Madison, Indiana Short-Term Rental Market
Madison, IN STRs averaged $157/night at 54.5% occupancy in April 2026, serving Jefferson County's Ohio River heritage and outdoor tourism market.
Quick Answer: Madison, Indiana is an active short-term rental market. average occupancy in the Indiana Area market area is 62%. average monthly revenue in the Indiana Area market area is $3,810. average daily rate in the Indiana Area market area is $231. the top operator in the Indiana Area market area is Evolve with 171 listings. market score is 78/100 (grade B).
Market data reflects the Indiana Area regional market, which includes Madison. Regulations, taxes, and permit details below are specific to Madison.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Madison is a historic Ohio River city of 12,108 residents in Jefferson County, Indiana, with a short-term rental market of approximately 7,823 active listings. In April 2026, listings averaged $156.82 per night with 54.5% occupancy, generating an average of $2,181 per listing per month. RevPAR stood at $85.49.
Entire-place listings account for 7,129 of 7,823 listings (91.1%). Private rooms represent 8.8% (692 listings), and shared rooms total two properties. By bedroom count, one-bedroom units lead at 2,454 (31.4% of bedroom-tracked listings), followed by two-bedrooms at 2,186 (28.0%), three-bedrooms at 1,828 (23.4%), four-bedrooms at 787 (10.1%), and five-plus-bedroom properties at 554 (7.1%).
Airbnb is the dominant distribution channel. Of 7,823 listings, 4,182 are Airbnb-exclusive, 3,144 are listed on both Airbnb and VRBO, and 497 are VRBO-only.
Year-over-year, occupancy rose 4.95 percentage points, ADR grew 3.16%, and revenue increased 3.83%, indicating improving momentum across all three key metrics. The investability score of 96.75 is among the strongest in this batch. Seasonality (59.62) and revenue growth (62.46) are more moderate.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 39% | $129 | $1,542 |
| Feb | 48% | $129 | $1,541 |
| Mar | 51% | $135 | $1,848 |
| Apr | 51% | $143 | $1,893 |
| May | 53% | $170 | $2,256 |
| Jun | 62% | $214 | $3,402 |
| Jul | 67% | $221 | $3,994 |
| Aug | 59% | $212 | $3,451 |
| Sep | 50% | $183 | $2,482 |
| Oct | 51% | $165 | $2,400 |
| Nov | 47% | $153 | $2,017 |
| Dec | 45% | $147 | $1,887 |
Top Short-Term Rental Operators in Indiana Area market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Indiana Area market as a whole, which includes Madison, so these counts are not Madison-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 171 | 6,322 | ★ 4.70 |
| 2 | Beachwalk Vacation Rentals | 139 | 4,331 | ★ 4.72 |
| 3 | General Manager of Hills O' Brown Vacation Rentals | 71 | 2,216 | ★ 4.70 |
| 4 | Imperial Access Rental | 48 | 138 | ★ 4.68 |
| 5 | MTM Premier Property Management | 40 | 1,054 | ★ 4.78 |
What Kind of STR Should I Buy in Madison?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 2,454 |
| 2 bed | 2,186 |
| 3 bed | 1,828 |
| 4 bed | 787 |
| 5 bed | 554 |
ADR by Property Tier
| Entire Home | $243 |
| Luxury | $444 |
| Professionally Managed | $359 |
Revenue by Dwelling Type
| Apartment | $2,319 |
| Entire Place | $4,004 |
| House | $4,296 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 53.5% |
| vrbo | 6.4% |
| both | 40.2% |
Investment Analysis
Average monthly revenue in April 2026 was $2,181, projecting to approximately $26,168 in annualized gross revenue per listing. Housing price data is not published in this dataset for Madison, Indiana, so a gross yield calculation is not available; investors should consult local MLS records or appraisals for current purchase-price benchmarks.
ADR segmentation shows a meaningful tiering. All-listings ADR was $157/night in April 2026. Entire-home listings averaged $165/night, a modest 5% premium over the broad average. Professionally managed properties averaged $198/night, a 26% premium. The luxury tier commanded $314/night, approximately 100% above the all-listings rate.
Revenue by property type shows houses generating $2,376/month and entire-place listings $2,291/month, both above the all-listings average of $2,181. Apartment-type units averaged $1,712/month.
The multi-year trend shows stable revenue. Annual averages were $2,691 in 2022, $2,609 in 2024, and $2,672 in 2025. Occupancy peaked at 58.2% in 2021 and has moderated to the low-50s range since 2022, while ADR has grown from $173 in 2021 to $180 in 2025, partially offsetting the occupancy pullback. April 2026 data shows positive YoY momentum on all three metrics for the first time in several years.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Travelers in the Madison market book an average of 39.54 days (roughly five and a half weeks) in advance. This is consistent with a weekend-getaway and event-driven market where most bookings are planned about a month out, with peak summer weeks booked earlier.
Average length of stay is 4.12 nights, slightly above the typical long-weekend profile. This likely reflects a mix of Ohio River-area vacation stays and multi-day visits anchored to events like the Madison Regatta. A three to four-night minimum during peak summer weeks can reduce turnover costs without significantly increasing vacancy.
The 40-day booking window and 4-night average stay give operators roughly three weeks of advance visibility on bookings. This is enough time to execute graduated pricing strategies that hold peak rates during festival weekends and selectively discount remaining gaps in the shoulder weeks.
Short-Term Rental Regulations
Short-term rentals are permitted in Madison, Indiana with minimal regulatory friction. There is no dedicated STR permit program as of 2025. Operators are expected to register as a business with the City of Madison and comply with standard residential zoning and building, fire, and safety codes.
Indiana state law (IC 36-1-24, enacted via 2018 House Bill 1035) bars local governments from banning STRs outright. Owner-occupied rentals are a protected permitted use in any residential zone and cannot be restricted by local ordinance. Non-owner-occupied rentals are allowed subject to general zoning. Madison has not enacted a dedicated STR overlay or restrictive ordinance.
On taxes, operators owe Indiana’s 7% state sales and use tax plus the Jefferson County Innkeeper’s Tax. The Jefferson County Innkeeper’s Tax increased from 5% to 8%, effective January 1, 2025, bringing the combined lodging tax burden to approximately 15%. Platforms such as Airbnb and VRBO may collect and remit some of these taxes, but operators should verify their specific filing obligations with the Indiana Department of Revenue.
There is no owner-occupancy or primary-residence requirement and no annual night cap. Enforcement severity is minimal, making Madison one of the lower-barrier STR markets in Indiana.
Market Comparison
The U.S. STR market median occupancy runs near 55% and median ADR near $220. Madison’s April 2026 occupancy of 54.5% tracks near the national median, while its $157 ADR is well below it, reflecting the market’s small-town positioning. RevPAR of $85.49 is below the national average but consistent with a lower-cost-of-entry heritage tourism market.
The investability score of 96.75 is very high, reflecting strong revenue potential relative to likely entry costs. The seasonality score of 59.62 reflects the market’s concentrated summer peak. Regulation scores 66.56, appropriate for Indiana’s permissive STR framework.
Among professional operators, Evolve leads with 171 listings and 6,322 reviews at a 4.70 average rating. Beachwalk Vacation Rentals manages 139 listings (4.72 rating, 4,331 reviews). General Manager of Hills O’ Brown Vacation Rentals operates 71 listings (4.70 rating). Together the top three account for approximately 381 listings, or about 4.9% of the market’s 7,823 total listings, indicating a market dominated by independent operators.
Frequently Asked Questions About Madison, Indiana
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