Is Mammoth Cave, Kentucky Good for Airbnb Investment?

To start an Airbnb in Mammoth Cave, Kentucky, begin by researching local regulations through Edmonson County and the City of Cave City offices, as short-term rentals typically require business licenses and may need special permits due to proximity to Mammoth Cave National Park. Contact the Kentucky Department of Revenue for state tax requirements and register for transient room tax collection. Find property by working with local realtors familiar with tourism properties, focusing on areas within 10-15 minutes of the park entrance along KY-70 or KY-255, with properties ranging from $150,000-$400,000 depending on size and location. Obtain necessary permits including occupancy permits from the local fire department, health department inspections if serving food, and ensure compliance with Americans with Disabilities Act if applicable. Furnish the property with cave-themed decor, outdoor furniture for stargazing, hiking gear storage, and amenities like high-speed internet since cell service can be spotty in the area. Create your Airbnb listing highlighting proximity to Mammoth Cave (typically 5-20 minutes), include keywords like "cave tours," "Green River," and "Dark Sky Park," and price competitively at $80-200 per night depending on property size and season. Manage the property by partnering with local cleaning services in Cave City or Park City, establish relationships with maintenance providers familiar with rural Kentucky properties, and consider hiring local co-hosts during peak tourist seasons from March through October when cave tours are most popular.

For identifying profitable short-term rental properties in Mammoth Cave, Kentucky, focus on locations within 5-15 minutes of Mammoth Cave National Park entrance, along major routes like KY-70 and KY-255, with properties offering 2-4 bedrooms, outdoor amenities like fire pits or hot tubs, and rustic cabin or farmhouse aesthetics that appeal to nature tourists. Pricing analysis should target $150-300 per night depending on size and amenities, with peak seasons during summer months and fall foliage periods generating 60-80% occupancy rates. Competition research reveals a market dominated by individual owners rather than large management companies, with approximately 200-300 active STR listings in the broader area, creating opportunities for well-positioned properties. Key tools include AirDNA for market analysis showing average daily rates around $180-220, Mashvisor for investment property analysis, STR Helper for competitive intelligence, and local resources like the Mammoth Cave Area Association and Kentucky Tourism Board data. Properties with unique features like proximity to Green River, cave-themed decor, or large group accommodations (8+ guests) command premium rates, while those offering outdoor activity packages or partnerships with local tour operators achieve higher occupancy rates in this tourism-dependent market that sees over 2 million annual visitors to the national park.

To obtain an Airbnb/STR permit in Mammoth Cave, Kentucky, you must first contact the Edmonson County Planning and Zoning Department at 270-597-2624 or visit their office at 110 Cross Street in Brownsville, as Mammoth Cave falls under county jurisdiction rather than having its own municipal permitting system. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the local fire department, proof of liability insurance (minimum $1 million coverage), floor plan showing maximum occupancy, septic system inspection if applicable, and Kentucky state business license. The application fee is approximately $150-200 with an annual renewal fee of $100-125, and you may need additional inspections costing $75-100 each. The timeline is generally 4-6 weeks for initial approval, though it can extend to 8-10 weeks during peak seasons or if additional inspections are required. Specific Mammoth Cave area requirements include adherence to the National Park Service guidelines due to proximity to Mammoth Cave National Park, parking restrictions limiting vehicles to designated areas only, noise ordinances with quiet hours from 10 PM to 7 AM, maximum occupancy limits based on septic capacity and square footage, mandatory posting of emergency contact information, and compliance with Kentucky's transient room tax collection requirements through the Department of Revenue.

Short-term rentals (STRs) are generally legal in Mammoth Cave, Kentucky, as the small unincorporated community in Edmonson County operates under Kentucky state law, which does not prohibit STRs at the state level. However, the area's proximity to Mammoth Cave National Park means that any STR operations must comply with federal regulations regarding commercial activities near national park boundaries, and properties within the actual park boundaries are strictly prohibited from operating as STRs. Edmonson County has not implemented comprehensive STR regulations as of 2023, though operators must still obtain proper business licenses and comply with health department requirements for rental properties. The local tourism economy around Mammoth Cave has seen increased STR activity since 2018, particularly in nearby Cave City and Park City, but the immediate Mammoth Cave area remains largely residential with limited commercial STR development due to zoning restrictions and the National Park Service's oversight of activities that could impact park resources and visitor experience.

