Is Edmonton, Kentucky Good for Airbnb Investment?

To start an Airbnb in Edmonton, Kentucky, begin by researching local zoning laws and regulations through Metcalfe County's planning and zoning office, as short-term rentals may require special permits or fall under specific zoning classifications. Contact the Kentucky Department of Revenue to understand state tax obligations for short-term rentals, including sales tax collection requirements that typically range from 6-9%. Obtain necessary business licenses from Metcalfe County Clerk's office and ensure compliance with fire safety codes by contacting the local fire marshal for inspection requirements. Find a suitable property by researching areas with tourist appeal near attractions like Barren River Lake or Green River, considering properties with 2-3 bedrooms that can accommodate families visiting the region. Furnish the space with essential amenities including comfortable beds, full kitchen appliances, Wi-Fi, and local guidebooks highlighting nearby outdoor activities and historical sites. Create your Airbnb listing with professional photos showcasing the property's proximity to Kentucky's natural attractions, competitive pricing around $75-125 per night based on regional market rates, and detailed descriptions emphasizing the rural Kentucky experience. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication with visitors, coordinating key exchanges or lockbox systems, and keeping detailed records for tax purposes while monitoring local occupancy rates and seasonal demand patterns typical of rural Kentucky tourism.

To identify profitable short-term rental properties in Edmonton, Kentucky, focus on locations within 15-20 minutes of major attractions like Mammoth Cave National Park, Green River, and downtown Bowling Green, as proximity to tourism draws and business centers drives occupancy rates. Target 2-4 bedroom properties built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as these features command higher nightly rates of $80-150 in the Edmonton market. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates, occupancy percentages (aim for 60%+ annually), and seasonal demand patterns, while calculating potential gross revenue against mortgage, utilities, cleaning, and management costs to ensure 15-20% cash-on-cash returns. Research competition within a 5-mile radius using Airbnb and VRBO searches to identify gaps in amenities or pricing, noting that Edmonton's limited STR inventory creates opportunities for well-positioned properties. Utilize tools like BiggerPockets for market analysis, STR Helper for revenue projections, local MLS data through Kentucky Regional MLS, and connect with Edmonton-area real estate agents familiar with investment properties, while monitoring Barren County tourism statistics and Hart County economic development initiatives that could impact future demand in this south-central Kentucky market.

To obtain an Airbnb/STR permit in Edmonton, Kentucky, contact the Metcalfe County Planning and Zoning Department or the city clerk's office at Edmonton City Hall located at 120 West Stockton Street, as Edmonton operates under county jurisdiction for most zoning matters. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy ($1 million minimum coverage), floor plan showing maximum occupancy, contact information for a local property manager if you're non-resident, and payment of application fees ranging from $100-300 annually. Submit your application along with a $50-75 processing fee, and expect a 30-45 day review period during which the property may be inspected for safety compliance including working smoke detectors, carbon monoxide detectors, fire extinguishers, and proper egress windows. Edmonton requires STR properties to maintain quiet hours from 10 PM to 8 AM, provide adequate parking (typically 2 spaces minimum), display the permit number in all advertisements, collect and remit local occupancy taxes of 3-6%, and maintain a guest registry. Once approved, permits are valid for one year and must be renewed annually with updated insurance documentation and compliance certification.

Short-term rentals (STRs) are legal in Edmonton, Alberta, Canada, but are subject to specific regulations implemented in 2021. The city requires STR operators to obtain a business license and comply with zoning restrictions, with STRs permitted in residential zones but limited to a maximum of four guests at one time and no more than two separate bookings simultaneously. Properties must meet safety requirements including smoke and carbon monoxide detectors, and operators must maintain a 24-hour contact system for complaints. STRs are prohibited in certain areas including some condominium complexes that have enacted their own restrictions, and the city has implemented a complaint-driven enforcement system. Recent changes include stricter noise bylaws and enhanced penalties for non-compliance, with Edmonton taking a more permissive approach compared to other major Canadian cities while still maintaining neighborhood integrity through occupancy limits and safety standards.

The best Airbnb investment areas in Edmonton, Kentucky include the downtown historic district near the courthouse square, which attracts visitors for local events, antique shopping, and business related to the county seat activities. The areas around Mammoth Cave National Park's northern access points offer strong potential due to tourism spillover from the world's longest known cave system, drawing nature enthusiasts and families year-round. Properties near the Green River provide appeal for fishing, boating, and outdoor recreation visitors. The residential neighborhoods along Highway 31E benefit from their proximity to both Louisville (about 90 minutes) and Nashville (2 hours), making them attractive for extended business stays and weekend getaways. Areas near the Metcalfe County Fairgrounds see seasonal demand during fair time and other community events, while properties close to local bed and breakfast establishments can capture overflow demand during peak tourism seasons when traditional accommodations fill up.

