Indianapolis, Indiana Short-Term Rental Market
Indianapolis STRs averaged $200/night at 56.1% occupancy in April 2026 across 7,075 active listings.
Quick Answer: Indianapolis, Indiana is an active short-term rental market. average occupancy in the Indianapolis market area is 64%. average monthly revenue in the Indianapolis market area is $3,561. average daily rate in the Indianapolis market area is $197. the top operator in the Indianapolis market area is Casual Nomad with 156 listings. market score is 82/100 (grade B).
Market data reflects the wider Indianapolis market, which covers 9 areas. Regulations, taxes, and permit details below are specific to Indianapolis.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Indianapolis is one of the larger Midwestern short-term rental markets, with approximately 7,075 active listings as of April 2026. The average daily rate reached $200 that month, occupancy sat at 56.1%, RevPAR was $112, and average monthly revenue per listing was $3,016.
Entire-place units account for 6,017 listings, roughly 85% of the total. Private rooms represent another 1,054 listings (15%), and shared rooms are negligible at four units. By bedroom count, one-bedroom properties lead the supply at 2,586 listings, followed by two-bedrooms (1,753), three-bedrooms (1,573), four-bedrooms (768), and properties with five or more bedrooms (383).
Platform distribution shows 3,900 listings appear exclusively on Airbnb (55.1%), 2,809 are dual-listed across both Airbnb and VRBO (39.7%), and 366 are VRBO-exclusive (5.2%). Airbnb commands a clear majority of the active supply.
Year over year as of April 2026, occupancy improved 1.3 percentage points, average daily rates declined 0.8%, and revenue per listing rose 12.2%. The revenue gain despite softer rates reflects mix shifts toward higher-value entire-place inventory.
The market scores 81.5 out of 100 overall. Investability ranks highest at 88.5, seasonality at 82.0, revenue growth at 69.9, rental demand at 67.9, and regulation at 61.6. The 2025 full-year average was 55.2% occupancy, $170 ADR, and $2,639 average monthly revenue.
Indianapolis reported approximately 30.5 million visitors in 2024, a record driven by the NBA All-Star Game, a sold-out Indianapolis 500 with more than 300,000 attendees on race day, a solar eclipse event, and multiple large concerts. The world’s largest children’s museum draws 1.2 million or more visitors per year, providing year-round baseline demand.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 47% | $117 | $1,574 |
| Feb | 52% | $120 | $1,597 |
| Mar | 55% | $134 | $1,988 |
| Apr | 56% | $146 | $2,157 |
| May | 60% | $166 | $2,562 |
| Jun | 61% | $155 | $2,649 |
| Jul | 64% | $152 | $2,635 |
| Aug | 55% | $154 | $2,367 |
| Sep | 54% | $131 | $1,961 |
| Oct | 57% | $140 | $2,177 |
| Nov | 54% | $142 | $2,072 |
| Dec | 51% | $135 | $1,973 |
Top Short-Term Rental Operators in Indianapolis market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Indianapolis market as a whole, which includes Indianapolis, so these counts are not Indianapolis-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Casual Nomad | 156 | 3,959 | ★ 4.32 |
| 2 | Evolve | 115 | 3,064 | ★ 4.35 |
| 3 | Home Base | 101 | 3,883 | ★ 4.61 |
| 4 | Landing, Inc. | 97 | 178 | ★ 3.83 |
| 5 | Deane – Fake Listings | 92 | 12 | ★ 4.70 |
What Kind of STR Should I Buy in Indianapolis?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 2,586 |
| 2 bed | 1,753 |
| 3 bed | 1,573 |
| 4 bed | 768 |
| 5 bed | 383 |
ADR by Property Tier
| Entire Home | $218 |
| Luxury | $317 |
| Professionally Managed | $201 |
Revenue by Dwelling Type
| Apartment | $3,645 |
| Entire Place | $3,933 |
| House | $3,555 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 55.1% |
| vrbo | 5.2% |
| both | 39.7% |
Investment Analysis
Indianapolis offers a lower-cost entry point relative to most coastal STR markets. The typical home value is $232,133. Using the 2025 full-year average monthly revenue of $2,639, annualized revenue works out to approximately $31,668 before expenses, taxes, and management fees, implying a gross yield of approximately 13.6%. The April 2026 monthly figure of $3,016 (annualized: approximately $36,192) implies a gross yield of approximately 15.6% against the same typical home value, reflecting the above-trend April performance.
ADR tier comparisons show meaningful variation. All-listings average was $200 per night in April 2026. The entire-home tier averaged $219. The professionally-managed tier averaged $214, which is $14 above the all-listings average of $200 but $5 below the broader entire-home tier average of $219. The luxury tier averaged $323 per night, a $123 premium over the market average.
