Is Florence, Kentucky Good for Airbnb Investment?

To start an Airbnb in Florence, Kentucky, begin by researching local regulations through the Boone County Planning Commission and Florence City Hall, as short-term rentals typically require a conditional use permit and must comply with zoning ordinances that restrict rentals to no more than 30% of units in residential areas. Obtain necessary permits including a business license from Florence City ($50-100 annually), conditional use permit ($200-500), and register for Kentucky state taxes. Find a suitable property in residential zones like Turfway Ridge or downtown Florence, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and emergency exits. Furnish the space with quality basics including Wi-Fi, linens, kitchen essentials, and local guidebooks, budgeting $3,000-8,000 for a one-bedroom setup. Create your Airbnb listing with professional photos highlighting proximity to Cincinnati (15 minutes), Turfway Park, and Florence Mall, setting competitive rates around $75-120 per night based on local market analysis. For ongoing management, establish cleaning protocols between guests ($40-80 per turnover), respond to inquiries within an hour, maintain 24/7 guest communication, handle key exchanges through lockboxes or smart locks, and ensure compliance with Florence's noise ordinances and parking requirements while collecting and remitting Kentucky's 6% sales tax and any applicable local occupancy taxes.

To identify profitable short-term rental properties in Florence, Kentucky, focus on locations within 10-15 minutes of Cincinnati/Northern Kentucky International Airport, downtown Cincinnati access via I-71/I-75, and proximity to attractions like the Florence Mall, Boone County Cliffs State Nature Preserve, and corporate centers housing Amazon, DHL, and other logistics companies. Target 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, dedicated workspaces, fast WiFi, parking for 2+ vehicles, and outdoor spaces, as business travelers and families visiting the region prefer these features. Analyze comparable properties using AirDNA and Mashvisor to identify optimal pricing between $80-150 per night, with seasonal adjustments for peak travel periods around holidays and summer months when Cincinnati attractions draw visitors. Research competition by monitoring active STR listings within 5-mile radius, identifying gaps in amenities or underserved areas, and studying occupancy rates of similar properties through STR analytics platforms. Utilize tools like Rabbu, AirDNA, and local MLS data to assess property values, rental potential, and market saturation, while consulting Florence city regulations and Kentucky state STR laws, and consider partnering with local property management companies familiar with the Northern Kentucky market dynamics and guest preferences in this airport-adjacent, business-friendly corridor.

To obtain an Airbnb/STR permit in Florence, Kentucky, contact the Florence City Planning and Zoning Department at City Hall located at 8100 Ewing Boulevard, as Florence requires a Conditional Use Permit for short-term rentals in residential zones. Submit an application including property deed, site plan, floor plan showing maximum occupancy, proof of property insurance, contact information for a local property manager if you're non-resident, and a $200 application fee plus $50 for public notice publication. Required documents also include a business license from the city clerk's office ($25 annually), state and local tax registration, and compliance with fire safety codes including smoke detectors in all bedrooms and common areas. The process typically takes 45-60 days including a Planning Commission review and potential City Council approval if in certain zoning districts. Florence requires STRs to maintain off-street parking for each bedroom, limit occupancy to 2 persons per bedroom plus 2 additional, restrict rentals to maximum 7 consecutive days, and prohibit events or parties. You must also register with Boone County for health department approval ($75) and obtain a Kentucky sales tax permit. Annual renewal is required with a $100 fee, and the property must pass annual safety inspections conducted by the city's building department.

Short-term rentals (STRs) are generally legal in Florence, Kentucky, as the city has not enacted specific prohibitive ordinances against vacation rentals as of 2023. However, STR operators must comply with standard zoning regulations, business licensing requirements, and health department standards that apply to all rental properties in the city. Florence follows Kentucky state law regarding rental properties, which allows short-term rentals but requires compliance with local zoning codes - typically STRs are permitted in residential zones but may face restrictions in certain historic or exclusively single-family districts. Property owners must obtain proper business licenses, collect and remit local occupancy taxes where applicable, and ensure properties meet safety and occupancy standards. While there have been discussions in various Kentucky municipalities about STR regulations following growth in platforms like Airbnb and VRBO since 2020, Florence has maintained a relatively permissive approach compared to larger cities like Louisville or Lexington, though operators should verify current zoning compliance and business licensing requirements with the Florence Planning and Zoning Department before operating.

