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

Lafayette Short-Term Rental Market Overview

Lafayette, IN presents an interesting entry point for short-term rental investors, with average home values around $367,497 and annual STR revenue averaging $19,293 across active listings. The market's 101 active Airbnb listings and 33% occupancy rate — just above the Indiana state average — suggest demand is present but not yet saturated. With an ADR of $158, well below the $290 state average, Lafayette positions itself as an affordable college-town market where operational efficiency can make the difference between modest and meaningful returns.

Key Market Statistics

According to Rabbu market data, the Lafayette 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 Lafayette

Lafayette's combination of relatively affordable property prices and university-driven demand creates a viable entry point for STR investors seeking cash-flow potential without the price tag of larger Indiana metros.

Expert Market Assessment

"Lafayette earns an ROI score of 57 out of 100 — an "Attractive Opportunity" rating that reflects balanced but not exceptional fundamentals. The market's revenue-to-price ratio and occupancy stability both land in the average range, meaning returns are achievable but hinge on smart property selection and pricing. Seasonality is a defining characteristic: August revenue of $2,742 is more than triple January's $846, so investors need to budget for lean winter months. Properties with 2 or 3 bedrooms consistently outperform 1-bedroom units on RevPAN and occupancy, making them the stronger play for anyone serious about this market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Lafayette

Average revenue by month in Lafayette

Lafayette's revenue curve shows strong seasonality tied to late summer and fall, with August peaking at $2,742 — more than three times January's low of $846. The roughly $1,900 spread between the best and worst months means investors should plan cash reserves for the December-through-March stretch when revenue consistently stays below $1,500.

Active Airbnb listings by property size in Lafayette

One-bedroom units dominate the supply at 48 listings (nearly half the market), while 2-bedrooms account for 25 and 3-bedrooms for 22. The relative scarcity of larger properties is notable given their superior revenue performance, potentially signaling an opportunity gap for investors willing to acquire 3-bedroom homes.

Average daily rate (ADR) by property size in Lafayette

ADR increases steadily with size — from $108 for 1-bedrooms to $178 for 2-bedrooms and $201 for 3-bedrooms. The jump from 1 to 2 bedrooms ($70) is particularly steep, suggesting a meaningful pricing premium for accommodating groups or families without a proportional increase in acquisition cost.

Average RevPAN by property size in Lafayette

Three-bedroom properties edge out 2-bedrooms with a RevPAN of $70 versus $68, while 1-bedrooms lag significantly at $31. This more than twofold gap between 1- and 3-bedroom RevPAN underscores that larger units deliver substantially better revenue efficiency after accounting for occupancy.

Average occupancy rates by property size in Lafayette

Two-bedroom listings lead occupancy at 38%, followed by 3-bedrooms at 35% and 1-bedrooms at 29%. The higher fill rates for multi-bedroom properties suggest that group travelers and families form a meaningful share of Lafayette's guest base, making these sizes more reliable for consistent cash flow.

Average monthly revenue by property size in Lafayette

Monthly revenue climbs from $1,198 for 1-bedroom units to $1,797 for 2-bedrooms and $2,566 for 3-bedrooms — a 114% premium for the largest category. For investors evaluating cash-on-cash returns, the incremental revenue from stepping up to a 3-bedroom property is substantial relative to typical acquisition cost differences in this price range.

Average annual revenue by property size in Lafayette

Three-bedroom properties top the market at $30,803 in average annual revenue, followed by 2-bedrooms at $21,565 and 1-bedrooms at $14,378. With average home values at $367,497, a well-performing 3-bedroom could deliver a gross yield closer to 8%, making it the most compelling configuration from a revenue-generation standpoint.

Most common amenities for Airbnb listings in Lafayette

Parking is nearly universal at 99% of listings, reflecting Lafayette's car-dependent layout, while kitchens (89%), washers (81%), and dryers (79%) form the baseline guest expectation. Differentiators like pet-friendliness (20%), hot tubs (3%), and EV chargers (2%) remain rare — presenting opportunities for hosts to stand out in a competitive and growing supply environment.

Understanding Lafayette's ROI Score: 57/100

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

Lafayette's ROI score of 57 out of 100 places it in the "Attractive Opportunity" band, reflecting a market where revenue-to-price ratios and occupancy stability are both average — viable but not exceptional. The supply/demand balance scores below average, which aligns with the 124% year-over-year growth in active listings that could pressure occupancy if new hosts outpace demand. Investors should pair this data with thorough local regulatory research and focus on property types — particularly 2- and 3-bedrooms — where the numbers are most compelling.

