Is Portsmouth, Ohio Good for Airbnb Investment?

To start an Airbnb in Portsmouth, Ohio, begin by researching local zoning laws and regulations through the Portsmouth City Planning Department, as Ohio municipalities can restrict short-term rentals in residential zones, and you'll need to verify if your property location allows such use. Obtain necessary permits including a business license from the City of Portsmouth, register with the Ohio Department of Commerce for tax purposes, and secure appropriate insurance coverage that includes short-term rental protection. Find a suitable property by analyzing Portsmouth's tourism patterns around the Ohio River, Shawnee State Park, and downtown historic district, focusing on properties near these attractions or the university area. Purchase essential furnishings including quality bedding, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, while decorating with a welcoming aesthetic that reflects Portsmouth's river town character. Create your listing on Airbnb and other platforms like VRBO, using professional photos and highlighting nearby attractions such as the Portsmouth Floodwall Murals, Scioto County attractions, and outdoor recreation opportunities. Manage your property by establishing cleaning protocols between guests, implementing a key exchange system, maintaining responsive communication with guests, setting competitive pricing based on local market rates (typically $60-120 per night in Portsmouth), and keeping detailed records for tax purposes including Ohio's 5.75% sales tax and any applicable local lodging taxes that Portsmouth may impose.

To identify profitable short-term rental properties in Portsmouth, Ohio, focus on locations within walking distance of Shawnee State University campus and downtown riverfront areas near the Ohio River, as these attract both visiting families and business travelers. Target 2-4 bedroom single-family homes or duplexes built after 1950 with updated kitchens, reliable WiFi capability, and parking spaces, as Portsmouth's blue-collar tourism and university visitors prefer comfortable, practical accommodations. Analyze pricing by researching comparable Airbnb listings within a 10-mile radius, noting that properties typically rent for $60-120 per night depending on size and amenities, with higher rates during university events and summer river activities. Competition research should focus on the limited existing STR inventory, primarily concentrated near the university and historic downtown district, creating opportunities in underserved neighborhoods like Sciotoville or areas near Portsmouth Floodwall Murals. Utilize AirDNA for market analysis, Mashvisor for investment property identification, and local resources like the Portsmouth Area Chamber of Commerce for event calendars and tourism data, while monitoring Scioto County property records through the auditor's website for acquisition opportunities and tax information.

To obtain an Airbnb/STR permit in Portsmouth, Ohio, you must first contact the Portsmouth Planning and Zoning Department at City Hall located at 728 Second Street to determine if short-term rentals are permitted in your specific zoning district, as many Ohio municipalities require conditional use permits or special exceptions for STRs in residential areas. You'll need to submit an application that typically includes a completed permit application form, proof of property ownership or lease agreement, a detailed floor plan of the rental unit, proof of liability insurance (usually $1 million minimum), a safety inspection certificate from the local fire department, and evidence of compliance with building and health codes. The application fee generally ranges from $100-300, with additional inspection fees of approximately $50-150. You must also register with the Ohio Department of Commerce for tax collection purposes and obtain a vendor's license if required. The approval timeline typically takes 30-60 days depending on the completeness of your application and scheduling of required inspections. Portsmouth may require additional conditions such as parking requirements (usually one space per bedroom), occupancy limits based on square footage, noise ordinances compliance, and potentially a requirement that the property owner live within a certain distance of the rental property or designate a local contact person available 24/7 for any issues that arise.

Short-term rentals (STRs) are generally legal in Portsmouth, Ohio, as the city has not enacted specific prohibitive ordinances against vacation rentals or short-term accommodations as of 2023. However, STR operators must comply with standard zoning regulations, building codes, and business licensing requirements that apply to all rental properties in the city. Properties used as short-term rentals typically need to meet residential zoning compliance and may require business licenses depending on the frequency and nature of rentals. Portsmouth follows Ohio state regulations regarding rental properties, including safety standards and tax obligations, with operators required to collect and remit state and local lodging taxes where applicable. The city has not implemented recent major legal changes specifically targeting STRs, but property owners should verify current zoning restrictions in their specific neighborhoods, as some residential areas may have limitations on commercial activities, and ensure compliance with fire safety codes and occupancy limits that apply to all rental accommodations in Portsmouth.

