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

Indianapolis Short-Term Rental Market Overview

Indianapolis hosts 1,430 active Airbnb listings with an average daily rate of $153 — roughly half the Indiana state average of $290 — making it one of the more accessible entry points in the state for STR investors. The market generates an average annual revenue of $21,042 per listing, and with average home values sitting at $339,662, the revenue-to-price ratio lands in an average range. Year-over-year listing growth of 85% signals intense investor interest, which means deal selection and operational execution will be key differentiators going forward.

Key Market Statistics

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

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Indianapolis

Affordable home prices relative to the state, a growing market, and Indianapolis's role as a convention and sporting hub make it worth a close look for STR investors willing to compete in an increasingly crowded field.

Expert Market Assessment

"Indianapolis presents a competitive opportunity — demand drivers are real, but the market's 29% average occupancy rate (below the 32% state average) and rapid supply growth mean passive investors may struggle to stand out. Seasonality is pronounced: May through August drives peak performance with revenues north of $2,000 per month, while January and February dip below $1,100. Investors targeting larger properties in the 4–6+ bedroom range will find meaningfully stronger revenue potential, with 5-bedroom listings averaging $55,692 annually. Success here will hinge on property selection, sharp pricing strategy, and delivering the amenities guests in this market now expect as standard."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Indianapolis

Average revenue by month in Indianapolis

Indianapolis shows clear seasonality, with May ($2,249) and August ($2,230) marking revenue peaks and January ($1,022) and February ($1,013) at the bottom — a spread of roughly $1,200. The summer months from May through August consistently deliver above-average returns, while a secondary bump in November ($1,807) likely reflects holiday travel and event-driven demand.

Active Airbnb listings by property size in Indianapolis

One-bedroom listings dominate supply with 495 units (35% of the market), followed by 2-bedrooms at 396 and 3-bedrooms at 305. Larger properties — particularly 5-bedrooms (44 listings) and 6+ bedrooms (24 listings) — are significantly underrepresented, which may present a supply gap opportunity for investors targeting higher-revenue configurations.

Average daily rate (ADR) by property size in Indianapolis

ADR climbs sharply with property size, from $96 for 1-bedroom units to $543 for 6+ bedroom homes — a 5.7x premium. The strongest price jump occurs between 5-bedroom ($290) and 6+ bedroom ($543) properties, suggesting that large group-friendly homes command outsized nightly rates in this market.

Average RevPAN by property size in Indianapolis

Revenue per available night scales dramatically with size: 6+ bedroom properties lead at $181 RevPAN, nearly 6x the $29 earned by 1-bedroom listings. Even mid-range 4-bedroom units deliver a solid $65 RevPAN, making them an attractive middle ground between acquisition cost and per-night earnings potential.

Average occupancy rates by property size in Indianapolis

Occupancy rates remain relatively compressed across property sizes, ranging from 28% for 3-bedroom units to 38% for studios. Interestingly, both the smallest (studios at 38%) and largest units (6+ bedrooms at 33%) outperform mid-range options, suggesting that niche positioning — either compact urban stays or large group accommodations — may yield more consistent bookings.

Average monthly revenue by property size in Indianapolis

Monthly revenue scales reliably with bedroom count, from $1,170 for 1-bedroom listings to $5,309 for 6+ bedroom properties. The jump from 4-bedroom ($2,990) to 5-bedroom ($4,641) monthly revenue is particularly notable — a 55% increase — making the move to larger properties a compelling strategy for revenue maximization.

Average annual revenue by property size in Indianapolis

Annual revenue ranges from $14,049 for 1-bedroom units to $63,710 for 6+ bedroom homes, with 4-bedroom properties ($35,887) representing a strong balance of earning power relative to likely acquisition and operating costs. Five-bedroom listings at $55,692 annually offer the steepest revenue climb versus the next size down, making them a standout configuration for investors seeking top-line performance.

Most common amenities for Airbnb listings in Indianapolis

Kitchen (96%) and parking (96%) are essentially table stakes in Indianapolis, and self check-in (89%) has become a near-universal expectation. Workspace availability at 73% signals strong business and remote-work traveler demand, while differentiators like hot tubs (6%) and EV chargers (5%) remain rare — potentially offering competitive advantages for listings that include them.

Understanding Indianapolis's ROI Score: 44/100

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

Indianapolis earns a Rabbu ROI Score of 44 out of 100, placing it in the Competitive Opportunity band — meaning investor interest and demand are present, but tighter competition and softer occupancy require more disciplined deal sourcing. The score reflects an average revenue-to-price ratio and supply/demand balance, paired with below-average occupancy stability and an above-average market growth trend that suggests the trajectory is still positive. Pairing this data with thorough local regulatory research and a focus on underserved property sizes (particularly 4+ bedrooms) will help investors identify where the best risk-adjusted returns lie.

