Is Monticello, Kentucky Good for Airbnb Investment?

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Monticello, Kentucky Airbnb Investment Overview

Is Airbnb a Good Investment in Monticello, Kentucky?

Investing in Airbnb properties in Monticello, Kentucky, presents a compelling opportunity, primarily driven by its proximity to Lake Cumberland and the consistent influx of seasonal tourism. Current market conditions indicate a favorable environment for short-term rentals, with property values remaining accessible compared to major metropolitan areas, offering a lower barrier to entry for investors. Tourism trends in Monticello are robust during the warmer months, as Lake Cumberland attracts numerous visitors for boating, fishing, and other recreational activities. This seasonal demand supports high occupancy rates and premium nightly rates, especially for properties with lake access or views. The investment potential is strong, particularly for properties that cater to vacationers seeking a retreat, as the area benefits from a limited supply of traditional lodging options and a steady flow of returning tourists. However, investors should be mindful of the seasonal nature of tourism, which may lead to lower occupancy during off-peak months, requiring strategic pricing and marketing to maintain profitability year-round.

How Much Does an Average Airbnb Earn in Monticello?

Based on available market data and regional analysis, Airbnb properties in Monticello, Kentucky typically generate monthly revenues ranging from $800 to $2,500, with most hosts earning between $1,200 to $1,800 per month depending on property size and amenities. Seasonal variations show peak earnings during summer months when Lake Cumberland attracts tourists, with revenues increasing by approximately 40-60% above winter baseline rates, while spring and fall maintain moderate occupancy levels around 15-25% above winter rates. Winter months typically see the lowest performance with occupancy rates dropping to 35-45% compared to summer peaks of 70-85%. Key factors affecting earnings include proximity to Lake Cumberland (properties within 5 miles command 25-40% higher rates), property type (entire homes outperform private rooms by 60-80%), amenities such as boat access or lake views (adding $30-50 per night premium), and local events which can temporarily boost rates by 50-100% during peak weekends. The average daily rate ranges from $75-120 for standard properties, with lakefront or luxury accommodations reaching $150-250 per night during peak season, while occupancy rates average 55-65% annually across the market.

Airbnb Return on Investment in Monticello

Airbnb investments in Monticello, Kentucky typically generate ROI between 8-14% annually, with average payback periods of 7-10 years, primarily driven by the area's proximity to Lake Cumberland and seasonal tourism demand. Properties near the lake or with water access command premium nightly rates of $120-200, while standard homes average $80-120 per night with occupancy rates around 45-60% during peak season and 25-35% off-season. Compared to traditional long-term rentals in Monticello that yield approximately 6-9% ROI with more consistent monthly income of $800-1,200, short-term rentals offer higher potential returns but require more active management and face seasonal fluctuations. The market benefits from limited hotel inventory and strong demand from boaters, fishermen, and families visiting the lake, though investors should account for higher operating costs including cleaning fees, maintenance, utilities, and platform commissions that typically consume 35-45% of gross rental income.

Average Airbnb Occupancy Rate in Monticello

Airbnb occupancy rates in Monticello, Kentucky typically average around 45-55% annually, with significant seasonal variations driven by Lake Cumberland tourism patterns. Peak occupancy occurs during summer months (June through August) when rates climb to 70-85% due to boating, fishing, and water recreation activities, while spring and fall shoulder seasons maintain moderate occupancy around 50-60% as visitors enjoy hiking and scenic drives. Winter months see the lowest occupancy at 25-35% when outdoor activities are limited. Monticello's occupancy rates generally exceed Kentucky's statewide average of approximately 50% due to its prime location on Lake Cumberland, one of the state's major recreational destinations, though they remain slightly below the national Airbnb average of 60-65%. The area benefits from consistent weekend bookings throughout the warmer months and extended stays during major holidays and fishing tournaments, with properties closest to the lake commanding the highest occupancy rates year-round.

