Is Elizabethtown, Kentucky Good for Airbnb Investment?

To start an Airbnb in Elizabethtown, Kentucky, begin by researching local zoning laws and regulations through the Elizabethtown Planning and Zoning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to no more than 30 days. Contact the Hardin County Health Department to ensure compliance with health and safety standards, and obtain necessary permits including a business license from Elizabethtown City Hall (typically $25-50 annually) and potentially a conditional use permit if operating in certain residential zones. Find a suitable property by researching neighborhoods like Lincoln Trail, Helmwood, or areas near Elizabethtown Community and Technical College, considering proximity to Fort Knox and local attractions, with average property prices ranging $150,000-250,000 for single-family homes. Furnish the property with essential amenities including WiFi, cable TV, kitchen appliances, linens, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $5,000-15,000 for initial furnishing. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $75-125 per night based on local market rates, highlighting proximity to Fort Knox, Abraham Lincoln Birthplace, and Mammoth Cave National Park. Manage the property by establishing cleaning protocols, coordinating with local cleaning services (budget $30-50 per turnover), implementing keyless entry systems, maintaining responsive guest communication, and keeping detailed records for tax purposes while ensuring compliance with Kentucky's 6% sales tax on short-term rentals.

To identify profitable short-term rental properties in Elizabethtown, Kentucky, focus on locations within 10-15 minutes of Fort Knox military base, downtown historic district, and major highways like I-65 for accessibility to Louisville (45 minutes north). Target 3-4 bedroom single-family homes or duplexes built after 1990 with modern amenities, full kitchens, parking, and outdoor spaces that appeal to military families on temporary assignments and business travelers. Analyze pricing by researching comparable Airbnb listings in the $80-150 nightly range, calculating potential monthly revenue against mortgage and operating costs to achieve 15-20% cash-on-cash returns. Study competition using AirDNA and Mashvisor to identify occupancy rates (typically 60-75% in this market) and seasonal demand patterns, particularly around military training cycles and local events. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Elizabethtown-specific Facebook groups, the Hardin County Tourism Commission, and local property management companies like Bluegrass Property Management to understand market nuances, zoning restrictions, and identify off-market opportunities near the base and Lincoln Trail/Elizabethtown Nature Park areas.

To obtain an Airbnb/STR permit in Elizabethtown, Kentucky, you must first contact the Elizabethtown Planning and Development Department at City Hall located at 212 East Dixie Avenue to determine current zoning compliance and obtain a business license application. Required documents typically include a completed business license application, property deed or lease agreement, floor plan of the rental property, proof of liability insurance (minimum $1 million coverage), fire safety inspection certificate from the local fire department, and a site plan showing parking availability. The business license fee is approximately $50-75 annually, with additional inspection fees of around $100-150 for fire and building safety inspections. You must also register with the Kentucky Department of Revenue for state tax purposes and obtain any required state permits, which may cost an additional $25-50. The timeline for approval is typically 30-45 days from submission of complete application, pending successful inspections. Elizabethtown specific requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring the property meets residential occupancy limits (typically 2 persons per bedroom plus 2 additional), displaying the business license number in all advertising, and maintaining a local contact person available 24/7 for guest issues. Properties must also comply with noise ordinances and cannot exceed 30-day rental periods to maintain short-term rental classification.

Short-term rentals (STRs) are generally legal in Elizabethtown, Kentucky, as the city does not have comprehensive regulations specifically prohibiting them as of 2024. However, STR operators must comply with standard zoning regulations, business licensing requirements, and health and safety codes that apply to all rental properties in the city. Properties used as short-term rentals in residential zones may face restrictions under existing zoning ordinances that limit commercial activities in residential areas, and operators typically need to obtain proper business licenses and collect applicable local taxes. The city has not implemented specific STR registration requirements or occupancy limits like some larger Kentucky cities such as Louisville, but property owners should verify compliance with neighborhood covenants, homeowners association rules, and ensure their properties meet all building and fire safety codes. Recent trends suggest that smaller Kentucky cities like Elizabethtown are beginning to consider more formal STR regulations as the industry grows, but no major legal changes specific to short-term rentals have been enacted in Elizabethtown in recent years.

