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

Louisville Short-Term Rental Market Overview

Louisville's short-term rental market presents an attractive opportunity for investors, scoring 66 out of 100 on the ROI scale thanks to an above-average revenue-to-price ratio. With 1,039 active Airbnb listings, an average daily rate of $249, and annual revenue averaging $27,582 per listing, the market delivers solid income potential against a median home value of $406,000. Strong event-driven demand — anchored by the city's world-famous bourbon and horse racing culture — creates pronounced seasonal peaks that reward savvy pricing strategies.

Key Market Statistics

According to Rabbu market data, the Louisville 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 Louisville

Louisville's above-average revenue-to-price ratio makes it a compelling market for investors seeking strong cash-flow potential relative to acquisition costs.

Expert Market Assessment

"Louisville represents a solid entry point for STR investors looking at mid-tier markets with meaningful upside. The market's seasonality is pronounced — May revenue ($4,427) is more than four times January's ($1,083) — which means effective dynamic pricing and calendar management are critical to maximizing returns. Occupancy sits at 29%, just above the Kentucky state average, and the above-average revenue-to-price ratio suggests that well-positioned properties can generate meaningful cash flow even with moderate booking rates. Investors targeting larger properties stand to benefit most, as 5-bedroom units average nearly $70,000 in annual revenue."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Louisville

Average revenue by month in Louisville

Louisville's revenue seasonality is dramatic — May dominates at $4,427 average monthly revenue, driven by marquee events, while January bottoms out at $1,083. The roughly 4:1 spread between peak and trough months means investors need a strong dynamic pricing strategy to capture event-driven demand and minimize off-season vacancy losses.

Active Airbnb listings by property size in Louisville

One-bedroom units lead supply with 312 listings, followed closely by 2-bedrooms (271) and 3-bedrooms (207), while 5-bedroom properties are comparatively scarce at just 42 listings. The thin supply of larger homes relative to their outsized revenue potential may present an opportunity for investors willing to target that segment.

Average daily rate (ADR) by property size in Louisville

ADR scales steeply with size, jumping from $107 for 1-bedrooms to $401 for 4-bedrooms and peaking at $770 for 5-bedroom properties. Interestingly, 6+ bedroom listings average $717 — slightly below the 5-bedroom tier — suggesting diminishing rate premiums at the very top end of the size spectrum.

Average RevPAN by property size in Louisville

Revenue per available night climbs steadily from $31 for 1-bedrooms to a market-leading $218 for 5-bedroom properties, which deliver roughly seven times the RevPAN of the smallest units. The 6+ bedroom category dips to $181 RevPAN, indicating that while these properties command high rates, their lower occupancy tempers effective per-night revenue.

Average occupancy rates by property size in Louisville

Studios achieve the highest occupancy at 40%, while 1- and 2-bedroom units cluster around 30–31%. Larger properties (3-bedrooms and above) see occupancy drop to 25–29%, a trade-off that's more than offset by their significantly higher nightly rates for total revenue purposes.

Average monthly revenue by property size in Louisville

Monthly revenue ranges from $1,350 for studios to an impressive $10,442 for 6+ bedroom properties, with the sharpest jump occurring between 4-bedrooms ($4,417) and 5-bedrooms ($5,808). For investors targeting strong monthly cash flow, properties with four or more bedrooms clearly stand apart from the rest of the market.

Average annual revenue by property size in Louisville

Annual revenue potential scales dramatically with size: 1-bedroom units average $17,481, while 5-bedroom properties generate nearly $70,000 and 6+ bedroom homes top $125,000 per year. Given Louisville's average home value of $406,000, larger properties that can capture group and event bookings offer the most compelling revenue-to-investment ratio.

Most common amenities for Airbnb listings in Louisville

Parking (97%) and kitchen access (94%) are near-universal among Louisville listings, reflecting guest expectations for a car-friendly city with a strong food culture. Self check-in (84%), washer (83%), and dryer (81%) round out the essentials, while differentiators like hot tubs (7%) and pools (5%) remain rare — potentially offering a competitive edge for listings that include them.

Understanding Louisville's ROI Score: 66/100

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

Louisville's ROI Score of 66 out of 100 places it in the "Attractive Opportunity" band, primarily driven by an above-average revenue-to-price ratio that indicates strong income potential relative to acquisition costs. Occupancy stability, market growth, and supply/demand balance all grade at average levels, suggesting steady but not exceptional market dynamics. Investors should pair these data insights with thorough local regulatory research and on-the-ground property evaluation to confirm the opportunity fits their specific investment criteria.

