Airbnb Rules and Regulations in Lexington-Fayette, Kentucky

As of 2024, Lexington-Fayette has strict regulations for short-term rentals, including those listed on booking platforms like Airbnb and VRBO, among others. All operators must obtain a special fees license, pay an annual $200 fee for the first rental and $100 for each additional unit, and include their local registration number in advertisements. Occupancy is limited to 12 guests in residential areas, with private events exceeding this cap prohibited.

Conditional use permits are required for unhosted units in residential zones, while certain business zones have no occupancy restrictions. Operators have a six-month grace period to comply with licensing and permit requirements, with fines starting at $125 for initial violations and reaching $1,000 for repeated offenses. The regulations aim to strike a balance between promoting tourism and addressing concerns about housing availability and neighborhood disruption. Lexington joins other Kentucky cities like Louisville and Georgetown in regulating the burgeoning short-term rental market.

Lexington-Fayette Airbnb Market Data:

• Average Revenue – $21.8K per year
• Average Daily Rate – $146.9 per night
• Average Occupancy Rate – 52%
• Average RevPAR – $74.8
• Average Home Prices – $292,304

1. Top Place to Invest in Lexington-Fayette - Bryan Station

Bryan Station, a historic neighborhood in Lexington-Fayette, Kentucky, has emerged as a promising investment opportunity for Airbnb and short-term rental investors. With its unique blend of convenience, affordability, and proximity to local attractions, Bryan Station offers a compelling case for those seeking to capitalize on the growing demand for vacation rentals in the area and start their own Airbnb business.

Bryan Station Airbnb Market Data:

• Average Revenue – $21.9K per year
• Average Daily Rate – $126 per night
• Average Occupancy Rate – %62
• Average RevPAR – $74.5

Convenience - 6/10

Bryan Station provides a moderate level of convenience for residents and visitors alike. The neighborhood is near major thoroughfares, allowing easy access to other parts of Lexington-Fayette. However, the area lacks diverse local amenities, such as grocery stores and restaurants, which may be a drawback for some.

Tourist Attractions - 5/10

While Bryan Station is not a major tourist destination, it is located near several notable attractions in Lexington-Fayette. Visitors can explore the nearby Kentucky Horse Park, Keeneland Race Course, and the University of Kentucky campus. However, the neighborhood's distance from downtown Lexington may be a deterrent for some tourists.

Things to Do - 4/10

Bryan Station offers a limited selection of activities for residents and visitors. The neighborhood features a few parks and green spaces, providing opportunities for outdoor recreation. However, the area lacks a vibrant entertainment scene, with few options for dining, shopping, and nightlife.

Average Home Prices - 7/10

As of 2024, the median home price in Bryan Station stands at $225,000, according to Zillow data. This represents a 3.2% appreciation rate over the past year, indicating a stable and growing real estate market. The relatively affordable prices in Bryan Station make it an attractive option for investors looking to enter the Airbnb and STR market without breaking the bank.

Proximity to Work-Related Travel - 6/10

Bryan Station's location offers moderate convenience for those traveling for work-related purposes. The neighborhood is situated within a 20-minute drive of several major employers, including the University of Kentucky Hospital, the Lexington Convention Center, and Rupp Arena. However, the area's distance from the heart of downtown Lexington may be a drawback for some business travelers.

X-Factor - 5/10

Bryan Station's unique selling point lies in its historic charm and sense of community. The neighborhood features a mix of older homes and newer developments, creating an eclectic and inviting atmosphere. However, the area lacks the distinct character and amenities that would set it apart from other neighborhoods in Lexington-Fayette.

2. Top Place to Invest in Lexington-Fayette - Pine Meadow

Pine Meadow, a tranquil neighborhood nestled in the heart of Lexington-Fayette, Kentucky, has emerged as an attractive investment opportunity for Airbnb and short-term rental investors. With its prime location, affordable housing options, and proximity to local attractions, Pine Meadow offers a compelling case for those seeking to capitalize on the growing demand for vacation rentals in the area.

Pine Meadow Airbnb Market Data:

• Average Revenue – $21.1K per year
• Average Daily Rate – $130.4 per night
• Average Occupancy Rate – 54%
• Average RevPAR – $68.6

Convenience - 7/10

Pine Meadow is conveniently located just minutes from downtown Lexington and major thoroughfares. The neighborhood's well-maintained streets and sidewalks provide easy access to nearby amenities, including grocery stores, restaurants, and shopping centers. However, the area's reliance on personal vehicles for transportation may be a slight drawback for some visitors.

