Is Eminence, Kentucky Good for Airbnb Investment?

To start an Airbnb in Eminence, Kentucky, begin by researching Henry County's zoning ordinances and contacting the county clerk's office at (502) 845-5705 to verify short-term rental regulations, as Kentucky state law generally allows STRs but local municipalities may have restrictions. Obtain necessary permits including a business license from Henry County (approximately $25-50 annually) and register for Kentucky state taxes through the Department of Revenue's online portal, collecting the required 6% sales tax plus any local occupancy taxes. Find a suitable property by searching MLS listings through local realtors like Coldwell Banker McMahan or browsing online platforms, focusing on properties near Eminence's historic downtown or within 30 minutes of Louisville attractions, with typical investment properties ranging $80,000-150,000. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, and local guidebooks highlighting nearby attractions like the Kentucky Bourbon Trail and Louisville Mega Cavern. Create your Airbnb listing with professional photos showcasing the property's proximity to Louisville (45 minutes), Frankfort (30 minutes), and local attractions, setting competitive rates around $75-125 per night based on comparable properties in the region. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating with local cleaning services like those found through Henry County Chamber of Commerce, and maintaining compliance with all local regulations while providing excellent guest experiences to build positive reviews.

To identify profitable short-term rental properties in Eminence, Kentucky, focus on properties within 10-15 minutes of Eminence's downtown area or near Kentucky Bourbon Trail attractions, as this small Henry County town benefits from bourbon tourism and proximity to Louisville (45 minutes away). Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to bourbon trail visitors and Louisville-area travelers seeking rural retreats. Analyze pricing by researching comparable Airbnb listings in Eminence and surrounding areas like Shelbyville and Frankfort, aiming for properties under $200,000 that can command $80-150 nightly rates during peak bourbon season (spring through fall). Research competition using AirDNA and Mashvisor to identify supply gaps, then utilize local resources like the Henry County Chamber of Commerce for tourism data, work with Eminence-area realtors familiar with investment properties, and monitor Kentucky Tourism Board statistics for bourbon trail visitor trends. Consider properties near Henry County Fairgrounds or with easy access to I-71 for Louisville commuters, and factor in Kentucky's favorable landlord laws and relatively low property taxes when calculating potential returns.

To obtain an Airbnb/STR permit in Eminence, Kentucky, you will need to contact the Henry County Planning and Zoning Office at 140 Court Square, New Castle, KY 40050, as Eminence falls under Henry County jurisdiction. Begin by submitting a short-term rental application which typically requires a completed application form, proof of property ownership or lease agreement, a site plan showing the property layout, proof of liability insurance (minimum $1 million coverage), a fire safety inspection certificate from the local fire department, and a septic system inspection if applicable. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150. Required documents also include a floor plan indicating maximum occupancy, parking plan showing adequate off-street parking for guests, and contact information for a local property manager if you live more than 50 miles away. The property must comply with Kentucky building codes, maintain proper egress windows in sleeping areas, install smoke and carbon monoxide detectors in all required locations, and provide adequate septic capacity for the proposed occupancy. The review process typically takes 30-45 days from submission of a complete application, during which time the planning office will conduct a site inspection and review compliance with zoning regulations. Once approved, you must display the permit number in all advertising and maintain compliance with noise ordinances, occupancy limits, and parking requirements to avoid permit revocation.

Short-term rentals (STRs) in Eminence, Kentucky are generally legal but operate under state regulations and local oversight, as the small city of approximately 2,500 residents in Henry County has not enacted comprehensive STR-specific ordinances as of 2023. Kentucky state law allows STRs but permits local municipalities to regulate them through zoning and business licensing requirements. Eminence typically requires STR operators to obtain business licenses and comply with standard zoning regulations, with most residential areas allowing STRs unless specifically prohibited by homeowners associations or deed restrictions. The city has not designated specific prohibited areas for STRs, though commercial zoning compliance and parking requirements may apply. Recent changes have been minimal at the local level, with most regulatory updates occurring at the state level regarding tax collection and safety requirements. Property owners should verify current zoning compliance and obtain proper business licensing through Henry County and the City of Eminence before operating STRs, as enforcement has become more systematic since 2022 following increased tourism in the region.

