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

Lexington Short-Term Rental Market Overview

Lexington, KY presents an attractive short-term rental opportunity anchored by above-average occupancy stability and a balanced supply-demand dynamic. With 460 active Airbnb listings generating an average annual revenue of $28,589 and an ADR of $179—well below Kentucky's $333 state average—the market offers an accessible entry point for investors. Occupancy sits at 32%, outperforming the 28% state average, and the 116% year-over-year listing growth signals rising investor confidence in the market's fundamentals.

Key Market Statistics

According to Rabbu market data, the Lexington 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 Lexington

Lexington's blend of event-driven tourism, university activity, and equine-industry visitors creates diversified demand that keeps occupancy above the state average while property acquisition costs remain moderate.

Expert Market Assessment

"Lexington earns an 'Attractive Opportunity' designation, reflecting a market where revenue potential and occupancy stability combine to reward well-positioned investors. Seasonality is pronounced—October leads at $3,253 in average monthly revenue while January bottoms out near $1,134—so operators who optimize pricing around peak periods and manage costs during quieter winter months will see the strongest returns. The supply landscape is relatively balanced across 1- to 3-bedroom properties, and larger homes command outsized revenue, suggesting room for differentiated strategies depending on budget and target guest profile."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Lexington

Average revenue by month in Lexington

Lexington shows clear seasonality, with October ($3,253) and August ($3,150) representing peak revenue months and January ($1,134) marking the low point—a nearly 3x spread that underscores the importance of aggressive peak-season pricing and winter cost management for investors.

Active Airbnb listings by property size in Lexington

One- and two-bedroom units dominate supply with 139 and 128 listings respectively, while 4+ bedroom properties account for just 75 combined listings. The relative scarcity of larger homes could represent an opportunity for investors willing to target group travelers and event-goers with less direct competition.

Average daily rate (ADR) by property size in Lexington

ADR climbs steadily from $99 for 1-bedroom units to $322 for 5-bedrooms, with 6+ bedroom properties commanding a dramatic $621 per night. The sharpest price jumps occur between 3 and 4 bedrooms ($212 to $272) and again at the 6+ tier, suggesting that larger properties carry significant pricing power in this market.

Average RevPAN by property size in Lexington

RevPAN peaks at $172 for 6+ bedroom properties, far outpacing the $62–$84 range for mid-size homes. Interestingly, 5-bedroom listings ($78) slightly underperform 4-bedrooms ($84) on a RevPAN basis, indicating that adding a fifth bedroom doesn't necessarily translate to better per-night yield after occupancy is factored in.

Average occupancy rates by property size in Lexington

Occupancy is most consistent among 1- and 2-bedroom listings at 33%, while larger properties trend lower—5-bedrooms sit at just 24%. For investors prioritizing steady bookings and cash-flow predictability, smaller units offer a more reliable occupancy profile, though the trade-off is substantially lower nightly rates.

Average monthly revenue by property size in Lexington

Monthly revenue scales reliably with size, from $1,406 for 1-bedrooms to $10,094 for 6+ bedroom properties. The jump from 4-bedroom ($3,901) to 5-bedroom ($5,042) is notable, but the real revenue leap happens at the 6+ tier, where monthly earnings roughly double the 5-bedroom figure.

Average annual revenue by property size in Lexington

Annual revenue ranges from $16,879 for 1-bedroom properties to $121,132 for 6+ bedroom homes, demonstrating that larger configurations can deliver outsized gross returns. However, investors should weigh these top-line figures against higher purchase prices, maintenance costs, and the lower occupancy rates associated with bigger properties to determine true net return potential.

Most common amenities for Airbnb listings in Lexington

Parking (98%) and kitchen access (96%) are near-universal, while self check-in (91%) and laundry facilities (87% washer, 85% dryer) round out guest expectations as table-stakes amenities. Differentiators like hot tubs (7%), pools (2%), and EV chargers (3%) remain rare, presenting an opportunity for hosts to stand out by adding premium features that most competitors lack.

Understanding Lexington's ROI Score: 63/100

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

Lexington's ROI Score of 63 out of 100 places it in the 'Attractive Opportunity' band, driven primarily by above-average occupancy stability and average marks across revenue-to-price ratio, market growth, and supply-demand balance. The score suggests a market where disciplined operators can generate meaningful returns, particularly by targeting the right property size and capitalizing on seasonal demand spikes. Investors should pair these metrics with thorough local regulatory research and property-level underwriting to validate individual deal economics.

