Is Marion, Ohio Good for Airbnb Investment?

To start an Airbnb in Marion, Ohio, begin by researching local zoning laws and regulations through the Marion City Planning Department, as Marion requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact Marion County Health Department for any required health permits and ensure compliance with Ohio state tax requirements including registering for sales tax collection. Find a suitable property by searching Marion's residential areas like the historic downtown district or neighborhoods near Marion Technical College, considering proximity to attractions like the Harding Home and Heritage Hall. Purchase essential furnishings including quality bedding, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, ensuring the property meets Ohio's residential building codes. Create your Airbnb listing with professional photos highlighting Marion's small-town charm and proximity to Columbus (45 miles south), setting competitive rates based on local market research of similar properties in Marion and nearby Delaware or Mount Vernon. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services in Marion, and staying updated on any changes to city ordinances regarding short-term rentals, while also registering with the Ohio Department of Taxation for lodging tax collection if applicable.

To identify profitable short-term rental properties in Marion, Ohio, focus on locations within 2-3 miles of Ohio State University Marion campus and near downtown Marion's historic district, as these areas attract visiting families, business travelers, and tourists exploring local attractions like the Harding Home and Museum. Target 2-4 bedroom single-family homes or duplexes built after 1950 with updated kitchens, reliable HVAC systems, dedicated parking, and strong WiFi capability, as these features appeal to both business and leisure travelers. Conduct pricing analysis by researching comparable STRs on Airbnb and VRBO within a 10-mile radius, aiming for properties that can generate $75-120 per night with 60-70% occupancy rates to achieve positive cash flow after mortgage, utilities, cleaning, and maintenance costs. Research competition by analyzing existing STR listings in Marion County, noting their pricing, amenities, and guest reviews to identify market gaps and positioning opportunities. Utilize tools like AirDNA for market data analysis, Mashvisor for investment property analysis, and the Marion County Auditor's website for property tax and ownership information, while also consulting with local real estate agents familiar with Marion's rental market dynamics and zoning regulations that permit short-term rentals.

To obtain an Airbnb/STR permit in Marion, Ohio, you must first contact the Marion City Planning Department at City Hall located at 233 West Center Street to determine if short-term rentals are permitted in your zoning district, as Marion requires compliance with local zoning ordinances. Submit an application for a business license through the City of Marion's licensing department, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (typically $1 million minimum), floor plan of the rental unit, emergency contact information, and completed safety inspection checklist. Pay the estimated application fee of $50-100 plus annual renewal fees of approximately $75-150, though exact amounts should be confirmed with the city. Schedule required inspections with the Marion County Health Department for health and safety compliance and the Marion Fire Department for fire safety requirements, ensuring smoke detectors, carbon monoxide detectors, and fire extinguishers are properly installed. The approval timeline typically takes 30-60 days depending on inspection scheduling and any required corrections. Marion-specific requirements likely include maintaining guest registries, posting emergency contact information prominently, adhering to occupancy limits based on property size, ensuring adequate parking availability, and complying with noise ordinances and neighborhood compatibility standards.

Short-term rentals (STRs) are generally legal in Marion, Ohio, as the city has not enacted specific prohibitions against them as of 2024. However, STR operators must comply with existing zoning regulations, which typically restrict commercial activities in residential zones, and obtain proper business licenses and permits from the city. Properties must meet health and safety codes, including fire safety requirements and occupancy limits. Marion follows Ohio state law regarding taxation, requiring STR operators to collect and remit lodging taxes. The city has not implemented recent comprehensive STR-specific regulations like some larger Ohio municipalities such as Columbus or Cincinnati, but operators should verify current zoning compliance in their specific district and ensure they meet all business licensing requirements. Property owners should also check with homeowners associations if applicable, as private covenants may impose additional restrictions beyond city regulations.

The best Airbnb investment areas in Marion, Ohio include the Historic Downtown District near the Harding Home and Memorial, which attracts history tourists visiting President Warren G. Harding's preserved residence and tomb year-round. The Palace Theatre District offers strong potential due to its restored 1928 venue hosting concerts, plays, and community events that draw overnight visitors. Areas near Marion Technical College and Ohio State University Marion campus provide consistent demand from visiting families, prospective students, and academic travelers. The Fairgrounds District near the Marion County Fairgrounds benefits from seasonal events including the annual county fair, horse shows, and agricultural exhibitions that create periodic high-demand periods. Properties near Marion General Hospital and OhioHealth systems attract medical travelers, patient families, and healthcare professionals needing temporary accommodations. The Olentangy River corridor and nearby recreational areas appeal to outdoor enthusiasts visiting for fishing, hiking, and nature activities, while the industrial corridor near major employers like Whirlpool Corporation and Marion Manufacturing generates business travel demand from corporate visitors, contractors, and temporary workers.

