How to Start an Airbnb Business in Ohio

Ohio doesn’t get the hype that Florida or Tennessee does in STR circles, and that’s exactly what makes it attractive. While investors pile into oversaturated Sun Belt markets, Ohio’s three major metros — Columbus, Cleveland, and Cincinnati — deliver strong rental yields at acquisition costs that are a fraction of coastal markets. A two-bedroom property in Columbus that generates $42,000 annually might cost $180,000 to purchase. Try finding that ratio in Nashville or Austin.

The state welcomed over 220 million visitor-trips in 2023, generating $52 billion in tourism spending. Ohio’s combination of professional sports, a thriving music and arts scene, world-class healthcare systems drawing medical travelers, and a growing business corridor along the I-71 highway creates layered demand that doesn’t depend on a single season or event type. I’ve seen hosts in Ohio build quietly profitable portfolios while operators in trendier states fight over razor-thin margins. This guide covers the regulatory framework, market-by-market data, tax obligations, and a clear path to launching your Ohio STR business.

Why Ohio Is a Top Market for Short-Term Rentals

Ohio’s STR appeal comes down to economics. Property prices remain well below the national median, while nightly rates in key markets have climbed steadily since 2021. Columbus has been one of the fastest-growing cities in the Midwest for a decade — its population surpassed 900,000 in 2023, and the metro area tops 2.1 million. That growth drives corporate relocations, construction crews needing mid-term housing, and a university population (Ohio State has 60,000+ students) that generates consistent visitor demand.

Cleveland offers a different angle. The Cleveland Clinic and University Hospitals attract medical travelers from across the country and internationally. These guests often book for 5-14 nights, prefer furnished apartments over hotels, and are less price-sensitive than leisure travelers. Medical tourism creates a baseline of demand that persists through winter months when leisure travel drops.

Cincinnati rounds out the triangle with its own strengths — a revitalized Over-the-Rhine district that’s become a national dining destination, professional sports (Bengals, Reds, FC Cincinnati), and proximity to Northern Kentucky’s attractions including the Newport Aquarium and Creation Museum.

Beyond the big three, Ohio has emerging STR markets that smart operators are already exploiting. Hocking Hills draws over 4 million visitors annually to its caves, waterfalls, and forested trails. Put-in-Bay and the Lake Erie islands offer seasonal demand so intense that properties there can generate 60% of their annual revenue in just four months. And college towns like Athens (Ohio University) and Oxford (Miami University) create event-driven spikes that mirror the Champaign-Urbana model.

Ohio Short-Term Rental Laws and Regulations

Ohio takes a relatively hands-off approach at the state level compared to states like New York or California. There’s no statewide STR licensing requirement, and the state hasn’t enacted legislation that preempts or restricts municipal authority over short-term rentals. That means local governments set the rules, and those rules vary considerably.

State-Level Requirements

Ohio requires all lodging providers, including STR operators, to collect and remit the state’s lodging tax. You’ll need to register with the Ohio Department of Taxation and obtain a vendor’s license. Ohio also requires a County Lodging Tax registration in the county where your property is located. All rental income is subject to Ohio state income tax, and depending on the municipality, you may owe local income tax as well (Ohio is one of the few states where cities levy their own income taxes).

If you form an LLC or corporation to operate your STR business, you’ll register with the Ohio Secretary of State. The filing fee for an Ohio LLC is $99 — one of the more affordable states for entity formation.

Key City Regulations

Columbus: Columbus enacted a Short-Term Rental Registration ordinance that took effect in 2023. All STR operators must register with the city and pay an annual registration fee of $50. Properties must comply with the Columbus Building Code, carry liability insurance, and display their registration number on all listings. Columbus also requires hosts to designate a local contact person available 24/7 to respond to complaints. The city enforces a maximum occupancy of 2 persons per bedroom plus 2 additional guests. Violations carry fines starting at $500.

Cleveland: Cleveland requires a Short-Term Rental License for all properties rented for fewer than 30 consecutive days. The application includes a property inspection, proof of insurance, and a $100 annual license fee. Cleveland limits STR licenses in certain residential zones and requires hosts to collect the local 3% bed tax in addition to Cuyahoga County’s lodging tax. The city has been relatively welcoming to STR operators compared to some peer cities, but enforcement has tightened since 2024.