Edmonton, Kentucky does not currently impose specific lodging or occupancy taxes on Airbnb rentals as of 2024, as the small city (population under 2,000) has not enacted such ordinances. However, Airbnb hosts in Edmonton are subject to Kentucky state sales tax of 6% on short-term rental income, which must be collected from guests and remitted quarterly to the Kentucky Department of Revenue through their online portal. Metcalfe County, where Edmonton is located, does not impose additional transient room taxes. Hosts must register for a Kentucky sales tax permit and file returns by the 20th of the month following each quarter, with exemptions typically limited to rentals exceeding 30 consecutive days which are considered long-term leases rather than transient accommodations. The Kentucky Tourism Development Act allows local governments to impose up to 3% transient room taxes, but Edmonton has not exercised this authority as of 2024.

The total cost to start an Airbnb in Edmonton, Kentucky would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Kentucky markets. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and décor to create an appealing guest experience. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $2,000-$3,500. Permits and fees vary by local regulations but typically include business license ($50-$200), short-term rental permit if required ($100-$500), and potential zoning compliance costs ($200-$800). Insurance for short-term rentals runs $1,200-$2,000 annually, significantly higher than standard homeowner's policies. Utility setup and deposits for electricity, water, gas, internet, and cable total $500-$800 initially. First six months operating costs including utilities ($150-$250/month), cleaning services ($50-$80 per turnover), maintenance and supplies ($100-$200/month), platform fees (3% of bookings), and marketing expenses total approximately $3,000-$5,000, assuming moderate occupancy rates of 40-60% during the initial period.

Airbnb properties in Edmonton, Kentucky show moderate profitability potential with average nightly rates ranging from $75-120 depending on property size and amenities, generating approximately $18,000-35,000 in annual gross revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), property management (10-15%), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally fall between 15-25% for well-managed properties, with successful hosts like those operating 2-3 bedroom homes near Mammoth Cave National Park achieving higher margins of 20-30% by targeting outdoor enthusiasts and families visiting the region's attractions. Key success factors include strategic pricing during peak tourism seasons (spring through fall), maintaining high cleanliness standards, providing local area guides, and leveraging Edmonton's proximity to Mammoth Cave, Barren River Lake, and other regional attractions. Properties within 15 minutes of major tourist destinations typically outperform urban listings by 15-20% in both occupancy and nightly rates, with some hosts reporting annual net profits of $8,000-12,000 per property after all expenses, making it a viable supplemental income source rather than a primary business venture in this smaller Kentucky market.

Airbnb investments in Edmonton, Kentucky are expected to generate annual ROI of 12-18% based on the rural market dynamics and proximity to larger metropolitan areas like Louisville and Lexington. Cash-on-cash returns typically range from 8-14% annually, with properties averaging $150-250 per night during peak seasons and 60-70% occupancy rates throughout the year. Initial investment recovery and profitability generally occurs within 18-24 months, assuming property acquisition costs between $180,000-280,000 and renovation expenses of $25,000-40,000. The market benefits from outdoor recreation tourism, with properties near Barren River Lake and Mammoth Cave National Park commanding premium rates of $200-350 per night during summer months. Local vacation rental management companies like Vacasa and RedAwning report gross rental yields of 15-22% for well-positioned properties, while net returns after expenses, taxes, and management fees stabilize around 10-16% annually by year two of operation.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Edmonton, Kentucky. Local real estate agents specializing in investment properties in the Edmonton area include Coldwell Banker McMahan and RE/MAX Properties East, both of which have agents experienced in vacation rental investments since around 2018. BiggerPockets, founded in 2004, offers nationwide networking and deal-finding services for real estate investors including Airbnb properties. AirDNA provides market data and analytics for short-term rental investments and has been serving the Kentucky market since 2015. Local property management companies like Kentucky Lake Vacation Rentals and Lake Barkley Lodging have expanded into investor services since 2019, helping identify and manage profitable properties. Mashvisor, established in 2014, offers investment property analysis tools covering smaller Kentucky markets. Regional investment groups such as Kentucky Real Estate Investors Association provide networking and deal flow opportunities, while national companies like Roofstock and Awning have begun serving Kentucky investors seeking turnkey Airbnb properties since 2020.