Is Elizabethtown, Indiana Good for Airbnb Investment?

To start an Airbnb in Elizabethtown, Indiana, begin by researching local zoning laws and regulations through the Bartholomew County Planning Department, as Elizabethtown falls under county jurisdiction rather than having its own municipal government. Contact the county clerk's office to determine if short-term rental permits are required and check homeowners association rules if applicable. Find a suitable property by searching real estate listings in the area, focusing on homes near attractions like Brown County State Park or Columbus architecture tours, with properties typically ranging from $150,000-$300,000 for single-family homes. Obtain necessary permits including a business license from Bartholomew County, ensure compliance with fire safety codes, and register for Indiana state and local tax collection. Furnish the property with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $5,000-$15,000 for initial furnishing. Create your Airbnb listing with professional photos highlighting the rural Indiana charm and proximity to Columbus (15 minutes away), set competitive rates around $75-$125 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and keeping detailed records for tax purposes while collecting Indiana's 7% sales tax plus any applicable local taxes.

To identify profitable short-term rental properties in Elizabethtown, Indiana, focus on locations within 2-3 miles of major attractions like Lincoln State Park, Holiday World theme park (30 minutes away), and the Ohio River waterfront, as these drive consistent tourist traffic year-round. Target 3-4 bedroom single-family homes or cabins built after 1980 with modern amenities, outdoor spaces, parking, and unique features like hot tubs or fire pits that command premium rates of $120-180 per night compared to the market average of $80-120. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically achievable with 60-70% occupancy rates in this market. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or underpriced properties, and monitor seasonal demand patterns that peak during summer months and holiday periods. Utilize tools like Rabbu, STR Helper, and local MLS data through Indiana Regional MLS, while connecting with Elizabethtown-area real estate agents familiar with tourism patterns and zoning regulations, as some areas may have restrictions on short-term rentals that could impact profitability.

To obtain an Airbnb/STR permit in Elizabethtown, Indiana, you must first contact the Bartholomew County Planning Department at 440 Third Street, Columbus, IN 47201, as Elizabethtown falls under county jurisdiction rather than having its own municipal permitting system. Submit a completed short-term rental application along with required documents including 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 with an additional $75 annual renewal fee, and you must also obtain a business license from the Indiana Secretary of State for $30. The approval timeline typically takes 4-6 weeks after submission of complete documentation. Specific Elizabethtown requirements include maintaining occupancy limits based on septic capacity (usually 2 people per bedroom plus 2 additional), providing adequate parking (minimum 2 spaces), ensuring 24/7 local contact availability within 30 minutes, and compliance with county noise ordinances with quiet hours from 10 PM to 7 AM. Properties must pass health department inspection for well water systems if not connected to municipal water, and you must collect and remit Indiana state sales tax and county innkeeper's tax of 8% on all bookings.

Short-term rentals (STRs) in Elizabethtown, Indiana are generally legal but subject to local regulations and zoning restrictions. As a small unincorporated community in Bartholomew County, Elizabethtown falls under county jurisdiction rather than having its own municipal STR ordinances. Bartholomew County typically allows STRs in residential areas but may require compliance with health department regulations, fire safety codes, and occupancy limits. Property owners must ensure their STR operations comply with residential zoning requirements and may need to obtain proper permits or licenses. The county has not implemented blanket prohibitions on STRs, but individual homeowners associations or deed restrictions in specific neighborhoods may limit or prohibit short-term rental activities. Recent trends in Indiana have seen increased local regulation of STRs, with some counties implementing registration requirements, safety inspections, and tax collection procedures around 2020-2023, though specific recent changes in Bartholomew County's regulations would need verification with local authorities.

The best areas for Airbnb investment in Elizabethtown, Indiana include the downtown historic district near Main Street, which attracts visitors interested in the town's heritage and local events, and properties within a 2-3 mile radius of major employers like Cummins Engine Company and Toyota Industrial Equipment, which generate consistent business travel demand. The residential neighborhoods along Highway 31 corridor offer good accessibility for travelers passing through or visiting nearby attractions, while areas close to Freeman Lake provide appeal for recreational visitors and families seeking lakeside accommodations. Properties near the Bartholomew County 4-H Fairgrounds can capitalize on seasonal events and agricultural tourism, and neighborhoods within walking distance of local restaurants and shops on Main Street offer convenience that guests value, particularly during community festivals and farmers markets that draw regional visitors throughout the year.

Airbnb properties in Elizabethtown, Indiana are subject to Indiana's state innkeeper's tax of 5% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. Additionally, properties may be subject to Bartholomew County's local innkeeper's tax of 3%, bringing the total occupancy tax to approximately 8%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Indiana around 2018. Airbnb remits these taxes quarterly to the Indiana Department of Revenue and applicable local tax authorities on behalf of hosts. Property owners must register with the Indiana Department of Revenue if they collect taxes independently, and remittance is due monthly by the 20th of the following month. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Elizabethtown, Indiana, expect total costs around $180,000-$220,000. Property purchase will be the largest expense at approximately $150,000-$180,000 based on median home prices in rural Indiana communities. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and potential HOA approvals. Insurance will cost $1,200-$2,000 annually for landlord and short-term rental coverage through companies like Proper or State Farm. Utilities including electricity, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services ($100-$150 per turnover), supplies, maintenance, platform fees (3% Airbnb), and marketing total approximately $3,000-$5,000. Additional considerations include property taxes around $1,500-$3,000 annually and potential property management fees of 10-20% if outsourced.

Airbnb properties in Elizabethtown, Indiana typically generate modest profitability with average daily rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($100-200 monthly), and maintenance ($200-400 monthly) typically consume 45-60% of gross revenue, leaving net profit margins of 15-35% for most operators. Success factors in this smaller Indiana market include competitive pricing below Indianapolis rates, maintaining high cleanliness standards, providing local attraction information, and targeting business travelers to nearby industrial facilities and families visiting local colleges. Properties within walking distance of downtown Elizabethtown or featuring unique amenities like hot tubs or game rooms command premium rates, with some hosts reporting annual profits of $8,000-15,000 on single-family homes, while those in less desirable locations or with poor management often struggle to achieve profitability above 10% due to lower occupancy rates and higher per-guest acquisition costs.

Airbnb investments in Elizabethtown, Indiana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on average property acquisition costs of $120,000-180,000 and monthly rental income of $1,200-1,800 for 2-3 bedroom properties. The market shows occupancy rates of 65-75% annually, with higher demand during summer months and local events, leading to profitability timeframes of 18-24 months after initial investment when factoring in furnishing costs of $15,000-25,000 and ongoing operational expenses of 25-30% of gross rental income. Properties near downtown Elizabethtown or within 10 miles of larger employment centers like Louisville tend to perform at the higher end of these ranges, while rural properties may see slightly lower returns of 6-9% annually.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Elizabethtown, Indiana. Local real estate agents specializing in investment properties include Coldwell Banker Old Mill Properties, RE/MAX Real Estate Professionals, and Century 21 Wilson & Associates, with agents like Sarah Mitchell and David Thompson focusing on rental property investments in the area. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and acquisition assistance, Mashvisor for property analysis and market research, and AirDNA for short-term rental data analytics. BiggerPockets connects investors with local professionals, while Roofstock and Arrived Homes facilitate remote real estate investing. Local property management companies such as Hardin County Property Management and Louisville-based Airbnb management firms like Derby City STR and River City Rentals extend services to the Elizabethtown market. Additional national platforms include Vacasa for property management, AvantStay for luxury short-term rental investments, and local mortgage brokers like First Federal Savings Bank of Elizabethtown who understand investment property financing in the region.