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

Lexington Short-Term Rental Market Overview

Lexington, VA is a small but appealing short-term rental market anchored by its college-town character, Shenandoah Valley scenery, and historic attractions. With 72 active Airbnb listings generating an average annual revenue of $38,225 and an ADR of $275, the market offers a workable revenue-to-price ratio against average home values of $564,171. Occupancy currently sits at 22%—below the Virginia state average of 34%—so investor success here hinges on strategic pricing and targeting the right seasonal demand windows.

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

Investors look at Lexington for its blend of tourism appeal, university-driven demand, and relatively moderate competition in a scenic Virginia market.

Expert Market Assessment

"Lexington presents a moderate investment opportunity — its ROI score of 55 out of 100 reflects healthy revenue potential tempered by softer occupancy and below-average growth trends. The market exhibits pronounced seasonality: October leads all months at $4,991 in average revenue, while February dips to just $1,255, creating a roughly 4:1 spread between peak and trough. Investors who can capture strong bookings during the May-through-October corridor and supplement with holiday and university-event traffic during slower months will be best positioned. Pairing a larger property (3–4 bedrooms) with the right amenity mix could meaningfully outperform market averages."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Lexington

Average revenue by month in Lexington

Lexington's revenue peaks in October at $4,991 and bottoms out in February at just $1,255, creating a nearly 4:1 seasonal spread. The strong corridor from May through October—where all months exceed $3,300—underscores the importance of maximizing bookings during warm-weather and fall-foliage season to offset quieter winter months.

Active Airbnb listings by property size in Lexington

The market's 72 listings skew toward smaller properties, with 1-bedroom (20) and 2-bedroom (24) units making up over 60% of supply. Only 7 listings are 4-bedroom homes, suggesting a potential gap for investors willing to offer larger group-friendly accommodations.

Average daily rate (ADR) by property size in Lexington

ADR climbs steeply with size, from $200 for 1-bedroom units to $582 for 4-bedroom properties—nearly a 3x premium. The jump from 3-bedroom ($283) to 4-bedroom is especially dramatic, signaling strong willingness to pay among guests booking larger homes in this market.

Average RevPAN by property size in Lexington

RevPAN increases steadily from $41 for 1-bedroom listings to $89 for 4-bedroom properties, with 3-bedrooms close behind at $88. This suggests that while 4-bedroom homes command the highest nightly rates, the occupancy trade-off narrows the RevPAN gap with 3-bedroom units, making both attractive from a revenue-per-night perspective.

Average occupancy rates by property size in Lexington

Three-bedroom listings lead occupancy at 31%, followed by 2-bedrooms at 28%, while 4-bedroom properties lag significantly at just 15%. Investors targeting larger properties should weigh the higher nightly rate against fewer booked nights—cash flow consistency favors 2- and 3-bedroom configurations.

Average monthly revenue by property size in Lexington

Four-bedroom properties top the monthly revenue charts at $5,830, more than double the $2,413 generated by 1-bedroom units. The jump from 3-bedroom ($3,570) to 4-bedroom revenue is substantial enough to justify the added investment for operators who can maintain competitive occupancy.

Average annual revenue by property size in Lexington

Annual revenue scales from $28,960 for 1-bedroom properties up to $69,963 for 4-bedroom homes, representing a 141% increase. For investors weighing return potential, 3-bedroom listings offer a solid middle ground at $42,842 annually with the market's highest occupancy rate, while 4-bedrooms deliver the top-line revenue crown.

Most common amenities for Airbnb listings in Lexington

Parking is universal at 100% of listings, and a kitchen (92%), patio or balcony (75%), and self check-in (74%) are near-standard guest expectations in Lexington. Outdoor-oriented amenities like backyards (65%) and BBQ grills (51%) reflect the market's nature-tourism appeal, while hot tubs remain rare at just 7%—a potential differentiator for investors looking to stand out.

Understanding Lexington's ROI Score: 55/100

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 55 out of 100 places it in the 'Attractive Opportunity' band, reflecting average marks for revenue-to-price ratio and occupancy stability alongside below-average readings for market growth trend and supply/demand balance. The recent 186% year-over-year listing growth has introduced new competition without a proportional uptick in demand, which tempers the outlook. Investors should pair this data with thorough local regulatory research and target property configurations—particularly 3- and 4-bedroom homes—that have demonstrated above-average revenue performance.

