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Airbnb City Guide: The Best Places To Invest in Louisville, Kentucky
Written by:
Jeremy Werden
April 5, 2024
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Airbnb Rules and Regulations in Louisville, Kentucky
Louisville has several key regulations for short-term rentals listed on various booking platforms. Hosts must obtain a permit for each property and pay an annual fee of $250, with the registration number displayed on all listings. Although some exceptions apply, the city limits occupancy to 12 adults per rental and requires a 600-foot buffer between non-owner-occupied rentals in residential areas.
Owner-occupied rentals face fewer restrictions but must prove residency, such as living in the property for at least 6 months before registering. Hosts are responsible for remitting transient room taxes and may face fines or permit revocation for violations. The updated rules aim to balance the benefits of short-term rentals with preserving neighborhood character and housing affordability.
Louisville Airbnb Market Data:
- Average Revenue – $45.8K per year
- Average Daily Rate – $294.4 per night
- Average Occupancy Rate – 50%
- Average RevPAR – $147.9
- Average Home Prices – $233,464
1. Top Place to Invest in Louisville, Kentucky - Schnitzelburg
Nestled in the heart of Louisville, Schnitzelburg is a charming neighborhood that has been attracting Airbnb investors with its unique blend of history, culture, and modern amenities. This up-and-coming area offers a promising opportunity for those looking to capitalize on the growing market in the city and start their own short-term rental.
Schnitzelburg Airbnb Market Data
- Average Revenue – $41.5K per year
- Average Daily Rate – $245.8 per night
- Average Occupancy Rate – 56%
- Average RevPAR – $138.8
Convenience - 7/10
Schnitzelburg boasts a convenient location, with easy access to major highways and public transportation. The neighborhood is well-connected to the rest of the city, making it an ideal spot for travelers and locals alike. However, parking can be a bit challenging at times, especially during peak tourist seasons.
Tourist Attractions - 6/10
While Schnitzelburg may not have the most famous tourist attractions in Louisville, it does offer a few notable points of interest. The Schnitzelburg Walk, an annual community event, showcases the area's German heritage and draws visitors from around the region. The neighborhood also features several unique shops and restaurants that add to its charm.
Things to Do - 7/10
Schnitzelburg offers a variety of activities for residents and visitors. The neighborhood is home to several parks, including Emerson Park and Shelby Park, which provide ample green space for outdoor recreation. Additionally, the area hosts regular community events, such as the Schnitzelburg Farmers Market and the Schnitzelburg Art Walk, which highlight local talent and products.
Average Home Prices - 8/10
According to Zillow data for 2024, the median home value in Schnitzelburg is $285,000, which represents a 4.2% appreciation rate over the past year. This relatively affordable price point, combined with the potential for steady appreciation, makes Schnitzelburg an attractive option for Airbnb investors looking to maximize their return on investment.
Proximity to Work-Related Travel - 7/10
Schnitzelburg is conveniently located near several major employers and work-related destinations in Louisville. The neighborhood is just a short drive from the University of Louisville Hospital, the Kentucky International Convention Center, and the KFC Yum! Center, making it an ideal location for business travelers and event attendees.
X-Factor - 8/10
What sets Schnitzelburg apart is its strong sense of community and unique cultural heritage. The neighborhood's German roots are evident in its architecture, festivals, and local businesses, creating a one-of-a-kind atmosphere that appeals to both residents and visitors. This distinctive character, combined with its growing popularity among young professionals and families, makes Schnitzelburg a desirable location for Airbnb investors looking to tap into a niche market.
2. Top Place to Invest in Louisville, Kentucky - Central Business District
The Central Business District, the pulsating heart of Louisville, is an enticing prospect for Airbnb investors seeking to capitalize on the city's thriving tourism and business sectors. Follow in the steps of the dynamic neighborhood and create a property that blends modern amenities with a historical charm to create an unparalleled experience like no other.
Central Business District Airbnb Market Data
- Average Revenue – $33K per year
- Average Daily Rate – $219.5 per night
- Average Occupancy Rate – 49%
- Average RevPAR – $106.3
Convenience - 9/10
Situated in the core of Louisville, the Central Business District boasts unrivaled convenience. With an extensive public transportation network, including buses and the LouLift circulator, navigating the area is a breeze. The neighborhood's walkability and proximity to major highways make it an ideal base for both leisure and business travelers.
Tourist Attractions - 10/10
The Central Business District is home to some of Louisville's most renowned tourist attractions. Visitors can explore the Muhammad Ali Center, the Louisville Slugger Museum & Factory, and the Frazier History Museum, all within walking distance. The neighborhood's vibrant arts scene, showcased by the Kentucky Center for the Performing Arts and numerous galleries, adds to its allure.
