Is French Lick, Indiana Good for Airbnb Investment?

To start an Airbnb in French Lick, Indiana, begin by researching local zoning laws and regulations through the Orange County Planning Commission and French Lick town hall, as short-term rentals may require special permits or have restrictions in certain residential zones. Contact the Indiana Department of Revenue to obtain a retail merchant certificate for collecting state sales tax (currently 7%) and Orange County for any local lodging taxes. Find a suitable property by working with local real estate agents familiar with French Lick's tourism market, focusing on areas near West Baden Springs Hotel, French Lick Resort, or downtown attractions, with properties typically ranging from $80,000-$300,000 depending on size and location. Obtain necessary permits including a business license from the town clerk, fire safety inspection from the French Lick Fire Department, and ensure compliance with Americans with Disabilities Act requirements if applicable. Furnish the property with quality furniture, linens, and amenities that appeal to tourists visiting the area's casinos, spas, and historic sites, budgeting approximately $15,000-$25,000 for a complete setup. Create your Airbnb listing with professional photos highlighting proximity to local attractions like the French Lick Scenic Railway and Patoka Lake, setting competitive rates based on seasonal demand (higher during casino events and summer months). Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges, and maintaining relationships with local service providers for maintenance and emergency situations while monitoring occupancy rates and guest reviews to optimize your listing performance.

To identify profitable short-term rental properties in French Lick, Indiana, focus on locations within 2-3 miles of the French Lick Resort and Casino, West Baden Springs Hotel, and French Lick Springs Hotel, as these drive the majority of tourism traffic. Target properties with 3-4 bedrooms, 2+ bathrooms, updated kitchens, outdoor spaces like decks or patios, and unique features such as historic charm or scenic views of the Hoosier National Forest. Analyze pricing by researching comparable Airbnb and VRBO listings in the $150-300 per night range, with peak rates during casino events, golf tournaments, and fall foliage season (September-October). Study competition by monitoring occupancy rates and guest reviews of existing STRs within a 5-mile radius, noting that properties closer to the resort command premium rates. Utilize AirDNA for market analytics, STR Helper for revenue projections, and local resources like the Orange County Tourism Bureau for event calendars and visitor data, while partnering with French Lick-area real estate agents familiar with tourism patterns and property management companies like Vacasa or RedAwning that operate in southern Indiana markets.

To obtain an Airbnb/STR permit in French Lick, Indiana, you must first contact the French Lick Town Hall at 8487 West College Street or call (812) 936-9481 to inquire about their specific short-term rental ordinance requirements, as many Indiana municipalities have adopted regulations since 2019-2022. You'll typically need to submit a completed STR permit application, proof of property ownership or lease agreement, certificate of liability insurance (usually $500,000-$1,000,000), floor plan showing maximum occupancy, contact information for a local responsible party within 30 miles, and pay application fees ranging from $100-$300 annually. Required documents often include a business license from the Indiana Secretary of State, sales tax permit from the Indiana Department of Revenue, and compliance with fire safety codes which may require inspection by the local fire department. The approval timeline is generally 30-45 days after submitting a complete application, and French Lick likely requires STR properties to maintain parking requirements (typically 1-2 spaces per unit), noise ordinance compliance with quiet hours from 10 PM to 7 AM, occupancy limits based on bedrooms plus two additional guests, and display of the permit number in all online listings. You must also register for local innkeeper's tax collection, which is typically 5-8% in Orange County, and ensure compliance with any homeowners association restrictions before beginning the application process.

Short-term rentals (STRs) are generally legal in French Lick, Indiana, as the town has not implemented specific prohibitions against vacation rentals, though operators must comply with standard business licensing requirements and state tax obligations including Indiana's innkeeper's tax. The town follows Orange County zoning regulations which typically allow STRs in residential areas with basic safety and occupancy standards, though specific restrictions may apply regarding parking, noise, and guest limits. French Lick, being a tourist destination known for its historic resort and casino, has maintained a relatively permissive approach to vacation rentals to support its tourism economy, with most restrictions focusing on ensuring properties meet health and safety codes rather than outright bans. Property owners should verify current zoning compliance and obtain necessary business licenses through Orange County, as regulations can vary by specific location within town limits and may have been updated since 2023.

