Is Park City, Kentucky Good for Airbnb Investment?

To start an Airbnb in Park City, Kentucky, begin by researching local zoning laws and regulations through the Barren County Planning and Zoning Commission, as Park City typically requires short-term rental permits and may have restrictions in certain residential zones. Contact Park City City Hall to obtain necessary business licenses and permits, which usually cost between $50-200 annually and may require safety inspections. Find a suitable property by working with local real estate agents familiar with investment properties, focusing on areas near Mammoth Cave National Park or downtown attractions, with properties typically ranging from $80,000-250,000. Furnish the space with durable, mid-range furniture and amenities targeting families and tourists visiting nearby attractions, budgeting approximately $8,000-15,000 for a complete setup including linens, kitchen supplies, and safety equipment like smoke detectors and fire extinguishers as required by Kentucky fire codes. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to Mammoth Cave (about 10 miles away) and local attractions, setting competitive rates around $75-150 per night based on seasonal demand. Manage the property by establishing relationships with local cleaning services (typically $40-80 per turnover), maintenance contractors, and consider using property management software like Hostfully or hiring a local management company that charges 15-25% of revenue, while maintaining compliance with Kentucky's 6% sales tax on short-term rentals and any applicable local occupancy taxes.

To identify profitable short-term rental properties in Park City, Kentucky, focus on locations within 2-3 miles of Mammoth Cave National Park and along scenic routes like the Green River, as proximity to this major tourist attraction drives consistent demand year-round. Target 2-4 bedroom properties with rustic or modern cabin aesthetics, outdoor amenities like fire pits, hot tubs, and large decks, plus essential features such as high-speed internet, full kitchens, and pet-friendly policies since many visitors travel with families and pets for outdoor adventures. Conduct pricing analysis using AirDNA and Mashvisor to benchmark nightly rates between $80-200 depending on size and amenities, with peak seasons during summer months and fall foliage periods commanding 30-40% premiums. Research competition by analyzing existing STRs within a 10-mile radius on Airbnb and VRBO, focusing on properties with 4.8+ star ratings and 50+ reviews to understand successful positioning strategies, amenities offered, and pricing gaps. Utilize tools like Rabbu and STR Helper for Park City market analysis, monitor Barren County tourism data through the Kentucky Department of Tourism, and leverage local Facebook groups and real estate agents familiar with Cave Country region to identify off-market opportunities and understand seasonal occupancy patterns specific to Mammoth Cave tourism cycles.

To obtain an Airbnb/STR permit in Park City, Kentucky, contact the Park City Planning and Zoning Department at City Hall located at 1011 Mammoth Cave Street, as most Kentucky municipalities require short-term rental permits through local planning offices. You'll need to submit a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), fire safety inspection certificate from the local fire department, and a site plan showing parking availability and property layout. Required fees typically include a $150-300 application fee, $75-150 annual renewal fee, and potential inspection fees of $50-100. The approval timeline generally takes 30-45 days from submission of complete application materials. Park City specific requirements likely include maintaining adequate off-street parking (minimum 2 spaces), ensuring compliance with residential zoning density limits, providing 24-hour local contact information for guests, maintaining occupancy limits based on bedroom count plus two additional guests, and adhering to quiet hours typically from 10 PM to 7 AM. You must also register with the Kentucky Department of Revenue for state tax collection, display permit numbers in all advertising, and maintain guest registry records for minimum two years.

Short-term rentals (STRs) are legal in Park City, Kentucky, but operate under limited local oversight as this small city in Barren County has not enacted comprehensive STR-specific regulations as of 2023. The city generally follows Kentucky state law which does not prohibit STRs, allowing property owners to rent their homes for periods less than 30 days through platforms like Airbnb and VRBO. However, STR operators must comply with basic business licensing requirements, collect and remit state sales tax (currently 6%), and adhere to local zoning ordinances that may restrict commercial activities in residential areas. Unlike larger Kentucky cities such as Louisville or Lexington which have implemented detailed STR regulations including registration requirements and occupancy limits, Park City has not established specific prohibited areas or operational restrictions for short-term rentals. Property owners should ensure compliance with homeowners association rules if applicable and verify that their property's zoning classification permits transient lodging activities, as enforcement typically occurs on a complaint-driven basis rather than through proactive monitoring.

