Airbnb Rules and Regulations in Indianapolis, Indiana

There is a tight set of regulations for short-term rentals in Indianapolis, striking a balance between property rights and community oversight. Hosts must register their properties with the city and pay an annual renewal fee while obtaining a business permit from the state of Indiana. The principal renter must be at least 21 years old, and the owner's contact information must be readily available to neighbors and authorities.

Regular home inspections are mandated at the owner's expense to ensure compliance with local health and safety standards. New permits are not granted in residential areas, and existing permits are non-transferable upon property sale. Occupancy limits are established, large parties are prohibited, and the use of food trucks, recreational vehicles, or trailers on the premises is restricted. Hosts must adhere to local ordinances, including noise and trash regulations, and enforce a two-night minimum stay policy. These rules aim to foster a well-regulated short-term rental market that benefits both hosts and the surrounding community.

Indianapolis Airbnb Market Data:

• Average Revenue – $26.6K per year
• Average Daily Rate – $186.8 per night
• Average Occupancy Rate – 47%
• Average RevPAR – $89
• Average Home Prices – $218,591

1. Top Place to Invest in Indianapolis, Indiana - Broad Ripple Village

Nestled along the White River, Broad Ripple Village is a vibrant and eclectic neighborhood that has become one of Indianapolis's most sought-after locations for blooming Airbnb business investments. This trendy area boasts a perfect blend of urban amenities and small-town charm, making it an attractive destination for both locals and tourists alike.

Broad Ripple Village Market Data:

• Average Revenue – $25.5K per year
• Average Daily Rate – $169.1 per night
• Average Occupancy Rate – 51%
• Average RevPAR – $86.3

Convenience (Score: 8/10)

Broad Ripple Village offers a highly convenient lifestyle, with numerous shops, restaurants, and entertainment options within walking distance. The neighborhood is well-connected to the rest of the city via public transportation, including bus routes and the upcoming Red Line rapid transit system, making it easy for residents and visitors to navigate the area without relying on personal vehicles.

Tourist Attractions (Score: 7/10)

While not as well-known as some of Indianapolis' major tourist hotspots, Broad Ripple Village still has plenty to offer visitors. The Indianapolis Art Center, located in the heart of the neighborhood, hosts exhibitions, classes, and events throughout the year. The White River, which runs through the village, provides opportunities for kayaking, paddleboarding, and scenic walks along the Monon Trail.

Things to Do (Score: 9/10)

Broad Ripple Village is a hub of activity, with a diverse array of restaurants, bars, and entertainment venues catering to all tastes and preferences. From casual eateries to upscale dining, craft breweries to cocktail lounges, and live music to comedy shows, there's always something happening in this lively neighborhood. The village also hosts several annual events, such as the Broad Ripple Art Fair and the Broad Ripple Lights Up! holiday celebration.

Average Home Prices (Score: 6/10)

As of 2024, the median home price in Broad Ripple Village is $385,000, according to Zillow data. This represents a 4.2% appreciation rate over the past year. While the neighborhood's popularity has driven up prices in recent years, the relatively modest appreciation rate suggests that there may be better investment opportunities elsewhere in the city.

Proximity to Work-Related Travel (Score: 7/10)

Broad Ripple Village is conveniently located near several major employers and destinations in Indianapolis. The neighborhood is just a 15-minute drive from downtown, home to the Indiana Convention Center, Lucas Oil Stadium, and numerous corporate offices. The Indiana University Health Methodist Hospital is also within a 20-minute drive, making the village a potential choice for medical professionals seeking a short commute.

X-Factor (Score: 8/10)

Broad Ripple Village's unique blend of bohemian charm and urban sophistication sets it apart. The neighborhood's eclectic mix of independent shops, art galleries, and music venues creates a distinctive atmosphere that appeals to young professionals and creative people. This "cool factor" has helped establish Broad Ripple Village as one of the most desirable neighborhoods in Indianapolis, driving demand for long-term rentals and short-term stays.

2. Top Place to Invest in Indianapolis, Indiana - Downtown Indianapolis

Downtown Indianapolis, the city's beating heart, offers a vibrant urban experience that seamlessly blends business, culture, and entertainment. This dynamic area is a prime location for Airbnb investments, catering to diverse visitors seeking the quintessential downtown experience.

