Is Taylorsville, Kentucky Good for Airbnb Investment?

To start an Airbnb in Taylorsville, Kentucky, begin by researching local zoning laws and regulations through Spencer County Planning and Zoning Commission, as Taylorsville typically requires short-term rentals to comply with residential zoning restrictions and may require a business license from the city clerk's office. Obtain necessary permits including a Kentucky sales tax permit from the Department of Revenue since you'll collect occupancy taxes, and check if Spencer County requires additional permits for short-term rentals. Find a suitable property by searching residential areas near Taylorsville Lake or downtown, ensuring it meets safety codes and has adequate parking, then purchase or secure a long-term lease with landlord permission for short-term rentals. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, WiFi, TV, and local guidebooks highlighting Taylorsville Lake State Park and Bloomfield attractions, while ensuring smoke detectors, carbon monoxide detectors, and fire extinguishers are installed per Kentucky safety requirements. List your property on Airbnb, VRBO, and Booking.com with professional photos showcasing the proximity to Taylorsville Lake and outdoor activities, setting competitive rates around $75-120 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and keeping detailed records for tax purposes while collecting and remitting Kentucky's 6% sales tax plus any local occupancy taxes to Spencer County.

To identify profitable short-term rental properties in Taylorsville, Kentucky, focus on properties within 10-15 minutes of Taylorsville Lake State Park and near Highway 44 for easy Louisville access (45 minutes away), as these locations attract both recreational visitors and business travelers. Target 2-4 bedroom single-family homes or cabins with lake views, outdoor spaces, fire pits, and boat-friendly features, as the area's primary draw is water recreation and outdoor activities. Analyze pricing by researching comparable Airbnb listings within 20 miles, aiming for properties under $150,000 that can command $80-150 nightly rates during peak season (May-September), with occupancy rates of 50-65% being realistic given the seasonal nature of lake tourism. Study competition on Airbnb and VRBO within Spencer County, noting that successful properties emphasize lake access, fishing amenities, and family-friendly features, while identifying gaps in luxury or pet-friendly accommodations. Utilize AirDNA for market analysis, Mashvisor for investment calculations, and local resources like the Spencer County Tourism Commission and Taylorsville Lake Marina for seasonal demand patterns, while connecting with local real estate agents familiar with lakefront properties and short-term rental regulations in Spencer County.

To obtain an Airbnb/STR permit in Taylorsville, Kentucky, contact the Taylorsville City Hall at 155 Templin Avenue or call (502) 477-8829 to inquire about short-term rental regulations, as the city may require a business license and zoning compliance verification. You'll likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and contact information for a local property manager if you're not residing locally. The estimated fees range from $50-150 for the business license plus potential zoning review fees of $25-75. The approval timeline typically takes 2-4 weeks after submitting complete documentation. Specific Taylorsville requirements may include compliance with residential zoning restrictions, maintaining guest parking requirements, providing 24-hour emergency contact information, adhering to noise ordinances, and ensuring the property meets all building and fire safety codes. Since Taylorsville is a smaller municipality, regulations may be less complex than larger cities, but you must also verify compliance with Spencer County regulations and Kentucky state tax requirements for short-term rentals.

Short-term rentals (STRs) in Taylorsville, Kentucky are generally legal but operate under state regulations and local zoning ordinances. As of 2023, Kentucky does not have comprehensive statewide STR legislation, leaving regulation primarily to local municipalities. Taylorsville, located in Spencer County, follows county zoning regulations that typically allow STRs in residential areas with certain restrictions including occupancy limits, parking requirements, and noise ordinances. Property owners must comply with state tax requirements including collecting and remitting transient room taxes, and most STRs require business licenses from Spencer County. Recent changes include increased enforcement of existing zoning codes and potential discussions about implementing stricter registration requirements similar to larger Kentucky cities like Louisville and Lexington. STRs are generally prohibited in areas zoned exclusively for single-family residential use without proper permits, and some neighborhoods may have HOA restrictions. The city has not implemented specific STR ordinances as of 2024, but property owners should verify current zoning compliance and obtain necessary permits before operating short-term rentals.