Things to Do - 9/10
From indulging in the district's eclectic dining scene to enjoying its lively nightlife, there's no shortage of things to do in the Central Business District. Fourth Street Live!, an entertainment complex featuring restaurants, bars, and live music venues, is a popular destination for both locals and tourists. The neighborhood also hosts various festivals and events throughout the year, drawing crowds from far and wide.
Average Home Prices - 7/10
According to Zillow data for 2024, the median home value in the Central Business District is $395,000, reflecting a modest 2.8% appreciation rate over the past year. While prices are higher compared to other areas in Louisville, the neighborhood's prime location and strong rental demand justify the investment for savvy Airbnb investors.
Proximity to Work-Related Travel - 10/10
The Central Business District is the epicenter of Louisville's business scene, making it an unbeatable location for work-related travel. The Kentucky International Convention Center, a state-of-the-art facility hosting major conferences and trade shows, is just steps away. The neighborhood also boasts easy access to the University of Louisville Hospital and the KFC Yum! Center, a popular venue for concerts and sporting events.
X-Factor - 9/10
Its perfect fusion of history and modernity sets the Central Business District apart. The neighborhood's stunning architecture, ranging from 19th-century landmarks to sleek high-rises, creates a captivating backdrop for visitors. Its central location and abundance of amenities and attractions make it a top choice for Airbnb guests seeking an immersive Louisville experience.
3. Top Place to Invest in Louisville, Kentucky - Jacobs
Jacobs, a hidden gem in the heart of Louisville, is quickly becoming a hotspot for Airbnb investors. This up-and-coming neighborhood offers a unique blend of affordability, charm, and potential, making it an attractive option for those looking to enter the short-term rental market.
Jacobs Airbnb Market Data
- Average Revenue – $32.7K per year
- Average Daily Rate – $217.7 per night
- Average Occupancy Rate – 48%
- Average RevPAR – $104.2
Convenience - 6/10
While Jacobs may not have the most central location in Louisville, it still offers a fair level of convenience. The neighborhood is served by public transportation, with several bus routes connecting it to the city center and other key areas. However, the frequency of service can be somewhat limited, especially during off-peak hours.
Tourist Attractions - 4/10
Jacobs is primarily a residential neighborhood and, as such, does not boast a wide array of tourist attractions. Visitors may enjoy exploring the area's quaint streets and admiring its mix of architectural styles, but few major points of interest would draw tourists specifically to this location.
Things to Do - 5/10
Although Jacobs may not be known for its bustling entertainment scene, the neighborhood does offer a few notable activities. The Jacobs Park provides a pleasant green space for outdoor recreation, while a handful of local restaurants and shops add to the area's charm. However, those seeking a more lively atmosphere may need to venture into neighboring districts.
Average Home Prices - 9/10
One of the most appealing aspects of Jacobs for Airbnb investors is its affordable home prices. According to Zillow data for 2024, the median home value in Jacobs is $185,000, which represents a 5.7% appreciation rate over the past year. This combination of low entry costs and steady appreciation makes Jacobs an attractive option for investors looking to maximize their return on investment.
Proximity to Work-Related Travel - 5/10
Jacobs is not particularly close to Louisville's major work-related travel destinations, such as the Kentucky International Convention Center or the University of Louisville Hospital. However, the neighborhood's proximity to I-64 does provide relatively easy access to these locations, albeit with a slightly longer commute compared to more central areas.
X-Factor - 7/10
What sets Jacobs apart is its untapped potential and growing popularity among young professionals and families. The neighborhood's affordable housing, combined with its quiet, residential charm, has begun to attract a new wave of residents seeking a more laid-back lifestyle. As this trend continues, Jacobs is poised to become an increasingly desirable location for Airbnb guests looking for an authentic, off-the-beaten-path experience in Louisville.
4. Top Place to Invest in Louisville, Kentucky - Cherokee Triangle
Nestled in the heart of Louisville's Highlands neighborhood, Cherokee Triangle is a picturesque and historic area that has captivated residents and visitors for over a century. With its stunning architecture, tree-lined streets, and vibrant community, this neighborhood is quickly becoming a top choice for Airbnb investors seeking a profitable and charming location.
Cherokee Triangle Airbnb Market Data
- Average Revenue – $55.2K per year
- Average Daily Rate – $328.3 per night
- Average Occupancy Rate – 52%
- Average RevPAR – $175.7
Convenience - 8/10
Cherokee Triangle boasts an incredibly convenient location, with easy access to downtown Louisville and major highways. The neighborhood is well-served by public transportation, including several bus routes, making it easy for visitors to explore the city. Additionally, the area's walkability is a major draw, with numerous shops, restaurants, and amenities within a short stroll.