Short-Term Rental Regulations in Louisville

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

Permit Requirements

Louisville, Kentucky may require short-term rental operators to obtain a permit or register their property with Metro Louisville government before listing. Investors should verify current permit requirements directly with local authorities, as regulations can change and enforcement varies by neighborhood.

Key Restrictions

Common STR restrictions in markets like Louisville can include occupancy limits based on property size, minimum stay requirements, noise ordinances, and parking mandates. Some neighborhoods or HOAs may impose additional caps on the number of rental permits issued or restrict non-owner-occupied rentals, so reviewing any applicable covenants before purchasing is essential.

Tax Obligations

Short-term rental hosts in Kentucky are generally subject to state and local transient room taxes, as well as applicable sales taxes on lodging. Platforms like Airbnb often collect and remit some of these taxes automatically, but operators should confirm their full tax obligations with the Louisville Metro Revenue Commission to ensure compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Louisville's STR market is expected to maintain steady demand with moderate growth. The pronounced May revenue spike (over $4,400 average) suggests event-driven bookings will continue to anchor peak-season earnings, while shoulder months like September and October should sustain mid-range performance. ADR may see modest increases in the 2–4% range as supply growth normalizes after a 115% year-over-year listing surge, and occupancy is likely to settle around 27–31% market-wide as the expanded inventory finds its equilibrium."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Louisville, KY

What is the average Airbnb occupancy rate in Louisville?

The average Airbnb occupancy rate in Louisville is currently 29%, which slightly edges out the Kentucky state average of 28%. Occupancy varies by property size, with studios leading at 40% and larger 3-bedroom and 6+ bedroom properties running closer to 25%. Seasonal demand fluctuations also play a significant role, so hosts who adjust pricing and minimum stays throughout the year tend to outperform the market average.

How much do Airbnb hosts make in Louisville?

On average, Airbnb hosts in Louisville earn approximately $2,298 per month or $27,582 per year based on trailing 12-month historical performance. Revenue scales significantly with property size — studios average about $16,208 annually while 6+ bedroom properties can generate around $125,306 per year. Peak months like May can push monthly earnings above $4,400 on average, while January typically dips below $1,100.

Is Louisville a good market for Airbnb investment?

Louisville scores 66 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" category. The market's strongest factor is its above-average revenue-to-price ratio, meaning the income potential is favorable relative to typical property acquisition costs of around $406,000. With stable event-driven tourism and a growing STR market, Louisville offers a compelling option for investors, though individual results will depend on property location, size, and management quality.

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

The average daily rate for Airbnb listings in Louisville is $249, which is below the Kentucky state average of $333. ADR varies widely by property size: studios average $90 per night, while 5-bedroom properties command up to $770 per night. This range creates opportunities at multiple investment levels, from affordable one-bedroom units to premium large-group rentals.

Are short-term rentals legal in Louisville?

Short-term rentals operate in Louisville, Kentucky, though hosts may need to comply with local permitting and registration requirements. Regulations can vary by neighborhood and property type, so prospective investors should check directly with Metro Louisville government for the most current rules on STR permits, zoning restrictions, and any applicable caps on rental activity before purchasing a property.

When is peak season for Airbnb in Louisville?

May is the clear peak season for Airbnb in Louisville, with average monthly revenue reaching $4,427 — more than double most other months. This surge aligns with major local events, most notably the Kentucky Derby. Secondary peaks occur in July ($2,812) and October ($2,710), while January ($1,083) and February ($1,374) represent the slowest months. Hosts who price aggressively during peak periods and maintain competitive rates in the off-season tend to maximize annual returns.

How many Airbnbs are there in Louisville?

There are currently 1,039 active Airbnb listings in Louisville as of April 2026. The supply has grown significantly, with a 115% year-over-year increase in active listings. One-bedroom properties make up the largest segment with 312 listings, followed by 2-bedrooms (271) and 3-bedrooms (207), while 5-bedroom and larger properties remain relatively scarce.

How is Airbnb revenue calculated in Louisville?

The annual and monthly revenue figures for Louisville 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. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and aggregates the results into a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks like May and slower months like January, because each month uses its own historical performance data. Individual results can vary based on property quality, pricing strategy, location within Louisville, 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 by market and property size
• Occupancy, average daily rate, and RevPAN trends across property configurations
• Monthly and annual revenue performance based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Data aggregated from multiple providers and Rabbu proprietary analytics for consistency

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 historical averages as of April 2026 and may not capture recent regulatory or market shifts. Individual property results will vary based on location, condition, pricing strategy, and management quality.