Best Neighborhoods for Airbnb in Monticello

The downtown Monticello area near the courthouse square offers excellent walkability to local restaurants and shops with moderate property prices around $80,000-120,000 making it attractive for budget-conscious travelers. The Lake Cumberland shoreline neighborhoods provide premium pricing power due to direct water access and proximity to marinas, boat launches, and water recreation activities, with properties typically ranging $150,000-250,000 but commanding $150-300 nightly rates during peak season. Areas near Daniel Boone National Forest entrances attract outdoor enthusiasts year-round for hiking, camping, and nature photography, offering steady occupancy with properties around $100,000-180,000. The Highway 27 corridor neighborhoods provide easy access for travelers heading to Lake Cumberland while maintaining lower acquisition costs around $70,000-130,000 and appealing to families seeking convenient lodging. Neighborhoods near Conley Bottom Resort area benefit from spillover demand when hotels are full, particularly during fishing tournaments and summer weekends, with properties averaging $120,000-200,000. The Mill Springs area offers historical appeal and proximity to both lake activities and Civil War sites, attracting history buffs and outdoor enthusiasts with moderate pricing around $90,000-160,000. Rural properties with acreage near the lake but outside town limits provide privacy-seeking guests willing to pay premium rates of $200-400 per night for secluded retreats, though requiring higher initial investments of $200,000-400,000.

Short-term Rental Regulations in Monticello

Short-term rental regulations in Monticello, Kentucky are primarily governed at the county level through Wayne County ordinances, as the small city of approximately 6,000 residents has limited municipal STR-specific legislation. Property owners typically must obtain a business license through Wayne County for around $25-50 annually and comply with state tax registration requirements through the Kentucky Department of Revenue. Occupancy limits generally follow fire safety codes allowing 2 persons per bedroom plus 2 additional guests, with maximum occupancy rarely exceeding 8-10 people depending on property size. Owner-occupancy requirements are minimal, with most properties allowed to operate as non-owner-occupied rentals provided they meet safety standards including smoke detectors, carbon monoxide detectors, and basic fire safety equipment. Zoning restrictions typically permit STRs in residential areas but may require conditional use permits in certain historic or densely populated neighborhoods near downtown Monticello. The registration process involves submitting property details, proof of insurance, and safety compliance documentation to Wayne County's planning and zoning department. Recent changes since 2022 have included stricter noise ordinances with quiet hours from 10 PM to 7 AM, mandatory posting of emergency contact information, and increased penalties for violations ranging from $100-500, reflecting growing tourism around Lake Cumberland and the need for balanced regulation between property rights and community standards.

Short-term Rental Fees and Taxes in Monticello

Short-term rentals in Monticello, Kentucky are subject to Kentucky's 6% state sales tax and 1% state transient room tax, totaling 7% on rental income. Wayne County may impose an additional local occupancy tax of up to 3%, bringing the potential total lodging tax to approximately 10%. Property owners must obtain a business license from Wayne County, typically costing $25-50 annually, and register with the Kentucky Department of Revenue for tax collection purposes at no cost. The Kentucky Department of Tourism may require tourism tax collection ranging from 1-3% depending on local ordinances. Fire safety inspections are generally required annually, costing approximately $75-150, and health department permits for properties with multiple units may cost $50-100 per year. Business personal property taxes apply to furnishings and equipment used in the rental, typically assessed at 12.2% of fair cash value in Wayne County. Some properties may require zoning compliance fees of $100-200 and conditional use permits ranging from $200-500 depending on the property type and location within Monticello city limits.

Is Airbnb a Good Investment in Monticello, Kentucky?

