Is Elyria, Ohio Good for Airbnb Investment?

To start an Airbnb in Elyria, Ohio, begin by researching local regulations through the Elyria 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 Lorain County Health Department for any health permits if serving food, and ensure compliance with Ohio state tax requirements including the 5.75% sales tax on lodging. Find a suitable property in residential areas like Ely Square or near downtown Elyria, ensuring it meets safety codes and has adequate parking. Obtain necessary permits including a Certificate of Occupancy from Elyria Building Department (estimated $150-300) and register with Ohio Department of Commerce if required. Furnish the property with essential amenities, quality bedding, kitchen supplies, and safety equipment including smoke detectors and carbon monoxide detectors as mandated by Ohio law. Create your Airbnb listing with professional photos highlighting proximity to attractions like Cascade Park and downtown Cleveland (30 minutes away), set competitive pricing around $75-120 per night based on local market rates, and establish house rules complying with Elyria's noise ordinances. Manage the property by maintaining regular cleaning schedules, responding promptly to guests, coordinating check-ins/check-outs, and keeping detailed records for tax purposes while monitoring compliance with local occupancy limits and parking requirements specific to Elyria's residential zones.

To identify profitable short-term rental properties in Elyria, Ohio, focus on locations within 2-3 miles of major attractions like Cascade Park, downtown Elyria's historic district, and areas with easy highway access to Cleveland (30 minutes away). Target 2-4 bedroom single-family homes or duplexes built after 1950 with updated kitchens, multiple bathrooms, parking, and outdoor spaces, as these appeal to families visiting the region. Analyze pricing by researching comparable Airbnb listings in Elyria averaging $80-120 per night, while monitoring seasonal demand spikes during summer months and Cleveland Browns/Cavaliers game weekends. Study competition using AirDNA and Mashvisor to identify gaps in the market, noting that Elyria has limited STR inventory compared to Cleveland, creating opportunity for well-positioned properties. Utilize tools like Zillow and Realtor.com for property searches under $150,000, STRAnalytics for revenue projections, and connect with local property management companies like Lorain County Property Management for market insights, while ensuring compliance with Elyria's zoning regulations which generally permit STRs in residential areas with proper registration.

To obtain an Airbnb/STR permit in Elyria, Ohio, you must first contact the Elyria Building Department at City Hall located at 131 Court Street to determine current short-term rental regulations, as requirements may have been updated since 2023. Generally, you'll need to submit a business license application through the City Clerk's office, provide proof of property ownership or lease agreement, obtain a certificate of occupancy, submit floor plans showing maximum occupancy, provide proof of liability insurance (typically $1 million minimum), and pass safety inspections including smoke and carbon monoxide detectors. Required documents typically include a completed application form, property deed or lease, insurance certificate, emergency contact information, and parking plan. Application fees generally range from $50-200 for the business license plus inspection fees of approximately $75-150. The process typically takes 30-60 days from application submission to permit approval, depending on inspection scheduling and any required corrections. Elyria may require compliance with specific zoning restrictions, minimum parking requirements (usually one space per bedroom), occupancy limits based on square footage, and registration renewal annually, so contact the Planning and Zoning Department at (440) 326-1490 to confirm current regulations and obtain the most up-to-date application materials.

Short-term rentals (STRs) in Elyria, Ohio are generally legal but subject to local zoning regulations and licensing requirements established by the city. As of 2023, Elyria requires STR operators to obtain a business license and comply with zoning ordinances that typically restrict short-term rentals in certain residential districts, particularly single-family neighborhoods where they may be prohibited or require special permits. The city has implemented regulations requiring STRs to meet safety standards, maintain adequate parking, and limit occupancy based on property size. Recent changes around 2022-2023 have included stricter enforcement of existing zoning laws and enhanced registration requirements to address neighborhood concerns about noise, parking, and property maintenance. STR operators must also comply with state tax obligations and may face restrictions in historic districts or areas zoned exclusively for single-family residential use, with violations potentially resulting in fines or permit revocation.

