Performance indicators for the Kokomo short-term rental market based on reliable data.
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The highest-performing listings in Kokomo.
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Generally Investor friendly
STRs are permitted by default in Kokomo, but operators must obtain a Certificate of Occupancy and, if the use is classified as a Bed & Breakfast, secure a Special Exception in most residential districts; the lack of a dedicated ordinance also forces owners to use the “questionable land use” process for definitive classification, creating moderate permitting and compliance steps. State sales tax (7 %) and Howard County innkeeper’s tax (5 %) registration are required, but there are no explicit caps or overly restrictive fees. Overall the regulations are welcoming yet involve a known, manageable approval pathway, making Kokomo friendly to investors despite some administrative uncertainty.
Local STR Agent
STR specialist · Kokomo, IN
Kokomo, Indiana, is the county seat of Howard County in north-central Indiana, with a population of roughly 58,000 residents. Known affectionately as the "City of Firsts," it earned that nickname for its pioneering role in American industrial and automotive history, including the development of the first commercially successful American automobile and the first pneumatic rubber tire. Beyond its manufacturing heritage, the city carries a comfortable, mid-size Midwestern feel, with tree-lined neighborhoods, a walkable downtown, and a pace that appeals to travelers looking for an authentic slice of Indiana life. It sits approximately 50 miles north of Indianapolis along the U.S. 31 corridor, making it an easy roughly one-hour drive from the state's capital and its international airport.
One of Kokomo's most distinctive cultural stops is the Kokomo Opalescent Glass studio and museum, founded in 1888 and still producing art glass on site. Visitors can tour the working factory floor, watch glassblowers at work, and view the colorful opalescent pieces that have made the company a favorite of artists and collectors for more than a century. It is located right in the heart of the city, just minutes from downtown.
Just down the road, the Elwood Haynes Museum preserves the home and laboratory of the man often credited with building one of the first successful American automobiles in 1894. The museum features Haynes's original car, period artifacts, and exhibits on late-19th-century scientific experimentation, giving history-minded visitors a tangible link to the dawn of the automotive age — all within central Kokomo.
About 25 miles north of the city, in Peru, Indiana, the Grissom Air Museum offers a different kind of draw, with a collection of military aircraft, historic planes, and aviation memorabilia displayed on the grounds of the former Grissom Air Force Base. It makes for an easy half-day excursion and rounds out a Kokomo visit with a distinctly Hoosier angle on American military and aviation history.
Closer to home, Foster Park and the adjacent Highland Park provide a green refuge along the Wildcat Creek, with walking trails, sports fields, and the well-known Seiberling Mansion, a striking Queen Anne-style home that once served as a retreat for tire and rubber industrialist J.F. Seiberling. These connected parks sit just west of downtown and offer a relaxed, family-friendly complement to the city's museums.
Kokomo's appeal for short-term rentals lies in this balance of small-city accessibility and varied nearby attractions. Guests can settle into a quiet Midwestern community while staying within an easy drive of Indianapolis, the Grissom Air Museum, and the chain of small lakes and state recreation areas that dot the surrounding countryside, making it a practical and distinctive base for travelers exploring north-central Indiana.