Park City, Kentucky offers limited Airbnb investment opportunities compared to major tourist destinations, but the most promising areas would be near Mammoth Cave National Park (approximately 30 miles southeast), which attracts over 500,000 visitors annually seeking cave tours and outdoor recreation. The downtown Bowling Green area, about 45 minutes away, presents opportunities due to Western Kentucky University bringing consistent student and family visitation, plus business travelers to the regional medical centers and automotive manufacturing facilities including the GM Corvette plant. Properties near Barren River Lake State Resort Park could capitalize on fishing tournaments, boating enthusiasts, and summer recreation visitors. The Glasgow area offers potential due to its proximity to both Mammoth Cave and Barren River attractions, while serving as a midpoint for travelers exploring south-central Kentucky's bourbon trail extensions and outdoor recreation areas, though overall demand would be seasonal and modest compared to major metropolitan markets.

Park City, Kentucky does not impose specific lodging or occupancy taxes on Airbnb rentals as it is a small unincorporated community in Barren County. However, Airbnb hosts in this area are subject to Kentucky's 6% state sales tax on transient accommodations, which applies to rentals of 30 days or less. Barren County may impose a local transient room tax of approximately 3%, though this varies by jurisdiction and may not apply to all areas within the county. Airbnb typically collects and remits the state sales tax directly to the Kentucky Department of Revenue on behalf of hosts through their platform, but hosts should verify this coverage and may need to register for a sales tax permit if collecting taxes independently. Local county taxes, if applicable, may require separate registration and remittance directly to Barren County's fiscal court or designated tax collection agency, usually on a monthly or quarterly basis. There are generally no exemptions for small-scale or occasional rentals, and hosts earning over $600 annually must report rental income on their federal and state tax returns regardless of tax collection methods.

Starting an Airbnb in Park City, Kentucky requires an estimated total investment of $185,000-$225,000. Property purchase costs average $150,000-$180,000 for a suitable 2-3 bedroom home based on regional Kentucky real estate markets. Furnishing expenses range $12,000-$18,000 including beds, linens, kitchen appliances, furniture, and decor to create an attractive rental space. Initial setup costs approximately $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic technology like smart locks and WiFi equipment. Permits and fees total $500-$1,200 including business licenses, short-term rental permits from local authorities, and potential HOA approvals. Insurance premiums for short-term rental coverage cost $1,800-$2,400 annually, with the first year paid upfront. Utility deposits and connections require $800-$1,200 for electricity, water, gas, internet, and cable services. First six months operating costs including utilities, cleaning services, maintenance, supplies, platform fees, and marketing total approximately $6,000-$9,000. Additional considerations include potential property management fees if outsourced, ongoing maintenance reserves, and local tax obligations that vary by Park City's specific regulations and Kentucky state requirements.

Airbnb properties in Park City, Kentucky show moderate profitability potential with average nightly rates ranging from $75-120 depending on property size and amenities, generating approximately $18,000-35,000 in annual gross revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally fall between 15-25% for well-managed properties, with successful hosts like those operating renovated historic homes near Mammoth Cave National Park achieving higher margins through premium pricing and extended stays. Key success factors include proximity to outdoor attractions, professional photography, consistent 4.8+ star ratings, and strategic pricing during peak seasons like summer camping months and fall foliage periods. Properties within 30 minutes of Mammoth Cave or featuring unique amenities like hot tubs or fire pits command 20-30% premium rates, while basic suburban rentals struggle with occupancy below 50% and margins under 10%, making location and differentiation critical for profitability in this smaller Kentucky market.

Airbnb investments in Park City, Kentucky are expected to generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on typical property acquisition costs of $150,000-$250,000 and average nightly rates of $85-$120 during peak seasons. Properties typically achieve profitability within 18-24 months, with occupancy rates averaging 45-60% annually due to the area's proximity to Mammoth Cave National Park and regional tourism attractions. Investment properties in this market generally require initial capital of $30,000-$50,000 for down payment and renovations, with gross annual rental income potential of $18,000-$28,000 after accounting for seasonal fluctuations, cleaning fees, and platform commissions from Airbnb and VRBO.

STRSearch leads the national market for Airbnb investment property analysis and market data for Park City, Kentucky. Local real estate agents specializing in short-term rental investments include Coldwell Banker McMahan and Century 21 Advantage Realty, both established in the Louisville metro area since the 1980s. RE/MAX Properties East has been serving the Park City region since 1995 with dedicated vacation rental investment specialists. National services include Awning (founded 2017) which provides full-service Airbnb property management and acquisition consulting, Mashvisor (established 2014) offering property analysis tools and investment recommendations, and BiggerPockets (launched 2004) connecting investors with local market experts. AirDNA provides comprehensive short-term rental market analytics for the Park City area, while Vacasa (founded 2009) offers property management services for new Airbnb investors. Local property management companies like Kentucky Lake Vacation Rentals and Mammoth Cave Area Properties have been helping investors since the early 2000s identify profitable short-term rental opportunities in Park City's tourism market near Mammoth Cave National Park.