Lebanon, KY Airbnb Market Data, Statistics, and Occupancy Rates

Lebanon Short-Term Rental Market Overview

Lebanon, KY is a compact short-term rental market with just 24 active Airbnb listings and an average annual revenue of $16,962 per property. While the ADR of $159 sits well below the Kentucky state average of $333, occupancy at 30% slightly edges out the state benchmark of 28%. The market's small listing count and 56% year-over-year supply growth signal rising investor interest, though the modest revenue figures and below-average occupancy stability call for careful deal selection.

Key Market Statistics

According to Rabbu market data, the Lebanon 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 Lebanon

Lebanon appeals to investors seeking an early-mover advantage in a small, growing Kentucky market where lower home prices relative to larger metros can offset modest nightly rates.

Expert Market Assessment

"Lebanon represents a competitive but unproven opportunity for STR investors. The ROI score of 39 out of 100 reflects average revenue-to-price fundamentals paired with below-average occupancy stability, meaning returns hinge on picking the right property and managing it well. Seasonality is pronounced — October peaks at $2,144 in average monthly revenue while January bottoms out near $638, a spread that demands budgeting for lean months. Investors willing to target 3-bedroom properties and optimize for the strong fall season may find workable margins, but this is not a set-it-and-forget-it market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Lebanon

Average revenue by month in Lebanon

Revenue in Lebanon swings dramatically across the calendar — October leads at $2,144 while January drops to just $638, a gap of over $1,500 that underscores the market's strong fall seasonality. Summer months (June–August) and the November–December holiday period also perform well, making roughly nine months of the year reasonably productive for hosts.

Active Airbnb listings by property size in Lebanon

Supply in Lebanon is distributed fairly evenly across 1-bedroom (6 listings), 2-bedroom (5), and 3-bedroom (7) properties, with no single size category dominating. The relative balance means there isn't an obviously underserved niche, though the slightly larger share of 3-bedroom homes aligns with higher ADRs in that category.

Average daily rate (ADR) by property size in Lebanon

ADR scales meaningfully with bedroom count: 1-bedrooms average $111, 2-bedrooms come in at $141, and 3-bedrooms reach $201 — nearly double the smallest units. The jump from 2 to 3 bedrooms ($60 premium) is particularly notable and suggests guests are willing to pay significantly more for larger group-friendly accommodations.

Average RevPAN by property size in Lebanon

Three-bedroom properties deliver the strongest RevPAN at $53 per available night, outperforming both 1-bedrooms ($45) and 2-bedrooms ($36). The 2-bedroom segment lags despite a mid-range ADR, largely due to its lower 26% occupancy rate pulling down per-night revenue efficiency.

Average occupancy rates by property size in Lebanon

One-bedroom properties stand out with a 41% occupancy rate — roughly 15 percentage points above the 2-bedroom (26%) and 3-bedroom (27%) segments. This higher fill rate makes smaller units more predictable for cash flow, though their lower ADR limits total revenue upside.

Average monthly revenue by property size in Lebanon

Two-bedroom listings lead monthly revenue at $1,607, edging out 3-bedrooms ($1,404) and 1-bedrooms ($1,118) despite having the lowest occupancy rate — a result of balancing decent nightly rates with enough bookings. Investors focused purely on monthly cash flow may find the 2-bedroom segment most compelling in Lebanon.

Average annual revenue by property size in Lebanon

On an annual basis, 2-bedroom properties generate the highest revenue at $19,289, followed by 3-bedrooms at $16,856 and 1-bedrooms at $13,418. When weighed against acquisition costs and operating expenses, the roughly $6,000 annual gap between the top and bottom tiers is a meaningful factor in investment sizing.

Most common amenities for Airbnb listings in Lebanon

Kitchens (100%) and parking (96%) are virtually universal among Lebanon's Airbnb listings, reflecting guest expectations for self-contained, car-friendly stays in a smaller Kentucky community. Laundry access (79%), self check-in (83%), and outdoor spaces like backyards (67%) and patios (63%) round out the essentials — investors without these basics risk falling below competitive standards.

Understanding Lebanon's ROI Score: 39/100

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

Lebanon's ROI score of 39 out of 100 places it in the 'Competitive Opportunity' band, meaning the market has investor appeal but demands more deliberate property selection. The score reflects average revenue-to-price fundamentals and market growth trends, tempered by below-average occupancy stability that could make cash flow less predictable month to month. Pairing this data with thorough local regulatory research and a conservative underwriting approach will help investors identify deals that pencil in this small but growing market.