Short-Term Rental Regulations in Indianapolis

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

Permit Requirements

Indianapolis, Indiana may require short-term rental operators to register or obtain a permit before listing their property. Investors should verify current permit and registration requirements directly with the City of Indianapolis and Marion County officials before purchasing or operating an STR.

Key Restrictions

Common restrictions in markets like Indianapolis can include occupancy limits, minimum stay requirements, noise and nuisance ordinances, parking mandates, and permit caps in certain zones. HOA rules may add additional layers — always confirm with both the local government and any applicable homeowners association before committing to a property.

Tax Obligations

Short-term rental hosts in Indiana are generally subject to state sales tax and local innkeeper's taxes, which apply to stays under 30 days. Many booking platforms collect and remit these taxes automatically, but operators should confirm their obligations with the Indiana Department of Revenue and local tax authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Indianapolis should benefit from its above-average market growth trend, though the rapid supply expansion (85% YoY listing growth) could put downward pressure on occupancy if demand doesn't keep pace. Seasonal patterns suggest revenue will remain strongest from May through August, with monthly averages in the $2,000–$2,250 range during peak months and softer winter months dipping near $1,000. ADR increases of 1–3% are plausible given Indianapolis's steady convention and event calendar, but investors should plan for occupancy rates hovering in the 28–32% range market-wide unless they actively optimize pricing and listing quality."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Indianapolis, IN

What is the average Airbnb occupancy rate in Indianapolis?

The average occupancy rate for Airbnb listings in Indianapolis is currently 29%, which falls slightly below the Indiana state average of 32%. Occupancy varies by property size — studios lead at 38%, while 2- and 3-bedroom units sit closer to 28–29%. Investors focused on operational excellence and competitive pricing can potentially outperform these averages.

How much do Airbnb hosts make in Indianapolis?

On average, Airbnb hosts in Indianapolis earn approximately $1,753 per month or $21,042 per year based on trailing 12-month booking data. Revenue scales significantly with property size: 1-bedroom listings average $14,049 annually, while 5-bedroom properties bring in roughly $55,692 and 6+ bedroom homes reach about $63,710 per year.

Is Indianapolis a good market for Airbnb investment?

Indianapolis earns a Rabbu ROI Score of 44 out of 100, categorized as a Competitive Opportunity. The market shows above-average growth and average supply/demand balance, but occupancy stability is below average — meaning investors need to be selective with deals. With average home values at $339,662 and strong revenue from larger properties, there's real potential for well-operated listings, especially in the 4+ bedroom segment.

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

The average daily rate across all active Indianapolis Airbnb listings is $153, which is notably lower than the $290 Indiana state average. ADR rises steeply with property size — from $96 for 1-bedroom units up to $543 for 6+ bedroom properties. This pricing structure rewards investors who can acquire and manage larger homes effectively.

Are short-term rentals legal in Indianapolis?

Short-term rentals do operate in Indianapolis, but regulations can vary by zone and property type. Investors should check directly with the City of Indianapolis and Marion County for current permit requirements, zoning restrictions, and any registration obligations before purchasing or listing a property. Local HOA rules may also impose additional restrictions.

When is peak season for Airbnb in Indianapolis?

Peak season for Indianapolis Airbnb listings runs from May through August, when average monthly revenues range from $2,048 to $2,249. May leads the pack at $2,249, likely driven by major events like the Indianapolis 500. The off-peak months of January and February see the lowest revenues at around $1,013–$1,022, creating a spread of more than $1,200 between the best and slowest months.

How many Airbnbs are there in Indianapolis?

As of April 2026, there are 1,430 active Airbnb listings in Indianapolis. The market has seen significant growth, with an 85% year-over-year increase in active listings. One-bedroom units make up the largest share at 495 listings, followed by 2-bedrooms (396) and 3-bedrooms (305).

How is Airbnb revenue calculated in Indianapolis?

The annual and monthly revenue figures shown for Indianapolis 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. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up to a market-level historical average. This approach anchors the 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 well 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 by market and property size
• Average daily rates, occupancy rates, and RevPAN metrics across bedroom configurations
• Monthly and annual revenue trends based on trailing 12-month booking data
• Popular amenity prevalence across active listings in the market
• Home value data sourced from the Zillow Home Value Index (ZHVI) for investment context

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Local regulations, permit requirements, and tax obligations are subject to change — always verify with city and state authorities before investing. Individual property results will vary based on location, condition, pricing strategy, and management quality.