Tourist Attractions - 6/10

While Pine Meadow is not a major tourist destination, it is close to several notable attractions in Lexington-Fayette. Visitors can explore the nearby University of Kentucky campus, Keeneland Race Course, and the Kentucky Horse Park. The neighborhood's relative distance from the city center may be a minor inconvenience for some tourists seeking a more immersive urban experience.

Things to Do - 5/10

Pine Meadow offers a limited range of activities for residents and visitors alike. The neighborhood features a few parks and green spaces, providing outdoor recreation and relaxation opportunities. However, the area lacks diverse entertainment options, with few choices for dining, nightlife, and cultural events.

Average Home Prices - 8/10

As of 2024, the median home price in Pine Meadow stands at $275,000, according to Zillow data. This represents a modest 2.8% appreciation rate over the past year, indicating a stable and growing real estate market. The relatively affordable prices in Pine Meadow make it an attractive option for investors looking to enter the Airbnb and STR market without overextending their budgets.

Proximity to Work-Related Travel - 7/10

Pine Meadow's location offers convenient access for those traveling for work-related purposes. The neighborhood is situated within a 15-minute drive of several major employers, including the University of Kentucky Hospital, the Lexington Convention Center, and Rupp Arena. However, the area's distance from the heart of the business district may be a slight drawback for some corporate travelers.

X-Factor - 6/10

Pine Meadow's unique selling point lies in its quiet, residential charm and sense of community. The neighborhood features a mix of single-family homes and apartments, creating a welcoming atmosphere for both long-term residents and short-term visitors. However, the area lacks the distinctive character and amenities that would set it apart from other neighborhoods in Lexington-Fayette.

3. Top Place to Invest in Lexington-Fayette - Open Gates

Open Gates, a vibrant and growing neighborhood in Lexington-Fayette, Kentucky, has emerged as a promising investment opportunity for Airbnb and short-term rental investors. Boasting a prime location, diverse amenities, and a thriving community, Open Gates offers a compelling case for those seeking to capitalize on the increasing demand for vacation rentals in the area.

Open Gates Airbnb Market Data:

• Average Revenue – $21.2K per year
• Average Daily Rate – $ 172.8per night
• Average Occupancy Rate – 45%
• Average RevPAR – $76.3

Convenience - 8/10

Open Gates offers a high level of convenience for residents and visitors, with its central location and easy access to major highways. The neighborhood features a wide array of local amenities, including grocery stores, restaurants, and shopping centers, all within walking distance or a short drive. This level of convenience makes Open Gates an attractive option for both long-term residents and short-term visitors.

Tourist Attractions - 7/10

While Open Gates is not a primary tourist destination, it is close to several notable attractions in Lexington-Fayette. Visitors can easily explore the nearby Kentucky Horse Park, Keeneland Race Course, and the University of Kentucky campus. The neighborhood's convenient location allows tourists to experience the best of Lexington-Fayette without sacrificing accessibility.

Things to Do - 7/10

Open Gates offers a diverse range of activities for residents and visitors alike. The neighborhood boasts several parks and green spaces, providing ample outdoor recreation and relaxation opportunities. Additionally, Open Gates features a growing selection of local shops, cafes, and restaurants, creating a vibrant and engaging atmosphere for those seeking entertainment and cultural experiences.

Average Home Prices - 7/10

As of 2024, the median home price in Open Gates stands at $325,000, according to Zillow data. This represents a steady 3.5% appreciation rate over the past year, indicating a healthy and growing real estate market. While prices in Open Gates are slightly higher than in some surrounding areas, the neighborhood's numerous amenities and strong growth potential make it an attractive option for investors.

Proximity to Work-Related Travel - 8/10

Open Gates' central location offers excellent convenience for those traveling for work-related purposes. The neighborhood is situated within a 10-minute drive of several major employers, including the University of Kentucky Hospital, the Lexington Convention Center, and Rupp Arena. This proximity to key business and medical districts makes Open Gates ideal for corporate rentals, targeting business travelers and medical professionals.