Short-Term Rental Regulations in Lebanon

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

Permit Requirements

Investors operating short-term rentals in Lebanon, Kentucky should verify whether a local business license or STR-specific permit is required by contacting the City of Lebanon and Marion County offices. Kentucky does not impose a statewide STR registration, so requirements vary at the local level.

Key Restrictions

Common restrictions that may apply include occupancy limits tied to property size, minimum stay requirements, noise ordinances, and parking provisions. HOA or deed restrictions can also limit STR use in certain neighborhoods, so reviewing any covenants before purchasing is essential.

Tax Obligations

Short-term rental operators in Kentucky are generally subject to the state's 6% sales tax and may owe local transient room taxes. Platforms like Airbnb often collect and remit state-level taxes on behalf of hosts, but investors should confirm local obligations directly with Marion County or the city.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Lebanon's STR market is likely to see continued supply growth as investor awareness builds, but demand will need to keep pace to maintain current occupancy levels. Seasonal revenue data suggests that fall months — particularly October — could drive ADR increases in the range of 2–5%, while the January-through-April stretch will likely remain the softest period with monthly revenues dipping below $1,000. Investors should expect occupancy to hover around 28–32% market-wide, with individual performance depending heavily on property quality and pricing discipline. We estimate revenue per available night could hold steady or improve modestly if new supply is absorbed by growing visitor demand."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Lebanon, KY

What is the average Airbnb occupancy rate in Lebanon?

The average occupancy rate for Airbnb listings in Lebanon, KY is currently 30%, which slightly outperforms the Kentucky state average of 28%. Occupancy varies significantly by property size — 1-bedroom units lead at 41%, while 2-bedroom and 3-bedroom properties sit at 26% and 27% respectively. Individual results will depend on pricing strategy, listing quality, and seasonal demand patterns.

How much do Airbnb hosts make in Lebanon?

Airbnb hosts in Lebanon earn an average of $1,413 per month, or roughly $16,962 per year based on trailing 12-month performance. Revenue varies by property size: 2-bedroom listings average the highest monthly revenue at $1,607, followed by 3-bedrooms at $1,404 and 1-bedrooms at $1,118. Peak months like October can push individual property revenue above $2,000, while slower months like January may dip below $700.

Is Lebanon a good market for Airbnb investment?

Lebanon scores 39 out of 100 on Rabbu's ROI Score, placing it in the 'Competitive Opportunity' category. This means investor interest and demand exist, but tighter competition and modest revenue figures require selective deal sourcing. The market's relatively small supply of 24 listings and 56% year-over-year growth indicate building momentum, though below-average occupancy stability is worth monitoring. Investors who target in-demand property sizes and manage seasonality effectively may find workable returns.

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

The average daily rate in Lebanon is $159, which is considerably lower than the Kentucky state average of $333. ADR scales with property size: 1-bedroom units average $111, 2-bedrooms average $141, and 3-bedrooms command $201 per night. The lower ADR compared to state averages reflects Lebanon's positioning as a smaller, more affordable market.

Are short-term rentals legal in Lebanon?

Short-term rentals are generally permitted in Lebanon, KY, though local regulations and permit requirements can change. Investors should verify current rules by contacting the City of Lebanon and Marion County government offices before listing a property. It's also important to review any HOA covenants or deed restrictions that may apply to a specific property.

When is peak season for Airbnb in Lebanon?

Peak season in Lebanon runs from late summer through fall, with October delivering the highest average monthly revenue at $2,144. November ($1,955) and July ($1,846) are also strong performers. The slowest period is winter through early spring, with January averaging just $638 in monthly revenue — a significant seasonal spread that investors should plan for.

How many Airbnbs are there in Lebanon?

As of April 2026, there are 24 active Airbnb listings in Lebanon, KY. The supply breaks down to 7 three-bedroom properties, 6 one-bedroom properties, and 5 two-bedroom properties. Notably, the market has seen 56% year-over-year growth in active listings, indicating rising investor interest in the area.

How is Airbnb revenue calculated in Lebanon?

The annual and monthly revenue figures shown for Lebanon 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 remaining data up to a market-level historical average. This approach anchors the numbers 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 actively 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 Lebanon, KY market
• Occupancy rates, average daily rates, and RevPAN trends by property size
• Monthly and annual revenue estimates based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to benchmark competitive standards

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 historical averages and may not capture very recent market shifts. Local regulations, tax requirements, and permit rules are subject to change — always verify with municipal authorities before investing.