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 58%. average monthly revenue in the Indiana Area market area is $3,808. average daily rate in the Indiana Area market area is $233. 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 |
|---|---|
| Jan | 39% |
| Feb | 48% |
| Mar | 51% |
| Apr | 51% |
| May | 53% |
| Jun | 62% |
| Jul | 68% |
| Aug | 59% |
| Sep | 50% |
| Oct | 51% |
| Nov | 47% |
| Dec | 45% |
Month-by-month nightly rates and revenue figures for Madison are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
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 nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Madison are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 53.5% |
| vrbo | 6.4% |
| both | 40.2% |
Home Value Trends (Madison)
Typical home values, median sale prices, and the 10-year price trend for Madison 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 Madison — 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
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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