Is Newark, Ohio Good for Airbnb Investment?

To start an Airbnb in Newark, Ohio, begin by researching local zoning laws through the Newark Planning and Zoning Department, as the city requires short-term rentals to comply with residential zoning restrictions and may require a business license from the City of Newark. Contact Licking County for any additional permit requirements and ensure compliance with Ohio state tax obligations including lodging taxes. Find a suitable property in residential areas that allow short-term rentals, focusing on neighborhoods near downtown Newark or close to attractions like the Great Circle Earthworks. Purchase the property or secure landlord permission if renting, then obtain necessary permits including a business license from Newark City Hall and register with the Ohio Department of Commerce if required. Furnish the space with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors and carbon monoxide detectors as required by Ohio fire codes. Create professional listings on Airbnb, VRBO, and other platforms with high-quality photos and detailed descriptions highlighting proximity to Denison University in nearby Granville and local attractions. Implement a management system for bookings, cleaning between guests, key exchange, and guest communication, while maintaining compliance with Newark's noise ordinances and parking regulations. Consider hiring local cleaning services and establish relationships with maintenance professionals in the Newark area for ongoing property management needs.

To identify profitable short-term rental properties in Newark, Ohio, focus on locations within walking distance of downtown attractions, near Denison University (major demand driver), and close to the National Trail and recreational areas like Dawes Arboretum. Target 2-4 bedroom single-family homes or historic properties with character, parking availability, and outdoor spaces that appeal to visiting families and university guests. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against existing STRs, aiming for properties under $150,000 that can generate $100-150 per night during peak university and festival seasons. Research competition by analyzing current Airbnb and VRBO listings within 5 miles, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like BiggerPockets for investment analysis, Zillow and Realtor.com for property searches, and connect with local real estate agents familiar with Newark's rental regulations and zoning laws, while monitoring the city's STR licensing requirements and any restrictions near the university campus.

To obtain an Airbnb/STR permit in Newark, Ohio, you must first contact the Newark Planning and Zoning Department at City Hall located at 40 West Main Street to determine if short-term rentals are permitted in your specific zoning district, as Newark requires STRs to comply with local zoning ordinances. Submit an application for a business license through the City of Newark'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 business license application. Pay the associated fees which typically range from $50-150 for the business license plus any zoning compliance fees. The process generally takes 2-4 weeks for approval once all documentation is submitted and reviewed. Newark-specific requirements include ensuring the property meets all building and fire safety codes, maintaining adequate parking spaces as required by zoning regulations, providing guests with emergency contact information and local regulations, and potentially limiting the number of occupants based on the property size and local occupancy standards. You may also need to register with the Ohio Department of Taxation for lodging tax collection purposes and ensure compliance with any homeowners association rules if applicable.

Short-term rentals (STRs) are legal in Newark, Ohio, but operate under specific regulations established by the city. Newark requires STR operators to obtain a business license and comply with zoning restrictions that primarily limit short-term rentals to commercial and mixed-use districts, while generally prohibiting them in residential neighborhoods to preserve community character. The city has implemented safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, along with occupancy limits based on property size. Recent changes around 2019-2020 included stricter enforcement of existing regulations and clearer definitions of what constitutes a short-term rental versus traditional lodging. Property owners must also comply with state and local tax obligations, including transient occupancy taxes. The regulations aim to balance economic opportunities for property owners with neighborhood stability concerns, and violations can result in fines or license revocation.

The best Airbnb investment areas in Newark, Ohio include the Historic Downtown District near the courthouse square, which attracts visitors to local festivals, antique shops, and the Midland Theatre events. The Granville Road corridor offers proximity to Denison University (just 10 minutes away in Granville), making it ideal for visiting families, prospective students, and university events. The Cherry Valley area provides easy access to both downtown Newark and major employers like Owens Corning and Park National Bank, appealing to business travelers. The North 21st Street vicinity near Licking Memorial Hospital draws medical tourists and visiting families of patients. Properties near the National Trail Raceway area capitalize on racing events and motorsports tourism throughout the racing season. The Canal Market District benefits from its walkability to restaurants, breweries, and the Ohio & Erie Canal, attracting weekend tourists and history enthusiasts. Areas close to Dawes Arboretum (though technically in nearby Licking County) can capture nature tourism and educational group visits year-round.

