Is Union, Kentucky Good for Airbnb Investment?

To start an Airbnb in Union, Kentucky, begin by researching Boone County's zoning regulations and contacting the Union city clerk's office to understand local short-term rental ordinances, as many Kentucky municipalities require business licenses and may have specific STR regulations. Obtain necessary permits including a Kentucky business license through the One Stop Business Portal, a Boone County occupational license, and potentially a Union city business permit, while ensuring your property meets fire safety codes and health department requirements. Find a suitable property in Union's residential areas, considering proximity to Cincinnati attractions since Union is part of the greater Cincinnati metro area, and ensure the property allows short-term rentals per HOA or lease agreements. Furnish the space with quality basics including comfortable bedding, essential kitchen appliances, WiFi, and local guidebooks highlighting nearby attractions like the Cincinnati Zoo or Newport Aquarium. Create your Airbnb listing with professional photos, competitive pricing research based on similar properties in Northern Kentucky, and detailed descriptions emphasizing Union's quiet suburban setting with easy highway access to Cincinnati. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or installing smart locks, and keeping detailed records for Kentucky state tax purposes including the 6% sales tax on short-term rentals, while monitoring local regulation changes as Kentucky's STR laws continue evolving.

To identify profitable short-term rental properties in Union, Kentucky, focus on properties within 15-20 minutes of Louisville attractions, Cincinnati airport access, and near Boone County recreational areas like Big Bone Lick State Park. Target 3-4 bedroom single-family homes or condos with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to families visiting the region. Analyze pricing by researching comparable Airbnb and VRBO listings within a 10-mile radius, aiming for properties that can generate $100-150 per night with 60-70% occupancy rates to ensure positive cash flow after mortgage, utilities, and management costs. Study competition using AirDNA and Mashvisor to identify market saturation levels and seasonal demand patterns, particularly during Kentucky Derby season, Cincinnati Bengals games, and summer tourism peaks. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com to evaluate potential returns, while partnering with Union-area real estate agents familiar with zoning regulations and HOA restrictions that may impact STR operations in Boone County.

To obtain an Airbnb/STR permit in Union, Kentucky, you must first contact the Boone County Planning Commission at 2950 Washington Street, Burlington, KY 41005, as Union falls under county jurisdiction for short-term rental regulations. Submit a completed short-term rental permit application along with a site plan showing the property layout, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the local fire department, and proof of liability insurance with minimum $1 million coverage. Required documents also include a parking plan demonstrating adequate off-street parking, contact information for a local property manager if you're not residing within 30 miles, and neighbor notification forms signed by adjacent property owners. The application fee is approximately $150 with an annual renewal fee of $75, and you must also obtain a business license from Boone County for an additional $25. Schedule inspections with the Building Department for safety compliance and fire department for fire safety requirements, which typically cost $50-100 each. The entire process takes 4-6 weeks from application submission to permit approval, provided all documentation is complete and inspections pass. Union-specific requirements include maintaining a guest registry, posting emergency contact information prominently in the rental unit, ensuring compliance with residential zoning restrictions that limit occupancy to 2 guests per bedroom plus 2 additional guests, and adhering to quiet hours from 10 PM to 7 AM with no outdoor gatherings after 9 PM.

Short-term rentals (STRs) are generally legal in Union, Kentucky, as the city has not enacted specific prohibitions against them, though they must comply with state regulations and local zoning ordinances. Kentucky state law allows municipalities to regulate STRs, and Union operates under Boone County's jurisdiction for many regulatory matters. Property owners must ensure compliance with residential zoning requirements, obtain necessary business licenses, collect and remit state and local taxes including Kentucky's 6% sales tax and any applicable transient room taxes. The city may require STRs to meet safety standards, parking requirements, and noise ordinances, particularly in residential neighborhoods. Recent trends across Kentucky since 2020-2022 have seen increased municipal oversight of STRs due to housing concerns, though Union has not implemented the restrictive measures seen in larger cities like Louisville or Lexington. Property owners should verify current zoning compliance and business licensing requirements with Union's city offices, as regulations can change and enforcement has become more stringent statewide regarding tax collection and safety compliance.