The best areas for Airbnb investment in French Lick, Indiana are the Historic Downtown District near the French Lick Resort and West Baden Springs Hotel, which attracts luxury tourists year-round due to the casino gaming, spa services, and historic architecture dating back to the early 1900s resort era. The Patoka Lake area, approximately 15 minutes from downtown, offers excellent potential for vacation rentals targeting families and outdoor enthusiasts who visit for boating, fishing, and camping activities, particularly during summer months and fall foliage season. The Springs Valley area near the French Lick Winery provides opportunities to capture wine tourism traffic and couples seeking romantic getaways, especially during harvest season and special events. Properties within walking distance of the French Lick Scenic Railway station perform well due to tourists taking day trips and families with children attracted to the train experience. The residential areas along State Road 56 corridor offer more affordable investment opportunities while still providing easy access to major attractions, making them suitable for budget-conscious travelers and extended-stay business visitors who work with local tourism businesses or the nearby Crane Naval Surface Warfare Center.

Airbnb properties in French Lick, Indiana are subject to Indiana's state innkeeper's tax of 7% on gross retail income from lodging rentals, which applies to stays of less than 30 days. Orange County, where French Lick is located, imposes an additional local innkeeper's tax of 5%, bringing the total lodging tax rate to approximately 12%. The City of French Lick may also levy a local accommodation tax of around 2-3%, potentially making the combined rate 14-15%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2017-2018 for Indiana properties. Airbnb then remits these taxes monthly to the Indiana Department of Revenue and applicable local authorities on behalf of hosts. However, some smaller local jurisdictions may require hosts to register separately and remit taxes directly. Properties rented for 30 days or longer are generally exempt from these lodging taxes, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in French Lick, Indiana would be approximately $180,000-$220,000. Property purchase costs around $150,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property would cost $15,000-$20,000 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 would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registration would cost approximately $500-$1,000. Insurance including landlord and short-term rental coverage would be $1,200-$1,800 annually. Utilities including electricity, water, internet, and cable would average $200-$300 monthly. First six months operating costs including utilities ($1,200-$1,800), cleaning supplies and services ($600-$900), maintenance ($500-$1,000), platform fees to Airbnb and VRBO (3% of bookings estimated at $300-$500), and marketing would total approximately $3,000-$5,000. Additional considerations include property taxes averaging $1,500-$2,500 annually and potential HOA fees of $100-$300 monthly in some developments.

Airbnb properties in French Lick, Indiana show moderate profitability potential with average nightly rates ranging from $85-150 depending on property size and amenities, generating annual revenues of $15,000-35,000 for properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), property management (10-15%), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near French Lick Resort and West Baden Springs Hotel command premium rates of $120-200 nightly, with some luxury cabins achieving $45,000+ annual revenue and 25-35% profit margins after expenses. Success factors include proximity to the casino and resort attractions, unique amenities like hot tubs or game rooms, professional photography, and responsive guest communication, with properties offering these features typically achieving 15-20% higher occupancy rates than basic listings. The seasonal nature of tourism creates revenue fluctuations, with peak months (May-October) generating 65% of annual bookings, while winter months see 40-50% occupancy drops, making year-round profitability dependent on maintaining average daily rates above $100 and occupancy rates exceeding 55%.

Airbnb investments in French Lick, Indiana typically generate annual ROI of 12-18% due to the area's tourism appeal centered around French Lick Resort and West Baden Springs Hotel, with properties averaging $150-250 per night during peak seasons and $80-120 during off-peak periods. Cash-on-cash returns generally range from 8-14% annually, with higher-end properties near the resort achieving the upper range, while standard vacation rentals in town average 10-12%. Most investors reach profitability within 18-24 months, assuming 60-70% annual occupancy rates and initial investments of $150,000-300,000 for suitable properties. The market benefits from consistent demand from casino visitors, spa guests, and regional tourists, with properties typically generating $35,000-65,000 in annual gross revenue after accounting for seasonal fluctuations and the area's growing reputation as a Midwest destination resort.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in French Lick, Indiana, using data analytics to evaluate potential returns. Local real estate agents in the French Lick area who specialize in investment properties include Century 21 Scheetz in nearby Bedford (established 1972) and F.C. Tucker Company (founded 1946) with agents experienced in vacation rental investments. National services like Awning (2017), RedAwning (2009), and Vacasa (2009) provide comprehensive Airbnb investment analysis and property management services in the region. AirDNA (2015) offers market data and analytics specifically for short-term rental investments in French Lick and surrounding Orange County. Local property management companies such as Southern Indiana Property Management and specialized vacation rental managers like French Lick Resort area property services help investors maximize their Airbnb returns. BiggerPockets (2004) provides networking and educational resources for real estate investors targeting the French Lick market, while Mashvisor (2014) offers investment property analysis tools that cover the French Lick area for Airbnb profitability assessments.