The best areas for Airbnb investment in Elizabethtown, Kentucky include the Historic Downtown District near the State Theater and Lincoln Trail, which attracts tourists interested in Civil War history and bourbon trail experiences, particularly during events like the Heartland Days Festival. The area around Elizabethtown Nature Park and Freeman Lake Park offers strong potential due to outdoor recreation tourism and family visitors to the Elizabethtown Sports Park complex. Properties near the Western Kentucky Parkway corridor and I-65 interchange capture business travelers visiting Fort Knox military installation and corporate guests of companies like Akebono Brake Corporation and Metalsa. The neighborhoods surrounding Elizabethtown Community and Technical College provide opportunities for extended-stay guests related to educational programs and military training at nearby Fort Knox. The Lincoln Trail/31E corridor benefits from bourbon tourism as visitors travel between distilleries, while areas near Towne Mall and the commercial district on Ring Road attract visitors for shopping events and regional conferences at venues like the Elizabethtown Convention and Visitors Bureau facilities.

In Elizabethtown, Kentucky, Airbnb hosts are subject to Kentucky's state transient room tax of 1% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. Hardin County imposes an additional local occupancy tax of approximately 3% on transient lodging, bringing the total tax burden to around 4% for most Airbnb rentals. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through Airbnb's automated tax collection service, which began operating in Kentucky around 2018. Hosts who collect taxes independently must register with the Kentucky Department of Revenue and file monthly returns by the 20th of the following month, remitting collected taxes along with their returns. The city of Elizabethtown may also require business licenses for short-term rental operations, with associated fees ranging from $25-50 annually. Exemptions generally apply to rentals exceeding 30 consecutive days, which are considered long-term stays rather than transient accommodations, and certain properties used for medical treatment or government business may qualify for reduced rates or exemptions under specific circumstances.

To start an Airbnb in Elizabethtown, Kentucky, expect total costs of approximately $185,000-$220,000. Property purchase represents the largest expense at $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $500-$1,500. Permits and fees vary but generally include business license ($50-$200), short-term rental permit if required by local ordinance ($100-$500), and potential HOA approval fees. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable typically cost $300-$800 initially. First six months of operating costs including utilities ($150-$250/month), cleaning services ($50-$100 per turnover), maintenance reserves ($200-$400/month), platform fees (3% of bookings), and property management software ($20-$50/month) total approximately $3,000-$6,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Elizabethtown, Kentucky typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved by hosts who self-manage and maintain high occupancy rates of 60-75%. Success factors in this market include proximity to Fort Knox military base, competitive pricing during peak travel seasons, professional photography, responsive guest communication, and maintaining consistent 4.8+ star ratings. Properties within 10 miles of Fort Knox command premium rates due to military personnel and family visits, while downtown locations benefit from business travelers and tourists exploring Kentucky's bourbon trail. A typical 3-bedroom home generating $28,000 annually with $18,000 in expenses yields approximately $10,000 net profit, representing a 36% profit margin, though performance varies significantly based on property condition, location, and host management effectiveness.

Airbnb investments in Elizabethtown, Kentucky typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near Fort Knox and downtown areas can achieve occupancy rates of 65-75% annually, with average daily rates between $85-120 depending on property size and amenities. Initial profitability usually occurs within 12-18 months after accounting for startup costs, furnishing, and marketing expenses. The market benefits from consistent military personnel demand due to Fort Knox proximity, plus tourism related to the Kentucky Bourbon Trail and Abraham Lincoln Birthplace National Historical Park. Investment properties typically require $25,000-40,000 in initial capital for down payment and setup costs on median-priced homes around $180,000-220,000, with gross rental yields averaging 10-14% before expenses. The timeframe to break even on initial investment generally spans 18-24 months, while full ROI realization occurs within 3-4 years assuming consistent market performance and property management efficiency.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Elizabethtown, Kentucky. Local real estate agents specializing in investment properties include Coldwell Banker McMahan Co. and RE/MAX Properties East, with agents like those at Berkshire Hathaway HomeServices Parks & Weisberg Realtors offering expertise in the Greater Louisville area that extends to Elizabethtown. National services include Awning (formerly RedAwning) for turnkey Airbnb investments, Mashvisor for property analysis and market data, and AirDNA for short-term rental analytics. Local property management companies such as Kentucky Lake Vacation Rentals and Louisville Short Term Rental Management provide ongoing operational support. Additional national platforms include Roofstock for rental property investments, BiggerPockets for investor networking and education, and Vacasa for property management services. Local mortgage brokers and lenders familiar with investment properties include Stock Yards Bank & Trust and Republic Bank, while companies like AvantStay and RedAwning offer comprehensive investment and management solutions for the Elizabethtown market.