Is Willisburg, Kentucky Good for Airbnb Investment?

To start an Airbnb in Willisburg, Kentucky, begin by researching local regulations through Washington County's planning and zoning office, as Willisburg falls under county jurisdiction rather than having its own municipal codes - contact Washington County Judge Executive's office at (859) 336-3410 to verify short-term rental requirements and any necessary permits or business licenses. Find a suitable property by searching local real estate listings through agents familiar with Washington County or consider purchasing residential properties in Willisburg's historic downtown area or rural outskirts, ensuring the property meets Kentucky's building and safety codes. Obtain required permits including a Kentucky business license through the Secretary of State's office, register for state and local taxes with the Kentucky Department of Revenue, and secure appropriate insurance coverage that includes short-term rental protection. Furnish the property with quality furniture, linens, and amenities while ensuring compliance with Kentucky's landlord-tenant laws and safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Create your Airbnb listing with professional photos highlighting Willisburg's proximity to Bardstown's bourbon trail and Kentucky's scenic countryside, set competitive pricing based on similar properties in Washington County (typically $75-150 per night for rural Kentucky locations), and write detailed descriptions emphasizing local attractions like My Old Kentucky Home State Park 20 miles away. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest communications, coordinating cleaning between stays, and staying compliant with Kentucky's 6% sales tax on short-term rentals while keeping detailed records for tax purposes and potential Washington County occupancy tax requirements.

For identifying profitable short-term rental properties in Willisburg, Kentucky, focus on properties within 10-15 minutes of Bardstown and the Kentucky Bourbon Trail attractions, as this small community benefits from overflow tourism from nearby distilleries like Heaven Hill and Jim Beam. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as guests often travel in groups for bourbon tours and prefer authentic Kentucky experiences. Analyze comparable properties in Bardstown, Bloomfield, and Springfield for pricing benchmarks, typically ranging $80-150 per night depending on size and amenities, while researching seasonal demand patterns around bourbon festivals and Derby season. Competition research should include Airbnb and VRBO listings within a 20-mile radius, noting that Willisburg has limited inventory creating opportunity for well-positioned properties. Utilize AirDNA for market analysis, STR Helper for performance tracking, and local resources like the Nelson County Tourism Commission for event calendars, while connecting with Bardstown-area property managers who understand the bourbon tourism market dynamics and can provide insights on guest preferences and optimal pricing strategies for this rural but tourism-adjacent location.

To obtain an Airbnb/STR permit in Willisburg, Kentucky, you must first contact the Washington County Planning and Zoning Office since Willisburg falls under county jurisdiction, as the city does not have its own zoning department. Begin by submitting a conditional use permit application to Washington County Planning Commission, which typically requires a completed application form, property deed or lease agreement, site plan showing parking and access, proof of liability insurance (minimum $1 million), and a floor plan of the rental unit. The application fee is estimated at $150-300, with additional inspection fees of approximately $75-150. You must also register with the Kentucky Department of Revenue for state sales tax collection and obtain a business license from Washington County Clerk's office for around $25-50 annually. The property must meet fire safety codes, have working smoke and carbon monoxide detectors, and provide adequate parking (typically 2 spaces minimum). The approval process generally takes 30-60 days including a public hearing before the planning commission, property inspection, and final permit issuance. Additional requirements may include maintaining a local contact person within 30 miles, posting emergency contact information at the property, and ensuring compliance with septic system regulations if not connected to municipal sewer, which is common in rural Washington County areas.

Short-term rentals (STRs) in Willisburg, Kentucky are generally legal but subject to state and local regulations. As a small unincorporated community in Washington County, Willisburg falls under Kentucky state law which permits STRs, and Washington County has not implemented comprehensive STR restrictions as of 2023. Property owners must comply with basic safety requirements, obtain necessary business licenses, and pay applicable taxes including the state's transient room tax. There are no specific prohibited areas within Willisburg itself, though individual homeowners associations or deed restrictions may apply. Recent changes at the state level have focused on tax collection and safety standards rather than outright bans. However, operators should verify current zoning compliance with Washington County planning officials and ensure proper registration with the Kentucky Department of Revenue for tax purposes, as enforcement and regulations can evolve at the local level.

