Is Stinesville, Indiana Good for Airbnb Investment?

To start an Airbnb in Stinesville, Indiana, begin by researching Monroe County and Indiana state regulations, as Stinesville falls under Monroe County jurisdiction which typically requires short-term rental permits and business licenses, with properties needing to comply with fire safety codes and zoning ordinances that may restrict rentals in certain residential areas. Contact Monroe County Planning Department to obtain necessary permits, which usually cost $100-300 annually and require property inspections for safety compliance. Find a suitable property by searching local real estate listings or considering converting existing residential property, ensuring it's in a zone that allows short-term rentals and is within reasonable distance to Indiana University in nearby Bloomington to attract student visitors and parents. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, WiFi, and local guidebooks, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. Create your Airbnb listing with professional photos highlighting the rural Indiana charm and proximity to Bloomington attractions, setting competitive rates around $60-120 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining the property regularly, and considering hiring local cleaning services in the Bloomington area since Stinesville has limited service providers, while ensuring compliance with Indiana tax requirements including collecting and remitting state and local occupancy taxes.

For identifying profitable STR properties in Stinesville, Indiana, focus on properties within 15-20 minutes of Indiana University Bloomington campus and near outdoor recreation areas like Lake Monroe and Brown County State Park, as these drive consistent demand from visiting families, university guests, and outdoor enthusiasts. Target 3-4 bedroom homes built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces like decks or fire pits that appeal to groups seeking authentic Indiana experiences. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in nearby Bloomington and Nashville, Indiana, aiming for properties that can achieve $100-150 per night with 60-70% occupancy rates during peak university and tourism seasons. Research competition by analyzing existing Airbnb and VRBO listings within a 10-mile radius, identifying gaps in amenities or property types, and monitor seasonal demand patterns tied to IU events, fall foliage season, and summer lake activities. Utilize tools like Rabbu and AllTheRooms for market analysis, partner with local property management companies familiar with Monroe County regulations, and leverage resources from the Bloomington Convention and Visitors Bureau to understand tourism trends and seasonal demand fluctuations that will impact your investment's profitability in this rural Indiana market.

To obtain an Airbnb/STR permit in Stinesville, Indiana, you must first contact the Monroe County Planning Department since Stinesville is an unincorporated community within Monroe County, located at 812-349-2551 or visit their office at the Monroe County Government Center. You'll need to submit a Special Exception application for short-term rental use, providing documents including property deed or lease agreement, site plan showing parking and access, proof of liability insurance (minimum $1 million), contact information for a local property manager if you're not local, and a floor plan indicating maximum occupancy. The application fee is approximately $350-500, with additional inspection fees of around $150. You must also register with the Indiana Department of Revenue for state and local taxes, obtain a business license from Monroe County (approximately $50), and ensure compliance with health department requirements including septic system approval if applicable. The approval process typically takes 6-8 weeks including a public hearing before the Board of Zoning Appeals, during which neighbors are notified and can provide input. Specific Stinesville/Monroe County requirements include maximum occupancy limits based on bedrooms and septic capacity, adequate off-street parking (typically 2 spaces minimum), 24/7 local contact person, noise ordinance compliance, and annual permit renewal with inspection, and you must maintain guest registry records for at least two years.

Short-term rentals (STRs) in Stinesville, Indiana are generally legal but subject to state and local regulations. Indiana state law allows STRs and requires hosts to collect and remit state sales tax and local innkeeper's taxes. Since Stinesville is an unincorporated community in Monroe County, it falls under Monroe County's jurisdiction rather than having its own municipal regulations. Monroe County has implemented STR regulations that typically require registration, safety inspections, and compliance with zoning ordinances, with some restrictions in certain residential areas to address neighborhood concerns about noise and parking. The county has been updating its STR ordinances in recent years (around 2020-2022) to balance tourism benefits with residential quality of life, including limits on the number of guests, parking requirements, and designated contact persons for complaints. Property owners must also comply with standard building codes, fire safety requirements, and may face restrictions in areas zoned exclusively for single-family residential use.

