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

Somerset Short-Term Rental Market Overview

Somerset, KY sits at the crossroads of lake-country tourism and affordable property values, making it an intriguing option for short-term rental investors willing to work with pronounced seasonality. With an average home value of $309,276 and trailing-twelve-month annual revenue of $28,480, the revenue-to-price ratio holds up at an average level even as occupancy runs well below the Kentucky state average. The market is still small — just 38 active Airbnb listings — but supply grew 132% year over year, signaling rising investor interest in the area.

Key Market Statistics

According to Rabbu market data, the Somerset 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 Somerset

Somerset's combination of below-state-average property costs and lake-tourism demand gives investors a relatively low entry point with meaningful summer revenue upside.

Expert Market Assessment

"Somerset earns an ROI score of 58 out of 100 — an "Attractive Opportunity" rating that reflects decent revenue relative to property costs but is tempered by below-average occupancy stability. Seasonality is the defining characteristic here: revenue swings from a low of $541 in January to a peak of $5,643 in July, a tenfold spread that demands careful cash-flow planning during winter months. Larger properties — particularly 4-bedroom homes — carry the strongest earning profile, pulling in roughly $3,331 per month on average. For investors who can weather lean off-season months and capitalize on Lake Cumberland's summer draw, the market offers a credible path to positive returns without the steep acquisition costs found in more established vacation-rental destinations."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Somerset

Average revenue by month in Somerset

Somerset's revenue pattern is sharply seasonal, peaking at $5,643 in July and bottoming out at $541 in January — a more than 10x spread that investors must account for in cash-flow planning. The summer corridor from June through August accounts for the bulk of annual income, while a secondary shoulder emerges in September–October around $2,400–$2,500.

Active Airbnb listings by property size in Somerset

Two-bedroom listings dominate supply with 13 units (34% of the market), followed by 8 one-bedrooms, 6 three-bedrooms, and just 5 four-bedroom properties. The relatively thin supply of 4-bedroom homes is notable given their revenue leadership, suggesting potential opportunity for investors targeting that segment.

Average daily rate (ADR) by property size in Somerset

ADR jumps sharply at the high end, with 4-bedroom properties commanding $304 per night — more than double the $144 rate for 3-bedrooms and nearly triple the $113 for 1-bedrooms. The 3-bedroom ADR actually dips below the 2-bedroom rate of $170, which may reflect differences in location, finishes, or competitive pricing dynamics within that segment.

Average RevPAN by property size in Somerset

Four-bedroom properties deliver the strongest RevPAN at $48, followed by 2-bedrooms at $40, while 3-bedrooms ($27) and 1-bedrooms ($19) trail noticeably. This gap highlights that despite lower occupancy, 4-bedroom homes earn more per available night thanks to their significantly higher nightly rates.

Average occupancy rates by property size in Somerset

Two-bedroom units lead occupancy at 24%, making them the most consistently booked size in Somerset. One-bedroom (17%), 3-bedroom (19%), and 4-bedroom (16%) listings all cluster in a tighter, lower range, meaning investors across most property sizes should prepare for considerable vacancy outside of peak season.

Average monthly revenue by property size in Somerset

Four-bedroom properties top the market at $3,331 per month on average, nearly 60% more than the next-highest tier — 2-bedrooms at $2,077. One-bedroom listings bring in just $1,247 monthly, underscoring how much revenue potential scales with property size in this lake-oriented market.

Average annual revenue by property size in Somerset

At $39,977 per year, 4-bedroom homes deliver roughly 2.7 times the revenue of 1-bedroom units ($14,975) and meaningfully outperform 2-bedrooms ($24,929) and 3-bedrooms ($21,077). For investors focused on maximizing top-line income relative to a single property, the 4-bedroom configuration offers the clearest upside in Somerset.

Most common amenities for Airbnb listings in Somerset

Parking and a kitchen are universal across Somerset's listings (100%), while washer/dryer (97%) and self check-in (95%) are near-standard. Outdoor features like patios (87%), BBQ grills (82%), and backyards (74%) dominate — consistent with a lake-vacation market — yet premium differentiators like hot tubs (32%) and waterfront access (32%) appear in less than a third of listings, presenting a clear pathway to stand out.

Understanding Somerset's ROI Score: 58/100

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

Somerset's ROI Score of 58 out of 100 places it in the "Attractive Opportunity" band, reflecting an average revenue-to-price ratio and average market growth trend balanced against below-average occupancy stability. The supply/demand balance scores at an average level, though the 132% year-over-year listing growth warrants attention — rapid supply additions could pressure per-listing returns if demand doesn't keep pace. Investors should pair this score with on-the-ground regulatory research and a clear strategy for managing cash flow through the pronounced off-season.