The best areas for Airbnb investment in Willisburg, Kentucky would be the historic downtown district near Main Street, which attracts visitors interested in small-town charm and local antique shops, and properties within a 5-mile radius of the Kentucky Bourbon Trail distilleries since Willisburg sits in the heart of bourbon country with nearby facilities like Maker's Mark and Jim Beam drawing thousands of tourists annually. The rural countryside properties with scenic views and farm settings appeal to agritourism visitors and those seeking peaceful retreats, while areas near Bloomfield and Springfield (within 15-20 minutes) capture overflow from visitors to Abraham Lincoln Birthplace National Historical Park and My Old Kentucky Home State Park. Properties near the Salt River offer recreational opportunities for fishing and kayaking enthusiasts, and locations with easy access to the Bluegrass Parkway attract business travelers commuting between Louisville and Elizabethtown who prefer quieter accommodations over urban hotels.

Airbnb properties in Willisburg, 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. Washington County, where Willisburg is located, does not impose a separate county-level occupancy tax as of 2023. The state tax is typically 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 this tax automatically for hosts in Kentucky depending on their agreement with the state, which began around 2019. Properties rented for 30 days or longer are generally exempt from the transient room tax, and certain charitable or religious organization accommodations may also qualify for exemptions. Hosts should register with the Kentucky Department of Revenue to obtain a transient room tax account number and ensure compliance with all reporting requirements, maintaining detailed records of all rental transactions and tax collections.

The total cost to start an Airbnb in Willisburg, Kentucky would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Kentucky markets. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees vary by Washington County regulations but typically include business license ($50-$100), short-term rental permit ($200-$500), and potential zoning compliance costs ($300-$800). Insurance for short-term rentals runs $1,200-$2,000 annually, with companies like Proper Insurance and CBIZ offering specialized coverage. Utility setup and deposits for electricity, water, internet, and cable cost $500-$800 initially. First six months operating costs including utilities ($150/month), cleaning services ($75 per turnover), maintenance reserves ($200/month), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total approximately $3,500-$5,000, assuming 40-60% occupancy rates typical for rural Kentucky markets in 2024.

Airbnb properties in Willisburg, Kentucky typically generate modest returns due to the small rural market, with average nightly rates ranging from $75-120 for whole homes and occupancy rates around 35-45% annually. A typical 3-bedroom property might gross $15,000-25,000 annually while incurring expenses of $8,000-12,000 including mortgage interest, utilities, cleaning fees, maintenance, and Airbnb's 3% host fee, resulting in net profit margins of 25-35%. Success factors in this Washington County location include proximity to Bardstown's bourbon trail attractions, competitive pricing below Louisville market rates, and targeting weekend getaway guests seeking rural experiences. Properties within 20 minutes of My Old Kentucky Home State Park or Kentucky Bourbon Trail distilleries like Barton 1792 perform better, with some hosts reporting 50-60% occupancy during peak bourbon tourism seasons from April through October. The limited local competition and lower property acquisition costs compared to urban markets can make Willisburg properties profitable for investors who maintain occupancy above 40% annually, though the seasonal nature of rural Kentucky tourism creates income variability throughout the year.

Based on Willisburg, Kentucky 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 financing structure. Properties in this rural Kentucky market generally reach profitability within 18-24 months, with average nightly rates of $75-120 for well-appointed properties targeting visitors to nearby attractions like Maker's Mark Distillery and Kentucky Bourbon Trail locations. The market benefits from tourism spillover from Bardstown and Louisville, with occupancy rates averaging 45-60% annually, though seasonal fluctuations occur with peak performance during spring through fall months when bourbon tourism and outdoor activities drive demand.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Willisburg, Kentucky. Local real estate agents in the area such as Coldwell Banker McMahan and Century 21 Simpson & Associates have experience with investment properties and vacation rentals in Nelson County. National services like Awning, RedAwning, and AirDNA provide market analysis and property management specifically for Airbnb investments. Mashvisor offers investment property analysis tools that cover Kentucky markets, while BiggerPockets connects investors with local professionals. Local property management companies such as Kentucky Lake Vacation Rentals and Bluegrass Property Management can assist with operations once properties are acquired. Real estate investment firms like HomeVestors and We Buy Ugly Houses also operate in Kentucky and may have suitable properties for conversion to short-term rentals in the Willisburg area.