Short-Term Rental Regulations in Lexington

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

Permit Requirements

Short-term rental operators in Lexington, Kentucky may be required to obtain permits or register their property with local authorities before listing. Investors should verify current requirements directly with the Lexington-Fayette Urban County Government, as rules can change with limited notice.

Key Restrictions

Common restrictions in similar Kentucky markets include occupancy limits, minimum-stay requirements, noise and nuisance ordinances, parking provisions, and potential HOA covenants that may prohibit or limit STR activity. Some jurisdictions also cap the number of STR permits issued in specific zones, so it's worth confirming zoning compatibility before purchasing.

Tax Obligations

Short-term rental hosts in Kentucky are typically subject to state and local transient room taxes, as well as applicable sales tax on accommodations. Many booking platforms collect and remit these taxes automatically, but hosts should confirm their obligations with local tax authorities to ensure full compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Lexington's STR market is expected to maintain steady demand driven by a pronounced seasonal cycle that peaks from April through October. Revenue estimates suggest ADR could see modest increases in the 2–4% range as the market absorbs the recent wave of new supply, though occupancy may stabilize or dip slightly as competition intensifies. Investors entering now should plan for softer winter months—January and February revenues historically run around $1,100–$1,200—while targeting the $3,000+ peak months to anchor annual returns."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Lexington, KY

What is the average Airbnb occupancy rate in Lexington?

The average occupancy rate for Airbnb listings in Lexington is currently 32%, which outperforms the Kentucky state average of 28%. Occupancy varies by property size, with 1- and 2-bedroom units averaging 33% and larger properties like 5-bedrooms dipping to around 24%. These figures reflect trailing performance and individual results will depend on factors like location, pricing, and listing quality.

How much do Airbnb hosts make in Lexington?

Airbnb hosts in Lexington earn an average of $2,382 per month, or approximately $28,589 annually, based on trailing 12-month booking data. Earnings scale significantly with property size—1-bedroom listings average about $16,879 per year, while 6+ bedroom properties can generate upwards of $121,132 annually. Peak months like October ($3,253) and August ($3,150) drive the bulk of revenue, so strategic pricing and availability management are key.

Is Lexington a good market for Airbnb investment?

Lexington scores 63 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market benefits from above-average occupancy stability and a balanced supply-demand environment. With average home values around $513,039 and annual STR revenue near $28,589, the revenue-to-price ratio is considered average—meaning returns are achievable but depend heavily on property selection, operational efficiency, and targeting the right property size for your investment goals.

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

The average daily rate for Airbnb listings in Lexington is $179, which is significantly lower than the Kentucky state average of $333. ADR scales considerably with property size, ranging from $99 for 1-bedroom listings up to $621 for 6+ bedroom properties. This pricing structure means larger properties command a meaningful premium, though investors should weigh that against higher acquisition and operating costs.

Are short-term rentals legal in Lexington?

Short-term rentals do operate in Lexington, with 460 active Airbnb listings currently in the market. However, local regulations regarding permits, zoning, and operational requirements may apply and can change over time. Prospective investors should consult with the Lexington-Fayette Urban County Government and review any applicable HOA restrictions before purchasing a property for STR use.

When is peak season for Airbnb in Lexington?

Peak season in Lexington spans roughly from April through October, with the highest average monthly revenues occurring in October ($3,253), August ($3,150), and April ($3,016). These peaks likely align with major local events, university schedules, and the equine industry calendar. Winter months are notably softer—January averages just $1,134—so investors should budget accordingly for seasonal revenue swings.

How many Airbnbs are there in Lexington?

There are currently 460 active Airbnb listings in Lexington as of April 2026. The market has seen significant growth, with a 116% year-over-year increase in active listings. Supply is fairly distributed across smaller property sizes, with 139 one-bedroom, 128 two-bedroom, and 114 three-bedroom listings making up the majority of inventory.

How is Airbnb revenue calculated in Lexington?

The annual and monthly revenue figures for Lexington are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—not a forward-looking projection. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remainder 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 because each month uses its own historical performance data. Individual results can vary based on property quality, pricing strategy, and operational management.

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 Lexington, KY market
• Average daily rate, occupancy, and RevPAN trends across property sizes
• Monthly and annual revenue metrics based on trailing 12-month booking data
• Popular amenity prevalence across active listings to inform property setup decisions
• Home value benchmarks from the Zillow Home Value Index 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 performance as of April 2026 and may not capture very recent market shifts or regulatory changes. Individual property results will vary based on location, condition, pricing strategy, and management approach.