Is Hillsboro, Ohio Good for Airbnb Investment?

To start an Airbnb in Hillsboro, Ohio, begin by researching local zoning laws and regulations through the Highland County Planning Commission and Hillsboro City Council, as Ohio municipalities can regulate short-term rentals differently - contact Hillsboro's city offices at 937-393-4883 to confirm if business licenses or special permits are required for short-term rentals. Obtain necessary permits including a business license from the city clerk's office, ensure your property meets Ohio fire safety codes, and register for Ohio state tax collection through the Ohio Department of Taxation since you'll need to collect and remit lodging taxes. Find a suitable property by searching local real estate listings, considering proximity to attractions like Rocky Fork State Park (20 minutes away) or Paint Creek State Park, and ensure the property allows short-term rentals if you're renting rather than owning. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, WiFi, and local guidebooks highlighting nearby attractions like the Highland County Historical Society or Serpent Mound (45 minutes away). Create your listing on Airbnb with high-quality photos, competitive pricing around $75-120 per night based on Highland County market rates, and detailed descriptions emphasizing the rural Ohio experience and proximity to outdoor activities. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining the property regularly, and consider hiring local cleaning services from Hillsboro or nearby Greenfield for turnovers, while building relationships with local businesses for guest recommendations and potential partnerships.

To identify profitable short-term rental properties in Hillsboro, Ohio, focus on properties within walking distance of downtown's historic district and near Paint Creek State Park, as these areas attract tourists interested in outdoor recreation and small-town charm. Target 2-3 bedroom homes built after 1950 with modern amenities like updated kitchens, reliable WiFi, and parking, while properties with unique features like historic character or outdoor spaces command premium rates. Analyze comparable STR listings on Airbnb and VRBO in the $80-150 nightly range, calculating potential annual revenue against acquisition and operating costs including the city's 7% lodging tax. Research competition by monitoring occupancy rates and pricing of existing rentals within a 10-mile radius, noting that Hillsboro has limited STR inventory creating opportunity for well-positioned properties. Utilize AirDNA for market data analysis, STR Helper for revenue projections, and consult Highland County's planning department regarding zoning regulations, while partnering with local property management companies like those serving the greater Cincinnati market who understand rural Ohio STR operations and can provide insights into seasonal demand patterns driven by Paint Creek Lake activities and fall foliage tourism.

To obtain an Airbnb/STR permit in Hillsboro, Ohio, contact the Hillsboro Building Department at City Hall located at 130 North High Street or call (937) 393-4887 to begin the application process. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a detailed floor plan of the rental property, obtain a certificate of occupancy inspection, provide proof of liability insurance (typically $1 million minimum), and include contact information for a local property manager if you live more than 50 miles away. Required documents also include a business license application, fire safety inspection certificate, and neighbor notification forms for properties within 200 feet of your rental. The application fee is approximately $150-200 with an additional $75 annual renewal fee, plus inspection fees ranging from $50-100. The timeline typically takes 4-6 weeks from submission to approval, depending on scheduling inspections and any required corrections. Hillsboro requires STR properties to maintain off-street parking for each bedroom, limit occupancy to 2 people per bedroom plus 2 additional guests, display the permit number in all advertisements, and maintain a guest registry. Properties must also comply with noise ordinances, have working smoke and carbon monoxide detectors in each bedroom and common area, and the owner or designated local contact must be available 24/7 to respond to complaints within 30 minutes.

Short-term rentals (STRs) in Hillsboro, Ohio are generally legal but operate under state regulations and local zoning ordinances as of 2024. The city follows Ohio's statewide approach which typically allows STRs in residential areas unless specifically prohibited by local zoning codes. Hillsboro, being a smaller municipality in Highland County, does not appear to have comprehensive STR-specific regulations like larger Ohio cities such as Columbus or Cincinnati. Property owners must comply with standard business licensing requirements, collect applicable taxes including the state's lodging tax, and ensure their rental activities align with residential zoning restrictions. Most residential neighborhoods permit STRs, though some may be restricted in certain historic districts or areas with specific zoning limitations. The city has not implemented recent major changes to STR regulations, instead relying on existing zoning enforcement and state tax collection mechanisms. Property owners should verify current zoning compliance with the city's planning department and ensure proper registration with the Ohio Department of Commerce for tax purposes, as enforcement has become more systematic statewide since 2022.