The best areas for Airbnb investment in Florence, Kentucky include the downtown Florence district near the Government Center and shopping areas, which attracts business travelers visiting local companies and government offices. The Turfway Park vicinity is highly attractive due to horse racing events and gaming activities that draw visitors year-round, particularly during racing seasons from October through April. Areas near the Florence Mall and major retail corridors along Dixie Highway benefit from shopping tourism and families visiting the region. The neighborhoods around Boone County Schools administrative areas see demand from visiting educators and families relocating to the highly-rated school district. Properties near major employers like St. Elizabeth Healthcare facilities, Amazon fulfillment centers, and corporate offices in the Florence business parks generate consistent business travel demand. The areas close to Interstate 71/75 interchange provide convenient access for travelers heading to Cincinnati attractions, Northern Kentucky University events, or Kentucky Speedway, making them ideal for short-term rentals targeting regional tourism.

Airbnb properties in Florence, Kentucky are subject to Kentucky's state transient room tax of 1% on gross rental receipts, which is collected by the host and remitted quarterly to the Kentucky Department of Revenue. Additionally, Boone County imposes a 3% transient room tax that applies to short-term rentals under 30 days, bringing the total occupancy tax burden to approximately 4%. The county tax is also collected by the host and remitted quarterly to the Boone County Fiscal Court. Florence itself does not impose a separate municipal lodging tax as of 2023. Hosts must register with both the state and county tax authorities, file quarterly returns, and maintain records of all rental transactions. Properties rented for 30 consecutive days or more to the same guest are typically exempt from these transient occupancy taxes. The state tax applies to all gross rental receipts including cleaning fees, while exemptions may apply for rentals to certain government employees or during declared emergencies, though these exemptions are limited and require proper documentation.

To start an Airbnb in Florence, Kentucky, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $160,000-$180,000 based on median home prices in the Florence 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 décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic marketing materials run $500-$1,500. Permits and fees in Boone County include business license ($50-$100), short-term rental permit if required ($100-$300), and potential HOA approval fees. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, gas, internet, and cable total $300-$800. First six months operating costs including utilities ($150-$250/month), cleaning services ($75-$125 per turnover), supplies and maintenance ($100-$200/month), platform fees to Airbnb and VRBO (3% of bookings), and property management software ($20-$50/month) total approximately $2,500-$4,500 depending on occupancy rates and property size.

Airbnb properties in Florence, 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 successful hosts in the area reporting annual profits of $8,000-$18,000 per property. Key success factors include proximity to Cincinnati attractions (20 minutes away), competitive pricing during peak seasons like Kentucky Derby week and summer months, professional photography, consistent 4.8+ star ratings, and targeting business travelers visiting nearby Toyota manufacturing facilities and Cincinnati/Northern Kentucky International Airport. Properties with unique features like historic charm, modern amenities, or outdoor spaces tend to achieve 20-30% higher occupancy rates (averaging 60-75% annually) compared to basic listings, with some top-performing hosts like those managing renovated Victorian homes near downtown Florence reporting gross revenues exceeding $40,000 annually with profit margins approaching 40% through efficient operations and premium pricing strategies.

Airbnb investments in Florence, Kentucky typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, depending on property type and location within the market. Properties near the Cincinnati/Northern Kentucky International Airport and along major corridors like Dixie Highway tend to perform better, with investors seeing profitability within 12-18 months of operation. The market benefits from business travelers, airport proximity, and overflow demand from Cincinnati, with average daily rates of $75-$95 and occupancy rates of 65-75% annually. Initial investment costs are relatively low compared to major metropolitan areas, with median property prices around $150,000-$250,000, allowing for faster break-even periods. Investors can expect gross rental yields of 10-14% before expenses, with net returns settling in the 8-12% range after accounting for cleaning, maintenance, platform fees, and vacancy periods.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Florence, Kentucky, by providing market analytics and property recommendations. Local real estate agents specializing in investment properties include Coldwell Banker McMahan, RE/MAX Victory, and Huff Realty, with agents like those at Sibcy Cline Properties also serving the Northern Kentucky market for Airbnb investments. National services include AirDNA for market data analysis, Mashvisor for property investment analytics, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as RedAwning and Vacasa offer turnkey Airbnb management services, while regional firms like Cincinnati-based STR managers extend services to Florence. Additional resources include local investment groups through the Northern Kentucky Real Estate Investors Association, and platforms like Roofstock and Fundrise that occasionally feature Kentucky markets, with local mortgage brokers at First Financial Bank and PNC Bank providing specialized investment property financing for short-term rental acquisitions in the Florence area.