The best areas for Airbnb investment in Taylorsville, Kentucky include the downtown historic district near the courthouse square, which attracts visitors interested in small-town charm and local events like the annual Taylorsville Lake Festival. The lakefront areas around Taylorsville Lake State Park are highly attractive for vacation rentals due to recreational activities like boating, fishing, and camping that draw weekend tourists from Louisville (about 30 miles away) and Lexington. Properties near the Bloomfield Road corridor offer good access to both the lake and downtown while maintaining reasonable property prices. The residential areas around Lincoln Trail and Springfield Road provide quiet settings that appeal to business travelers visiting local manufacturing facilities or government offices, while still being close to amenities. The Chaplin River area offers scenic waterfront locations that command premium rates from nature enthusiasts and fishing groups, particularly during spring and fall seasons when outdoor activities peak.

Airbnb properties in Taylorsville, Kentucky are subject to Kentucky's state transient room tax of 1% on gross rental receipts, which applies to all short-term rental accommodations under 30 days. Spencer County, where Taylorsville is located, does not impose a separate county occupancy tax as of 2023. The city of Taylorsville does not currently have a municipal lodging tax ordinance in place. Kentucky's state tax is collected by the host and must be remitted quarterly to the Kentucky Department of Revenue using Form 51A111, with payments due by the last day of the month following each quarter (April 30, July 31, October 31, and January 31). Airbnb may collect and remit the state tax on behalf of hosts through their platform in Kentucky. Exemptions include rentals to permanent residents (30+ days), rentals to government employees on official business, and certain charitable organizations. Hosts must register with the Kentucky Department of Revenue and obtain a transient room tax account number before beginning operations, and maintain detailed records of all rental transactions and tax collections for at least four years.

To start an Airbnb in Taylorsville, Kentucky, expect total costs around $180,000-$220,000. Property purchase will be approximately $150,000-$180,000 based on median home prices in rural Kentucky markets. Furnishing costs including beds, linens, kitchen essentials, living room furniture, and decor will run $8,000-$12,000 for a 2-3 bedroom property. Initial setup costs for professional photography, listing creation, welcome materials, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees cost $300-$800. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utilities including electricity, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs covering cleaning supplies, maintenance, marketing, platform fees, and miscellaneous expenses total $3,000-$5,000. Additional considerations include property taxes, HOA fees if applicable, and potential financing costs that could add $2,000-$4,000 to initial expenses.

Airbnb properties in Taylorsville, Kentucky typically generate modest profitability with average nightly rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,600 for properties with 60-70% occupancy rates. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (10-15% of revenue), insurance ($100-200 monthly), and maintenance costs ($200-400 monthly). Net profit margins typically range from 15-25% after expenses, with successful properties near Taylorsville Lake or those offering unique amenities like hot tubs or fire pits commanding premium rates and achieving higher occupancy. Properties within 30 minutes of Louisville tend to perform better due to spillover demand, while rural cabins and lake-adjacent homes have shown the strongest performance in the area since 2020, with some hosts reporting annual profits of $8,000-15,000 on well-positioned properties. Success factors include professional photography, responsive communication, competitive pricing during peak seasons (spring through fall), and targeting fishing enthusiasts and Louisville visitors seeking rural retreats.

Airbnb investments in Taylorsville, Kentucky typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to Taylorsville Lake and moderate tourism activity. Properties averaging $150,000-$200,000 purchase price can expect gross rental income of $18,000-$28,000 annually, with occupancy rates around 45-60% due to seasonal lake tourism and limited local competition. After accounting for expenses including property management (10-15%), maintenance, utilities, and taxes, net returns generally fall in the 6-8% range. Most investors achieve profitability within 18-24 months, with break-even typically occurring in months 12-18 depending on initial renovation costs and marketing effectiveness. The market benefits from Taylorsville Lake State Park visitors and Louisville proximity (45 minutes), though seasonal fluctuations significantly impact winter bookings, making spring through fall the primary revenue generating periods.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Taylorsville, Kentucky. Local real estate agents specializing in investment properties include Coldwell Banker McMahan Co. and RE/MAX Properties East, both with agents experienced in vacation rental investments in the Louisville metro area. Awning offers nationwide Airbnb property management and investment consulting services, while Mashvisor provides property analysis tools for short-term rental investments. RedAwning specializes in vacation rental property sales and has listings in Kentucky markets. Local property management companies like Louisville Short Term Rentals and Kentucky Vacation Rentals assist with Airbnb setup and operations. AirDNA offers market data and analytics for short-term rental investments, while Roofstock has expanded into the vacation rental investment space. Regional real estate investment groups like Louisville Real Estate Investors Network provide networking and deal flow opportunities. BiggerPockets connects investors with local agents and provides educational resources, and companies like Vacasa offer full-service vacation rental management that can help evaluate potential investment properties in the Taylorsville area.