In Newark, Ohio, Airbnb properties are subject to both state and local lodging taxes. The Ohio state lodging tax is 5.75% on gross receipts from transient accommodations, while Licking County imposes an additional 3% transient guest tax, bringing the total to 8.75%. The City of Newark also levies a 3% municipal lodging tax, making the combined rate approximately 11.75% for short-term rentals. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through Airbnb's automated collection system, which began around 2018-2019. Hosts must register with the Ohio Department of Commerce and obtain a vendor's license, and may need to file monthly or quarterly returns depending on their volume. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes, and some exemptions may apply for certain types of accommodations or guests, such as government employees on official business. Hosts should verify current rates and requirements with the Ohio Department of Taxation, Licking County Auditor, and Newark's tax department, as rates and collection procedures can change.

To start an Airbnb in Newark, Ohio, expect total costs around $175,000-$200,000. Property purchase represents the largest expense at approximately $140,000-$160,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, living room furniture, kitchen essentials, linens, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $1,500-$2,500. Permits and fees vary but budget $500-$1,200 for business licenses, short-term rental permits, and any required inspections through Licking County and Newark city offices. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees to Airbnb and Vrbo, marketing, and miscellaneous expenses total approximately $3,000-$5,000, bringing the complete startup investment to roughly $175,000-$200,000 depending on property condition and furnishing choices.

Airbnb properties in Newark, Ohio typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Properties near downtown Newark or close to Denison University in nearby Granville command premium rates, with successful hosts reporting net profit margins of 15-25% after all expenses. A typical 3-bedroom home purchased for $120,000 and generating $28,000 annually in Airbnb revenue might yield $4,000-$7,000 in net profit, representing a 3-6% return on investment before mortgage considerations. Success factors include strategic pricing during Ohio State University events, Longaberger Homestead activities, and seasonal demand fluctuations, with properties featuring modern amenities, professional photography, and responsive host communication achieving 20-30% higher occupancy rates than average competitors in the Newark market.

Airbnb investments in Newark, Ohio typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in downtown Newark near Denison University and the historic square command higher nightly rates of $75-120, while suburban properties average $60-90 per night with 65-75% occupancy rates throughout the year. Initial investment costs average $80,000-150,000 for suitable properties, with investors typically reaching profitability within 18-24 months after accounting for renovation costs, furnishing, and initial marketing expenses. The proximity to Columbus (45 minutes) and seasonal demand from university visitors, business travelers, and tourists exploring Licking County's attractions like the Newark Earthworks contribute to steady booking rates, though winter months see 20-30% lower occupancy requiring investors to maintain 6-8 months of operating reserves for optimal cash flow management.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities in Newark, Ohio and surrounding areas. Local real estate agents in Newark who focus on Airbnb investments include Coldwell Banker King Thompson, RE/MAX Revealty, and Century 21 Sunway Realty, with agents like Sarah Mitchell at Keller Williams Central Ohio and David Thompson at Howard Hanna Real Estate Services having experience in investment properties. National services that operate in the Newark market include Awning (formerly RedAwning), which provides end-to-end Airbnb investment services, Mashvisor for property analysis and market data, AirDNA for short-term rental analytics, and Roofstock which occasionally features Newark properties suitable for Airbnb conversion. Local property management companies that assist investors include Newark Property Management Solutions and Licking County Rental Services, while national companies like Vacasa and RedAwning Property Management provide turnkey Airbnb management services in the area. Additional resources include BiggerPockets for networking with local investors, and local mortgage brokers like First Federal Savings & Loan and Park National Bank who understand investment property financing in the Newark market.