Is Goshen, Indiana Good for Airbnb Investment?

To start an Airbnb in Goshen, Indiana, begin by researching local zoning laws and regulations through the Goshen Planning 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 owner-occupied properties or specific districts. Contact the Elkhart County Health Department for any required health permits and ensure compliance with Indiana state tax requirements including sales tax registration. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX, focusing on areas near downtown Goshen, Elkhart County Fairgrounds, or Goshen College for higher demand, with average property prices ranging from $150,000-$300,000 as of 2023. Furnish the property with essential amenities including Wi-Fi, cable TV, full kitchen appliances, quality bedding, and local touches highlighting Goshen's Amish heritage and proximity to attractions like the Pumpkinvine Nature Trail. Create your listing on Airbnb and VRBO platforms with professional photography, competitive pricing around $80-150 per night based on local market rates, and detailed descriptions emphasizing nearby attractions like the Elkhart County 4-H Fair and Shipshewana. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges through lockboxes or smart locks, maintaining the property regularly, and consider hiring local cleaning services like Molly Maid or independent contractors to handle turnovers efficiently while building relationships with local maintenance professionals for quick repairs.

To identify profitable short-term rental properties in Goshen, Indiana, focus on locations within 2-3 miles of Goshen College, downtown historic district, and near the Pumpkinvine Nature Trail, as these areas attract students, tourists, and outdoor enthusiasts year-round. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces, as Goshen's market favors family-friendly accommodations over luxury units. Conduct pricing analysis using AirDNA and Mashvisor to identify properties under $150,000 that can generate $80-120 nightly rates, aiming for 12-15% annual returns given Goshen's lower property costs compared to larger Indiana markets. Research competition by analyzing existing Airbnb and VRBO listings within 5 miles, noting that Goshen typically has 20-40 active STR properties with higher occupancy during Goshen College events, summer months, and fall tourism season. Utilize tools like Rabbu, STR Helper, and local MLS data through Realtor.com, while connecting with Goshen-area real estate agents familiar with rental regulations and monitoring the city's zoning requirements, as Elkhart County has been updating STR ordinances since 2021.

To obtain an Airbnb/STR permit in Goshen, Indiana, you must first contact the Goshen Planning and Zoning Department at City Hall located at 202 South Fifth Street to determine if short-term rentals are permitted in your specific zoning district, as regulations vary by zone. Submit an application for a Conditional Use Permit or Special Exception (depending on your property's zoning) along with required documents including a completed application form, property deed or lease agreement, site plan showing parking and property layout, floor plan of the rental unit, proof of property insurance, and a $150-300 application fee. Additional requirements typically include maintaining adequate off-street parking (minimum 2 spaces), ensuring the property meets all building and fire codes, obtaining a business license from the City Clerk's office for approximately $25-50 annually, and potentially requiring neighbor notification within 300 feet of the property. The approval process generally takes 30-60 days and may require a public hearing before the Board of Zoning Appeals or Plan Commission. Once approved, you must also register with the Indiana Department of Revenue for state tax collection purposes and may need to collect and remit local innkeeper's taxes to Elkhart County, with ongoing compliance including annual license renewals and adherence to occupancy limits and noise ordinances.

Short-term rentals (STRs) in Goshen, Indiana are generally legal but subject to local zoning regulations and permit requirements. The city of Goshen allows STRs in certain residential zones but requires operators to obtain a business license and comply with safety standards including smoke detectors, carbon monoxide detectors, and occupancy limits. Properties must meet building code requirements and operators are typically required to provide contact information to neighbors and the city for complaint purposes. STRs are generally prohibited in areas zoned exclusively for single-family residential use without special permits, and the city has implemented noise ordinances and parking restrictions that apply to rental properties. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced registration requirements, with the city requiring annual renewals of STR permits and increased fees for non-compliance. Operators must also collect and remit local taxes, and properties are subject to periodic inspections to ensure compliance with health and safety standards.

