Wolfe County

As of May 2026, Lexington, Red River Gorge, Natural Bridge have 2,396 active Airbnb and VRBO listings. This represents a 17% increase from the previous year.

The average Airbnb or VRBO in Wolfe County generates $33K per year. High-performing properties earn $71K/year, while low-performing properties earn $16K/year. This significant performance variance suggests that revenue in this market is heavily skewed toward specific listings, indicating that average earnings may not reflect the potential of top-tier assets.

Average home prices in Wolfe County vary by property size: 1-bedroom properties cost approximately $88K, 2-bedroom homes average $109K, 3-bedroom properties are around $167K, and 4+ bedroom homes average $232K. These prices reflect median home values across the Lexington, Red River Gorge, Natural Bridge area.

Airbnb and VRBO can be profitable in Wolfe County, with an average gross yield of 27% across all properties. High-performing properties achieve yields up to 57%, which is considered top for short-term rental investment. The wide spread between average and high yields highlights a bifurcated market where top earners capture outsized returns despite broader revenue volatility.

The average occupancy rate for Airbnbs and VRBOs in Wolfe County is 31%. This occupancy level, combined with an average nightly rate of $241, results in a RevPAR (revenue per available room) of $69 per day.

2-bedroom properties demonstrate the strongest performance in Wolfe County, with an average gross yield of 28% and annual revenue of $31K. These properties balance purchase price ($109K), operating costs, and rental demand most effectively in the Wolfe County market.

Short-term rental regulations vary by jurisdiction in the Wolfe County area. Lexington: Moderate. Business license required, zoning compliance needed, safety inspections. Moderate enforcement with complaint-based action. Red River Gorge (unincorporated): Lenient. No specific STR regulations in unincorporated areas, county business license recommended. Minimal enforcement. Natural Bridge (unincorporated): Lenient. Powell County has minimal STR rules, basic business licensing. Light enforcement, hosts operate freely. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Wolfe County Airbnb and VRBO market is currently showing oversaturated conditions. Supply has grown 17% year-over-year, while RevPAR has decreased 11%. This indicates supply growth outpacing demand, pressuring returns. The negative revenue trend alongside rising inventory suggests that new entrants face increasing difficulty in securing consistent booking volume.

Launch around April, 2-3 months before peak fall season (July peaks). This pre-peak timing lets you build reviews when competition is 20% 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 Wolfe County listings include: Air Conditioning (99%), Kitchen (92%), Tv (83%), Washing Machine (73%), Heating (69%). Amenities that boost revenue the most include Hot Tub, Air Conditioning, Parking, with Hot Tub properties earning approximately 39% more ($49K/year vs $35K/year).

Monthly estimated revenue per listing in Wolfe County over the last 12 months: May: $2K, June: $3K, July: $3K, August: $2K, September: $2K, October: $3K, November: $2K, December: $1K, January: $988, February: $971, March: $2K, April: $2K. 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 Wolfe County is $241, up 17% year-over-year. By property size: 1-bedroom properties average $179/night, 2-bedroom properties average $202/night, 3-bedroom properties average $246/night, 4+ bedroom properties average $459/night. Rates peak in October and are lowest in February.

Guests in Wolfe County book an average of 33 days in advance, down 18% from last year. By property size: 1-bedroom: 30 days, 2-bedroom: 31 days, 3-bedroom: 34 days, 4+ bedroom: 43 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Wolfe County Airbnb and VRBO market has seen the following changes: supply grew 17%, revenue per listing decreased 11%, occupancy fell 16%, average nightly rates increased 17%, and lead time decreased 18%. These metrics reflect a market attempting to offset lower occupancy with higher pricing, resulting in compressed overall revenue performance.

In Wolfe County, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Friday and are lowest on Wednesday. Weekends show 94% higher occupancy than weekdays.