X-Factor - 8/10

Open Gates' unique selling point lies in its strong sense of community and progressive vision for the future. The neighborhood has undergone significant revitalization efforts in recent years, attracting diverse residents and businesses. This forward-thinking approach has created a dynamic and inclusive atmosphere that sets Open Gates apart from other neighborhoods in Lexington-Fayette. As the area continues to grow and evolve, it presents a compelling opportunity for investors seeking to be part of a thriving and innovative community.

4. Top Place to Invest in Lexington-Fayette - Boone Creek

Nestled in the heart of Lexington-Fayette, Boone Creek offers a unique blend of natural beauty, convenient location, and untapped potential for Airbnb and short-term rental investors. This hidden gem boasts a serene creek, lush greenery, and a growing community that's attracting attention from savvy real estate enthusiasts.

Boone Creek Airbnb Market Data:

• Average Revenue – $21.7K per year
• Average Daily Rate – $118.6 per night
• Average Occupancy Rate – 66%
• Average RevPAR – $77.1

Convenience - 7/10

Boone Creek's location provides a balance between tranquility and accessibility. Situated just a short drive from downtown Lexington, residents and visitors can easily access the city's amenities while enjoying the peace and quiet of a more rural setting. However, the area's limited public transportation options may be a drawback for some.

Tourist Attractions - 6/10

While Boone Creek itself may not be a major tourist destination, its proximity to popular attractions such as the Kentucky Horse Park, Keeneland Race Course, and the University of Kentucky campus makes it an appealing base for visitors exploring the region. The nearby Boone Creek Outdoors offers zip-lining and hiking adventures, showcasing the area's natural beauty.

Things to Do - 5/10

Boone Creek's main draw is its outdoor recreation opportunities, with the scenic creek and surrounding greenery providing a backdrop for hiking, fishing, and picnicking. The Boone Creek Creamery offers a unique experience for foodies and cheese enthusiasts. However, the area lacks diverse entertainment options, which may limit its appeal to some visitors.

Average Home Prices - 8/10

As of 2024, the average home value in Boone Creek is $164,284, according to Zillow data. This represents a modest 3.1% appreciation rate over the past year, indicating a stable and growing real estate market. The relatively affordable prices in Boone Creek make it an attractive option for investors looking to enter the short-term rental market.

Proximity to Work-Related Travel - 6/10

Boone Creek's location offers moderate convenience for those traveling for work-related purposes. The area is situated within a 20-minute drive of several major employers, including the University of Kentucky Hospital and the Lexington Convention Center. However, the lack of direct access to major highways may slightly inconvenience some business travelers.

X-Factor - 7/10

What sets Boone Creek apart is its untapped potential and room for growth. As more investors discover this hidden gem, the area is poised for development and revitalization. The combination of natural beauty, affordable real estate, and proximity to Lexington's attractions makes Boone Creek a promising investment opportunity for those willing to take a chance on an up-and-coming neighborhood.

5. Top Place to Invest in Lexington-Fayette - Military Road

Military Road, a historic and evolving neighborhood in Lexington-Fayette, Kentucky, presents a unique investment opportunity for Airbnb and short-term rental investors. With its strategic location, rich history, and ongoing revitalization efforts, Military Road offers a compelling case for those seeking to capitalize on the growing demand for distinctive vacation experiences in the heart of the Bluegrass State.

Military Road Airbnb Market Data:

• Average Revenue – $41.1K per year
• Average Daily Rate – $448.4 per night
• Average Occupancy Rate – 50%
• Average RevPAR – $208.4

Convenience - 7/10

Military Road's location offers a balance between urban convenience and suburban tranquility. Situated just minutes from downtown Lexington, the neighborhood provides easy access to the city's amenities, including shopping, dining, and entertainment options. However, the area's reliance on personal vehicles for transportation may be a slight drawback for some visitors.

Tourist Attractions - 6/10

While Military Road itself is not a primary tourist destination, its proximity to several notable attractions in Lexington-Fayette makes it an appealing base for visitors. The nearby Keeneland Race Course, Kentucky Horse Park, and the University of Kentucky campus offer a range of experiences for tourists interested in the region's equestrian heritage and cultural offerings.

Things to Do - 5/10

Military Road offers a limited selection of activities for residents and visitors, with a focus on outdoor recreation and historical exploration. The neighborhood features several parks and green spaces, providing walking, jogging, and picnicking opportunities. The area's rich history, dating back to the Civil War era, can be explored through self-guided tours and visits to local landmarks.

