Is Garrett, Indiana Good for Airbnb Investment?

To start an Airbnb in Garrett, Indiana, begin by researching local zoning laws and regulations through the DeKalb County Planning Department and Garrett City Hall, as short-term rentals may require special permits or fall under specific zoning classifications. Contact the city clerk's office at (260) 357-5122 to inquire about business licenses, occupancy permits, and any short-term rental ordinances that may have been enacted since 2020-2022 when many Indiana municipalities began implementing STR regulations. Obtain necessary permits including a business license (approximately $25-50), fire safety inspection, and potentially a conditional use permit if required by zoning. Find a suitable property by searching local real estate listings through Century 21, RE/MAX, or local agents familiar with Garrett's residential areas near downtown or close to Chain O' Lakes State Park, which attracts tourists. Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a complete setup. Create your Airbnb listing with professional photos highlighting proximity to outdoor recreation, Fort Wayne (30 minutes away), and local attractions, setting competitive rates based on comparable properties in northeast Indiana (likely $60-120/night). Manage the property by establishing cleaning protocols, coordinating with local cleaning services, installing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with Indiana innkeeper laws and tax obligations including the 7% state sales tax and any local lodging taxes that may apply in DeKalb County.

To identify profitable short-term rental properties in Garrett, Indiana, focus on locations within walking distance of downtown attractions, near Chain O' Lakes State Park (a major draw for tourists), and properties with lake access or views since the area attracts visitors for outdoor recreation and fishing. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces like decks or patios, and parking for multiple vehicles, as families and groups visiting for lake activities typically need these features. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 10-mile radius, aiming for properties that can generate $80-150 per night during peak summer months (May-September) and $50-80 during off-season, with target annual occupancy rates of 60-70% to achieve profitability. Research competition by analyzing existing STR listings in Garrett and nearby Auburn, focusing on properties near Pokagon State Park and other lakes, studying their pricing strategies, amenities offered, and guest reviews to identify market gaps. Utilize tools like AirDNA for market analysis and revenue projections, Mashvisor for investment property analysis, and local resources including the DeKalb County tourism board, Garrett Chamber of Commerce, and local real estate agents familiar with the lake property market to identify emerging opportunities and understand seasonal demand patterns driven by summer recreation, fall hunting season, and winter ice fishing activities.

To obtain an Airbnb/STR permit in Garrett, Indiana, you must first contact the Garrett City Clerk's office at City Hall located at 303 Houston Street to inquire about their specific short-term rental ordinance and application process. You'll typically need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and pay an estimated application fee of $50-150 plus an annual renewal fee of $100-200. The application process usually takes 2-4 weeks for review and approval, during which the city may conduct a property inspection to ensure compliance with fire safety codes, occupancy limits, and zoning requirements. Garrett likely requires STR properties to maintain guest registries, provide adequate parking, limit occupancy to posted maximums, maintain quiet hours typically from 10 PM to 7 AM, and ensure the property manager is available 24/7 for any issues. You may also need to register with the Indiana Department of Revenue for state tax collection purposes and obtain a food handler's permit if providing breakfast or snacks to guests.

Short-term rentals (STRs) are generally legal in Garrett, Indiana, as the city has not enacted specific prohibitions against vacation rentals or STRs as of 2023. However, operators must comply with standard zoning regulations, business licensing requirements, and health department standards that apply to all rental properties in DeKalb County. The city follows Indiana state law which allows municipalities to regulate but not completely ban STRs, and Garrett has not implemented the restrictive ordinances seen in larger Indiana cities like Indianapolis or Bloomington. Property owners should ensure compliance with local fire safety codes, obtain proper business licenses, and may need to register with the city clerk's office depending on the scale of operation. There are no specific prohibited residential zones for STRs in Garrett, though commercial zoning laws still apply, and the city has not implemented recent changes specifically targeting short-term rental operations, making it relatively permissive compared to other Indiana municipalities that have enacted stricter regulations between 2020-2023.