The best areas for Airbnb investment in Portsmouth, Ohio include the Historic Downtown District along 2nd Street and Chillicothe Street, which attracts visitors to the restored Boneyfiddle District with its antique shops, restaurants, and proximity to the Ohio River murals and floodwall. The Scioto Riverfront area offers scenic views and access to recreational activities, drawing tourists interested in boating, fishing, and river-related events. The area near Shawnee State University provides consistent demand from visiting families, prospective students, and academic conference attendees. The neighborhoods around Portsmouth Regional Hospital and Southern Ohio Medical Center generate steady business travel and medical tourism, particularly for patients and families requiring extended stays. The residential areas near the Portsmouth Gaseous Diffusion Plant (now the Portsmouth Site) can capture contractor and cleanup worker accommodations. Additionally, properties within walking distance of the Portsmouth Floodwall Murals and the annual River Days Festival benefit from seasonal tourism spikes, while locations near the Portsmouth Community Common and Spartan Municipal Stadium attract visitors during sports events and community gatherings.

Portsmouth, Ohio imposes a lodging tax of 3% on short-term rental accommodations including Airbnbs, which is collected by the city's tax department and applies to stays of less than 30 consecutive days. The tax is calculated on the gross rental receipts excluding cleaning fees, and hosts are required to register with the Portsmouth Tax Division, collect the tax from guests at the time of booking or check-in, and remit payments quarterly by the last day of the month following each quarter (April 30, July 31, October 31, and January 31). Remittance is typically done through the city's online portal or by mail with Form LT-1, and hosts must maintain detailed records of all transactions for at least three years. Exemptions include stays of 30 days or longer, rentals to permanent residents, and accommodations provided to guests who are exempt under Ohio Revised Code such as certain government employees on official business. Additionally, Scioto County may impose a separate transient occupancy tax of approximately 2-3% which follows similar collection and remittance procedures, and hosts operating without proper registration face penalties of $100-500 plus interest on unpaid taxes.

The total cost to start an Airbnb in Portsmouth, Ohio would be approximately $95,000-$115,000. Property purchase costs around $65,000-$75,000 based on the median home price in Portsmouth. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees would total $500-$800. Insurance including landlord and short-term rental coverage would cost $1,200-$1,800 annually. Utility deposits and connections for electricity, water, gas, internet, and cable would be $800-$1,200. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), maintenance ($200/month), property management software ($50/month), and marketing would total approximately $6,000-$8,000. Additional startup costs for supplies, welcome amenities, and emergency fund should be budgeted at $2,000-$3,000.

Airbnb properties in Portsmouth, Ohio typically generate modest returns with average nightly rates ranging from $45-75 for standard 2-3 bedroom homes, translating to monthly revenues of $800-1,500 depending on occupancy rates of 40-60%. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-200 monthly), property management (15-25% of revenue), insurance ($100-150 monthly), and maintenance ($200-400 monthly) typically consume 60-70% of gross revenue. Properties near the Ohio River or downtown Portsmouth command premium rates, with some investors like those operating converted historic homes reporting net profit margins of 15-25% annually. Success factors include proximity to Shawnee State University, competitive pricing against local hotels like Hampton Inn, professional photography, and targeting river recreation visitors during summer months. A typical 3-bedroom property purchased for $80,000-120,000 in Portsmouth's residential areas can generate $8,000-15,000 in annual net income after expenses, representing returns of 8-15% before mortgage considerations, though seasonal fluctuations and Ohio's relatively short tourist season present challenges for consistent year-round profitability.

Airbnb investments in Portsmouth, Ohio typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to Shawnee State University and outdoor recreation at Shawnee State Park. Properties averaging $80,000-120,000 purchase price can expect gross rental income of $15,000-25,000 annually, with occupancy rates around 55-65% due to seasonal tourism and university visitors. After accounting for operating expenses including utilities, cleaning, maintenance, and property management fees of approximately 40-50% of gross income, net cash flow typically ranges $7,500-15,000 annually. Most investors achieve profitability within 18-24 months, with properties near the Ohio River or within walking distance of downtown Portsmouth commanding premium rates of $75-95 per night during peak seasons. The market benefits from limited hotel inventory and growing interest in river recreation, though investors should expect lower winter occupancy rates of 30-40% compared to summer peaks of 70-80%.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in Portsmouth, Ohio markets. Local real estate agents like Scioto County Realty and Portsmouth Area Board of Realtors members including agents from RE/MAX and Century 21 have experience with investment properties in the Portsmouth area. National services include Awning (formerly RedAwning) which provides Airbnb property management and investment guidance, AirDNA for market analysis and revenue projections, Mashvisor for rental property analytics, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as Ohio Valley Property Management and Portsmouth Property Services can assist with ongoing Airbnb operations. Real estate investment firms like Roofstock and Fundrise also operate in Ohio markets, while platforms like LoopNet and Crexi list commercial and investment properties. Local mortgage brokers and lenders familiar with investment property financing in the Portsmouth area include First National Bank of Portsmouth and Scioto County Federal Credit Union.