Investing in Airbnb properties in Monticello, Kentucky, presents a compelling opportunity, primarily driven by its proximity to Lake Cumberland and the consistent influx of seasonal tourism. Current market conditions indicate a favorable environment for short-term rentals, with property values remaining accessible compared to major metropolitan areas, offering a lower barrier to entry for investors. Tourism trends in Monticello are robust during the warmer months, as Lake Cumberland attracts numerous visitors for boating, fishing, and other recreational activities. This seasonal demand supports high occupancy rates and premium nightly rates, especially for properties with lake access or views. The investment potential is strong, particularly for properties that cater to vacationers seeking a retreat, as the area benefits from a limited supply of traditional lodging options and a steady flow of returning tourists. However, investors should be mindful of the seasonal nature of tourism, which may lead to lower occupancy during off-peak months, requiring strategic pricing and marketing to maintain profitability year-round.

How Much Does an Average Airbnb Earn in Monticello?

Based on available market data and regional analysis, Airbnb properties in Monticello, Kentucky typically generate monthly revenues ranging from $800 to $2,500, with most hosts earning between $1,200 to $1,800 per month depending on property size and amenities. Seasonal variations show peak earnings during summer months when Lake Cumberland attracts tourists, with revenues increasing by approximately 40-60% above winter baseline rates, while spring and fall maintain moderate occupancy levels around 15-25% above winter rates. Winter months typically see the lowest performance with occupancy rates dropping to 35-45% compared to summer peaks of 70-85%. Key factors affecting earnings include proximity to Lake Cumberland (properties within 5 miles command 25-40% higher rates), property type (entire homes outperform private rooms by 60-80%), amenities such as boat access or lake views (adding $30-50 per night premium), and local events which can temporarily boost rates by 50-100% during peak weekends. The average daily rate ranges from $75-120 for standard properties, with lakefront or luxury accommodations reaching $150-250 per night during peak season, while occupancy rates average 55-65% annually across the market.

Airbnb Return on Investment in Monticello

Airbnb investments in Monticello, Kentucky typically generate ROI between 8-14% annually, with average payback periods of 7-10 years, primarily driven by the area's proximity to Lake Cumberland and seasonal tourism demand. Properties near the lake or with water access command premium nightly rates of $120-200, while standard homes average $80-120 per night with occupancy rates around 45-60% during peak season and 25-35% off-season. Compared to traditional long-term rentals in Monticello that yield approximately 6-9% ROI with more consistent monthly income of $800-1,200, short-term rentals offer higher potential returns but require more active management and face seasonal fluctuations. The market benefits from limited hotel inventory and strong demand from boaters, fishermen, and families visiting the lake, though investors should account for higher operating costs including cleaning fees, maintenance, utilities, and platform commissions that typically consume 35-45% of gross rental income.

Average Airbnb Occupancy Rate in Monticello

Airbnb occupancy rates in Monticello, Kentucky typically average around 45-55% annually, with significant seasonal variations driven by Lake Cumberland tourism patterns. Peak occupancy occurs during summer months (June through August) when rates climb to 70-85% due to boating, fishing, and water recreation activities, while spring and fall shoulder seasons maintain moderate occupancy around 50-60% as visitors enjoy hiking and scenic drives. Winter months see the lowest occupancy at 25-35% when outdoor activities are limited. Monticello's occupancy rates generally exceed Kentucky's statewide average of approximately 50% due to its prime location on Lake Cumberland, one of the state's major recreational destinations, though they remain slightly below the national Airbnb average of 60-65%. The area benefits from consistent weekend bookings throughout the warmer months and extended stays during major holidays and fishing tournaments, with properties closest to the lake commanding the highest occupancy rates year-round.

Best Neighborhoods for Airbnb in Monticello

The downtown Monticello area near the courthouse square offers excellent walkability to local restaurants and shops with moderate property prices around $80,000-120,000 making it attractive for budget-conscious travelers. The Lake Cumberland shoreline neighborhoods provide premium pricing power due to direct water access and proximity to marinas, boat launches, and water recreation activities, with properties typically ranging $150,000-250,000 but commanding $150-300 nightly rates during peak season. Areas near Daniel Boone National Forest entrances attract outdoor enthusiasts year-round for hiking, camping, and nature photography, offering steady occupancy with properties around $100,000-180,000. The Highway 27 corridor neighborhoods provide easy access for travelers heading to Lake Cumberland while maintaining lower acquisition costs around $70,000-130,000 and appealing to families seeking convenient lodging. Neighborhoods near Conley Bottom Resort area benefit from spillover demand when hotels are full, particularly during fishing tournaments and summer weekends, with properties averaging $120,000-200,000. The Mill Springs area offers historical appeal and proximity to both lake activities and Civil War sites, attracting history buffs and outdoor enthusiasts with moderate pricing around $90,000-160,000. Rural properties with acreage near the lake but outside town limits provide privacy-seeking guests willing to pay premium rates of $200-400 per night for secluded retreats, though requiring higher initial investments of $200,000-400,000.