Tourist Attractions - 7/10
While Cherokee Triangle may not have the most famous tourist attractions in Louisville, it offers visitors a unique and charming experience. The neighborhood is home to the historic Cave Hill Cemetery, a beautiful and serene spot for a leisurely walk. Nearby, the iconic Cherokee Park, designed by Frederick Law Olmsted, provides ample outdoor recreation and sightseeing opportunities.
Things to Do - 8/10
Cherokee Triangle offers a wide range of activities for both residents and visitors. The neighborhood is known for its eclectic mix of local boutiques, art galleries, and trendy restaurants, providing endless options for shopping and dining. Annual local events like the Cherokee Triangle Art Fair and the Highlands Beer Festival draw crowds from across the city and beyond.
Average Home Prices - 6/10
According to Zillow data for 2024, the median home value in the Cherokee Triangle is $550,000, reflecting a modest 3.2% appreciation rate over the past year. While these prices may be higher than some other areas in Louisville, the neighborhood's desirability and strong rental demand make it a worthwhile investment for Airbnb investors with a larger budget.
Proximity to Work-Related Travel - 7/10
Cherokee Triangle is conveniently located near several major employers and work-related destinations in Louisville. The neighborhood is just a short drive from the University of Louisville and its affiliated hospitals, making it an ideal location for visiting medical professionals. The Kentucky International Convention Center and the KFC Yum! Center are also easily accessible from the Cherokee Triangle.
X-Factor - 9/10
What sets Cherokee Triangle apart is its unparalleled charm and strong sense of community. The neighborhood's stunning Victorian and Craftsman-style homes, combined with its lush greenery and friendly atmosphere, create a truly enchanting experience for visitors. This unique character and its prime location and abundant amenities make Cherokee Triangle a top choice for Airbnb guests seeking an authentic and memorable stay in Louisville.
5. Top Place to Invest in Louisville, Kentucky - Clifton Heights
Clifton Heights, a vibrant and eclectic neighborhood in Louisville, has been steadily gaining attention from Airbnb investors. With its unique blend of urban convenience and small-town charm, this up-and-coming area offers a promising opportunity for those looking to tap into the city's growing short-term rental market.
Clifton Heights Airbnb Market Data
- Average Revenue – $44.2K per year
- Average Daily Rate – $276 per night
- Average Occupancy Rate – 52%
- Average RevPAR – $136.7
Convenience - 8/10
One of Clifton Heights' greatest assets is its convenient location. The neighborhood is situated just a few miles from downtown Louisville and offers easy access to the city's major attractions and business districts. Public transportation is readily available, with several bus routes serving the area, and the neighborhood's walkability is a major plus for visitors.
Tourist Attractions - 6/10
While Clifton Heights may not be home to Louisville's most iconic tourist attractions, it does offer a few notable points of interest. The American Printing House for the Blind, a historic institution that has been serving the visually impaired community since 1858, is located in the neighborhood. Visitors can also explore the quirky and colorful Frankfort Avenue, known for its unique shops and restaurants.
Things to Do - 7/10
Clifton Heights offers a variety of activities for residents and visitors alike. The neighborhood is home to several parks, including the scenic Bingham Park, which provides ample green space for outdoor recreation. The area also boasts a thriving arts scene, with numerous galleries and studios showcasing local talent. Foodies will appreciate the diverse selection of restaurants, cafes, and bars along Frankfort Avenue.
Average Home Prices - 8/10
According to Zillow data for 2024, the median home value in Clifton Heights is $325,000, representing a healthy 4.5% appreciation rate over the past year. This relatively affordable price point and the potential for strong rental yields make Clifton Heights an attractive option for Airbnb investors looking to maximize their return on investment.
Proximity to Work-Related Travel - 7/10
Clifton Heights is well-positioned for work-related travel, with several major employers and business districts located nearby. The neighborhood is just a short drive from the University of Louisville and its affiliated hospitals, making it a convenient choice for visiting medical professionals. The Kentucky International Convention Center and the KFC Yum! Center are also easily accessible from Clifton Heights.
X-Factor - 8/10
What sets Clifton Heights apart is its unique and eclectic character. The neighborhood's mix of historic homes, colorful murals, and independent businesses creates a vibrant and welcoming atmosphere that appeals to both residents and visitors. This distinctive charm, combined with its growing popularity among young professionals and creatives, makes Clifton Heights desirable for Airbnb guests seeking an authentic and memorable Louisville experience.
⚡️
Reveal your property’s rental profitability
Buy this property and list it on Airbnb.