The best areas for Airbnb investment in Goshen, Indiana include the Historic Downtown District, which attracts visitors to local festivals, antique shops, and the Goshen Theater, plus business travelers visiting nearby companies like Forest River RV. The Elkhart County Fairgrounds vicinity offers strong seasonal demand during the county fair and other events throughout the year. The Goshen College area provides consistent rental opportunities from visiting families, prospective students, and academic conference attendees. The Pumpkinvine Nature Trail corridor appeals to outdoor enthusiasts and cyclists exploring the converted railway trail system. Properties near the Goshen Municipal Airport capture business travelers and aviation-related visitors. The Maple City Market area benefits from food tourism and visitors to local farmers markets and culinary events. Finally, the residential neighborhoods near downtown like the Cottage Avenue Historic District offer charm for leisure travelers while maintaining proximity to Goshen's main attractions, restaurants, and the growing arts scene centered around the Goshen First Fridays events.

In Goshen, Indiana, Airbnb hosts are subject to Indiana state sales tax of 7% on lodging rentals, which applies to stays of less than 30 days and is collected by Airbnb directly from guests and remitted to the Indiana Department of Revenue on behalf of hosts. Additionally, Elkhart County imposes a local innkeeper's tax of 5% on short-term rental accommodations, which Airbnb also collects and remits automatically for participating hosts through their tax collection service that began around 2017-2018. The city of Goshen may impose additional local lodging taxes of approximately 1-2%, though collection and remittance procedures vary and some hosts may need to register directly with local tax authorities. Exemptions typically apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may also be exempt from these taxes.

The total cost to start an Airbnb in Goshen, Indiana would be approximately $175,000-$195,000. Property purchase costs around $140,000-$160,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic marketing materials average $800-$1,200. Permits and fees vary but expect $300-$800 for business licenses, short-term rental permits, and any required inspections. Insurance premiums for short-term rental coverage typically cost $1,200-$2,000 annually, so roughly $600-$1,000 for six months. Utility setup and deposits for electricity, gas, water, internet, and cable run about $400-$600 initially, with monthly costs of $150-$250, totaling $1,300-$2,100 for the first six months. Additional operating costs for the first six months include cleaning supplies, maintenance reserves, platform fees, and miscellaneous expenses averaging $1,500-$2,500, bringing the total startup investment to approximately $175,000-$195,000.

Airbnb properties in Goshen, Indiana typically generate modest profitability with average daily rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,600 for well-managed properties with 60-80% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), insurance ($100-200 monthly), property management (10-20% of revenue), and maintenance costs typically consume 40-55% of gross revenue. Properties near Goshen College, downtown areas, or those catering to business travelers visiting companies like Lippert Components or Forest River show higher occupancy rates and can achieve net profit margins of 25-35% annually. A typical 3-bedroom home purchased for $180,000 and generating $2,400 monthly revenue with $1,300 in expenses would yield approximately $13,200 annual profit, representing a 7.3% return on investment before mortgage considerations. Success factors include proximity to major employers, universities, or recreational areas like Elkhart River, professional photography, competitive pricing strategies, and maintaining high guest ratings through consistent cleanliness and communication standards.

Airbnb investments in Goshen, Indiana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on average property acquisition costs of $120,000-180,000 and monthly rental income of $1,200-1,800 for 2-3 bedroom properties. The market benefits from proximity to Notre Dame University (15 miles) and Shipshewana's Amish tourism attractions, driving consistent demand from visitors, families, and business travelers. Most investors achieve profitability within 18-24 months, with occupancy rates averaging 65-75% annually and daily rates of $80-120 depending on property size and amenities. Properties near downtown Goshen or within walking distance of the Pumpkinvine Nature Trail command premium rates, while those requiring significant renovations may see extended profitability timelines of 30-36 months but potentially higher long-term returns of 12-15% annually once fully optimized.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Goshen, Indiana, using data analytics and market insights. Local real estate agents in the Goshen area who specialize in investment properties include Coldwell Banker Miller Group, Century 21 Bradley Realty, and RE/MAX Results, with agents like those at Berkshire Hathaway HomeServices often having experience with vacation rental investments. National services that assist with Airbnb property acquisition include Awning (formerly RedAwning), which provides full-service property management and acquisition assistance, AirDNA for market analysis and property identification, Mashvisor for investment property analytics, and Roofstock which occasionally features short-term rental properties. Additional local services in the Goshen and Elkhart County area include property management companies like Vacasa and local investment groups such as Northern Indiana Real Estate Investors Association, while national platforms like BiggerPockets connect investors with local professionals who understand the South Bend-Mishawaka metropolitan area's vacation rental market dynamics.