Overview

Are short-term rentals allowed in Falmouth, KY? Short-term rentals are not explicitly addressed or defined in the City of Falmouth Zoning Ordinance. However, the city has specific regulations for Bed and Breakfast establishments which operate under strict owner-on-premises requirements. Investors considering STR operations should note that traditional STR models may face regulatory challenges without explicit authorization.

How to Start a Short-Term Rental Business in Falmouth

Step 1: Assess Zoning Compliance

Short-term rentals must comply with local zoning ordinances. Based on the Falmouth Zoning Ordinance, consider these pathways:

Option 1: Bed and Breakfast Route

• The most viable legal option in Falmouth
• Requires owner to live on-premises (Section 6.19.A)
• Maximum 6 guest rooms (Section 6.19.C)
• Food service limited to resident guests only (Section 6.19.B)

Option 2: Home Occupation Analysis

• Review Section 6.7 governing home occupations
• STR operations may qualify if they meet commercial use requirements
• Must not change outside appearance of dwelling
• Customer contact must occur off-premises for true home occupation status

Step 2: Site Selection

Consider zoning districts that permit lodging uses:

• Rural Zone (R): Allows Bed and Breakfast facilities as permitted use (Section 7.0.B.5)
• Urban Residential (UR): Allows Bed and Breakfast facilities as permitted use (Section 7.6.B.4)
• Downtown Zone (D): Allows hotels and motels as permitted use (Section 7.8.B.1.i)

Step 3: Development Plan Requirements

• Stage II Development Plan required for Bed and Breakfast establishments (Section 6.19.F)
• Submit to Zoning Administrator for approval
• Must demonstrate compliance with all applicable sections

Required Documents, Permits, Licenses, and Guidelines

Zoning Permits

• Zoning/Building Permit: Required for all construction and occupancy changes
• Certificate of Occupancy: Must be obtained before operation (Section 11.5)
• Development Plan Approval: Stage II Development Plan required per Section 11.3

Permit Application Process

1. Submit zoning permit application to Zoning Administrator
2. Provide Stage II Development Plan per Section 11.3.B requirements
3. Demonstrate compliance with parking, screening, and appearance requirements
4. Obtain building permits if Kentucky Building Code applies
5. Receive Certificate of Occupancy upon final inspection

Additional Documentation Requirements

• Health Department Approval: Required for on-site sewage disposal systems
• Fire Safety Compliance: Must meet applicable fire codes
• Utility Connections: Must connect to public water/sewer if available (Section 6.10)

Specific Regulations for Short-Term Rentals

City-Level Regulations (Falmouth)

Bed and Breakfast Requirements (Section 6.19)

• Owner Presence: Must live on-premises during all guest stays
• Room Limit: Maximum 6 guest rooms
• Food Service: Limited to resident guests only
• Parking: 1 space per guest room + 2 spaces for owner
• Screening: 6-foot high fence or dense vegetation required
• Appearance: No external changes indicating commercial use
• Additions: No exterior additions to increase room count

Parking Requirements (Article 8)

• Off-street parking required per dwelling unit standards
• Bed and Breakfast: 1 space per guest room + 2 spaces for owner
• Parking limited to side and rear yards

Development Controls

• Home Occupations (Section 6.7): May apply to STR operations if meeting commercial use criteria
• Screening Requirements (Section 6.11): Required for commercial uses adjacent to residential
• Nuisance Ordinance: Incorporated by reference (Chapter 92)

County-Level Regulations (Pendleton County)

• Health Department: Septic system requirements for non-sewered areas
• Subdivision Regulations: May apply to property development
• Joint Planning Commission: Oversight for development plans

State-Level Regulations (Kentucky)

• Kentucky Building Code: Applies to construction and modifications
• KRS 100.111-100.991: Statutory authority for zoning ordinances
• Health Department Regulations: State-level health and safety requirements

Contact Information

Local Authority Contacts

City of Falmouth

• Primary Contact: Zoning Administrator
• Mailing Address: City of Falmouth, Kentucky
• Note: Specific phone/email not provided in source documents

Pendleton County Joint Planning Commission

• Role: Planning oversight for Falmouth
• Note: Contact information not specified in source materials

Pendleton County Health Department / Three Rivers Health District

• Role: Health approvals for on-site sewage systems
• Note: Contact information not provided in source documents

Falmouth Code Enforcement

• Role: Building permits and inspections
• Note: Specific contact details not available in source materials

Source Pages

1. Primary Zoning Ordinance: cityoffalmouth.com/wp-content/uploads/2025/08/Falmouth-Zoning-Ordinance-2025.7.pdf

Important Considerations for STR Investors

Regulatory Gaps

• No explicit STR regulations: Traditional STR models lack clear authorization
• Bed and Breakfast pathway: Only clearly defined lodging option
• Owner-on-premises requirement: Limits investment scalability
• Zoning interpretation: May require legal consultation for non-B&B operations

Compliance Risks

• Violation enforcement: City has established penalty structure (Section 11.10)
• Nuisance complaints: Chapter 92 Nuisance Ordinance applies
• Zoning interpretation: Unclear status for traditional STR operations

Strategic Recommendations

1. Consult with local officials: Determine specific STR policies before investment
2. Consider Bed and Breakfast model: Only clearly authorized lodging use
3. Review Kentucky state regulations: May provide additional guidance
4. Monitor zoning amendments: STR regulations may be developed in future
5. Legal consultation recommended: Navigate unclear regulatory landscape

This guide reflects the current regulatory environment in Falmouth, KY as of the provided source documents. Given the lack of explicit STR regulations, investors should seek local government clarification before proceeding with any STR investment strategy.