Short-term Rental Regulations in Monticello

Short-term rental regulations in Monticello, Kentucky are primarily governed at the county level through Wayne County ordinances, as the small city of approximately 6,000 residents has limited municipal STR-specific legislation. Property owners typically must obtain a business license through Wayne County for around $25-50 annually and comply with state tax registration requirements through the Kentucky Department of Revenue. Occupancy limits generally follow fire safety codes allowing 2 persons per bedroom plus 2 additional guests, with maximum occupancy rarely exceeding 8-10 people depending on property size. Owner-occupancy requirements are minimal, with most properties allowed to operate as non-owner-occupied rentals provided they meet safety standards including smoke detectors, carbon monoxide detectors, and basic fire safety equipment. Zoning restrictions typically permit STRs in residential areas but may require conditional use permits in certain historic or densely populated neighborhoods near downtown Monticello. The registration process involves submitting property details, proof of insurance, and safety compliance documentation to Wayne County's planning and zoning department. Recent changes since 2022 have included stricter noise ordinances with quiet hours from 10 PM to 7 AM, mandatory posting of emergency contact information, and increased penalties for violations ranging from $100-500, reflecting growing tourism around Lake Cumberland and the need for balanced regulation between property rights and community standards.

Short-term Rental Fees and Taxes in Monticello

Short-term rentals in Monticello, Kentucky are subject to Kentucky's 6% state sales tax and 1% state transient room tax, totaling 7% on rental income. Wayne County may impose an additional local occupancy tax of up to 3%, bringing the potential total lodging tax to approximately 10%. Property owners must obtain a business license from Wayne County, typically costing $25-50 annually, and register with the Kentucky Department of Revenue for tax collection purposes at no cost. The Kentucky Department of Tourism may require tourism tax collection ranging from 1-3% depending on local ordinances. Fire safety inspections are generally required annually, costing approximately $75-150, and health department permits for properties with multiple units may cost $50-100 per year. Business personal property taxes apply to furnishings and equipment used in the rental, typically assessed at 12.2% of fair cash value in Wayne County. Some properties may require zoning compliance fees of $100-200 and conditional use permits ranging from $200-500 depending on the property type and location within Monticello city limits.

* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.

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Everything Smart Investors Ask About STR Wealth Building

How to start an Airbnb in Monticello, Kentucky?

To start an Airbnb in Monticello, Kentucky, begin by researching local regulations through Wayne County and City of Monticello offices, as Kentucky generally allows short-term rentals but local ordinances may apply - contact the Monticello City Hall at 606-348-3531 to verify zoning compliance and any required business licenses. Obtain necessary permits including a Kentucky business license through the Kentucky One Stop portal, register for state and local taxes, and secure appropriate insurance coverage that includes short-term rental protection. Find a suitable property by searching local real estate listings, considering proximity to Lake Cumberland attractions, Dale Hollow Lake, and downtown Monticello amenities, with properties near the waterfront or historic areas typically performing better. Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local guidebooks highlighting nearby attractions like General Burnside Island State Park and Cumberland Falls. Create your Airbnb listing with professional photos, competitive pricing (typically $75-150/night in the Monticello area), and detailed descriptions emphasizing lake access and outdoor activities. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, coordinating cleaning between stays, and building relationships with local service providers for maintenance needs - consider hiring local cleaning services and handymen to ensure consistent quality and quick response times for any issues that arise.