The best areas for Airbnb investment in Eminence, Kentucky include the downtown historic district near Main Street, which attracts visitors interested in the town's heritage and local events, and properties near the Henry County Fairgrounds that benefit from seasonal events and agricultural shows drawing visitors year-round. The residential areas along Highway 22 and Highway 421 corridors offer good accessibility for business travelers and tourists visiting nearby attractions like the Kentucky Bourbon Trail distilleries within a 30-mile radius. Properties near Eminence Beach and Frankfort Avenue provide appeal for families and groups seeking recreational activities along the Kentucky River system. The area around Eminence Elementary and the town center benefits from visiting families, youth sports tournaments, and small-scale business meetings, while locations with easy access to Interstate 71 (approximately 15 miles away) capture overflow demand from Louisville visitors seeking more affordable accommodations outside the city, particularly during Kentucky Derby season and other major Louisville events.

In Eminence, Kentucky, Airbnb hosts are subject to Kentucky's 6% state sales tax on transient accommodations, which applies to rentals of 30 days or less, and this tax is typically collected by Airbnb directly from guests and remitted to the Kentucky Department of Revenue on behalf of hosts through their automated tax collection system that began around 2019. Henry County, where Eminence is located, may impose an additional local transient room tax of approximately 3-5%, though collection and remittance procedures vary by jurisdiction and hosts may need to register directly with county authorities to handle this portion. The City of Eminence itself likely does not impose a separate municipal lodging tax given its small size, but hosts should verify with local officials as some municipalities have enacted occupancy taxes ranging from 1-3% in recent years. Exemptions typically include stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation. Hosts not covered by Airbnb's automatic collection system must register for a Kentucky sales tax permit, collect applicable taxes from guests, and file monthly or quarterly returns with the state, while also ensuring compliance with any local tax obligations through direct registration with Henry County tax authorities.

Starting an Airbnb in Eminence, Kentucky requires an initial investment of approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Kentucky markets as of 2023-2024. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and decor typically costs $15,000-$20,000. Initial setup expenses including professional photography, listing creation, welcome materials, and basic renovations run $2,000-$3,500. Permits and fees vary but expect $500-$1,200 for business licenses, short-term rental permits, and potential zoning approvals through Henry County. Insurance premiums for short-term rental coverage average $1,800-$2,400 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, gas, internet, and cable total approximately $800-$1,200. First six months of operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses ($100/month) amount to roughly $6,300. Additional considerations include potential HOA fees, property taxes, and a 10-15% contingency fund for unexpected expenses during the startup phase.

Airbnb properties in Eminence, Kentucky show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross 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%), utilities ($150-200 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-3,500 yearly. Net profit margins generally range from 15-25% after expenses, translating to $3,000-6,000 annual profit for well-managed properties. Success factors in this rural Kentucky market include proximity to Frankfort (20 minutes away), competitive pricing below Louisville rates, exceptional cleanliness standards, and targeting fishing/outdoor enthusiasts visiting nearby Kentucky River activities. Properties with unique features like hot tubs, fire pits, or waterfront access command premium rates of $130-180 nightly. The limited local competition and growing demand for rural getaways from Louisville and Lexington metropolitan areas (within 45-60 minutes) create opportunities, though seasonal fluctuations affect winter bookings. Most successful hosts in similar Kentucky markets report break-even within 12-18 months, with established properties achieving 20-30% ROI by year three when properly marketed and maintained.

Airbnb investments in Eminence, Kentucky typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's rural tourism appeal and proximity to Louisville (approximately 45 minutes). Properties in this small Henry County town, with a population around 2,500, benefit from visitors exploring Kentucky's bourbon trail, outdoor recreation along the Kentucky River, and those seeking rural getaways. Average nightly rates range from $75-120 depending on property size and amenities, with occupancy rates typically 45-60% annually due to seasonal tourism patterns. Initial investment costs are relatively low, with median home prices around $150,000-250,000, allowing investors to achieve profitability within 18-24 months after accounting for renovation, furnishing, and operational expenses. The market shows steady growth potential as rural tourism increases, though investors should expect lower occupancy during winter months and consider the limited local amenities that may affect guest satisfaction compared to more developed tourist destinations.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties across markets including Eminence, Kentucky. Local real estate agents in the Henry County area such as Coldwell Banker McMahan Co. and RE/MAX Properties East have experience with investment properties and vacation rentals in the region. National services like BiggerPockets, Roofstock, and Awning specialize in short-term rental investment opportunities and market analysis. AirDNA and Mashvisor provide data analytics specifically for Airbnb market research in smaller Kentucky markets. Local property management companies such as Kentucky Lake Vacation Rentals and Louisville-based RedAwning can assist with both acquisition and management of short-term rental properties. Real estate investment firms like Mynd and Arrived Homes occasionally feature Kentucky properties in their portfolios. Regional brokerages including Rector Hayden Realtors and Century 21 Commonwealth have agents familiar with investment property transactions in the Eminence area and surrounding Lake Region markets.