The best areas for Airbnb investment in Elyria, Ohio include the Historic Downtown District near West Avenue and Broad Street, which attracts visitors to the Lorain County Historical Society and various cultural events, plus offers proximity to local restaurants and shops. The Cascade Park neighborhood is highly desirable due to its location near the scenic Black River Reservation and Cascade Park, drawing nature enthusiasts and families visiting the area's hiking trails and recreational facilities. The West Ridge area along Cleveland Street provides excellent access to both downtown Elyria and quick highway connections to Cleveland Hopkins Airport, making it ideal for business travelers and tourists visiting the greater Cleveland metropolitan area. The Northside District near East Avenue benefits from its proximity to Lorain County Community College, attracting visiting families, prospective students, and academic conference attendees. Finally, the residential areas near Ely Square and the Elyria Country Club appeal to visitors attending weddings, golf tournaments, and upscale events, while also serving as a convenient base for exploring nearby Oberlin College (just 15 minutes away) and the Rock and Roll Hall of Fame in Cleveland (30 minutes away).

In Elyria, Ohio, Airbnb hosts are subject to both state and local lodging taxes. Ohio imposes a state sales tax of 5.75% on lodging accommodations, which applies to short-term rentals including Airbnbs. Lorain County, where Elyria is located, adds a county lodging tax of 3% on accommodations. The City of Elyria itself imposes an additional municipal lodging tax of 3% on short-term rental stays. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the appropriate tax authorities on a monthly basis. Hosts must register with the Ohio Department of Taxation and obtain a vendor's license to collect state sales tax, and may need to register separately with Lorain County and the City of Elyria for local taxes. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging. Some jurisdictions may exempt certain types of accommodations or provide exemptions for government employees or non-profit organizations, but these vary by locality and hosts should verify current requirements with each taxing authority.

Starting an Airbnb in Elyria, Ohio requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $140,000-160,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $2,000-3,500. Permits and fees in Elyria include business license ($50-100), potential short-term rental permit ($200-500), and tax registration ($25-75). Insurance costs $1,200-2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable run $500-800 initially. First six months operating costs including utilities ($150-250/month), cleaning services ($75-100 per turnover), supplies and maintenance ($100-200/month), platform fees (3% of bookings), and marketing total approximately $3,000-5,000, assuming 60-70% occupancy rates typical for the Cleveland metropolitan area market.

Airbnb properties in Elyria, Ohio typically generate modest returns with average nightly rates ranging from $65-$95 for entire homes and $35-$55 for private rooms, resulting in monthly revenues of $1,200-$2,100 for properties with 60-70% occupancy rates. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($80-$120 monthly), property management (10-15% of revenue), insurance ($800-$1,200 annually), and maintenance costs averaging $150-$300 monthly. Net profit margins typically range from 15-25% after expenses, with successful properties near Lorain County Community College or downtown Elyria commanding premium rates during peak summer months and college events. Properties within walking distance of Cascade Park or historic downtown perform better, with some hosts reporting annual profits of $8,000-$15,000 on well-maintained 2-3 bedroom homes purchased for $80,000-$120,000. Success factors include competitive pricing 10-15% below Cleveland suburbs, professional photography, quick response times, and targeting business travelers visiting local manufacturing facilities like Ford's Elyria plant, though the market remains seasonal with lower winter occupancy affecting overall profitability compared to major metropolitan markets.

Airbnb investments in Elyria, Ohio typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on average property acquisition costs of $80,000-$120,000 and monthly rental income of $800-$1,200 for 2-3 bedroom properties. The market benefits from proximity to Cleveland (30 miles) and local attractions like Cascade Park, with occupancy rates averaging 60-70% annually. Initial profitability usually occurs within 18-24 months after accounting for startup costs including furnishing ($8,000-$12,000), marketing, and property management expenses. Properties near downtown Elyria or within walking distance of recreational areas command premium rates of $65-$85 per night, while suburban locations average $45-$65 nightly, with seasonal variations showing 20-30% higher rates during summer months when outdoor activities peak.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Elyria, Ohio. Local real estate agents in the Elyria area who specialize in investment properties include Keller Williams Greater Cleveland Northeast, Howard Hanna Real Estate Services, and Century 21 Asa Cox Homes, with agents like those at RE/MAX Crossroads Properties often working with Airbnb investors. National services that assist with Airbnb property acquisition include Awning (formerly RedAwning), Mashvisor for market analysis, AirDNA for data insights, and Roofstock which occasionally features short-term rental properties. Local property management companies such as Vacasa and RedAwning provide turnkey solutions for investors, while services like BiggerPockets connects investors with local professionals. Additional resources include local investment groups through the Cleveland Real Estate Investors Association, and platforms like Rentometer and RentSpree for market analysis in the greater Cleveland-Elyria metropolitan area.