Lexington

As of May 2026, Lexington, Louisville, Frankfort have 2,110 active Airbnb and VRBO listings. This represents a 5% decrease from the previous year.

The average Airbnb or VRBO in Lexington generates $36K per year. High-performing properties earn $74K/year, while low-performing properties earn $13K/year. The substantial revenue gap indicates that market success is heavily tied to property-specific performance rather than general market conditions, as total supply remains stable.

Average home prices in Lexington vary by property size: 1-bedroom properties cost approximately $174K, 2-bedroom homes average $179K, 3-bedroom properties are around $247K, and 4+ bedroom homes average $343K. These prices reflect median home values across the Lexington, Louisville, Frankfort area.

Airbnb and VRBO can be profitable in Lexington, with an average gross yield of 14% across all properties. High-performing properties achieve yields up to 28%, which is considered top for short-term rental investment. This wide spread in yield potential highlights a market where top-tier assets capture a disproportionate share of demand.

The average occupancy rate for Airbnbs and VRBOs in Lexington is 35%. This occupancy level, combined with an average nightly rate of $249, results in a RevPAR (revenue per available room) of $73 per day.

4+ bedroom properties demonstrate the strongest performance in Lexington, with an average gross yield of 20% and annual revenue of $74K. These properties balance purchase price ($343K), operating costs, and rental demand most effectively in the Lexington market.

Short-term rental regulations vary by jurisdiction in the Lexington area. Lexington: Moderate. Conditional use permit required, owner-occupancy mandate for whole-home rentals, 730-day rental cap. Enforcement occurs but inconsistent. Louisville: Lenient. Business license and safety inspection required. No owner-occupancy rules or density limits. Light enforcement, many unlicensed operators. Frankfort: Lenient. No specific STR regulations beyond standard business licensing. Minimal oversight, largely unregulated market. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Lexington Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 5% year-over-year, while RevPAR has decreased 14%. This indicates balanced supply-demand dynamics, as the contraction in revenue per listing suggests that demand is softening at a faster rate than the reduction in available inventory.

Launch around January, 2-3 months before peak fall season (April peaks). This pre-peak timing lets you build reviews when competition is 58% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (December-January) when gaining traction is harder.

The most common amenities in Lexington listings include: Air Conditioning (99%), Kitchen (94%), Tv (87%), Washing Machine (84%), Heating (70%). Amenities that boost revenue the most include Hot Tub, Pool, Air Conditioning, with Hot Tub properties earning approximately 82% more ($70K/year vs $39K/year).

Monthly estimated revenue per listing in Lexington over the last 12 months: May: $2K, June: $2K, July: $2K, August: $2K, September: $2K, October: $3K, November: $2K, December: $2K, January: $1K, February: $1K, March: $2K, April: $4K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Lexington is $249, up 19% year-over-year. By property size: 1-bedroom properties average $138/night, 2-bedroom properties average $183/night, 3-bedroom properties average $253/night, 4+ bedroom properties average $514/night. Rates peak in April and are lowest in January.

Guests in Lexington book an average of 35 days in advance, down 18% from last year. By property size: 1-bedroom: 28 days, 2-bedroom: 33 days, 3-bedroom: 38 days, 4+ bedroom: 45 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Lexington Airbnb and VRBO market has seen the following changes: supply declined 5%, revenue per listing decreased 14%, occupancy fell 14%, average nightly rates increased 19%, and lead time decreased 18%. These metrics suggest a pivot toward shorter booking windows and higher pricing despite lower utilization rates.

In Lexington, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Tuesday. Weekends show 67% higher occupancy than weekdays.