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

Chesterton Short-Term Rental Market Overview

Chesterton, Indiana sits near the Indiana Dunes and draws a distinctly seasonal crowd, making it a compelling niche market for short-term rental investors who can capitalize on summer demand. With just 27 active Airbnb listings and average annual revenue of $34,724 against home values of $486,200, the market offers a modest but real income stream — particularly for larger properties that can command premium nightly rates. Year-over-year listing growth of 142% signals rising investor interest, though the small base means the market is still in an early, formative stage.

Key Market Statistics

According to Rabbu market data, the Chesterton 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 Chesterton

Chesterton appeals to investors seeking a small, tourism-driven market near a major national park with relatively low competition and meaningful summer revenue spikes.

Expert Market Assessment

"Chesterton represents a moderate-opportunity market with a clear seasonal playbook. Revenue peaks sharply in July and August — averaging over $5,400 per month — then drops to roughly $1,000–$1,300 during the winter trough, creating a nearly 5:1 spread between high and low season. This concentration means investors need to manage cash flow carefully through the off-peak months, but those who do can take advantage of a small, growing market with limited competition. The ROI score of 58 out of 100 reflects this balance: healthy summer demand tempered by a pronounced off-season and occupancy that trails the state average."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Chesterton

Average revenue by month in Chesterton

Revenue in Chesterton follows a pronounced summer arc, peaking in August at $5,549 and bottoming out in February at just $1,039 — a spread of more than 5x. Investors should expect roughly 60% of annual income to concentrate between May and September, making off-season expense management critical to profitability.

Active Airbnb listings by property size in Chesterton

Supply is spread across three size categories: one-bedrooms lead with 7 listings, followed by two-bedrooms (6) and five-bedrooms (5), with no three- or four-bedroom inventory currently tracked. This gap in mid-size properties could represent an opportunity for investors targeting the family-vacation segment that might prefer a three- or four-bedroom layout.

Average daily rate (ADR) by property size in Chesterton

ADR scales dramatically with property size in Chesterton — one-bedrooms average $153 per night and two-bedrooms $160, while five-bedroom properties command $609, nearly four times the smaller units. This steep premium suggests that larger homes near the Dunes attract group bookings willing to pay significantly more per night.

Average RevPAN by property size in Chesterton

Five-bedroom properties deliver the strongest RevPAN at $132, far outpacing two-bedrooms at $39 and one-bedrooms at just $12. The gap underscores that while larger homes have slightly lower occupancy than two-bedrooms, their elevated nightly rates more than compensate on a per-available-night basis.

Average occupancy rates by property size in Chesterton

Two-bedroom listings achieve the highest occupancy at 25%, followed by five-bedrooms at 22% and one-bedrooms trailing at 8%. The low one-bedroom occupancy suggests limited demand for smaller units, possibly because travelers to the area tend to come in groups seeking more spacious accommodations.

Average monthly revenue by property size in Chesterton

Five-bedroom properties are the clear top earners at $5,814 per month on average, more than double the $2,450 that two-bedrooms generate and nearly five times the $1,174 from one-bedrooms. For investors seeking meaningful monthly cash flow, larger configurations in Chesterton appear to be the most productive use of capital.

Average annual revenue by property size in Chesterton

Annual revenue ranges from $14,092 for one-bedroom units up to $69,771 for five-bedroom homes, with two-bedrooms in between at $29,400. The five-bedroom segment offers the strongest gross return potential and may justify the higher acquisition and operating costs associated with larger properties in the Chesterton market.

Most common amenities for Airbnb listings in Chesterton

Parking is universal across all Chesterton listings (100%), and kitchens (93%), backyards (78%), and laundry facilities (70%) are near-standard — reflecting guest expectations for home-like comfort during vacation stays. Outdoor amenities like patios (67%), outdoor furniture (63%), and BBQ grills (59%) are also common, signaling that guests value outdoor living space, likely tied to the area's nature-oriented appeal near Indiana Dunes.

Understanding Chesterton's ROI Score: 58/100

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

Chesterton's ROI score of 58 out of 100 places it in the 'Attractive Opportunity' band, driven by average marks across all four calculation factors — revenue-to-price ratio, occupancy stability, market growth trend, and supply/demand balance. No single factor stands out as exceptionally strong or weak, which means the market offers a balanced but not outsized return profile. Investors should pair this score with their own due diligence on local regulations and property-level financials to determine whether the seasonal revenue pattern aligns with their investment goals.

Short-Term Rental Regulations in Chesterton

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

Permit Requirements

Short-term rental operators in Chesterton, Indiana may need to obtain a permit or register with the local municipality before listing a property. Investors should verify current requirements directly with the Town of Chesterton and Porter County, as regulations in smaller Indiana communities can evolve quickly.

