Is Terre Haute, Indiana Good for Airbnb Investment?

Potentially—Terre Haute, Indiana combines visitor demand with long-term real estate upside.

• Presents a promising, albeit localized, opportunity.
• The city's current market conditions show a steady demand for affordable housing and short-term accommodations.
• While not a major tourism destination like larger cities, Terre Haute benefits from consistent visitation for university events, sporting competitions, and local festivals.
• Property values in Terre Haute are generally more accessible compared to major metropolitan areas, offering a lower entry barrier for investors.
• The investment potential largely hinges on targeting specific niches, such as university-affiliated stays, business travelers, or visitors attending local events.

$800–$1,500 per month based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb hosts in Terre Haute, Indiana typically earn between $800-$1,500 per month for entire home listings.
• Seasonal variations show peak earnings during late spring through early fall when Indiana State University is in session and local events drive demand.
• Earnings are significantly influenced by proximity to the university campus, with properties within 2-3 miles commanding premium rates, as well as factors including property size, amenities like parking and WiFi.
• Properties near downtown or historic areas tend to outperform suburban locations, while hosts offering additional services or unique accommodations may exceed average ranges by 15-25%.
• The relatively lower cost of living in Terre Haute compared to major metropolitan areas means that while absolute earnings may be modest, the return on investment can be competitive for local property owners.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods averaging 7-10 years due to the city's modest tourism demand and lower property values ranging from $80,000-$150,000 for investment properties.
• The market benefits from Indiana State University's presence, generating consistent demand from visiting families and business travelers.
• Compared to traditional long-term rentals in Terre Haute that yield 6-9% ROI with monthly rents of $700-$1,200, short-term rentals can provide marginally higher returns but require significantly more active management and face seasonal fluctuations, particularly during university breaks and summer months when demand drops considerably.
• The relatively small market size and limited tourist attractions mean that successful Airbnb properties typically need to be well-located near the university or downtown area, professionally managed.

Terre Haute, Indiana averages 45–55% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Terre Haute, Indiana typically average around 45-55% annually, with peak seasons occurring during late spring through early fall (May-September) when occupancy can reach 65-75% due to Indiana State University events, Hulman Center activities, and summer tourism.
• Winter months generally see occupancy drop to 35-45% as travel decreases and weather conditions become less favorable.
• The city experiences notable spikes during ISU homecoming, graduation ceremonies, and major sporting events at the university.
• Compared to Indiana's statewide average of approximately 60-65% and the national Airbnb occupancy rate of around 70%, Terre Haute performs moderately lower.
• The presence of Indiana State University provides some stability to the market, creating consistent demand during the academic year.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown Terre Haute area near Indiana State University represents the strongest Airbnb investment opportunity due to consistent demand from visiting families, prospective students, and university events.
• The Deming Park neighborhood offers excellent potential with its historic charm, walkable streets, and proximity to downtown attractions while maintaining lower acquisition costs around $60,000-90,000 for investment properties.
• The area surrounding the Terre Haute Regional Hospital provides steady demand from medical visitors and traveling healthcare workers, supporting consistent bookings at $70-100 nightly rates.
• The neighborhoods near the Hulman Center benefit from event-driven demand during concerts, sports events, and conferences, creating opportunities for premium pricing during peak periods.
• The historic Farrington's Grove area attracts visitors interested in local history and provides a quieter alternative to downtown while remaining accessible to major attractions.
• Properties near the Wabashiki Fish and Wildlife Area appeal to outdoor enthusiasts and hunters, particularly during seasonal peaks, though demand may be more cyclical.
• The residential areas around Rose-Hulman Institute of Technology offer potential for targeting visiting academics, prospective students, and families attending campus events.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Terre Haute, Indiana requires short-term rental operators to obtain a business license through the city clerk's office and register their property with the planning department.
• Properties are generally limited to 8-10 occupants maximum with parking requirements of one space per two guests.
• Owner-occupancy is not mandated for short-term rentals, allowing for investment properties, though operators must designate a local contact person available 24/7 for guest issues and complaints.
• The registration process involves submitting property details, proof of insurance, emergency contact information, and passing basic safety inspections for smoke detectors and egress routes.
• Recent changes implemented around 2022-2023 have included stricter noise ordinance enforcement with potential fines up to $500 for violations.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Terre Haute, Indiana are subject to several fees and taxes including the state sales tax of 7% on rental income.
• Property owners must obtain a business license from the City of Terre Haute costing around $25-50 annually.
• The state requires collection and remittance of both state and local taxes quarterly, with potential penalties of 10% plus interest for late payments.
• Additionally, operators may need to pay for inspections and safety certifications ranging from $50-150 depending on property size and type.
• Property insurance adjustments for commercial use typically increase premiums by 20-40% annually, and hosts must also account for potential homeowners association fees if applicable.