Is Mayfield, Kentucky Good for Airbnb Investment?

To start an Airbnb in Mayfield, Kentucky, begin by researching local regulations through the Mayfield City Hall (270-247-6721) and Graves County offices, as Kentucky generally allows short-term rentals but municipalities may have specific zoning requirements and occupancy limits. Obtain necessary permits including a business license from the city (approximately $25-50 annually), ensure your property meets fire safety codes, and verify homeowner's insurance covers short-term rentals or purchase additional coverage through companies like Proper Insurance or CBIZ. Find a suitable property in residential areas near downtown Mayfield or close to attractions like Kentucky Lake (30 minutes away), ensuring it meets local housing codes and has adequate parking. Furnish the space with essential amenities including Wi-Fi, linens, kitchen basics, and local touches highlighting Mayfield's railroad heritage and proximity to outdoor recreation. Create your listing on Airbnb with professional photos, competitive pricing (typically $60-120/night for the area), and highlight nearby attractions like the West Kentucky Wildlife Management Area and annual Mayfield events. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, collect and remit Kentucky's 6% sales tax plus any local occupancy taxes, and consider using property management software like Hostfully or hiring local cleaning services to maintain consistent quality and guest satisfaction.

To identify profitable short-term rental properties in Mayfield, Kentucky, focus on locations within 2-3 miles of downtown, near Kentucky Lake recreational areas, or close to major employers like Mayfield Consumer Products. Target 2-4 bedroom single-family homes or duplexes built after 1980 with updated kitchens, reliable HVAC systems, and outdoor spaces like patios or decks that appeal to visitors exploring western Kentucky's outdoor attractions. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for nightly rates between $75-150 depending on size and amenities, while analyzing seasonal demand patterns around Kentucky Lake's peak summer months and hunting seasons. Research competition by examining existing Airbnb and VRBO listings within a 10-mile radius, identifying gaps in amenities or underserved price points, and monitor occupancy rates of similar properties using tools like AirDNA or STR analytics platforms. Utilize local resources including the Mayfield-Graves County Economic Development Corporation for market insights, connect with local real estate agents familiar with investment properties, and leverage Zillow, Realtor.com, and local MLS data to identify properties under $150,000 that can generate 12-18% annual returns after accounting for Mayfield's relatively low property taxes and operating costs.

To obtain an Airbnb/STR permit in Mayfield, Kentucky, contact the Mayfield City Hall at 304 North 7th Street or call (270) 247-2456 to inquire about short-term rental regulations and permit requirements. You will likely need to submit a business license application, provide proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), fire safety inspection certificate, and completed STR registration form with property details and emergency contact information. Required fees typically range from $100-300 for the initial permit plus annual renewal fees of $50-150, with additional inspection fees of $25-75. The approval process generally takes 2-4 weeks after submitting complete documentation, though initial inspections may extend this timeline to 4-6 weeks. Mayfield-specific requirements likely include compliance with residential zoning restrictions, maximum occupancy limits based on bedrooms and square footage, designated parking spaces for guests, proper waste management arrangements, and maintaining a local contact person available 24/7 for neighbor concerns. You must also register with the Kentucky Department of Revenue for state tax collection purposes and may need to collect and remit local occupancy taxes to Graves County.

Short-term rentals (STRs) are generally legal in Mayfield, Kentucky, as the city has not enacted specific prohibitions against vacation rentals or short-term accommodations. However, STR operators must comply with standard business licensing requirements, zoning regulations that may restrict commercial activities in residential areas, and state tax obligations including transient room taxes. The city follows Kentucky state regulations which allow municipalities to regulate STRs through zoning and licensing rather than outright bans. Property owners should verify their specific zoning district allows transient accommodations and obtain proper business licenses from the city. There have been no major recent legal changes specifically targeting STRs in Mayfield as of 2023-2024, though operators should monitor local ordinances as many Kentucky cities have been developing more specific STR regulations in response to growth in platforms like Airbnb and VRBO since 2020.

The best areas for Airbnb investment in Mayfield, Kentucky include the historic downtown district near the courthouse square, which attracts visitors interested in the city's heritage and serves business travelers visiting local government offices and professional services. The residential neighborhoods near Mayfield High School and along US-45 corridor offer good potential due to proximity to sporting events, school activities, and easy highway access for travelers passing through western Kentucky. Areas near the Mayfield Consumer Mall and commercial district along Paris Road provide convenience for business travelers and shoppers, while properties close to Mayfield-Graves County Airport can capture aviation-related business travel. The neighborhoods around West Kentucky Community and Technical College campus offer opportunities for visiting families, prospective students, and academic-related travel, and locations near major employers like Kenlake Foods and regional healthcare facilities can attract business travelers and medical tourism.

