Lebanon, Indiana Short-Term Rental Market
Lebanon, IN has no city STR ordinance; Boone County's innkeeper tax rose to 8% in 2025. June 2026 area ADR was $196.
Quick Answer: Lebanon, 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 $3,557. average daily rate in the Indianapolis market area is $196.
Market data reflects the Indianapolis regional market, which includes Lebanon. Regulations, taxes, and permit details below are specific to Lebanon.
Market Overview
Lebanon has no publicly documented city-specific short-term rental licensing ordinance. STR activity is governed primarily by Indiana state law: House Enrolled Act 1035 (effective July 1, 2018) prohibits municipalities from banning short-term rentals and makes STR of an owner’s primary residence a permitted residential use in any zoning district. Cities may still require permits, registration, insurance, or zoning exceptions, but cannot prohibit STRs outright; a review of Lebanon’s Unified Development Ordinance (adopted February 2024, updated February 2026) did not surface an STR-specific permit or registration program, so hosts appear to operate under standard residential zoning with no dedicated city permit as of mid-2026.
Lebanon is the seat of Boone County, Indiana, about 25 miles northwest of Indianapolis along I-65, population 17,555, with visitation that’s regional and day-trip oriented rather than a defined tourism destination, drawing visitors to Seashore Family Fun Park and history and food travelers to the Downtown Lebanon Historic District.
StaySTRA tracks Lebanon’s ADR, occupancy, and revenue at a shared regional level with Fishers, Sheridan, Whiteland, and Zionsville, all Indianapolis-metro communities, so the figures below describe the Indianapolis metro area STR market. In June 2026, the Indianapolis metro area STR market posted a blended ADR of $196.43 and 63.5% occupancy, with average monthly revenue of $3,557/listing. Occupancy is up 12.82 percentage points, ADR is up 12.33%, and revenue is up 18.55% year over year, a notably strong across-the-board gain.
Listing-tier ADR, property-type revenue, bedroom mix, listing-type breakdown, and top-property-manager data are not currently published for this market, so this profile omits those breakdowns.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 47% |
| Feb | 52% |
| Mar | 55% |
| Apr | 56% |
| May | 60% |
| Jun | 61% |
| Jul | 64% |
| Aug | 55% |
| Sep | 54% |
| Oct | 57% |
| Nov | 54% |
| Dec | 51% |
Month-by-month nightly rates and revenue figures for Lebanon are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Lebanon — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Lebanon, Indiana has no publicly documented city-specific short-term rental licensing ordinance. STR activity is governed primarily by Indiana state law: House Enrolled Act 1035, effective July 1, 2018, prohibits municipalities from banning short-term rentals and makes STR of an owner’s primary residence a permitted residential use in any zoning district. Cities may still require permits, registration, insurance, or zoning exceptions, but cannot prohibit STRs outright.
A review of Lebanon’s Unified Development Ordinance (adopted February 2024, updated February 2026) did not surface an STR-specific permit or registration program, so hosts appear to operate under standard residential zoning with no dedicated city permit as of mid-2026; investors should confirm directly with the Lebanon Planning and Zoning Department.
On taxes, every rental under 30 days owes Indiana’s 7% state sales and use tax plus the Boone County innkeeper’s tax, which rose from 5% to 8% effective July 1, 2025 (Indiana SB 252, 2025) to fund county convention and tourism efforts, roughly 15% total lodging tax. Enforcement is rated minimal given the absence of a formal registration regime. Investors should treat the tax obligations as firm and the permitting picture as ‘verify locally,’ since the city could adopt an ordinance in the future.
Market Comparison
The Indianapolis metro area STR market’s June 2026 occupancy of 63.5% runs above the commonly cited US STR median of roughly 55%, while its $196.43 blended ADR sits below the roughly $220 US median, a higher-occupancy, value-rate profile. Lebanon’s own market, per third-party estimates cited in the area profile, runs closer to 61% occupancy and roughly $140 ADR, both below the shared regional figures.
Top-property-manager data is not currently published uniquely for Lebanon in this snapshot (tracked at a shared regional level with Fishers, Sheridan, Whiteland, and Zionsville instead), so this profile omits a named-operator comparison.
Frequently Asked Questions About Lebanon, Indiana
Does Lebanon, IN require a short-term rental permit?
What is the average daily rate for short-term rentals in Lebanon, IN?
What taxes apply to short-term rentals in Lebanon?
How big is Lebanon's own short-term rental market?
Does Lebanon require owner-occupancy for short-term rentals?
When is the busiest season for short-term rentals in the Indianapolis metro area?
Analyze Lebanon Rentals
Use our free calculator to estimate Airbnb revenue for any property in Lebanon.
Free Lebanon STR Calculator →