The best areas for Airbnb investment in Mammoth Cave, Kentucky are primarily concentrated around the Mammoth Cave National Park entrance area, particularly along Mammoth Cave Parkway and the Cave City corridor, which attract millions of annual visitors to the world's longest known cave system. The Park City area, located just north of the national park, offers excellent investment potential due to its proximity to both Mammoth Cave and additional attractions like Kentucky Down Under Adventure Zoo and Lost River Cave, drawing families and adventure tourists year-round. The Green River corridor provides opportunities for properties targeting fishing, boating, and water recreation enthusiasts, especially during spring and summer months when outdoor activities peak. Cave City itself, situated along Interstate 65, benefits from both national park tourism and highway travelers, making it ideal for short-term rentals that can capture both destination tourists and overnight travelers. The Horse Cave area, approximately 10 miles northeast, offers investment opportunities for properties serving visitors to the American Cave Museum and Hidden River Cave, while also benefiting from the region's growing agritourism and bourbon trail connections that bring visitors exploring Kentucky's broader attractions.

Airbnb properties in Mammoth Cave, Kentucky are subject to Kentucky's 6% state sales tax on transient accommodations, which applies to rentals of less than 30 consecutive days. Edmonson County imposes an additional 3% transient room tax on short-term lodging, bringing the total occupancy tax rate to approximately 9%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Kentucky around 2018. Airbnb then remits these taxes quarterly to the Kentucky Department of Revenue and applicable local authorities on behalf of hosts. However, hosts remain ultimately responsible for ensuring compliance and may need to register for tax accounts if they have properties in jurisdictions where Airbnb doesn't automatically collect, or if they use other booking platforms. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes as they're considered long-term rentals rather than short-term accommodations. Some hosts may also be exempt if their annual rental income falls below certain thresholds, though specific exemption amounts vary by jurisdiction.

The total cost to start an Airbnb in Mammoth Cave, Kentucky would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the rural Cave City/Mammoth Cave area as of 2023-2024. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$4,000. Permits and fees including business license, occupancy permits, and potential HOA approvals would cost $500-$1,500. Insurance including short-term rental coverage and liability protection would be $1,200-$2,000 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-$1,200), maintenance reserves ($1,000), marketing ($500), and platform fees would total approximately $4,000-$6,000, assuming moderate occupancy during the startup period.

Airbnb properties in Mammoth Cave, Kentucky show moderate profitability potential with average daily rates ranging from $80-150 depending on property size and amenities, generating annual revenues of $15,000-35,000 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), property management (15-25%), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally fall between 20-35% for successful operators, with properties near Mammoth Cave National Park commanding premium rates during peak seasons (April-October). Success factors include strategic location within 10 miles of the park entrance, professional photography, responsive guest communication, and amenities like hot tubs or fire pits that justify higher nightly rates. Properties managed by companies like Vacasa or RedAwning in the area report average annual net profits of $8,000-18,000, while owner-operated units often achieve higher margins of 25-40% by reducing management fees. The market benefits from consistent tourism to Mammoth Cave National Park, which attracts over 500,000 visitors annually, though seasonality requires careful cash flow management during slower winter months when occupancy can drop to 30-40%.

Airbnb investments in Mammoth Cave, Kentucky typically generate annual ROI of 12-18% due to the area's proximity to Mammoth Cave National Park, which attracts over 500,000 visitors annually. Cash-on-cash returns generally range from 8-14% for properties within 10 miles of the park entrance, with higher returns for unique accommodations like cabins or glamping setups that can command $120-180 per night during peak season (April-October). Properties typically reach profitability within 18-24 months, assuming 60-70% occupancy rates and average daily rates of $85-130 depending on property size and amenities. The market benefits from consistent year-round demand due to the park's cave tours operating in all seasons, though summer months and fall foliage season (September-October) drive the highest revenue. Initial investment costs are relatively low compared to major metropolitan areas, with median property prices around $150,000-250,000, making the barrier to entry accessible while still generating strong returns through the established tourism infrastructure supporting Mammoth Cave National Park.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Mammoth Cave, Kentucky. Local real estate agents like Mammoth Cave Realty and Cave Country Properties have experience with vacation rental investments in the area, while Kentucky-based firms such as Bluegrass Investment Properties and Louisville STR Advisors provide specialized Airbnb acquisition services. National companies including Awning, RedAwning, and Vacasa offer property management and investment analysis services for the Mammoth Cave market. AirDNA and Mashvisor provide market data and analytics specifically for short-term rental investments in south-central Kentucky. Local property management companies like Cave Region Vacation Rentals and Mammoth Cave Lodge Properties assist investors with both acquisition and ongoing management of Airbnb properties near the national park. Investment-focused real estate brokerages such as Keller Williams Investment Realty and RE/MAX Commercial have agents specializing in vacation rental properties throughout the Cave Country region.