Downtown Indianapolis Airbnb Market Data:

• Average Revenue – $27.8K per year
• Average Daily Rate – $200 per night
• Average Occupancy Rate – 46%
• Average RevPAR – $92.8

Convenience (Score: 9/10)

Downtown Indianapolis is the epitome of convenience, with a well-developed infrastructure and a wealth of amenities within easy reach. From world-class dining and shopping to public transportation hubs, everything is just a stone's throw away. The area's walkability and accessibility make it an attractive choice for residents and visitors.

Tourist Attractions (Score: 9/10)

As the cultural and recreational hub of the city, downtown Indianapolis boasts an impressive array of tourist attractions. The iconic Indianapolis Motor Speedway, home of the legendary Indy 500, is a must-visit destination. The Indianapolis Zoo, the Eiteljorg Museum of American Indians and Western Art, and the Indiana State Museum offer unique experiences for visitors of all ages.

Things to Do (Score: 10/10)

Downtown Indianapolis is a veritable playground for entertainment and leisure. There's never a dull moment, from catching a game at Bankers Life Fieldhouse or Lucas Oil Stadium to exploring the vibrant nightlife scene along Massachusetts Avenue. The city's thriving arts and cultural scene, including the Indianapolis Symphony Orchestra and the Indianapolis City Ballet, adds to the rich tapestry of experiences.

Average Home Prices (Score: 7/10)

According to Zillow data for 2024, the median home price in Downtown Indianapolis is $425,000. While this figure represents a 6.3% appreciation rate over the past year, outpacing the citywide average, it also reflects the premium associated with living in the heart of the city. Investors should carefully consider the potential return on investment when evaluating properties in this high-demand area.

Proximity to Work-Related Travel (Score: 10/10)

Downtown Indianapolis is the city's epicenter of business and commerce, making it an ideal location for work-related travel. Major corporations, such as Eli Lilly and Company and Anthem, have their headquarters in the area, while the Indiana Convention Center and Lucas Oil Stadium host numerous conferences and events throughout the year. Additionally, the proximity to hospitals like IU Health Methodist and Riley Hospital for Children makes downtown a convenient choice for medical professionals.

X-Factor (Score: 9/10)

What sets downtown Indianapolis apart is its vibrant energy and cosmopolitan atmosphere. The area's rich history and architectural gems, such as the Soldiers' and Sailors' Monument and the Indiana World War Memorial Plaza, blend seamlessly with modern skyscrapers and cutting-edge developments. This unique juxtaposition of old and new creates a captivating ambiance that appeals to visitors seeking an authentic urban experience.

3. Top Place to Invest in Indianapolis, Indiana - Fountain Square

Fountain Square, a historic neighborhood southeast of downtown Indianapolis, has undergone a remarkable transformation in recent years. This once-overlooked area has blossomed into a vibrant, art-centric community that attracts young professionals, families, and tourists with its unique charm and eclectic offerings.

Fountain Square Airbnb Market Data:

• Average Revenue – $30.7K per year
• Average Daily Rate – $207.6 per night
• Average Occupancy Rate – 48%
• Average RevPAR – $100.6

Convenience (Score: 8/10)

Fountain Square offers a convenient lifestyle, with a variety of local businesses, restaurants, and amenities within walking distance. The neighborhood's proximity to downtown Indianapolis and easy access to major highways make it an attractive choice for those who value both urban living and accessibility.

Tourist Attractions (Score: 7/10)

While Fountain Square may not have the high-profile tourist attractions found in other parts of the city, it offers visitors a unique experience. The neighborhood's historic theater, the Fountain Square Theatre Building, hosts live performances and independent film screenings. The area's vibrant street art scene, with murals and installations around every corner, is a draw for art enthusiasts.

Things to Do (Score: 9/10)

Fountain Square is a haven for foodies, with a diverse array of local restaurants, cafes, and breweries. From classic diner fare to international cuisines, there's something to satisfy every palate. The neighborhood also boasts a thriving arts and music scene, with galleries, studios, and live music venues showcasing local talent. This presents a prime opportunity to partner with the local community and create unique experiences that elevate the guest experience and stand out in the market.