On the housing side, homes are selling at approximately 90.1% of list price, with a median of 21 days to pending and 3,263 active for-sale listings. This buyer-favorable ratio provides some negotiating room on acquisition cost relative to listed prices.
Revenue by property type in April 2026: entire-place listings averaged $3,314 per month, apartments $3,137, and houses $2,981. Entire-place listings drive the market profile, representing 85% of active supply.
Full-year average revenue per listing grew from $1,625 per month in 2017 to $2,639 in 2025, a 62% increase over eight years.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
Run a Free Address Analysis
Skip the market averages. Get revenue projections, comp analysis, and ROI for your specific property address. Free, instant, no signup required.
Analyze My Property →Home Value Trends (Indianapolis)
Booking Insights
Indianapolis STR guests book approximately 48 days in advance on average, with stays averaging 4.1 nights. A 48-day lead window provides roughly six to seven weeks of demand visibility before check-in.
For standard leisure dates, dynamic pricing adjustments in that window can capture meaningful rate movement. For high-demand events including the Indianapolis 500 in late May and major arena events at Gainbridge Fieldhouse downtown, booking lead times for specific weekends likely run well above the market average, making early pricing and minimum-stay decisions more valuable.
An average length of stay of 4.1 nights reduces turnover frequency relative to shorter-minimum-stay markets. Fewer changeovers per month lower per-booking cleaning costs and reduce operational complexity. At 4.1 nights average and full occupancy, a single unit changes guests roughly seven times per month.
Operators can use these baselines to calibrate minimum-stay policies. A two- or three-night minimum captures most of the demand profile while reducing low-value single-night bookings that create disproportionate housekeeping burden.
Short-Term Rental Regulations
Indianapolis requires all short-term rental operators to obtain a Short-Term Rental Permit through the Department of Business and Neighborhood Services (DBNS) Citizen Access Portal, effective January 1, 2025. The initial permit costs $150 per unit; annual renewal is free. Each unit requires its own permit, and permits are non-transferable when property ownership changes.
There is no published cap on rental nights per year. Owner-occupancy is not universally required for STR operation. Indiana HB 1035 protects STR use of a primary residence from overly restrictive local regulation, but Indianapolis may require a special exception, special use, or zoning variance for STRs at properties that are not the operator’s primary residence. Some residential zones have additional restrictions on new permits. Investors acquiring non-primary-residence properties should confirm zoning eligibility before purchase.
Lodging taxes total 17% combined: Indiana’s 7% state sales tax plus Marion County’s 10% innkeeper’s tax apply to stays of 29 nights or fewer, including cleaning fees. Major platforms typically collect and remit this automatically, but operators should verify their specific obligations with Marion County.
Enforcement is complaint-driven, focused on noise, trash, parking, and large gatherings. Three ordinance violations can result in permit revocation. Permit applications require proof of ownership, a detailed floor plan, and designation of a local contact.
The regulation score of 61.6 out of 100 reflects the new permit layer without a night-cap restriction, representing moderate regulatory exposure for operators.
Market Comparison
Against national STR benchmarks, Indianapolis occupancy of 56.1% in April 2026 sits just above the U.S. median of approximately 55%. Its $200 average daily rate runs roughly 9% below the national median of approximately $220, consistent with the city’s Midwestern cost structure and typical home values.
The market’s investability score of 88.5 out of 100 is the highest dimension in its scorecard, contrasting with a regulation score of 61.6. This gap indicates strong underlying demand and return fundamentals relative to the compliance overhead of the 2025 permit framework.
Market concentration is low. Casual Nomad leads with 156 listings and 3,959 reviews (4.32 average rating), representing roughly 2.2% of the 7,075-listing market. Evolve manages 115 listings with 3,064 reviews and a 4.35 rating. Home Base holds 101 listings, 3,883 reviews, and the highest rating among the leading operators at 4.61. Landing, Inc. manages 97 listings with 178 reviews and a 3.83 rating. Together the top four operators account for approximately 469 listings, or 6.6% of total active supply. Indianapolis remains a highly fragmented market with room for individual operators and smaller management companies.
Frequently Asked Questions About Indianapolis, Indiana
How many short-term rental listings are active in Indianapolis?
What is the average daily rate for Airbnbs in Indianapolis?
What is the typical occupancy rate for short-term rentals in Indianapolis?
Do Indianapolis short-term rental operators need a permit?
What lodging taxes apply to Indianapolis short-term rentals?
When is the peak season for short-term rentals in Indianapolis?
What is the gross revenue potential for an Indianapolis STR investment?
Analyze Indianapolis Rentals
Use our free calculator to estimate Airbnb revenue for any property in Indianapolis.
Free Indianapolis STR Calculator →