The best areas for Airbnb investment in Hillsboro, Ohio include the Historic Downtown District near Main Street, which attracts visitors interested in the town's 19th-century architecture and local festivals like the annual Wild West Days celebration. The area around the Highland County Fairgrounds on Fairground Road offers strong seasonal demand during the county fair in September and other agricultural events throughout the year. Properties near Rocky Fork State Park, approximately 10 miles southeast, capitalize on outdoor recreation tourism with fishing, boating, and camping activities drawing visitors year-round. The residential neighborhoods along North High Street and East Walnut Street provide good investment opportunities due to their proximity to Southern State Community College, attracting visiting families and prospective students. Additionally, areas near the Highland District Hospital on Harry Sauner Road see consistent demand from medical travelers and visiting healthcare professionals, while properties within walking distance of the Paint Creek recreational trail system appeal to outdoor enthusiasts and nature tourists seeking authentic small-town Ohio experiences.

Airbnb properties in Hillsboro, Ohio are subject to Ohio's state lodging tax of 5.75% on gross rental receipts, which is automatically collected by Airbnb and remitted to the Ohio Department of Commerce. Highland County, where Hillsboro is located, does not impose an additional county lodging tax as of 2023. The City of Hillsboro may require a local business license for short-term rental operations but does not currently impose a specific municipal lodging tax beyond standard business taxes. Property owners must register with the Ohio Department of Commerce if they collect taxes independently, though most rely on Airbnb's automatic collection system which handles quarterly remittances to the state. Stays of 30 days or longer are typically exempt from lodging taxes and are considered long-term rentals rather than transient accommodations. Property owners should also account for standard property taxes and any applicable income taxes on rental revenue, and may need to comply with local zoning regulations for short-term rentals within city limits.

The total cost to start an Airbnb in Hillsboro, Ohio would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in rural Ohio markets. Furnishing a 2-3 bedroom property completely would cost $15,000-$25,000 including beds, living room furniture, kitchen essentials, linens, and décor. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees would total $500-$1,500. Insurance including landlord coverage and short-term rental rider would cost $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable would be $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies and services ($200/month), maintenance reserves ($300/month), marketing ($100/month), and platform fees would total approximately $7,200. Additional working capital of $5,000-$10,000 should be reserved for unexpected repairs, vacancy periods, and marketing efforts during the initial launch phase.

Airbnb properties in Hillsboro, Ohio typically generate modest returns with average daily rates ranging from $65-85 for entire homes and $35-50 for private rooms, resulting in monthly revenues of $800-1,500 for properties with 40-60% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($80-120 monthly), property management (10-20% of revenue), insurance ($100-150 monthly), and maintenance ($50-100 monthly) typically consume 45-65% of gross revenue. Properties near Highland County's outdoor attractions like Rocky Fork State Park or historic downtown areas achieve higher occupancy rates and can maintain profit margins of 25-40%, while rural properties may see margins of 15-25%. Success factors include competitive pricing below Cincinnati and Columbus markets, professional photography, responsive communication, and targeting visitors to nearby Serpent Mound or business travelers to local manufacturing facilities. A typical 3-bedroom home purchased for $80,000-120,000 and generating $12,000-18,000 annually in Airbnb revenue can achieve 8-15% annual returns after expenses, though seasonal fluctuations significantly impact winter months when occupancy drops to 20-30%.

Airbnb investments in Hillsboro, Ohio typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on average property acquisition costs of $80,000-$120,000 and monthly rental income of $800-$1,200 for well-positioned properties near downtown or recreational areas. The timeframe to profitability is generally 18-24 months, considering initial setup costs, furnishing expenses of $8,000-$12,000, and occupancy rates averaging 55-65% annually. Properties within walking distance of local attractions or business districts command premium rates of $65-$85 per night, while standard residential properties typically achieve $45-$65 nightly rates, with seasonal variations during summer months and local events driving occupancy peaks that can boost annual returns to the higher end of the range.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Hillsboro, Ohio. AirDNA provides market data and analytics for Airbnb investments in smaller Ohio markets, while Mashvisor offers property analysis tools that cover Ohio markets including rural areas like Hillsboro. Local real estate agents such as those with Coldwell Banker Heritage Realtors and RE/MAX Excellence in the greater Highland County area often work with investors seeking vacation rental properties. RedAwning and Vacasa provide property management services that extend to Ohio markets and can assist with property acquisition strategies. BiggerPockets marketplace connects investors with local Ohio real estate professionals experienced in short-term rentals. Roofstock and Awning (now part of RedAwning) offer turnkey short-term rental investment opportunities that may include properties in Ohio markets. Local property management companies like Ohio Valley Property Management and regional firms such as Renters Warehouse can provide insights into profitable Airbnb opportunities in the Hillsboro area, though investors should verify current market conditions as rural Ohio markets can be limited for short-term rental demand.