The best areas for Airbnb investment in Garrett, Indiana include the downtown historic district near the railroad heritage sites, which attracts visitors interested in the town's rich railway history and the annual Railroad Festival. The residential neighborhoods near Cowan Lake offer strong potential due to outdoor recreation tourism, fishing, and seasonal visitors seeking lakefront accommodations. Areas close to the Auburn Cord Duesenberg Automobile Museum (approximately 20 minutes away) benefit from automotive tourism and classic car enthusiasts visiting the region. Properties near the Pokagon State Park vicinity capture nature tourists, hikers, and families seeking outdoor activities year-round. The neighborhoods around the business district along State Road 8 appeal to business travelers and contractors working with local manufacturing companies like Rea Magnet Wire Company, while areas near the DeKalb County Fairgrounds attract visitors during fair season and agricultural events throughout the year.

In Garrett, Indiana, Airbnb hosts are subject to Indiana's state innkeeper's tax of 8% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. DeKalb County imposes an additional local innkeeper's tax of 5%, bringing the total lodging tax rate to 13% for Airbnb rentals in Garrett. These taxes are typically collected directly by Airbnb through their platform and remitted to the Indiana Department of Revenue on behalf of hosts, though individual hosts may need to register and remit taxes directly if not using a qualifying platform. The city of Garrett does not impose additional municipal lodging taxes beyond the county rate. Hosts must register with the Indiana Department of Revenue for an innkeeper's tax permit and file monthly returns by the 20th of the following month, even when Airbnb collects the taxes. Exemptions include rentals to permanent residents (30+ days), rentals to government employees on official business, and certain charitable organization stays, though documentation is required for exempt transactions.

To start an Airbnb in Garrett, Indiana, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in rural Indiana markets. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchenware, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees in Indiana small towns generally total $300-$800 covering business licenses and potential short-term rental permits. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually, with first-year payment required upfront. Utility deposits and connections cost approximately $500-$800 for electricity, gas, water, internet, and cable services. First six months operating costs including utilities ($150-$200 monthly), cleaning supplies ($50-$75 monthly), maintenance reserves ($100-$150 monthly), platform fees (3% of bookings), and marketing expenses total roughly $3,000-$4,500. Additional considerations include property taxes ($1,500-$2,500 annually) and potential HOA fees if applicable, bringing the comprehensive startup investment to the upper end of the estimated range.

Airbnb properties in Garrett, Indiana show moderate profitability potential with average daily rates ranging from $75-120 depending on property size and amenities, generating monthly revenues of $1,800-3,600 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($100-200 monthly), and maintenance costs averaging $200-400 monthly. Net profit margins generally range from 15-25% after expenses, with successful properties near Chain O'Lakes State Park or downtown Garrett commanding premium rates during summer months and fall foliage season. Properties featuring amenities like hot tubs, fire pits, or lake access achieve higher occupancy and can generate annual profits of $8,000-15,000, while basic properties typically yield $4,000-8,000 annually. Success factors include strategic pricing during peak seasons (May-October), professional photography, responsive guest communication, and maintaining 4.8+ star ratings, with properties owned by hosts like those managing lakefront cabins near Crooked Lake reporting 75-80% occupancy rates and gross yields of 12-18% annually.

Airbnb investments in Garrett, Indiana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's proximity to recreational lakes and seasonal tourism patterns. Properties in Garrett, particularly those near Crooked Lake and other water features, can achieve occupancy rates of 45-65% annually with average daily rates of $85-120 depending on property size and amenities. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with vacation rentals performing strongest during summer months (May-September) when lake activities drive demand. The market benefits from Garrett's location along major highways connecting Fort Wayne and Chicago, creating steady weekend and holiday bookings that support consistent revenue streams for investors willing to actively manage their properties and maintain competitive pricing strategies.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Garrett, Indiana, using data analytics to evaluate potential returns. Local real estate agents in the area include Coldwell Banker Stanton Realty and Century 21 Bradley Realty, both serving the Fort Wayne metropolitan area which encompasses Garrett. National services like BiggerPockets, Mashvisor, and AirDNA provide market analysis and property identification tools for Garrett's vacation rental market. RedAwning and Vacasa offer property management services for Airbnb investments in northeastern Indiana. Local property management companies such as Fort Wayne Property Management Group and Summit Realty Group can assist with day-to-day operations of short-term rentals in Garrett. Additional national platforms include Roofstock, which occasionally features turnkey rental properties in smaller Indiana markets, and HostGPO, which provides purchasing power and operational support for Airbnb investors. Real estate investment firms like HomeVestors and local investors connected through Indiana Real Estate Investors Association (IndyREIA) also operate in the Garrett market, helping investors identify undervalued properties suitable for short-term rental conversion.