Cincinnati: Cincinnati’s STR regulations require hosts to obtain a Short-Term Rental Permit. The city charges a $100 application fee plus a $50 annual renewal. Properties must pass a fire safety inspection, maintain $500,000 in liability insurance (higher than many Ohio cities), and comply with the Cincinnati Building Code. Cincinnati also enforces a “primary residence” requirement for properties in certain residential zoning districts, meaning the host must live in the property at least 50% of the year.

Hocking Hills (Logan/Hocking County): The Hocking Hills area has become Ohio’s premier vacation rental market, and the county has responded with its own regulatory framework. Hocking County requires a Vacation Rental Permit, a septic system inspection (critical for rural properties), and compliance with the county’s noise and occupancy ordinances. Annual permit fees run $75-$150 depending on property size. Given the rural setting, many properties also need well water testing certification.

Recent Regulatory Changes (2025-2026)

Columbus expanded its enforcement program in 2025, partnering with monitoring services to identify unlicensed listings. The city also introduced a tiered fine structure, with repeat offenders facing up to $2,000 per violation. Cincinnati updated its zoning code in late 2025 to expand the areas where non-primary-residence STRs are permitted, a positive development for investors. At the state level, Ohio House Bill 154 was introduced in early 2026 proposing statewide registration standards and a uniform tax collection framework. The bill hasn’t advanced beyond committee hearings, but it reflects growing state-level interest in standardizing STR oversight.

Tax Obligations for Ohio Airbnb Hosts

Ohio’s tax structure for STR operators has multiple layers, and missing any of them creates problems. Here’s the complete picture.

The Ohio state sales tax is 5.75%, and it applies to all transient lodging (rentals under 30 days). Each county adds its own rate on top — Franklin County (Columbus) adds 5.5%, Cuyahoga County (Cleveland) adds 5%, and Hamilton County (Cincinnati) adds 4.75%. Your effective combined rate depends on your county.

Then there’s the county lodging (bed) tax, which is separate from the sales tax. Cuyahoga County charges 3% on top of everything else. Franklin County charges 5.1%. Hamilton County charges 3%. Hocking County charges 3%. These rates change periodically, so verify with your county auditor.

Ohio also has municipal income taxes — a layer that surprises hosts coming from other states. Columbus charges 2.5% on net rental income. Cleveland charges 2.5%. Cincinnati charges 1.8%. You’re required to file with the local tax authority even if you don’t live in the city where your property is located.

Airbnb collects and remits Ohio state lodging taxes and some county taxes automatically. But not all local taxes are covered by platform collection agreements. You need to verify your specific city and county to determine what you must remit directly. Direct bookings and VRBO listings may require you to handle all tax collection yourself.

On the deduction side, Ohio STR hosts can write off the same expenses as any other state: mortgage interest, property taxes, insurance, utilities, depreciation, furnishing, cleaning, maintenance, supplies, platform fees, and professional services. Ohio also allows a pass-through entity deduction that can reduce effective state tax rates for LLC members — worth discussing with your CPA.

Best Cities for Airbnb in Ohio

Columbus

Columbus is Ohio’s largest city and its strongest year-round STR market. The city benefits from Ohio State University (60,000+ students, 7 home football games annually), a growing tech sector anchored by companies like Nationwide, Cardinal Health, and the Intel chip fabrication facility under construction in nearby New Albany. ADRs in Columbus average $135-$185, with occupancy rates of 65-72% annually.

The Short North Arts District, German Village, and Grandview Heights are the highest-performing neighborhoods for STR revenue. A two-bedroom in the Short North can gross $3,200-$4,600 monthly. Football weekends push nightly rates 80-120% above baseline — Ohio State’s seven home games alone account for 14 nights of peak-rate revenue. Add graduation, move-in week, and major conferences at the Greater Columbus Convention Center, and event-driven demand adds up fast.

Columbus is also one of the better rental arbitrage markets in the Midwest. Two-bedroom apartments in neighborhoods like Clintonville, Old Town East, and Merion Village lease for $1,200-$1,600 per month, while STR gross revenue for those same units runs $2,800-$4,000 monthly. That spread supports arbitrage operators who manage expenses carefully.