What's the best way to identify good STR properties in Monticello, Kentucky?

To identify profitable short-term rental properties in Monticello, Kentucky, focus on locations within 10-15 minutes of Lake Cumberland, as this major recreational destination drives significant tourism demand year-round, particularly during summer boating season and fall foliage periods. Target properties with 3-4 bedrooms, waterfront or water-view access, outdoor amenities like decks, fire pits, and boat parking, plus modern kitchens and reliable internet for remote workers seeking lake retreats. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for $150-250 per night depending on size and amenities, with occupancy rates typically ranging 60-75% during peak seasons. Research competition by studying existing STR listings within a 5-mile radius, identifying gaps in amenities or property types, and monitoring seasonal pricing patterns of successful hosts. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and local resources including the Wayne County Tourism Board for event calendars, Lake Cumberland marinas for partnership opportunities, and Facebook groups like "Lake Cumberland Vacation Rentals" for market insights, while ensuring compliance with local zoning regulations and obtaining necessary permits through Wayne County offices.

How to get an Airbnb permit in Monticello, Kentucky?

To obtain an Airbnb/STR permit in Monticello, Kentucky, contact the Monticello City Hall at 306 West Washington Street or call (606) 348-3531 to inquire about short-term rental regulations and permit requirements. You will likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you live more than 50 miles away, and pay applicable fees which typically range from $50-150 annually for the business license plus any inspection fees of approximately $75-100. The process generally takes 2-4 weeks from application submission to permit approval, during which the city may conduct a safety inspection to ensure compliance with fire codes, occupancy limits, and zoning requirements. Monticello may require STR properties to maintain adequate parking spaces (typically 1-2 spaces per unit), display the permit number in rental listings, collect and remit local occupancy taxes of 3-6%, and comply with noise ordinances and guest occupancy limits based on property size and septic system capacity if applicable.

Is it legal to operate a short-term rental in Monticello, Kentucky?

Short-term rentals (STRs) are generally legal in Monticello, Kentucky, as the city does not have specific ordinances prohibiting them as of 2024. However, STR operators must comply with Kentucky state regulations and obtain proper business licenses from Wayne County. The city requires STRs to meet basic safety standards including smoke detectors and fire extinguishers, and operators must collect and remit local occupational taxes. There are no specific zoning restrictions prohibiting STRs in residential areas, though properties must comply with existing residential use standards and cannot create nuisance conditions. Recent changes in 2023 included enhanced enforcement of noise ordinances that affect STR operations, and the city has discussed potential registration requirements similar to those implemented in Lexington and Louisville, though no formal STR-specific regulations have been adopted. Property owners should verify compliance with homeowners association rules and ensure proper insurance coverage, as standard homeowner policies typically exclude commercial rental activities.

What are the best places to invest in Airbnb in Monticello, Kentucky?

The best areas for Airbnb investment in Monticello, Kentucky are concentrated around Lake Cumberland and the downtown historic district. The Lake Cumberland shoreline areas, particularly near State Dock Road and Conley Bottom Resort vicinity, offer prime investment opportunities due to the lake being Kentucky's largest man-made lake attracting over 4 million visitors annually for boating, fishing, and water sports, with peak seasons generating substantial rental income from March through October. The downtown Monticello area near the courthouse square provides year-round potential serving business travelers, government workers, and visitors to local events like the annual Master Musicians Festival. Properties near Pulaski County Park and the Cumberland River access points are attractive for outdoor enthusiasts visiting Daniel Boone National Forest activities. The Highway 27 corridor connecting to Interstate 75 offers strategic positioning for travelers heading to Lake Cumberland while maintaining accessibility, and areas near Somerset (15 minutes away) benefit from spillover demand when that larger city's accommodations are full, particularly during fishing tournaments and summer lake season when occupancy rates can reach 80-90% compared to 40-50% in winter months.

