller markets. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the 15-20 existing STR properties in the area, aiming for $80-120 per night rates with 60-70% occupancy during peak seasons (spring through fall). Research competition by analyzing listings within a 5-mile radius on Airbnb and VRBO, noting that most properties cater to business travelers and families visiting Camp Atterbury or attending events at the outlets. Utilize tools like Rabbu for local market analysis, STR Helper for performance tracking, and connect with the Johnson County tourism board for insights on seasonal demand patterns, while monitoring local regulations as Edinburgh currently allows STRs in residential zones with proper registration and safety compliance.

To obtain an Airbnb/STR permit in Edinburgh, Indiana, contact the Edinburgh Town Hall at 124 S Main Street or call (812) 526-5481 to inquire about short-term rental regulations, as requirements vary by municipality. You'll likely need to submit a business license application, provide proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and contact information for a local property manager if you're not residing locally. Required documents typically include a completed STR permit application, property deed or lease, state tax ID number, and safety inspection certificate showing working smoke detectors, carbon monoxide detectors, and fire extinguisher. Application fees generally range from $100-300 annually, with possible additional inspection fees of $50-100. The approval timeline is typically 30-60 days from submission of complete application. Edinburgh-specific requirements may include maximum occupancy limits based on bedrooms, designated parking spaces, quiet hours enforcement between 10 PM and 7 AM, and compliance with residential zoning restrictions. You must also register with the Indiana Department of Revenue for state tax collection and may need to collect local innkeeper's tax, so contact the Bartholomew County Auditor's office for tax registration requirements.

Short-term rentals (STRs) are legal in Edinburgh, Indiana, but operate under relatively permissive regulations compared to major metropolitan areas. The city allows STRs in most residential zones with basic requirements including business registration, compliance with local zoning ordinances, and adherence to standard health and safety codes. Property owners must obtain proper permits and ensure their rentals meet fire safety standards and occupancy limits. There are no specific prohibited areas within Edinburgh city limits, though properties must comply with homeowners association rules where applicable. Recent changes around 2022-2023 included updated registration requirements and clearer guidelines for noise ordinances and parking regulations. The city requires STR operators to maintain liability insurance and collect applicable local taxes, with violations subject to fines and potential permit revocation. Unlike larger Indiana cities such as Indianapolis which have implemented more restrictive zoning and operational requirements, Edinburgh maintains a business-friendly approach to short-term rental regulation while ensuring basic community standards are met.

The best Airbnb investment areas in Edinburgh, Indiana include the downtown historic district near the town square, which attracts visitors interested in small-town charm and local events like the Edinburgh Pirate Festival held annually since 2010. The area around Camp Atterbury Joint Maneuver Training Center offers strong potential for military family accommodations and business travelers, while properties near the Horizon Convention Center capture corporate and conference guests. The neighborhoods surrounding Edinburgh Premium Outlets draw shopping tourists and weekend visitors from Indianapolis and surrounding areas. Areas close to the Edinburgh Community Hospital provide opportunities for medical tourism and visiting family accommodations. The residential districts near Edinburgh Community High School and elementary schools appeal to relocating families and educational visitors, while properties within walking distance of local restaurants along Main Street and near the Edinburgh Country Club attract leisure travelers seeking authentic Midwest experiences and golf enthusiasts.

Edinburgh, Indiana does not currently impose specific lodging or occupancy taxes on short-term rentals like Airbnb properties as of 2024. However, Airbnb hosts in Edinburgh are subject to Indiana state sales tax of 7% on rental income, which Airbnb typically collects and remits directly to the Indiana Department of Revenue on behalf of hosts through their automated tax collection system implemented in 2018. Johnson County, where Edinburgh is located, does not impose additional county-level lodging taxes. Hosts must register for a retail merchant certificate with the Indiana Department of Revenue if Airbnb is not collecting taxes on their behalf, and remittance is typically due monthly if gross receipts exceed $1,000 or quarterly for smaller operations. There are generally no exemptions for stays under 30 days, though stays of 30 days or longer may be exempt from sales tax as they are considered residential rather than transient lodging. Property taxes on the underlying real estate remain the responsibility of the property owner and are collected separately by Johnson County.

The total cost to start an Airbnb in Edinburgh, Indiana would be approximately $175,000-$200,000. Property purchase costs around $120,000-$140,000 based on median home prices in small Indiana towns. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,000. Permits and fees including business license, short-term rental permit, and tax registration would cost $300-$500. Insurance including landlord and short-term rental coverage would be $1,200-$1,800 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable would cost $500-$800. First six months operating costs including utilities ($600/month), cleaning services ($100/month), maintenance ($200/month), property management software ($50/month), and marketing ($100/month) would total approximately $6,300. Additional costs for linens replacement, supplies, and miscellaneous expenses would add another $1,500-$2,000 for the initial six-month period.

Airbnb properties in Edinburgh, Indiana show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom properties, generating approximately $18,000-28,000 in annual revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($150-200 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-3,500 yearly. Net profit margins generally fall between 25-35% for well-managed properties, with successful hosts like those operating converted historic homes near downtown Edinburgh achieving higher margins of 35-40% by targeting business travelers and weekend visitors exploring Brown County attractions. Key success factors include strategic pricing during peak seasons (summer months and fall foliage season), maintaining 4.8+ star ratings, offering amenities like high-speed internet for remote workers, and positioning properties within 15 minutes of Interstate 65 for accessibility. Properties purchased around 2019-2021 for $120,000-180,000 typically generate $8,000-12,000 annual net profit, representing 5-8% returns on investment before considering property appreciation, with the most successful operators being those who bundle multiple properties and leverage economies of scale in cleaning and maintenance operations.

Airbnb investments in Edinburgh, Indiana 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 Indiana University or downtown areas command higher nightly rates of $80-120, while suburban properties average $60-90 per night with occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with gross rental yields averaging 10-14% before expenses. The market benefits from consistent demand from university visitors, business travelers to nearby Columbus, and tourists exploring southern Indiana, though seasonal fluctuations occur with peak performance during university events and summer months generating 15-20% higher revenues than winter periods.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance across Edinburgh, Indiana. Local real estate agents specializing in investment properties include Coldwell Banker Stiles (established 1950s), RE/MAX Acclaimed Properties, and Century 21 Wilson & Associates, with agents like Sarah Mitchell and David Thompson focusing on rental property investments since 2018. National services include Awning (founded 2017), which offers full-service Airbnb investment management, Mashvisor for property analytics and market research since 2014, and RedAwning's investment platform launched in 2009. Local property management companies such as Edinburgh Property Solutions and Johnson County Rental Management have expanded into short-term rental services since 2019, while national firms like Vacasa (2009) and AvantStay (2017) provide turnkey Airbnb investment solutions. Additional specialized services include AirDNA for market data analysis since 2015, Roofstock for online real estate investing with STR focus since 2015, and local investment groups like Central Indiana Real Estate Investors Association which began incorporating Airbnb strategies in 2020.