Carmel, IN Airbnb Market Data, Statistics, and Occupancy Rates

Carmel Short-Term Rental Market Overview

Carmel, IN stands out as a compact but compelling short-term rental market, earning an ROI score of 71 out of 100 — placing it in the "Attractive Opportunity" tier. With an average daily rate of $316, which exceeds the Indiana state average of $290, and above-average occupancy stability and supply/demand balance, investors can find a favorable ratio of demand to competition across just 27 active listings. Average annual revenue sits at $45,139, and the market's limited supply suggests room for well-positioned properties to capture meaningful share.

Key Market Statistics

According to Rabbu market data, the Carmel short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Carmel

Carmel's blend of limited competition, premium nightly rates, and stable demand drivers makes it an appealing market for investors seeking above-average returns in a suburban Indiana setting.

Expert Market Assessment

"Carmel presents a moderate-to-strong opportunity for STR investors, backed by healthy demand indicators and a small, manageable competitive set. Revenue seasonality is pronounced — July peaks at $6,734 in average monthly revenue while January and February dip below $2,000 — so investors should plan cash reserves for the slower winter months. The favorable supply/demand balance and above-average occupancy stability help offset that seasonal swing, and the market's premium ADR relative to the state average signals guests value what Carmel offers. Overall, the data supports this as an attractive entry point, particularly for 3- and 4-bedroom properties that drive the lion's share of revenue."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Carmel

Average revenue by month in Carmel

Carmel's revenue follows a clear summer-driven pattern, peaking in July at $6,734 and bottoming out in February at $1,894 — a 3.5x spread that underscores the importance of summer bookings. Investors should expect roughly 45% of annual revenue to concentrate between May and August, making off-season pricing strategy critical for maintaining cash flow.

Active Airbnb listings by property size in Carmel

Three-bedroom properties dominate Carmel's supply with 11 of the 27 active listings, while 1-bedroom and 4-bedroom units each account for just 5. The absence of 2-bedroom listings in the data may signal an underserved niche, and the relatively small total inventory across all sizes leaves room for new entrants.

Average daily rate (ADR) by property size in Carmel

ADR scales meaningfully with property size in Carmel: 1-bedroom listings average $104 per night, 3-bedrooms command $321, and 4-bedroom homes reach $392. The jump from 3 to 4 bedrooms adds roughly $71 in nightly rate, which may represent a strong premium-to-cost trade-off for investors considering larger properties.

Average RevPAN by property size in Carmel

Four-bedroom properties deliver the highest RevPAN at $113, outpacing 3-bedroom units at $74 and 1-bedrooms at $48. This indicates that despite somewhat lower occupancy, the premium nightly rates of larger homes more than compensate, making them the most efficient revenue generators on a per-available-night basis.

Average occupancy rates by property size in Carmel

One-bedroom listings lead in occupancy at 46%, significantly ahead of 4-bedroom (29%) and 3-bedroom (23%) properties. While smaller units stay fuller more consistently — benefiting cash-flow stability — their lower ADR means this occupancy advantage doesn't translate into higher overall revenue.

Average monthly revenue by property size in Carmel

Four-bedroom and 3-bedroom properties generate nearly identical monthly revenue at $3,840 and $3,832 respectively, while 1-bedroom units trail considerably at $989 per month. This near-parity between 3- and 4-bedroom properties suggests the extra bedroom commands enough of a rate premium to offset its lower occupancy.

Average annual revenue by property size in Carmel

Larger properties clearly outperform on an annual basis, with 4-bedroom homes earning $46,090 and 3-bedrooms at $45,992 — nearly four times the $11,868 generated by 1-bedroom listings. For investors focused on maximizing top-line revenue, 3- and 4-bedroom configurations offer the strongest return potential in Carmel.

Most common amenities for Airbnb listings in Carmel

Parking and a full kitchen each appear in 93% of Carmel listings, followed closely by washer (85%) and self check-in (85%), signaling that guests expect home-like convenience and autonomy. Outdoor amenities like patios (74%), backyards (70%), and BBQ grills (59%) are also common, reflecting the suburban family-friendly character of the market — investors who include these features are aligning with strong guest expectations.

Understanding Carmel's ROI Score: 71/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Carmel's ROI score of 71 out of 100 places it in the "Attractive Opportunity" band, driven primarily by above-average occupancy stability and a favorable supply/demand balance that keeps competition manageable. The revenue-to-price ratio and market growth trend both rate as average, reflecting the market's higher home values ($878,632) and steady but not explosive trajectory. Investors should pair these data points with local regulatory research and a clear property-level financial model to confirm that returns align with their targets.