Short-Term Rental Regulations in Somerset

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

Permit Requirements

Short-term rental operators in Somerset, Kentucky may be required to obtain a business license or STR-specific permit before listing a property. Investors should verify current registration requirements with the City of Somerset and Pulaski County government offices, as rules can change.

Key Restrictions

Common restrictions that may apply include occupancy limits tied to bedroom count, noise ordinances, parking requirements, and minimum-stay rules. HOA covenants in certain subdivisions near the lake could impose additional limitations or outright prohibit short-term rentals, so reviewing deed restrictions before purchasing is essential.

Tax Obligations

Kentucky imposes a state transient room tax and sales tax on short-term rental income, and Somerset or Pulaski County may levy additional local occupancy taxes. Major platforms like Airbnb often collect and remit state-level taxes on behalf of hosts, but operators should confirm local obligations are fully covered.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Somerset's summer-driven demand cycle should continue to anchor the bulk of revenue between June and August, with July alone averaging $5,643 per listing. We estimate ADR could drift upward 2–4% as hosts refine pricing strategies in a market that's still maturing, though occupancy may stay in the 18–22% range unless new demand drivers emerge outside the summer corridor. The rapid 132% listing growth is worth monitoring: if supply continues to outpace demand, per-listing revenue could compress. Investors who enter now and optimize for peak-season capture have a reasonable window to establish themselves before the market becomes more competitive."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Somerset, KY

What is the average Airbnb occupancy rate in Somerset?

The average occupancy rate for Airbnb listings in Somerset is currently 19%, which falls below the Kentucky state average of 28%. Occupancy varies by property size, with 2-bedroom units leading at 24% and 4-bedroom homes trailing at 16%. The lower overall figure reflects Somerset's strong seasonality — summer months drive the lion's share of bookings while winter sees significantly reduced demand.

How much do Airbnb hosts make in Somerset?

Based on trailing 12-month booking data, the average Airbnb host in Somerset earns approximately $2,373 per month or $28,480 per year. Earnings vary substantially by property size: 1-bedroom listings average around $14,975 annually, while 4-bedroom properties lead the market at roughly $39,977 per year. Peak summer months like July can produce over $5,600 in a single month, offsetting slower winter periods.

Is Somerset a good market for Airbnb investment?

Somerset carries a Rabbu ROI Score of 58 out of 100, rated as an "Attractive Opportunity." The market benefits from affordable property values averaging $309,276 and respectable summer revenue tied to Lake Cumberland tourism. However, below-average occupancy stability and sharp seasonal swings mean investors need to plan for lean winter months. Larger properties (especially 4-bedrooms) tend to deliver the best revenue, and differentiating with outdoor amenities like waterfront access or a hot tub can help capture a bigger share of demand.

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

The current average daily rate in Somerset is $215, compared to the Kentucky state average of $333. ADR scales significantly with property size: 1-bedroom units average $113, 2-bedrooms come in at $170, 3-bedrooms at $144, and 4-bedroom homes command the highest rate at $304 per night. This pricing structure makes larger, premium properties particularly compelling for hosts seeking higher nightly income.

Are short-term rentals legal in Somerset?

Short-term rentals generally operate in Somerset, KY, with 38 active Airbnb listings currently in the market. However, operators may need to secure local business licenses or permits, and HOA restrictions could apply in certain communities near Lake Cumberland. We recommend checking directly with the City of Somerset and Pulaski County for the most current regulations before purchasing a property for STR use.

When is peak season for Airbnb in Somerset?

Peak season in Somerset runs from June through August, with July being the highest-earning month at an average of $5,643 per listing. June ($3,786) and August ($4,040) also deliver strong returns. The off-season stretches from November through February, with January averaging just $541. This roughly tenfold swing between peak and trough months underscores how seasonal the Somerset market is.

How many Airbnbs are there in Somerset?

As of April 2026, there are 38 active Airbnb listings in Somerset. The supply is distributed across 8 one-bedroom units, 13 two-bedroom properties, 6 three-bedroom homes, and 5 four-bedroom listings. Notably, the market saw 132% year-over-year growth in listings, indicating rapidly increasing investor interest in the area.

How is Airbnb revenue calculated in Somerset?

The annual and monthly revenue figures for Somerset are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up into a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks (like July's $5,643 average) and slower periods (like January's $541). Individual results can vary based on property quality, pricing strategy, location within the market, 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 Somerset, KY
• Average daily rate, occupancy, and RevPAN metrics by property size
• Trailing 12-month revenue data reflecting actual historical booking performance
• Supply distribution and year-over-year listing growth trends
• 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 are subject to change; investors should verify current rules with Somerset and Pulaski County authorities before purchasing. Individual property performance may vary significantly based on location, amenities, pricing strategy, and management quality.