Best property types: 1-2 bedroom apartments in Short North for couples/business travelers, 3-4 bedroom houses in German Village or Grandview for groups and families.

Cleveland

Cleveland’s STR market is defined by medical tourism and the revitalized downtown/Tremont/Ohio City corridor. The Cleveland Clinic alone generates thousands of patient-companion stays annually, with many guests seeking furnished accommodations for 7-14 night stays. These bookings are gold — longer stays mean lower turnover costs, and medical travelers tend to be quiet, respectful guests.

ADRs in Cleveland range from $120-$175, with occupancy averaging 60-67%. The strongest markets are Tremont, Ohio City, Detroit Shoreway, and properties near the Cleveland Clinic campus in Fairfax. A two-bedroom in Ohio City can gross $2,600-$3,800 monthly. Summer months (June-September) see a demand surge from Rock & Roll Hall of Fame visitors, Guardians baseball games, and Lake Erie tourism.

Cleveland’s lower acquisition costs are a major draw for investors. Three-bedroom homes in Tremont sell for $200,000-$320,000 and can gross $38,000-$52,000 annually as STRs. Cap rates on Cleveland STR properties frequently exceed 8%, which is increasingly rare in most U.S. markets.

Best property types: 2-bedroom apartments near Cleveland Clinic for medical travelers, renovated homes in Tremont/Ohio City for leisure visitors.

Cincinnati

Cincinnati’s Over-the-Rhine (OTR) neighborhood has undergone one of the most dramatic urban revitalizations in the country over the past decade. What was once a blighted area is now home to award-winning restaurants, craft breweries, boutique shops, and FC Cincinnati’s TQL Stadium. This transformation has made OTR one of Ohio’s premier STR neighborhoods.

ADRs in Cincinnati range from $130-$190, with OTR and downtown properties at the higher end. Occupancy averages 62-69% annually, with peak demand during Bengals season, Reds season, FC Cincinnati matches, and major festivals like Blink (a light-art festival that drew 1.4 million visitors in 2024). Annual gross revenue for a two-bedroom in OTR typically runs $32,000-$46,000.

The Covington/Newport, Kentucky side of the river offers an interesting arbitrage — lower property costs and Kentucky tax rates with proximity to Cincinnati’s demand drivers. Several Ohio STR operators manage properties on both sides of the river.

Best property types: Trendy 1-2 bedroom apartments in OTR for young professionals and couples, 3-bedroom homes in Mt. Adams or Northside for groups.

Hocking Hills

Hocking Hills is Ohio’s undisputed vacation rental champion. The region draws over 4 million visitors annually to Old Man’s Cave, Ash Cave, Cedar Falls, and Rock House. Unlike urban markets where you compete with hotels, Hocking Hills has virtually no hotel inventory — short-term rentals are the primary accommodation option, which means nearly every visitor needs a vacation rental.

ADRs are surprisingly strong for rural Ohio: $180-$320 for well-appointed cabins, with luxury properties (hot tubs, game rooms, panoramic views) commanding $350-$500 per night on peak weekends. Occupancy averages 55-65% annually, with Friday-Saturday bookings near 90% from March through November. A three-bedroom cabin can gross $55,000-$85,000 annually.

The competitive landscape in Hocking Hills has intensified — inventory has grown 35% since 2020. Properties that stand out with unique amenities (indoor pools, saunas, fire pits, EV chargers) outperform generic cabins by 40-60% on revenue. If you enter this market, differentiation is essential.

Best property types: Cabins with hot tubs and outdoor amenities, A-frames, luxury tree houses, anything with a “wow” factor for social media.

How Much Do Airbnbs Make in Ohio?

Ohio’s affordability means your cost basis is lower, which makes the revenue numbers particularly attractive on a return-on-investment basis. Here’s the market breakdown:

Operating costs in Ohio run lower than national averages. Cleaning costs, property maintenance, and insurance premiums are all cheaper in Ohio metros compared to coastal markets. Typical operating expenses consume 25-32% of gross revenue for owned properties and 35-42% for arbitrage units. A Columbus property grossing $42,000 might net $28,000-$31,000 after all expenses. Hocking Hills cabins with higher gross revenue also have higher maintenance costs (septic, well water, gravel roads), so expect expenses closer to 30-38%.