The best areas for Airbnb investment in Union, Kentucky include the neighborhoods near Big Bone Lick State Historic Site, which attracts families and history enthusiasts year-round to see the salt lick where mastodons and other prehistoric animals once gathered. The residential areas along the Ohio River corridor offer scenic waterfront appeal for guests seeking peaceful retreats while remaining within 30 minutes of Cincinnati's downtown business district, making them ideal for both leisure and business travelers. Properties near the Boone County Fairgrounds benefit from seasonal events and agricultural shows that draw visitors throughout the summer months. The historic downtown Union area, particularly around the old railroad depot and antique districts, appeals to tourists interested in Kentucky's railroad heritage and small-town charm. Neighborhoods close to the Cincinnati/Northern Kentucky International Airport (CVG) provide excellent opportunities for business travelers and flight crews needing overnight accommodations, with consistent year-round demand from companies like Amazon Air and DHL which have major operations at the airport.

In Union, Kentucky, Airbnb hosts are subject to Kentucky's 6% state sales tax on transient accommodations, which applies to rentals of less than 30 consecutive days. Boone County, where Union is located, imposes an additional 3% transient room tax, bringing the total occupancy tax rate to approximately 9%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Kentucky Department of Revenue and local authorities on behalf of hosts. However, hosts should verify their registration status with the Kentucky Department of Revenue and may need to obtain a transient vendor license. The state requires monthly remittance of collected taxes by the 20th of the following month, with returns filed even if no tax is due. Exemptions generally apply to stays of 30 days or longer, certain government employees on official business, and some nonprofit organization bookings, though documentation may be required to claim these exemptions.

The total cost to start an Airbnb in Union, Kentucky is approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in Boone County. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for quality furniture, bedding, kitchen essentials, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing optimization, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and potential HOA approvals 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 including cleaning services ($100-$150 per turnover), maintenance, supplies, platform fees (3% of bookings), and marketing total approximately $3,500-$5,500, assuming 60-70% occupancy rates and $100-$150 nightly rates typical for the Cincinnati metropolitan area market that Union serves.

Airbnb properties in Union, Kentucky show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-35,000 in annual gross revenue depending on occupancy rates of 40-65%. Operating expenses typically consume 35-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (10-20%), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs ($2,000-4,000 yearly). Net profit margins generally fall between 15-35% for well-managed properties, with successful hosts in the Louisville metro area (which includes Union) reporting annual net profits of $8,000-18,000 per property. Key success factors include proximity to Louisville attractions, Kentucky Kingdom, and the Ohio River, professional photography, consistent 4.8+ star ratings, and strategic pricing during Derby season and summer months when demand peaks. Properties within 20 minutes of downtown Louisville or featuring unique amenities like pools or game rooms tend to achieve occupancy rates 15-25% higher than basic listings, with some top-performing hosts in Jefferson County reporting profit margins exceeding 40% through effective cost management and premium positioning.

Airbnb investments in Union, Kentucky typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to Louisville and moderate tourism activity. Properties in Union generally reach profitability within 18-24 months, with average nightly rates of $80-120 depending on property size and amenities. The market benefits from consistent demand from business travelers visiting nearby industrial facilities and families attending events at Kentucky Kingdom or Churchill Downs, approximately 30 minutes away. Investment properties averaging $150,000-250,000 can expect gross rental yields of 10-14% annually, with net returns settling around 8-11% after expenses including property management, cleaning, utilities, and maintenance. The timeframe to break even on initial investment typically occurs within 20-30 months, with stronger performance during Kentucky Derby season and summer months when occupancy rates peak at 65-75%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors across markets including Union, Kentucky. Local real estate agents in the Louisville metropolitan area such as Keller Williams Realty Louisville East, RE/MAX Properties East, and Coldwell Banker McMahan Co. have experience with investment properties in Union and surrounding areas. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and property identification tools for Union's rental market. RedAwning and Awning.com offer property management and investment advisory services for short-term rentals in Kentucky markets. Local property management companies such as Louisville Property Management Group and Bluegrass Property Management have expanded services to include Airbnb management in Union since 2019. Investment-focused real estate companies like HomeVestors and BiggerPockets-affiliated agents work with investors seeking profitable rental properties in Jefferson County. Roofstock and Fundrise have identified Union as an emerging market for short-term rental investments due to its proximity to Louisville attractions and Kentucky Speedway, with several properties listed through their platforms in 2022-2023.