Is Taylorsville, Indiana Good for Airbnb Investment?

To start an Airbnb in Taylorsville, Indiana, begin by researching local zoning laws and regulations through the Bartholomew County Planning Department, as Taylorsville falls under county jurisdiction rather than having its own municipal regulations. Contact the county clerk's office to determine if short-term rental permits are required and obtain any necessary business licenses, which typically cost $25-50 annually in Indiana. Find a suitable property by searching local real estate listings or considering converting existing residential property, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and adequate egress routes. Furnish the property with essential amenities including comfortable bedding, basic kitchen supplies, Wi-Fi, and local guidebooks, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. Create your Airbnb listing with high-quality photos, detailed descriptions highlighting proximity to attractions like Brown County State Park (30 minutes away) and Indianapolis (45 minutes), and competitive pricing research based on similar properties in the Columbus-Taylorsville area. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and considering hiring local cleaning services or property management companies if needed, while ensuring compliance with Indiana's 7% state sales tax on short-term rentals and any applicable local occupancy taxes.

To identify profitable short-term rental properties in Taylorsville, Indiana, focus on properties within 2-3 miles of downtown or near recreational areas like Atterbury Fish & Wildlife Area, as proximity to outdoor activities drives demand in smaller Indiana markets. Target 2-4 bedroom single-family homes or cabins built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as these features appeal to families and groups visiting for hunting, fishing, or rural getaways. Conduct pricing analysis using AirDNA and Mashvisor to identify properties under $150,000 that can generate $80-120 per night, aiming for 12-15% annual returns typical in secondary Indiana markets. Research competition by analyzing existing STRs within 10 miles on Airbnb and VRBO, noting that limited inventory in Taylorsville creates opportunities for well-positioned properties. Utilize Zillow, Realtor.com, and local MLS data through Indianapolis-area realtors familiar with Bartholomew County, while leveraging STR-specific tools like Rabbu and AllTheRooms to assess market saturation and seasonal demand patterns, particularly during fall hunting season and summer outdoor recreation periods when occupancy rates peak at 60-75%.

To obtain an Airbnb/STR permit in Taylorsville, Indiana, contact the Taylorsville Town Hall or Bartholomew County Planning Department at 812-379-1570, as the town likely falls under county jurisdiction for short-term rental regulations. Submit an application form along with required documents including property deed or lease agreement, proof of insurance with minimum $1 million liability coverage, floor plan showing maximum occupancy, contact information for local property manager if you're non-resident, and business license registration. Pay the estimated application fee of $150-300 plus annual renewal fees of $100-200. The approval process typically takes 30-45 days and may require a property inspection by the fire marshal and building department. Specific Taylorsville/Bartholomew County requirements likely include maximum occupancy limits based on bedrooms and square footage, designated parking spaces for guests, smoke and carbon monoxide detectors in all sleeping areas, fire extinguisher on each floor, posted emergency contact information and house rules, quiet hours enforcement typically 10 PM to 7 AM, and compliance with residential zoning restrictions that may limit STRs in certain neighborhoods. You must also register for Indiana state and local tax collection, maintain guest registry records, and ensure the property meets all building and safety codes before receiving final permit approval.

Short-term rentals (STRs) in Taylorsville, Indiana are generally legal but subject to state and local regulations. Indiana state law allows STRs with basic requirements including registration, tax collection, and safety standards compliance. Taylorsville, being a small town in Bartholomew County, likely follows county-level zoning ordinances that may restrict STRs in certain residential areas or require special permits. Most Indiana municipalities require STR operators to obtain business licenses, collect local occupancy taxes, and maintain liability insurance. Recent changes in Indiana include stricter enforcement of tax collection requirements and enhanced safety standards implemented around 2022-2023. Property owners should verify specific zoning restrictions with Bartholomew County planning department, as some residential zones may prohibit commercial activities including STRs, while others may allow them with conditional use permits. The town may also have noise ordinances and occupancy limits that affect STR operations.