Where Ohio really shines is return on investment. A Cleveland property purchased for $220,000 that grosses $40,000 annually represents an 18% gross yield — double what you’d find in most top-50 markets nationally. Even after expenses, net yields of 10-13% are achievable in Ohio markets, making the state one of the strongest ROI plays in the country for STR investors.

How to Start Your Ohio Airbnb Business

Ohio’s lower barriers to entry make it one of the easier states to get started in, but the process still requires methodical execution.

Step 1: Choose Between the Big Three (or Hocking Hills). Columbus is best for year-round consistency and arbitrage. Cleveland is best for medical tourism and high cap rates. Cincinnati is best for event-driven revenue and the Airbnb “experience” market. Hocking Hills is best for high ADRs and vacation rental portfolios. Your choice should match your operating model — don’t try to manage a Hocking Hills cabin remotely from another state without a local co-host.

Step 2: Form Your Ohio LLC. File articles of organization with the Ohio Secretary of State ($99 filing fee). Obtain an EIN from the IRS. Open a business bank account. Register for a vendor’s license with the Ohio Department of Taxation. Register for county lodging tax in your property’s county. Total formation cost: $150-$300.

Step 3: Secure Your Property. For buyers, target properties in neighborhoods with proven STR track records. Check AirDNA or Mashvisor for comp data before making offers. For rental arbitrage operators, Columbus and Cincinnati offer the best lease-to-revenue spreads. Prepare a professional arbitrage proposal for landlords — Ohio landlords tend to be more receptive than those in coastal markets, but you still need to address their concerns proactively.

Step 4: Get Registered and Permitted. Apply for your city’s STR registration or permit. Columbus takes 1-3 weeks. Cleveland’s inspection-based process can take 3-5 weeks. Cincinnati runs 2-4 weeks. Hocking Hills county permits typically take 2-3 weeks. Don’t list until your permit is secured.

Step 5: Furnish with the Market in Mind. A Cleveland property targeting medical travelers needs different furnishing than a Hocking Hills cabin. Medical guests want a quiet, comfortable, home-like environment with a fully equipped kitchen and reliable WiFi for telehealth appointments. Hocking Hills guests want hot tubs, fire pits, board games, and Instagram-worthy decor. Budget $3,000-$6,000 per bedroom for urban properties and $5,000-$10,000 per bedroom for experience-oriented vacation rentals.

Step 6: Professional Photography and Listing Optimization. Ohio’s STR markets are competitive enough that amateur photos will cost you bookings. Invest $200-$400 in professional photography. Write listing descriptions that highlight neighborhood-specific amenities (walking distance to Ohio State campus, 5 minutes from the Cleveland Clinic, overlooking Old Man’s Cave). Use dynamic pricing from day one.

Step 7: Launch and Build Reviews. Price 10-15% below market for your first 5 bookings. Automate guest communication. Respond to inquiries within 15 minutes during business hours. Aim for Superhost status within your first year — it increases visibility by approximately 20% in Airbnb search results. Consider listing on VRBO simultaneously; Ohio travelers frequently use both platforms.

Step 8: Scale Strategically. Once your first property stabilizes (typically 3-4 months), analyze whether to add another property in the same market or diversify. Many successful Ohio operators run a mixed portfolio — urban arbitrage units for cash flow and a Hocking Hills cabin for higher ADR and appreciation. You can also explore co-hosting to add units without capital investment.

Ohio STR Insurance and Liability

Ohio doesn’t mandate specific insurance coverage for STR operators at the state level, but individual cities have their own requirements. Cincinnati requires $500,000 in liability coverage — one of the higher municipal requirements in the Midwest. Columbus and Cleveland both require proof of insurance but haven’t set specific minimums in their current ordinances.

Regardless of local requirements, every Ohio STR operator needs a dedicated short-term rental insurance policy. Standard homeowners insurance excludes commercial activity, and renters insurance doesn’t cover guests in a rental you’re subletting. One guest injury claim without proper coverage could wipe out years of rental income.

Recommended coverage for Ohio properties includes general liability ($1 million minimum), property damage protection, loss of income coverage (critical for seasonal properties like Hocking Hills), and guest medical payments. Hocking Hills properties should also carry enhanced liability given the outdoor activities — guests using hot tubs, fire pits, and hiking trails create additional risk exposure.