Short-Term Rental Regulations in Lafayette

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

Permit Requirements

Short-term rental operators in Lafayette, Indiana may be required to obtain a business license or STR-specific permit before listing a property. Investors should verify current registration and permitting requirements directly with the City of Lafayette and Tippecanoe County, as local ordinances can evolve.

Key Restrictions

Common restrictions that may apply to STRs in Lafayette include occupancy limits, minimum stay requirements, noise ordinances, and off-street parking mandates. Additionally, properties within HOA-governed communities may face further limitations or outright prohibitions on short-term rentals, so reviewing covenants before purchasing is essential.

Tax Obligations

STR hosts in Indiana are generally subject to state sales tax and county innkeeper's tax on short-term lodging. Platforms like Airbnb often collect and remit some of these taxes on behalf of hosts, but operators should confirm their full obligations with the Indiana Department of Revenue.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Lafayette's STR market is likely to see continued listing growth — active supply has already jumped 124% year-over-year — which could put downward pressure on occupancy if demand doesn't keep pace. Seasonal patterns centered around Purdue University's academic calendar and late-summer events suggest ADR could hold steady or inch up 1–3%, particularly during August through October when revenue peaks. Occupancy may settle in the 30–35% range market-wide, though well-positioned 2- and 3-bedroom properties should outperform that average. Investors entering now should plan for pronounced seasonality and budget conservatively around winter months when revenue dips below $1,000."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Lafayette, IN

What is the average Airbnb occupancy rate in Lafayette?

The average Airbnb occupancy rate in Lafayette is currently 33%, which sits slightly above the Indiana state average of 32%. Occupancy varies significantly by property size — 2-bedroom units lead at 38%, followed by 3-bedrooms at 35% and 1-bedrooms at 29%. Seasonality also plays a major role, with late summer and early fall driving the strongest booking activity.

How much do Airbnb hosts make in Lafayette?

Based on trailing 12-month data, the average Airbnb host in Lafayette earns approximately $1,607 per month, or $19,293 annually. Revenue varies substantially by property size: 3-bedroom listings average $30,803 per year, 2-bedrooms earn around $21,565, and 1-bedrooms bring in roughly $14,378. Peak months like August can push monthly revenue above $2,700, while January typically dips below $850.

Is Lafayette a good market for Airbnb investment?

Lafayette carries a Rabbu ROI Score of 57 out of 100, rated as an "Attractive Opportunity." The market benefits from affordable home values averaging $367,497 and university-driven visitor demand. Revenue-to-price ratios and occupancy stability are both in the average range, so returns are realistic but depend on selecting the right property type and managing seasonal fluctuations effectively. Investors focused on 2- or 3-bedroom properties tend to see stronger performance.

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

The average daily rate for Airbnb listings in Lafayette is $158, which is considerably below the Indiana state average of $290. ADR scales with property size: 1-bedroom units average $108 per night, 2-bedrooms come in at $178, and 3-bedrooms command $201. This pricing structure reflects Lafayette's position as a mid-sized, affordably priced market.

Are short-term rentals legal in Lafayette?

Short-term rentals are generally permitted in Lafayette, Indiana, though operators may need to obtain appropriate business licenses or permits from local authorities. Regulations can include occupancy limits, noise restrictions, and parking requirements. HOA rules may impose additional constraints. We recommend verifying current requirements with the City of Lafayette and consulting the Indiana Department of Revenue for tax obligations before listing a property.

When is peak season for Airbnb in Lafayette?

Peak season in Lafayette runs from roughly July through October, with August standing out as the strongest month at $2,742 in average revenue. September ($2,067) and October ($1,876) also perform well, likely driven by Purdue University's fall semester, football season, and family visits. The slowest period is January, when average revenue drops to approximately $846.

How many Airbnbs are there in Lafayette?

As of April 2026, there are 101 active Airbnb listings in Lafayette. The supply breakdown skews toward smaller units: 48 are 1-bedroom properties, 25 are 2-bedrooms, and 22 are 3-bedrooms. Notably, active listings have grown 124% year-over-year, indicating a rapidly expanding supply base that investors should monitor closely.

How is Airbnb revenue calculated in Lafayette?

The annual and monthly revenue figures shown for Lafayette 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. Because each month uses its own historical performance data, the figures naturally capture seasonal peaks (like August's $2,742) and slower months (like January's $846). Individual results can vary based on property quality, pricing strategy, location within the market, 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 Lafayette and surrounding areas
• Average daily rate, occupancy, and RevPAN trends by property size
• Historical monthly and annual revenue averages based on trailing 12-month booking data
• Amenity prevalence across active listings to benchmark guest expectations
• Home value data 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 Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and market conditions as of April 2026; actual results may differ based on property-specific factors and changing market dynamics. Local regulations, tax requirements, and permit rules are subject to change — always verify with municipal and state authorities before investing.