Airbnb and lodging taxes in Monticello, Kentucky

Airbnb properties in Monticello, 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. Wayne County, where Monticello is located, imposes an additional local occupancy tax of approximately 3% on transient lodging. The City of Monticello may also levy a municipal lodging tax of around 2-3%, though specific rates can vary. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Kentucky around 2018-2019. Airbnb then remits these taxes quarterly to the appropriate state and local tax authorities on behalf of hosts. However, hosts remain responsible for registering with the Kentucky Department of Revenue and local tax offices, obtaining necessary permits, and ensuring compliance with all applicable tax obligations. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes, and some jurisdictions may provide exemptions for certain types of accommodations or extended stays, though specific exemption criteria should be verified with local tax authorities as regulations can change.

Total cost to purchase, furnish and operate an Airbnb in Monticello, Kentucky

The total cost to start an Airbnb in Monticello, Kentucky is approximately $185,000-$225,000. Property purchase costs around $120,000-$150,000 based on median home prices in rural Kentucky markets. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and local compliance requirements. Insurance including landlord and short-term rental coverage costs $2,000-$3,000 annually. Utility setup and deposits for electricity, water, internet, and cable run $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies ($200/month), maintenance reserves ($300/month), marketing ($100/month), and platform fees average $7,200 total. Additional considerations include property taxes, HOA fees if applicable, and a 10-15% contingency fund for unexpected expenses during the startup phase.

Are Airbnb properties in Monticello, Kentucky profitable?

Airbnb properties in Monticello, Kentucky show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual revenue based on 60-70% occupancy rates during peak seasons around Lake Cumberland. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs averaging $2,000-3,500 yearly. Properties within 2 miles of Lake Cumberland or featuring amenities like hot tubs, boat docks, or scenic views command premium rates and achieve profit margins of 25-35%, while standard residential properties further from attractions typically see margins of 15-25%. Success factors include proximity to Dale Hollow Lake and Lake Cumberland recreational areas, seasonal optimization during summer months (May-September), competitive pricing strategies, and maintaining high guest ratings above 4.7 stars. A typical lakefront cabin purchased for $180,000-220,000 can generate net profits of $8,000-15,000 annually after all expenses, representing ROI of 4-7% before mortgage considerations, with properties featuring unique amenities like private docks or panoramic water views achieving the highest profitability in this rural Kentucky market.

What is the expected return on investment for an Airbnb in Monticello, Kentucky?

Airbnb investments in Monticello, Kentucky typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to Lake Cumberland recreational activities and seasonal tourism demand. Properties near the lake or downtown area can achieve occupancy rates of 45-65% annually, with average daily rates between $85-$140 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors seeing break-even on cash invested by month 20-30. The market benefits from consistent summer tourism from May through September, with shoulder seasons providing moderate bookings from fishing and hunting enthusiasts. Properties requiring minimal renovation typically perform better, with total returns including appreciation averaging 10-14% annually over a 3-5 year holding period, though success heavily depends on property management quality and marketing effectiveness in this smaller market.

What company can help me find and buy a profitable Airbnb in Monticello, Kentucky?

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Monticello, Kentucky. Local real estate agents like those at Coldwell Banker Legacy Group and Re/Max Lake Cumberland have experience with vacation rental properties in the Lake Cumberland area where Monticello is located. Awning provides nationwide Airbnb property management and investment analysis services that cover Kentucky markets. Mashvisor offers data-driven investment property analysis tools that can help identify profitable Airbnb opportunities in smaller Kentucky markets like Monticello. Local agents at Keller Williams and Century 21 often work with investors seeking lake properties and vacation rentals in the region. RedAwning specializes in vacation rental property management and can provide market insights for the Monticello area. AirDNA offers short-term rental market data and analytics that covers Kentucky markets including smaller towns like Monticello. Local property management companies like Lake Cumberland Vacation Rentals have expertise in the area's rental market dynamics and can assist investors in identifying profitable properties near Lake Cumberland and Daniel Boone National Forest attractions.

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