Marion, Ohio imposes a lodging tax on short-term rentals including Airbnbs at a rate of approximately 3-5% of the rental amount, which is collected by the Ohio Department of Commerce Division of Liquor Control and administered locally through Marion County. The tax is typically collected directly from guests at the time of booking through platforms like Airbnb, which may automatically collect and remit these taxes on behalf of hosts, though individual hosts remain responsible for ensuring compliance and may need to register with local tax authorities. Remittance procedures generally require monthly or quarterly filing depending on rental volume, with payments due by the 15th of the following month, and hosts must maintain detailed records of all transactions. Additionally, Ohio state sales tax of 5.75% plus local sales tax of approximately 1-2% may apply to short-term rental services, bringing the total tax burden to around 9-12% of rental fees. Exemptions may include rentals for periods exceeding 30 consecutive days, rentals to permanent residents, and certain properties used for specific purposes like medical treatment, though these exemptions require proper documentation and verification through the Marion County Auditor's office and Ohio Department of Taxation.

To start an Airbnb in Marion, Ohio, expect total costs around $85,000-$95,000. Property purchase represents the largest expense at approximately $65,000 based on Marion's median home price as of 2023. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees in Marion include business license ($50), short-term rental permit if required ($100-$300), and potential zoning compliance costs totaling around $500-$1,000. Insurance for short-term rentals runs $1,200-$1,800 annually, with six months costing $600-$900. Utility setup and deposits for electricity, gas, water, internet, and cable average $300-$500 initially. First six months operating costs including utilities ($150/month), cleaning supplies ($50/month), maintenance reserves ($100/month), platform fees (3% of bookings estimated at $200/month), and marketing expenses total approximately $3,000-$4,000, assuming moderate occupancy rates of 50-60% in the Marion market.

Airbnb properties in Marion, Ohio typically generate modest returns with average nightly rates ranging from $45-75 for entire homes and $25-40 for private rooms, resulting in monthly revenues of $800-1,500 for properties with 40-60% occupancy rates. Operating expenses generally consume 35-50% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($80-120 monthly), property management (10-20% of revenue), insurance ($100-150 monthly), and maintenance costs averaging $200-400 monthly. Net profit margins typically range from 15-25% after expenses, with successful properties in Marion's downtown area near Ohio State University Marion campus achieving higher occupancy rates and premium pricing. Properties within walking distance of Marion Palace Theatre and downtown attractions perform better, with some hosts reporting annual profits of $3,000-8,000 on modest 2-3 bedroom homes purchased for $60,000-90,000. Success factors include competitive pricing below Columbus market rates, quick response times to guests, professional photography, and targeting business travelers visiting local manufacturers like Whirlpool Corporation and Marion Technical College visitors, though the limited tourism infrastructure and smaller market size compared to major Ohio cities constrains overall profitability potential.

Airbnb investments in Marion, Ohio typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the local market conditions. Properties in Marion, with median home prices around $80,000-$120,000, can achieve gross rental yields of 12-18% annually when operated as short-term rentals, though net returns after expenses including utilities, cleaning, maintenance, insurance, and platform fees typically settle at 8-12%. Cash-on-cash returns of 6-10% are achievable with 20-25% down payments, and investors can expect to reach profitability within 12-18 months after accounting for initial setup costs, furnishing, and marketing expenses. The Marion market benefits from proximity to Ohio State University Marion campus and local business travel, though seasonal fluctuations may impact occupancy rates, with stronger performance during university academic periods and summer months when tourism to central Ohio increases.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Marion, Ohio. In Marion, local real estate agents like those at Coldwell Banker King Thompson, RE/MAX Results, and Century 21 Sunway Realty have experience with investment properties and can assist with Airbnb acquisitions. National services include Mashvisor for market analysis and property identification, BiggerPockets for investor networking and deal sourcing, and AirDNA for short-term rental market data specific to Marion County. Local property management companies such as Marion Property Management and Ohio Valley Property Management can provide insights into rental markets and may assist with investment property searches. Additional national platforms like Roofstock, which specializes in investment properties, and RedfinNow occasionally serve the Marion market. Local mortgage brokers and investment-focused lenders like First Federal Bank of Ohio can provide financing expertise for short-term rental investments in the area.