Average Home Prices (Score: 8/10)

According to Zillow data for 2024, the median home price in Fountain Square is $275,000. This represents a 7.8% appreciation rate over the past year, outpacing the citywide and national average. The neighborhood's growing popularity and ongoing revitalization efforts suggest that property values will continue to rise, making it an attractive option for investors.

Proximity to Work-Related Travel (Score: 7/10)

Fountain Square's location, just southeast of downtown Indianapolis, puts it within easy reach of major employers and work-related destinations. The neighborhood is a short drive from the Indiana Convention Center, Lucas Oil Stadium, and several hospitals, including Eskenazi Health and Community Hospital East.

X-Factor (Score: 9/10)

Its unique blend of history, art, and community sets Fountain Square apart. The neighborhood's distinctive character, shaped by its working-class roots and creative spirit, creates a welcoming and inspiring atmosphere. The area's ongoing revitalization, driven by passionate local entrepreneurs and artists, has transformed Fountain Square into a hidden gem that is poised for continued growth and investment.

4. Top Place to Invest in Indianapolis, Indiana - Concord

Nestled in the heart of Indianapolis, Concord is a charming and family-friendly neighborhood that offers a peaceful respite from the hustle and bustle of the city. With its tree-lined streets, well-maintained homes, and a strong sense of community, Concord has emerged as an attractive option for Airbnb investors seeking a stable and desirable location.

Conrod Airbnb Market Data:

• Average Revenue – $34.3K per year
• Average Daily Rate – $238 per night
• Average Occupancy Rate – 45%
• Average RevPAR – $109.9

Convenience (Score: 7/10)

While Concord may not boast the same level of convenience as some of the more urban neighborhoods, it still offers a comfortable and accessible living experience. The area is well-served by major thoroughfares, making navigating and reaching other parts of the city easy. Additionally, several shopping centers and essential amenities are located within a short drive.

Tourist Attractions (Score: 5/10)

Concord is primarily a residential neighborhood, so it lacks major tourist attractions within its boundaries. However, its central location puts it within a reasonable distance from some of Indianapolis' most popular destinations, including the Indianapolis Museum of Art, the Children's Museum of Indianapolis, and the Indianapolis Zoo.

Things to Do (Score: 6/10)

While Concord may not be a hub of entertainment, it offers various family-friendly activities and local events. The neighborhood boasts several parks and recreational areas, including the Concord Community Park, which features playgrounds, walking trails, and sports facilities. Additionally, the area hosts annual events such as the Concord Neighborhood Garage Sale and the Concord Fall Festival.

Average Home Prices (Score: 8/10)

According to Zillow data for 2024, the median home price in Concord is $275,000. This figure represents a modest 3.8% appreciation rate over the past year, slightly below the citywide average. However, the neighborhood's stable housing market and strong demand for family-friendly communities make it an attractive option for long-term investment.

Proximity to Work-Related Travel (Score: 7/10)

Concord's central location within Indianapolis provides relatively easy access to several major employers and work-related destinations. The neighborhood is within a 20-minute drive of downtown Indianapolis and major hospitals such as IU Health Methodist Hospital and Riley Hospital for Children. Additionally, the Indianapolis International Airport is a convenient 30-minute drive away.

X-Factor (Score: 8/10)

What sets Concord apart is its strong sense of community and family-friendly atmosphere. The neighborhood is known for its excellent public schools, well-maintained parks, and active community organizations. This tight-knit community spirit, combined with the area's safety and tranquility, makes Concord an appealing choice for families and visitors seeking a peaceful retreat from the city.

5. Top Place to Invest in Indianapolis, Indiana - Greenwood

Located just south of Indianapolis, Greenwood is a thriving suburban community that offers a perfect blend of small-town charm and big-city amenities. With its strong economy, excellent schools, and growing population, Greenwood has become an increasingly attractive destination for old and new short-term rental investors seeking a stable and profitable market.

Greenwood Airbnb Market Data:

• Average Revenue – $36.8K per year
• Average Daily Rate – $199.5 per night
• Average Occupancy Rate – 59%
• Average RevPAR – $124.1

Convenience (Score: 8/10)

Greenwood offers a high level of convenience, with a wide range of shopping, dining, and entertainment options within easy reach. The city's well-developed infrastructure, including major highways and public transportation, makes navigating and accessing other parts of the Indianapolis metropolitan area easy.