Annual premiums for Ohio STR insurance range from $1,000-$2,200 for urban properties and $1,500-$3,000 for vacation rental cabins with outdoor amenities. Providers like Proper Insurance, CBIZ, and Safely specialize in STR coverage and understand the Ohio market. Platform-provided coverage (Airbnb AirCover, VRBO liability) should be treated as supplemental, not primary.

Why 10XBNB Gives You the Edge in Ohio

Ohio’s tri-city opportunity — Columbus, Cleveland, Cincinnati — creates more pathways to profitability than most states, but each city demands a different approach. The strategy that works in a medical-tourism-driven Cleveland market won’t translate directly to a football-weekend Columbus market or an OTR experience play in Cincinnati. And Hocking Hills operates on an entirely different model than any of the urban markets.

The 10XBNB system teaches you how to evaluate markets like these, identify which model (purchase, arbitrage, co-hosting) fits each opportunity, and build operations that scale across property types and cities. Students in the program have built portfolios spanning multiple Ohio markets, using the frameworks to analyze deals, negotiate leases, set up automation, and optimize pricing across different demand patterns.

Ohio rewards operators who move with precision rather than guesswork. The margins are there — strong yields, affordable entry points, growing tourism numbers. What separates profitable operators from those who struggle is execution: understanding the local rules, pricing correctly for each market’s demand drivers, and building systems that maintain quality as you scale. 10XBNB provides that operational backbone. Explore how making money on Airbnb without owning property works in practice — Ohio’s arbitrage-friendly metros are ideal for this model.

Frequently Asked Questions

Do I need a permit to run an Airbnb in Columbus, Ohio?

Yes. Columbus requires all short-term rental operators to register with the city and pay a $50 annual registration fee. You must display your registration number on all listing platforms and designate a local contact person available 24/7. Operating without registration can result in fines starting at $500 per violation.

How much are Ohio Airbnb taxes?

Ohio STR taxes include the 5.75% state sales tax, county-specific sales tax (ranging from 4.75% to 5.5%), and county lodging (bed) taxes (typically 3-5.1%). You’ll also owe municipal income tax on net rental income in most Ohio cities — 2.5% in Columbus and Cleveland, 1.8% in Cincinnati. Airbnb collects some of these taxes automatically, but you need to verify which taxes require direct remittance in your specific county and city.

Is Hocking Hills a good Airbnb investment?

Hocking Hills is one of the strongest vacation rental markets in the Midwest, with 4+ million annual visitors and virtually no hotel competition. Well-appointed cabins gross $55,000-$85,000 annually. However, the market has become more competitive — inventory grew 35% since 2020. Properties that succeed now need distinctive amenities (hot tubs, game rooms, unique architecture) to stand out. Operating costs are also higher than urban STRs due to septic, well water, and rural maintenance requirements.

Can I do rental arbitrage in Ohio?

Yes, and Ohio is one of the better states for it. Columbus and Cincinnati both have lease-to-revenue spreads that support arbitrage profitably. You need explicit landlord permission and must comply with all local STR registration and tax requirements. Ohio landlords are generally more receptive to arbitrage proposals than those in larger coastal markets, particularly when you present a professional plan with insurance documentation and property care commitments.

What’s the best Ohio city for first-time Airbnb hosts?

Columbus offers the best balance of year-round demand, manageable regulations, and strong arbitrage economics for first-time hosts. The city’s registration process is straightforward, Ohio State creates predictable demand patterns, and the growing tech/corporate sector provides a steady stream of business travelers. Cleveland is a close second if you’re targeting the medical tourism niche. Hocking Hills has higher revenue potential but requires more capital and operational complexity.

How much does it cost to start an Airbnb in Ohio?

For rental arbitrage in Columbus or Cincinnati, budget $4,500-$10,000: first month’s rent plus deposit ($1,500-$3,500), furnishing ($2,500-$6,000 per bedroom), professional photography ($200-$400), initial supplies ($200-$400), LLC formation ($99), and registration fees ($50-$100). For a Hocking Hills cabin purchase, you’re looking at a down payment of $40,000-$80,000 plus $8,000-$15,000 in furnishing for a vacation-ready property.

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