The best areas for Airbnb investment in Stinesville, Indiana would be properties near Lake Monroe and the Hoosier National Forest, as this location attracts outdoor enthusiasts, fishing enthusiasts, and nature lovers year-round, with peak seasons during summer months and fall foliage periods. The downtown Stinesville area near State Road 37 offers potential for business travelers and visitors to nearby Bloomington, located just 15 minutes north, who seek more affordable accommodations outside the university town. Properties within walking distance of local parks and recreational areas like Yellowwood State Forest appeal to hikers, campers, and weekend getaway seekers from Indianapolis and Louisville. The residential areas along Clear Creek provide scenic waterfront or water-adjacent properties that command premium rates for family reunions, romantic retreats, and fishing trips. Areas near the intersection of major county roads offer convenient access for guests visiting Indiana University in Bloomington for sporting events, graduations, and academic conferences while providing a quieter, more rural experience than staying directly in the college town.

Airbnb properties in Stinesville, Indiana are subject to Indiana's state innkeeper's tax of 5% on gross rental receipts, which applies to all short-term rental accommodations under 30 days and is collected by the host and remitted monthly to the Indiana Department of Revenue by the 20th of the following month. Monroe County, where Stinesville is located, imposes an additional 8% county innkeeper's tax that must also be collected from guests and remitted quarterly to the Monroe County Auditor's office. The Town of Stinesville does not currently impose a separate municipal lodging tax as of 2023. Hosts must register with both the state and county tax authorities, obtain innkeeper's tax permits, and file returns even if no rentals occurred during the reporting period. Exemptions include rentals to permanent residents (30+ days), rentals to government employees on official business, and certain charitable organization bookings, though documentation must be maintained to support any exemption claims.

To start an Airbnb in Stinesville, Indiana, the total costs would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Indiana communities. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchen supplies, and decor from retailers like IKEA, Wayfair, and Amazon. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permits, and tax registrations cost approximately $500-$1,200. Insurance for short-term rentals runs $1,500-$2,500 annually through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, gas, internet, and cable total $800-$1,500. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees to Airbnb and VRBO ($300/month assuming $1,500 monthly revenue), and marketing expenses ($100/month) total approximately $7,200. Additional considerations include property taxes ($2,000-$4,000 annually) and potential HOA fees if applicable.

Airbnb properties in Stinesville, Indiana face challenging profitability conditions due to the town's small population of approximately 200 residents and limited tourist attractions, with average daily rates typically ranging from $60-80 compared to larger Indiana markets like Bloomington ($90-120) just 15 miles away. Properties in this rural Monroe County location generally achieve occupancy rates of 25-35% annually, generating gross revenues of $5,000-8,000 per year for typical 2-3 bedroom homes, while expenses including mortgage payments, utilities, cleaning fees ($25-35 per turnover), insurance, and platform fees consume 70-85% of gross revenue. Most successful Stinesville Airbnb operators target Indiana University visitors, outdoor enthusiasts visiting nearby Hoosier National Forest, and guests seeking rural retreats, with properties featuring amenities like fire pits, hiking access, or proximity to Lake Monroe performing better. Case studies from similar rural Indiana markets suggest that debt-free properties or those with minimal mortgage payments achieve net profit margins of 15-25%, while leveraged properties often struggle to break even, making Stinesville more suitable for property owners seeking supplemental income rather than primary investment returns, with annual net profits typically ranging from $800-2,000 for well-managed properties.

Based on Stinesville, Indiana market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and renovation investments. Properties in this rural Monroe County area, located near Bloomington and Indiana University, can achieve profitability within 18-24 months due to lower property acquisition costs ($80,000-$150,000 range) and steady demand from university visitors, outdoor enthusiasts visiting nearby state parks, and travelers seeking rural retreats. The market benefits from proximity to Bloomington's attractions while offering lower operational costs, with successful properties generating $1,200-$2,500 monthly gross revenue during peak seasons, though investors should expect seasonal fluctuations with stronger performance during university events and fall foliage periods.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations for Stinesville, Indiana. Local real estate agents in the Bloomington area such as F.C. Tucker Company and Carpenter Realtors have experience with investment properties in Monroe County including Stinesville. National services like Mashvisor, AirDNA, and BiggerPockets provide market analytics and investment tools for short-term rental properties in smaller Indiana markets. RedAwning and Vacasa offer property management services that can help investors identify and manage Airbnb properties in the region. Local property management companies such as Indiana Property Management Group and Bloomington-based rental specialists like RentBloomington can assist with finding investment opportunities. Real estate investment firms like HomeVestors and national platforms such as Roofstock occasionally feature properties in rural Indiana markets suitable for short-term rentals. Additionally, local real estate agents specializing in investment properties through Century 21 and RE/MAX offices in nearby Bloomington frequently work with clients seeking Airbnb investment opportunities in surrounding communities like Stinesville.