Is Murray, Kentucky Good for Airbnb Investment?

Start with the exact address, City boundary, zoning district, lawful dwelling use, business-license path, tax obligations, building history, flood exposure, utilities, insurance, and private restrictions. Murray defines short-term rentals as residential dwelling rentals for fewer than 30 consecutive days, but eligibility still depends on the parcel and proposed use.

• Confirm the address is inside Murray city limits and identify its zoning district before relying on City rules.
• Ask Planning and Zoning to confirm in writing whether the proposed rental use is permitted, conditional, or unavailable at the exact property.
• Price licensing, taxes, safety work, furnishing, maintenance, insurance, management, utilities, and reserves into property-level underwriting.

Murray requires a business license for anyone operating a business or performing work within City limits. The City says Planning and Zoning must approve the application before issuance and reviews zoning, land use, signage, and parking. The annual license expires May 1, with renewal due by the last day of May.

• Confirm the City’s current business classification and fee for the proposed short-term rental before applying.
• Submit the business-license application with the exact operating address and proposed rental model.
• Keep the issued license, zoning approval, fee receipt, and renewal calendar with the property file.

Compare the current layout with City permit and inspection records before acquisition. Confirm that bedrooms, basement finishes, decks, stairs, handrails, electrical work, plumbing, HVAC, exits, alarms, and structural alterations are lawful and complete. Ask City staff which permits and inspections apply to the existing structure and any planned work.

• Resolve open, expired, or missing permits before assigning value to finished space or guest capacity.
• Verify smoke and carbon-monoxide alarms, safe egress, address visibility, guards, handrails, and emergency instructions with qualified professionals.
• For properties outside City limits, confirm building and electrical inspection responsibilities with Calloway County contacts.

Kentucky imposes a 6% sales tax and a 1% statewide transient room tax on qualifying lodging, in addition to any applicable local transient room tax. State guidance excludes a continuous stay of 30 days or more from the transient room tax. Airbnb and Vrbo collect the statewide transient room tax for participating hosts, but channel-specific collection does not settle every operator duty.

• Confirm current state and local lodging-tax accounts, rates, bases, exemptions, and filing schedules before opening bookings.
• If operating exclusively through Airbnb or Vrbo, verify the Department of Revenue rule on whether a state transient-room-tax account is unnecessary.
• For direct or mixed-channel bookings, document which taxes the operator must collect, report, and remit.

Route each question to the office responsible for the decision and preserve written responses with the property file. City zoning, conditional use, and business-license review begins with Murray Planning and Engineering and City Customer Service. County parcel, land-record, building, septic, and flood questions go to the corresponding Calloway County offices.

• Murray Planning and Engineering: 500 Main Street, Murray, Kentucky 42071; zoning and conditional-use inquiries at 270-762-0350 extension 1147.
• Murray business-license inquiries: 270-762-0350 extension 1129.
• Calloway County PVA: 101 South Fifth Street, Murray; 270-753-3482.
• Calloway County Health Department onsite sewage: 602 Memory Lane, Murray; 270-753-3381.
• Calloway County Floodplain Officer: 270-759-3549.

Property selection and setup support: Plan a Murray Property Strategy Call. Bring the address, zoning record, permit history, proposed booking channels, tax plan, inspection findings, insurance quote, and operating assumptions. STR Search can help compare properties and scope setup after local feasibility is established.