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 in certain neighborhoods. Contact Goshen City Hall at 111 E Jefferson Street to inquire about specific permit requirements, which typically include a business license ($25-50 annually) and potential zoning compliance certificates. Find a suitable property by searching areas like downtown Goshen near the Millrace Trail or historic districts, ensuring the property allows short-term rentals according to HOA rules or lease agreements if not owner-occupied. Furnish the space with essential amenities including Wi-Fi, linens, kitchen basics, and local touches highlighting Goshen's Amish heritage and proximity to Elkhart County attractions. Create your Airbnb listing with professional photos showcasing the property's proximity to Goshen College, local restaurants on Main Street, and outdoor activities at Shanklin Park. Set competitive pricing by researching similar properties in the $75-150 per night range depending on size and amenities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, providing local recommendations for Amish country tours and Das Dutchman Essenhaus, and maintaining compliance with Indiana state tax requirements including collecting and remitting the 7% state sales tax and any applicable Elkhart County lodging taxes.

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 visitors 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 visitors often include families and college-related travelers. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for nightly rates between $80-150 depending on size and amenities, with occupancy rates typically ranging 60-75% in this market. Research competition by studying existing Airbnb and VRBO listings within a 5-mile radius, noting their pricing, amenities, and guest reviews to identify gaps in the market. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Goshen-area real estate agents familiar with STR regulations and the Elkhart County market dynamics. Consider properties near Ox Bow County Park and within walking distance of local Amish attractions, as these locations command premium rates during peak tourist seasons from May through October.

To obtain an Airbnb/STR permit in Goshen, Indiana, you must first contact the Goshen Planning and Zoning Department at City Hall located at 111 East Jefferson 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, site plan showing parking arrangements, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and contact information for a local property manager if you live more than 50 miles away. Pay the application fee of approximately $150-300 and attend a public hearing before the Board of Zoning Appeals, which typically occurs within 30-45 days of application submission. Once approved, obtain a business license from the City Clerk's office for an additional $25-50 fee, ensure compliance with fire safety codes through the Fire Department inspection, and register for local and state tax collection including Indiana's 7% sales tax and any applicable local innkeeper's taxes. The entire process typically takes 60-90 days from initial application to final approval, and permits must be renewed annually with proof of continued insurance coverage and tax compliance.

Short-term rentals (STRs) in Goshen, Indiana operate under the city's zoning ordinances and rental regulations, with the legal status generally permitting STRs in residential areas subject to specific requirements. The city requires STR operators to obtain proper business licenses and comply with safety standards including smoke detectors, carbon monoxide detectors, and occupancy limits. Goshen typically restricts STRs to owner-occupied properties or limits the number of rental days per year, and prohibits them in certain residential zones or requires special use permits in others. The city has implemented noise ordinances and parking requirements that specifically affect STR operations, with violations subject to fines and potential license revocation. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced complaint procedures for neighbors, though the city has not implemented an outright ban like some other Indiana municipalities. Property owners must also comply with state tax requirements and may face additional restrictions in historic districts or areas with homeowners association rules that supersede city ordinances.

The best areas for Airbnb investment in Goshen, Indiana include the Historic Downtown District, which attracts visitors to the Goshen Theater and local festivals like First Fridays, offering walkable access to restaurants and shops. The Millrace area near the dam and recreational trail system appeals to outdoor enthusiasts and families visiting for cycling and water activities. Properties near Goshen College benefit from consistent demand from visiting families, prospective students, and academic conference attendees throughout the year. The Elkhart County 4-H Fairgrounds vicinity experiences seasonal spikes during the annual fair in July, one of Indiana's largest county fairs drawing over 200,000 visitors. Areas close to the Pumpkinvine Nature Trail and Abshire Park attract recreational visitors year-round, while the industrial corridor near CR 34 serves business travelers visiting local manufacturing facilities including recreational vehicle companies that are prominent in the region.

In Goshen, Indiana, Airbnb properties are subject to Indiana's state innkeeper's tax of 8% on gross rental receipts, which applies to lodging rentals of less than 30 days. Elkhart County, where Goshen is located, imposes an additional county innkeeper's tax of 5%, bringing the total lodging tax to 13%. These taxes are collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Indiana around 2018. Airbnb remits these taxes quarterly to the Indiana Department of Revenue and Elkhart County respectively on behalf of hosts. The City of Goshen does not impose a separate municipal lodging tax as of 2023. Rentals of 30 days or longer are exempt from these innkeeper's taxes, and certain properties used for medical treatment purposes may qualify for exemptions. Hosts should register with the Indiana Department of Revenue if they collect taxes independently, though most rely on Airbnb's automatic collection system. Property owners are still responsible for ensuring compliance and may need to file returns even when Airbnb collects the 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 would cost $8,000-$12,000 including beds, living room furniture, kitchen essentials, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees would total $500-$800. Insurance costs including landlord and short-term rental coverage would be $1,200-$1,800 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable would cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning services ($150/month), maintenance ($200/month), Airbnb fees (3% of bookings), property management software ($50/month), and marketing would total approximately $6,000-$8,000, assuming moderate occupancy rates of 50-60% during the initial period.

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), property management (15-25% of revenue), insurance ($100-200 monthly), and maintenance ($200-400 monthly) typically consume 45-65% of gross revenue. Properties near Goshen College, downtown areas, or those catering to business travelers visiting companies like Lippert Components or Forest River show stronger performance, with net profit margins of 25-40% being achievable for experienced hosts. Success factors include competitive pricing during peak seasons (summer months and college events), professional photography, responsive guest communication, and maintaining high cleanliness standards, with properties featuring amenities like full kitchens, parking, and proximity to US-33 corridor performing approximately 15-20% better than basic listings. A typical 3-bedroom home purchased for $180,000-220,000 and optimized for short-term rental can generate annual net profits of $8,000-15,000 after all expenses, representing a 4-7% return on investment before considering property appreciation.

Based on Goshen, Indiana market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Goshen College and downtown areas tend to perform better, with investors commonly seeing break-even points within 18-24 months after initial setup costs. The local market benefits from consistent demand from college visitors, business travelers to companies like Lippert Components and Forest River, and tourists exploring Amish country attractions. Average nightly rates range from $75-120 for typical 2-3 bedroom properties, with occupancy rates averaging 60-70% annually. Initial investment requirements typically range from $150,000-250,000 for suitable properties, with renovation and furnishing costs adding $15,000-30,000. The timeframe to profitability averages 2-3 years when factoring in mortgage payments, operating expenses, and local regulations, though some well-positioned properties near major employers or the college campus achieve positive cash flow within 12-18 months.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Goshen, Indiana. In the Goshen area, local real estate agents like those at Century 21 Bradley Realty, RE/MAX Results, and Coldwell Banker Whitman & Associates have experience with investment properties and can assist with Airbnb acquisitions. National services include Mashvisor, which provides rental property analytics and market data, AirDNA for short-term rental market insights, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as Elkhart County Property Management and Northern Indiana Property Services can provide market knowledge and ongoing management for Airbnb investments. Additional national platforms like Roofstock, HomeUnion, and Awning specialize in turnkey rental property investments and can source properties in secondary markets like Goshen. Local mortgage brokers and lenders familiar with investment properties, such as First Source Bank and Horizon Bank, both with Indiana presence, can facilitate financing for Airbnb acquisitions in the Goshen market.