Average Home Prices - 7/10

As of 2024, the median home price in Military Road stands at $225,000, according to Zillow data. This represents a steady 2.5% appreciation rate over the past year, indicating a stable and growing real estate market. The relatively affordable prices in Military Road make it an attractive option for investors looking to enter the STR market without overextending their budgets.

Proximity to Work-Related Travel - 7/10

Military Road's location offers convenient access for those traveling for work-related purposes. The neighborhood is situated within a 15-minute drive of several major employers, including the University of Kentucky Hospital, the Lexington Convention Center, and various corporate offices in the downtown area. This proximity makes Military Road a suitable choice for business travelers and professionals attending conferences or meetings in Lexington.

X-Factor - 7/10

Military Road's unique selling point lies in its rich history and ongoing revitalization efforts. The neighborhood's distinctive architecture, featuring a mix of Victorian and early 20th-century homes, creates a charming and inviting atmosphere for visitors seeking an authentic Lexington experience. As the area continues to undergo redevelopment and renewal, it presents a promising opportunity for investors to be part of a neighborhood on the rise, offering a blend of historical character and modern amenities.

6. Top Place to Invest in Lexington-Fayette - Chevy Chase

Chevy Chase, a charming and historic neighborhood in the heart of Lexington-Fayette, Kentucky, has emerged as a prime investment opportunity for Airbnb and short-term rental investors. With its unique blend of walkability, local amenities, and proximity to popular attractions, Chevy Chase offers a compelling case for those seeking to capitalize on the growing demand for authentic and immersive travel experiences.

Chevy Chase Airbnb Market Data:

• Average Revenue – $23K per year
• Average Daily Rate – $192.6 per night
• Average Occupancy Rate – 42%
• Average RevPAR – $82.1

Convenience - 9/10

One of Chevy Chase's most significant advantages is its exceptional convenience. The neighborhood boasts a highly walkable environment, with a variety of shops, restaurants, and amenities within easy reach. From local favorites like Josie's Restaurant and The Sage Rabbit to essential services like grocery stores and dental offices, Chevy Chase offers residents and visitors alike the ability to enjoy a car-free lifestyle.

Tourist Attractions - 7/10

While Chevy Chase itself may not be a primary tourist destination, its proximity to several notable attractions in Lexington-Fayette makes it an ideal base for exploring the region. Visitors can easily access the renowned Kentucky Horse Park, Keeneland Race Course, and the University of Kentucky campus, all within a short drive from the neighborhood. The nearby Ashland, The Henry Clay Estate and The Arboretum also provide historical and natural exploration opportunities.

Things to Do - 8/10

Chevy Chase offers diverse activities and experiences for residents and visitors alik. The neighborhood's thriving dining and nightlife scene, anchored by local institutions like the Chevy Chase Inn and Charlie Brown's, provides ample opportunities for socializing and entertainment. For those seeking outdoor recreation, Chevy Chase's tree-lined streets and nearby parks offer a pleasant setting for walking, jogging, or simply enjoying the scenery.

Average Home Prices - 7/10

As of 2024, the median home price in Chevy Chase stands at $374,900, according to Zillow data. This represents a modest 3.8% depreciation compared to the previous year, indicating a slight cooling of the market. However, the neighborhood's unique character, desirable location, and strong rental demand make it an attractive option for investors seeking long-term appreciation potential.

Proximity to Work-Related Travel - 8/10

Chevy Chase's central location offers convenient access to major employment centers and travel hubs in Lexington-Fayette. The neighborhood is within a short drive of the University of Kentucky Hospital, Lexington Convention Center, and Rupp Arena, making it an ideal choice for healthcare, education, and hospitality professionals. Additionally, the nearby Blue Grass Airport provides easy connections for business travelers and out-of-town visitors.

X-Factor - 9/10

What sets Chevy Chase apart is its distinct sense of community and local character. The neighborhood's historic architecture, dating back to the 1920s and 1930s, creates a charming and inviting atmosphere that appeals to both residents and visitors. The tight-knit community, anchored by long-standing local businesses and institutions, fosters a sense of belonging and authenticity that is increasingly sought after in the era of experiential travel. Chevy Chase offers a unique opportunity for Airbnb and STR investors to tap into the growing demand for genuine, neighborhood-based experiences while benefiting from the stability and growth potential of a well-established and desirable location.