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

As of Apr, 27 2026

Rabbu ROI Score

63 / 100

Marion offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.

Marion Short-Term Rental Market Overview

Marion, IN presents an intriguing entry point for short-term rental investors looking for affordable property in a small Midwest market. With average home values around $246,136 and an ADR of $119—well below Indiana's $290 state average—the revenue-to-price ratio keeps this market accessible. The 30 active Airbnb listings signal a compact competitive landscape, and the 54% year-over-year growth in listings suggests rising investor interest worth watching closely.

Key Market Statistics

According to Rabbu market data, the Marion short-term rental market shows:

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 30
Average Daily Rate (ADR) vs. $290 state avg. $119
Average Occupancy Rate vs. 32% state avg. 32%
RevPAN ADR * Occupancy Rate $37
Average Monthly Revenue Historical 12-month average $1,240
Average Annual Revenue Historical 12-month average $14,887

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Marion

Marion's low property costs relative to STR revenue potential, combined with a still-small competitive set, make it worth evaluating for investors comfortable with seasonal demand patterns.

Key investment factors

  • Average home values of $246,136 offer a low barrier to entry compared to many Indiana markets
  • Only 30 active listings create a relatively uncrowded field for new operators
  • 3-bedroom properties generate $19,360 annually with 43% occupancy, the strongest performer by size
  • Summer-through-fall revenue peaks provide a reliable earning window from July to December
  • Year-over-year listing growth of 54% signals rising market recognition among investors

Expert Market Assessment

"Marion earns an ROI score of 63 out of 100—categorized as an Attractive Opportunity—driven by a balanced but not exceptional mix of revenue potential and occupancy stability. Seasonality is pronounced: revenue dips sharply in January ($571) and February ($710) before climbing to a peak in August ($1,564), meaning cash-flow planning around these swings is essential. The small supply base of 30 listings keeps competition manageable, but the rapid 54% growth rate warrants monitoring as additional inventory could pressure both rates and occupancy. For investors who price strategically and manage costs tightly during the off-season, Marion offers a viable path to returns in an affordable Midwestern setting."

— Rabbu Market Analysis Team

Understanding Marion'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

Factor Marion Performance Weight
Revenue-to-Price Ratio Average 40%
Occupancy Stability Average 30%
Market Growth Trend Average 15%
Supply/Demand Balance Average 15%

What This Means for Investors

Marion's ROI score of 63 out of 100 places it in the Attractive Opportunity band, reflecting a market where revenue potential relative to property costs is reasonable, but occupancy and growth metrics sit at average levels. All four calculation factors—Revenue-to-Price Ratio, Occupancy Stability, Market Growth Trend, and Supply/Demand Balance—register as Average, suggesting a balanced but unexceptional profile without any single standout weakness or strength. Investors should pair this score with on-the-ground regulatory research and property-level underwriting to determine whether specific deals pencil out in Marion's evolving competitive landscape.

Short-Term Rental Regulations in Marion

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

Permit Requirements

Short-term rental operators in Marion, Indiana may be required to obtain a business license or STR-specific permit from the city. Investors should verify current registration requirements directly with the City of Marion and Grant County offices before listing a property.

Key Restrictions

Common restrictions that may apply in Marion include occupancy limits, noise ordinances, parking requirements, and minimum stay mandates. HOA rules can further limit STR activity in certain neighborhoods, so reviewing any applicable covenants is essential before purchasing.

Tax Obligations

Indiana imposes a state sales tax and county innkeeper's tax on short-term rentals, and platforms like Airbnb often collect and remit these on behalf of hosts. Operators should confirm their specific obligations with the Indiana Department of Revenue and local tax authorities to ensure full compliance.

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

Short-Term Rental Financing for Marion

Financing an Airbnb investment in Marion requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Marion Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Marion's STR market is likely to see continued supply growth given the 54% year-over-year listing increase, which could temper occupancy rates if demand doesn't keep pace. Seasonal patterns suggest revenue will remain strongest from July through December, with softer winter months pulling down annual averages. ADR may see modest gains in the 1–3% range as hosts refine pricing strategies, though occupancy is estimated to hover around 30–35% market-wide. Investors entering now should plan conservatively around seasonal dips and factor in the growing competitive landscape."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Marion, IN

What is the average Airbnb occupancy rate in Marion?
The average occupancy rate for Airbnb listings in Marion is currently 32%, which matches Indiana's statewide average. Occupancy varies meaningfully by property size—1-bedroom units average 25%, 2-bedrooms come in at 31%, and 3-bedroom properties lead at 43%. Investors targeting higher occupancy may find the best results with larger properties that appeal to families and groups.
How much do Airbnb hosts make in Marion?
Airbnb hosts in Marion earn an average of $1,240 per month, which translates to roughly $14,887 annually based on trailing 12-month data. Revenue scales notably with size: 1-bedroom units average $12,457 per year, 2-bedrooms bring in about $15,494, and 3-bedroom properties top the market at $19,360 annually. Peak months like August can push monthly earnings above $1,500, while January may dip to around $571.
Is Marion a good market for Airbnb investment?
Marion scores a 63 out of 100 on Rabbu's ROI Score, placing it in the Attractive Opportunity tier. The market benefits from low property costs (averaging $246,136), a small competitive set of just 30 active listings, and a reasonable revenue-to-price ratio. However, occupancy at 32% is moderate, and pronounced seasonal swings mean investors should budget conservatively for winter months. It's a market that rewards careful cost management and strategic pricing.
What is the average daily rate (ADR) for Airbnb in Marion?
The average daily rate in Marion is $119, which is significantly lower than Indiana's state average of $290. ADR ranges from $80 for 1-bedroom listings up to $155 for 3-bedroom properties, so larger units command a meaningful premium that can improve overall revenue when paired with their higher occupancy rates.
Are short-term rentals legal in Marion?
Short-term rentals can operate in Marion, IN, though hosts may need to secure a local business license or STR permit. Regulations around STRs can evolve, so prospective investors should check directly with the City of Marion and Grant County for the latest permitting, zoning, and tax requirements before purchasing a property.
When is peak season for Airbnb in Marion?
Peak season in Marion runs from approximately July through December, with August being the highest-earning month at an average of $1,564 in revenue. October and December also perform well, each generating around $1,500. The slowest months are January and February, when revenue can drop below $710—a spread that underscores the importance of seasonal pricing adjustments.
How many Airbnbs are there in Marion?
Marion currently has 30 active Airbnb listings. The supply is dominated by smaller properties: 12 are 1-bedroom units, 10 have 2 bedrooms, and 5 are 3-bedroom listings. Notably, the market has grown 54% year-over-year in listing count, suggesting increasing investor activity in this area.
How is Airbnb revenue calculated in Marion?
The annual and monthly revenue figures for Marion are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, drop regional outliers, and roll the remainder up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently rather than to forecasts, while naturally reflecting seasonal peaks and slower months because each month uses its own historical performance. 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 by market and property size
  • Average daily rate, occupancy, and RevPAN metrics broken down by bedroom count
  • Monthly and annual revenue trends based on trailing 12-month booking data
  • Amenity prevalence across active listings to benchmark guest expectations
  • Home value data sourced from 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 Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages as of April 2026 and may not capture recent regulatory or market changes. Individual property results will vary based on location, condition, pricing strategy, and management quality.

Next Steps

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