Key Restrictions

Common restrictions that may apply include occupancy limits based on property size, minimum stay requirements, noise ordinances, parking mandates, and potential HOA restrictions in certain subdivisions. Some Indiana municipalities also cap the number of STR permits issued in residential zones, so confirming availability before purchasing is advisable.

Tax Obligations

Indiana imposes a state sales tax and county innkeeper's tax on short-term rental stays, and platforms like Airbnb often collect and remit these on behalf of hosts. Investors should confirm whether any additional local taxes apply in Porter County and ensure proper registration with the Indiana Department of Revenue.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Chesterton's STR market is likely to see continued supply growth as investors respond to strong summer revenue potential, though occupancy — currently at 16% overall — may remain below the Indiana average of 32% given the market's heavy seasonal tilt. Summer months should sustain ADRs in the $271 range or slightly higher as demand for Indiana Dunes getaways holds steady. Investors entering now should plan conservatively around annual revenue of $32,000–$37,000 for a typical listing, with cash flow heavily concentrated between May and September. We estimate modest ADR appreciation of 1–3% as the market matures, though individual results will depend heavily on property quality and pricing strategy."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Chesterton, IN

What is the average Airbnb occupancy rate in Chesterton?

The average occupancy rate for Airbnb listings in Chesterton is currently 16%, which sits well below the Indiana state average of 32%. This reflects the market's strong seasonal character — demand is concentrated during the warmer months near Indiana Dunes, with significantly quieter winters pulling the annual average down. Two-bedroom properties tend to perform best on occupancy at 25%, while one-bedroom units average just 8%.

How much do Airbnb hosts make in Chesterton?

Airbnb hosts in Chesterton earn an average of $2,893 per month and approximately $34,724 per year based on trailing 12-month booking data. Earnings vary significantly by property size: one-bedroom listings average around $14,092 annually, two-bedrooms bring in roughly $29,400, and five-bedroom properties lead at about $69,771 per year. Peak summer months can generate over $5,000 per listing, while winter months may dip below $1,500.

Is Chesterton a good market for Airbnb investment?

Chesterton earns an ROI score of 58 out of 100 from Rabbu, categorized as an 'Attractive Opportunity.' The market benefits from proximity to Indiana Dunes National Park and a small competitive set of just 27 listings, which gives well-managed properties room to stand out. However, occupancy is seasonal and below state averages, so investors should plan for strong summer cash flow offset by leaner winter months. Larger properties — especially five-bedrooms — show the strongest revenue potential.

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

The average daily rate in Chesterton is $271, which is slightly below the Indiana state average of $290. Rates vary considerably by size: one-bedroom listings average $153 per night, two-bedrooms come in at $160, and five-bedroom homes command a significant premium at $609 per night. This spread suggests that larger, group-oriented properties can capture substantially higher nightly rates in this market.

Are short-term rentals legal in Chesterton?

Short-term rentals do operate in Chesterton, Indiana, with 27 active Airbnb listings currently in the market. However, local regulations can change, and operators should verify permit requirements, zoning rules, and any applicable restrictions with the Town of Chesterton and Porter County before purchasing or listing a property. Compliance with Indiana's innkeeper's tax obligations is also required.

When is peak season for Airbnb in Chesterton?

Peak season in Chesterton runs from June through August, with July and August delivering the highest average monthly revenue at $5,454 and $5,549 respectively. May and September also perform well above the annual average. The off-season stretches from November through March, with February marking the lowest point at around $1,039 in average revenue. This creates a strongly seasonal pattern that investors should factor into their financial planning.

How many Airbnbs are there in Chesterton?

As of April 2026, there are 27 active Airbnb listings in Chesterton. The supply is split primarily among one-bedroom (7 listings), two-bedroom (6 listings), and five-bedroom (5 listings) properties. Year-over-year listing growth of 142% indicates rapidly rising investor interest, though the small absolute numbers mean the market is still in an early phase of development.

How is Airbnb revenue calculated in Chesterton?

The annual and monthly revenue figures shown for Chesterton 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 results up to a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks and slower periods. 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 for the Chesterton market
• Average daily rate, occupancy, and RevPAN metrics benchmarked against state averages
• Monthly and annual revenue trends derived from trailing 12-month booking data
• Property size breakdowns for listings, rates, occupancy, and revenue
• Amenity prevalence data across active listings to inform competitive positioning

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 current snapshots as of April 2026; market conditions may shift. Local regulations, tax requirements, and permit availability should be independently verified before making an investment decision.