Short-Term Rental Regulations in Carmel

Understanding local STR regulations is essential before investing in Carmel. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Carmel, Indiana may need to obtain a permit or register their property with the city before listing. Investors should verify current requirements directly with the City of Carmel and Hamilton County authorities, as local STR regulations can evolve.

Key Restrictions

Common restrictions in markets like Carmel can include occupancy limits, minimum stay requirements, noise and parking regulations, and rules imposed by homeowners associations (HOAs). Some jurisdictions also impose caps on the number of STR permits issued, so it's worth confirming availability before committing to a purchase.

Tax Obligations

Short-term rental hosts in Indiana are typically subject to state sales tax and local innkeeper's or occupancy taxes. Many booking platforms collect and remit these taxes on behalf of hosts, but operators should confirm their specific obligations with the Indiana Department of Revenue and local tax offices.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Carmel can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Carmel's STR market is expected to maintain its seasonal revenue pattern, with summer months (June–July) continuing to drive the bulk of annual income. Given the 110% year-over-year listing growth, new supply may moderate per-listing occupancy slightly, though above-average supply/demand balance and occupancy stability suggest demand should keep pace. Investors can reasonably expect ADR to hold steady or tick up 1–3% in line with average market growth trends, with annual revenue likely ranging in the $43,000–$48,000 corridor for well-managed properties."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Carmel, IN

What is the average Airbnb occupancy rate in Carmel?

The average occupancy rate for Airbnb listings in Carmel is currently 27%, which falls below the Indiana state average of 32%. However, occupancy varies significantly by property size — 1-bedroom units achieve 46% occupancy, while larger 3-bedroom and 4-bedroom properties average 23% and 29% respectively. The market's above-average occupancy stability rating suggests that demand, while moderate overall, is relatively consistent.

How much do Airbnb hosts make in Carmel?

Airbnb hosts in Carmel earn an average of $3,761 per month and approximately $45,139 per year, based on trailing 12-month booking data. Revenue varies considerably by property size: 1-bedroom listings average around $989 per month ($11,868 annually), while 3-bedroom and 4-bedroom properties generate roughly $3,832 and $3,840 per month, translating to about $45,992 and $46,090 annually.

Is Carmel a good market for Airbnb investment?

Carmel earns an ROI score of 71 out of 100, placing it in the "Attractive Opportunity" category. The market benefits from above-average occupancy stability and a favorable supply/demand balance, with only 27 active listings competing for guest bookings. Its ADR of $316 also outpaces the state average. That said, average home values of $878,632 mean the revenue-to-price ratio is average, so investors should carefully evaluate individual property economics before purchasing.

What is the average daily rate (ADR) for Airbnb in Carmel?

The average daily rate in Carmel is $316, which is approximately 9% higher than the Indiana state average of $290. ADR scales with property size: 1-bedroom listings average $104 per night, 3-bedroom properties command $321, and 4-bedroom homes reach $392 per night.

Are short-term rentals legal in Carmel?

Short-term rentals do operate in Carmel, IN, with 27 active Airbnb listings currently on the market. However, local regulations and permit requirements can change, so prospective investors should check directly with the City of Carmel and Hamilton County for the most up-to-date rules on STR licensing, zoning, and any applicable restrictions.

When is peak season for Airbnb in Carmel?

Peak season in Carmel runs from May through August, with July topping out at $6,734 in average monthly revenue. June is also strong at $5,863. Revenue drops off notably in the winter months, with January ($1,926) and February ($1,894) representing the slowest period. This seasonal spread means hosts should plan for about a 3.5x difference between the best and weakest months.

How many Airbnbs are there in Carmel?

There are currently 27 active Airbnb listings in Carmel as of April 2026. The supply is concentrated around 3-bedroom properties (11 listings), with 1-bedroom and 4-bedroom properties each accounting for 5 listings. Notably, the market has seen 110% year-over-year growth in active listings, indicating rising investor interest.

How is Airbnb revenue calculated in Carmel?

The annual and monthly revenue figures for Carmel are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the data up to a market-level historical average. This approach anchors figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and how effectively the listing is managed.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts, occupancy rates, and revenue metrics for Carmel, IN
• Average daily rate (ADR) and revenue per available night (RevPAN) trends by property size
• Seasonal revenue patterns based on trailing 12-month booking performance
• Popular amenity data across active listings to benchmark guest expectations
• Home value estimates sourced from the Zillow Home Value Index (ZHVI) for investment analysis

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and may not capture the most recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.