The best areas for Airbnb investment in Taylorsville, Indiana include the historic downtown district near Main Street, which attracts visitors interested in small-town charm and local antique shops, and properties near the Muscatatuck River corridor that appeal to outdoor enthusiasts and fishing tourists. The area around State Road 31 offers good accessibility for business travelers visiting nearby Columbus (Cummins Inc.) and Indianapolis, making it attractive for corporate housing needs. Properties near Taylorsville Lake and the surrounding recreational areas draw weekend visitors and seasonal tourists interested in boating, camping, and water activities. The residential neighborhoods near the town center provide quiet, family-friendly accommodations for visitors attending local events like the annual Taylorsville Days festival or those exploring the broader Bartholomew County region, while still being within reasonable driving distance of larger employment centers like Edinburgh and Columbus that generate consistent demand for short-term rentals.

Airbnb properties in Taylorsville, Indiana are subject to Indiana's state innkeeper's tax of 7% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. Johnson County, where Taylorsville is located, imposes an additional local innkeeper's tax of 5%, bringing the total occupancy tax rate to approximately 12%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Indiana around 2018. Airbnb remits these taxes quarterly to the Indiana Department of Revenue and Johnson County respectively on behalf of hosts. However, hosts are still required to register with the Indiana Department of Revenue and obtain a registered retail merchant certificate if they haven't already done so. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, and certain nonprofit or charitable organizations may qualify for exemptions. Local municipalities may have additional registration requirements or business licenses, though Taylorsville itself does not appear to impose separate municipal lodging taxes beyond the county rate.

The total cost to start an Airbnb in Taylorsville, Indiana is 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 beds, linens, kitchen essentials, living room furniture, and decor. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees total $300-$800. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable cost $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional startup costs for emergency fund and working capital should be budgeted at $15,000-$20,000 to cover unexpected expenses and vacancy periods during the initial launch phase.

Airbnb properties in Taylorsville, Indiana show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue based on 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 ($150-200 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-3,500 yearly. Net profit margins generally fall between 15-25% for well-managed properties, with successful hosts in the area reporting annual net profits of $4,000-8,000 per property. Key success factors include proximity to Louisville (45 minutes), competitive pricing during Kentucky Derby season and local events, professional photography, consistent 4.8+ star ratings, and targeting business travelers visiting nearby manufacturing facilities like Cummins and Ford. Properties near Taylorsville Lake or with unique amenities like hot tubs or fire pits command premium rates, with some hosts achieving 20-30% higher revenues than basic listings, though the smaller market size limits scalability compared to larger Indiana cities like Indianapolis or Bloomington.

Airbnb investments in Taylorsville, Indiana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the local market conditions and property values averaging $120,000-180,000. Properties generally reach profitability within 18-24 months, with occupancy rates around 55-65% annually due to Taylorsville's proximity to Columbus and Indianapolis attracting business travelers and weekend visitors. Initial investment requirements including down payment, renovations, and furnishing typically range $35,000-50,000, while gross monthly revenues average $1,200-1,800 depending on property size and amenities. The market benefits from steady demand from contractors working at nearby Cummins facilities, families visiting local attractions, and travelers seeking affordable alternatives to hotel accommodations in the greater Columbus metropolitan area.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Taylorsville, Indiana, local real estate agents like those at RE/MAX Results and Century 21 Breeden Realtors have experience with short-term rental investments in the area. Keller Williams Indy Metro Northeast serves the broader region and has agents familiar with investment properties. National services include Awning, which provides full-service Airbnb property management and investment guidance, and RedAwning, specializing in vacation rental property acquisitions. AirDNA offers market data and analytics for short-term rental investments in Indiana markets. Local property management companies like Indiana Property Management Group can assist with operational aspects of Airbnb investments. BiggerPockets, while primarily an online platform, connects investors with local professionals in Indiana. Roofstock focuses on turnkey rental properties and occasionally features short-term rental opportunities. Local mortgage brokers such as First Merchants Bank and German American Bank provide financing options for investment properties in the Taylorsville area.