Airbnb properties in Mayfield, Kentucky are subject to Kentucky's state transient room tax of 1% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. The state tax is collected by the Kentucky Department of Revenue and hosts must register for a transient room tax account, file monthly returns by the 20th of the following month, and remit payments electronically through the state's online portal. Graves County, where Mayfield is located, imposes an additional 3% transient room tax that must be collected from guests and remitted to the county clerk's office monthly. The city of Mayfield itself levies a 2% occupancy tax on short-term rentals, bringing the total tax burden to approximately 6% of gross rental receipts. Hosts are responsible for collecting these taxes from guests at the time of booking or check-in and must maintain detailed records of all transactions. Exemptions typically apply to rentals exceeding 30 consecutive days, government employees on official business, and certain non-profit organization stays, though documentation is required. Failure to comply with registration, collection, or remittance requirements can result in penalties ranging from 10-25% of unpaid taxes plus interest, with the Kentucky Department of Revenue and local authorities conducting periodic audits of short-term rental operators.

To start an Airbnb in Mayfield, Kentucky, the total costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $120,000-$140,000 based on median home prices in the area. Furnishing costs for a complete 2-3 bedroom property would run $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies would be around $2,000-$3,000. Permits and fees vary but typically include business license ($50-$100), short-term rental permit if required ($200-$500), and potential HOA approval fees. Insurance for short-term rentals costs approximately $1,500-$2,500 annually, significantly higher than standard homeowner's insurance. Utilities including electricity, water, gas, internet, and cable would average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services ($100-$150 per turnover), maintenance, restocking supplies, platform fees (3% of bookings), and marketing would total approximately $8,000-$12,000 assuming moderate occupancy rates of 50-60% during the initial period.

Airbnb properties in Mayfield, Kentucky typically generate modest returns with average daily rates ranging from $65-85 due to the small market size and limited tourism infrastructure. Properties in this western Kentucky town of approximately 10,000 residents face occupancy rates around 35-45% annually, resulting in gross revenues of $8,000-12,000 per year for typical 2-3 bedroom homes. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($150-200 monthly), insurance ($800-1,200 annually), and maintenance typically consume 40-50% of gross revenue. Net profit margins generally range from 15-25% before mortgage payments, with successful properties being those near Kentucky Lake recreational areas or offering unique amenities like hot tubs or game rooms. The 2021 tornado that devastated parts of Mayfield temporarily increased demand for temporary housing, with some properties achieving 70%+ occupancy rates and $100+ daily rates during the recovery period. Properties within walking distance of downtown or featuring modern renovations tend to outperform, while success factors include competitive pricing against nearby Paducah and Murray markets, strong guest communication, and targeting fishing/hunting enthusiasts visiting the region's outdoor attractions.

Based on Mayfield, Kentucky market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the city. Properties near Kentucky Lake and Land Between the Lakes recreational areas command higher nightly rates of $80-120, while downtown properties average $60-90 per night with 65-75% occupancy rates throughout the year. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with startup costs including furnishing and marketing typically ranging $15,000-25,000 for a 2-3 bedroom property. The market benefits from consistent tourism related to outdoor recreation, hunting seasons, and regional events, with peak performance during spring through fall months generating 20-25% higher returns than winter periods.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Mayfield, Kentucky. Local real estate agents specializing in investment properties include Coldwell Banker Legacy Group and Crye-Leike Realtors, both with offices serving the western Kentucky region since the 1990s. RE/MAX Realty Group has been active in the Mayfield market since 2005, with agents experienced in vacation rental investments. National services like BiggerPockets (founded 2004) offer investment property networking and analysis tools, while AirDNA provides market data and revenue projections for the Mayfield area. Roofstock, established in 2015, occasionally features Kentucky investment properties including short-term rental opportunities. Local property management companies such as Bluegrass Property Management and Kentucky Lake Vacation Rentals assist with Airbnb operations and guest services. Mashvisor, launched in 2014, offers investment property analysis tools covering the Mayfield market, and LoopNet provides commercial and investment property listings for the region.