Tourist Attractions (Score: 6/10)

While Greenwood may not be a primary tourist destination, it does offer several attractions that appeal to visitors. The Greenwood Park Mall, one of the largest shopping centers in the state, draws shoppers from across the region. The city also boasts several parks and recreational areas, including the popular Freedom Springs Aquatics Park.

Things to Do (Score: 7/10)

Greenwood offers a variety of activities and events that cater to diverse interests. The city's historic downtown district features unique shops, restaurants, and a seasonal farmers market. The Greenwood Amphitheater hosts concerts and performances throughout the summer, while the Greenwood Public Library offers a range of educational and cultural programs for all ages.

Average Home Prices (Score: 9/10)

According to Zillow data for 2024, the median home price in Greenwood is $325,000. This represents a strong 6.5% appreciation rate over the past year, outpacing the national average. The city's growing population and robust economy suggest that property values will continue to rise, making Greenwood an attractive option for investors seeking long-term growth potential.

Proximity to Work-Related Travel (Score: 8/10)

Greenwood's location, just south of Indianapolis, puts it within easy reach of major employers and work-related destinations. The city is a short drive from downtown Indianapolis, home to the Indiana Convention Center and numerous corporate headquarters. Additionally, Greenwood is conveniently located near several hospitals, including Franciscan Health Indianapolis and Community Hospital South.

X-Factor (Score: 8/10)

Greenwood's strong sense of community and high quality of life sets it apart. The city's excellent schools, safe neighborhoods, and abundant recreational opportunities make it an attractive choice for families and professionals alike. Greenwood's growing economy, fueled by diverse industries and businesses, provides a stable foundation for long-term investment and growth.

6. Top Place to Invest in Indianapolis, Indiana - Zionsville

Zionsville, a picturesque suburban town located just northwest of Indianapolis, has emerged as a highly desirable location for Airbnb investors. With its quaint downtown, excellent schools, and proximity to the city, Zionsville offers a unique blend of small-town charm and urban convenience that appeals to both residents and visitors alike.

Zionsville Airbnb Market Data:

• Average Revenue – $33.5K per year
• Average Daily Rate – $247 per night
• Average Occupancy Rate – 50%
• Average RevPAR – $123.8

Convenience (Score: 7/10)

While Zionsville may not offer the same level of convenience as some of the more urban areas of Indianapolis, it still provides easy access to a variety of amenities. The town's historic downtown district features a selection of local shops, restaurants, and services, while larger shopping centers and big-box retailers are just a short drive away.

Tourist Attractions (Score: 6/10)

Zionsville's primary appeal lies in its charming small-town atmosphere rather than major tourist attractions. Visitors come to experience the town's quaint downtown, which features historic buildings, unique boutiques, and local art galleries. The nearby Eagle Creek Park, one of the largest municipal parks in the country, offers outdoor recreational opportunities such as hiking, fishing, and boating.

Things to Do (Score: 7/10)

Zionsville offers various activities and events catering to the local community. The town's seasonal farmers market, held in the heart of downtown, is a popular gathering place for residents and visitors alike. The Lincoln Park Concert Series provides free outdoor music performances during the summer, while the Zionsville Cultural District hosts art walks, exhibitions, and workshops.

Average Home Prices (Score: 8/10)

According to Zillow data for 2024, the median home price in Zionsville is $550,000. This represents a modest 4.2% appreciation rate over the past year, slightly lower than the national average. However, Zionsville's strong school system, low crime rates, and high quality of life continue to drive demand for housing in the area, making it an attractive option for long-term investment.

Proximity to Work-Related Travel (Score: 7/10)

Zionsville's location, just northwest of Indianapolis, puts it within reasonable proximity to major employers and work-related destinations. The town is a 25-minute drive from downtown Indianapolis, home to the Indiana Convention Center and numerous corporate headquarters. Additionally, Zionsville is located near several major highways, providing easy access to other parts of the Indianapolis metropolitan area.

X-Factor (Score: 9/10)

Its unique blend of small-town charm and upscale amenities sets Zionsville apart. The town's historic downtown, with its brick-paved streets and well-preserved buildings, creates a nostalgic and welcoming atmosphere that is hard to find in larger cities. At the same time, Zionsville's excellent schools, safe neighborhoods, and high median income make it an attractive choice for affluent families and professionals seeking a high quality of life.