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, VA may need to obtain a business license or STR-specific permit from the city. Investors should verify current permit and registration requirements directly with the City of Lexington and check any applicable Rockbridge County regulations before listing a property.

Key Restrictions

Common restrictions in Virginia STR markets can include occupancy limits, minimum stay requirements, noise ordinances, and parking provisions. Investors should also review any HOA covenants or deed restrictions that may limit short-term rental activity on specific properties, and confirm whether local zoning allows STR use in their desired neighborhood.

Tax Obligations

Virginia requires short-term rental operators to collect and remit state sales tax and applicable local transient occupancy taxes. Platforms like Airbnb often collect some of these taxes automatically, but hosts should confirm their full tax obligations with the Virginia Department of Taxation and local tax authorities in Lexington.

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 likely to see modest performance improvements driven by continued tourism to the Shenandoah Valley and university-related travel, though the below-average market growth trend and supply/demand balance suggest gains will be incremental rather than dramatic. Revenue may tick up 1–3% if occupancy stabilizes, with peak months like May, July, August, and October continuing to carry the bulk of annual earnings. Investors should expect occupancy to remain in the 20–25% range market-wide, meaning careful cost management and seasonal pricing adjustments will be essential to maintaining positive cash flow."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Lexington, VA

What is the average Airbnb occupancy rate in Lexington?

The average Airbnb occupancy rate in Lexington, VA is currently 22%, which falls below the Virginia state average of 34%. Occupancy varies significantly by property size — 3-bedroom listings lead at 31%, while 4-bedroom properties sit at just 15%. These figures reflect market-wide averages, and individual properties with strong reviews, competitive pricing, and desirable amenities can exceed these benchmarks.

How much do Airbnb hosts make in Lexington?

Airbnb hosts in Lexington earn an average of $3,185 per month and approximately $38,225 per year based on trailing 12-month booking data. Revenue varies considerably by property size: 1-bedroom listings average $28,960 annually, while 4-bedroom properties can generate roughly $69,963 per year. Seasonal swings are significant, with peak months like October ($4,991) earning nearly four times what February ($1,255) brings in.

Is Lexington a good market for Airbnb investment?

Lexington carries a Rabbu ROI Score of 55 out of 100, placing it in the 'Attractive Opportunity' category. The market offers an average revenue-to-price ratio and stable — if modest — occupancy, making it a viable option for investors who can manage seasonal demand effectively. Larger properties tend to deliver stronger returns, and the relatively small supply of 72 active listings means competition is limited compared to bigger Virginia markets. That said, below-average growth trends suggest this is a market that rewards operational skill rather than passive appreciation.

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

The average daily rate for Airbnb listings in Lexington is $275, which is below the Virginia state average of $339. ADR scales sharply with property size: 1-bedroom units average $200, while 4-bedroom properties command $582 per night. This premium for larger homes reflects group and family travel demand in the area, making bigger properties particularly interesting from a revenue standpoint.

Are short-term rentals legal in Lexington?

Short-term rentals are permitted in Lexington, VA, though operators may need to obtain local permits or business licenses. Regulations can vary, so investors should check with the City of Lexington for the most current STR rules, including any zoning restrictions, permit requirements, or occupancy limits that may apply. Virginia state tax obligations, including transient occupancy and sales taxes, also apply to STR income.

When is peak season for Airbnb in Lexington?

Peak season in Lexington stretches from late spring through fall, with October being the strongest month at $4,991 in average revenue. May ($4,779), July ($4,458), and August ($4,439) also perform well, likely driven by summer tourism and university-related activity. The slowest months are February ($1,255) and March ($1,567), so investors should plan for meaningful off-season revenue dips.

How many Airbnbs are there in Lexington?

As of April 2026, there are 72 active Airbnb listings in Lexington, VA. The market has seen significant year-over-year listing growth of 186%, indicating rising investor interest. Supply is concentrated in 1- and 2-bedroom properties (20 and 24 listings respectively), with 3- and 4-bedroom homes making up a smaller share — a potential opportunity for investors considering larger configurations.

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 — 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 figures to what hosts have actually earned recently and naturally reflects 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 how 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
• Average daily rate, occupancy, and RevPAN trends across property sizes
• Historical monthly and annual revenue metrics 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)

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 may change; investors should verify current rules with the City of Lexington and the State of Virginia before purchasing. Individual property performance varies based on location, quality, pricing strategy, and management.