Lexington, Kentucky Short-Term Rental Market
Lexington short-term rentals averaged $208 ADR, 60.4% occupancy and $3,333 monthly revenue in September 2026.
Quick Answer: Lexington, Kentucky is an active short-term rental market. average occupancy in the Lexington market area is 60%. average monthly revenue in the Lexington market area is $3,333. average daily rate in the Lexington market area is $208. the top operator in the Lexington market area is Experienced Stays with 38 listings. market score is 88/100 (grade A).
Market data reflects the wider Lexington market, which covers 2 areas. Regulations, taxes, and permit details below are specific to Lexington.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
This page covers the Lexington, Kentucky short-term rental market using data through September 2026. Operators need a Zoning Compliance Permit, a Business License and a Special Fees License, and unhosted rentals in residential zones face density limits, so permitting comes before any revenue projection. In September 2026 the Lexington area STR market averaged an ADR of $208, occupancy of 60.4% and revenue of $3,333 per listing for the month. Compared with September 2025, occupancy fell 3.3%, ADR fell 1.9% and revenue rose 1.0%.
The market is sizable for a city of 332,841 residents. Tracked supply is 1,854 listings, and 1,730 of them (93.3%) are entire places. There are 122 private rooms and 2 shared rooms. By bedroom count, 541 listings have one bedroom, 531 have two, 451 have three, 189 have four and 139 have five. Smaller and mid-sized homes dominate, which suits couples, event visitors and small groups. On distribution, 975 listings appear only on Airbnb, 94 only on Vrbo and 785 on both platforms.
Demand rests on horse racing, bourbon and University of Kentucky events. Keeneland runs a spring meet in April and a fall meet in October, the Kentucky Horse Park and more than 450 surrounding horse farms draw equestrian visitors, and the city has eight craft distilleries on the Bourbon Trail. Fayette County set a record $1.7 billion in travel economic impact in 2024, supporting 11,851 jobs. Business travel tied to the equine and healthcare sectors adds weekday demand.
Year to date through September 2026, the market is running at 57.6% occupancy, a $191 ADR and $3,051 average monthly revenue. That compares with 56.8% occupancy, a $189 ADR and $3,057 monthly revenue for full year 2025, so occupancy and rate are slightly ahead while revenue is about level.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 42% |
| Feb | 52% |
| Mar | 57% |
| Apr | 60% |
| May | 56% |
| Jun | 62% |
| Jul | 65% |
| Aug | 63% |
| Sep | 60% |
| Oct | 60% |
| Nov | 49% |
| Dec | 47% |
Month-by-month nightly rates and revenue figures for Lexington are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Lexington market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Lexington market as a whole, which includes Lexington, so these counts are not Lexington-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Experienced Stays | 38 | 1,902 | ★ 4.61 |
| 2 | Evolve | 32 | 1,577 | ★ 4.76 |
| 3 | Sidney & Austin | 24 | 2,065 | ★ 4.79 |
| 4 | 175 Lex | 23 | 2,217 | ★ 4.80 |
| 5 | Kentucky Life Property Management | 20 | 2,728 | ★ 4.78 |
What Kind of STR Should I Buy in Lexington?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Lexington 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 | 52.6% |
| vrbo | 5.1% |
| both | 42.3% |
Home Value Trends (Lexington)
Typical home values, median sale prices, and the 10-year price trend for Lexington 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 Lexington — 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
Lexington permits short-term rentals but runs one of the more structured frameworks in Kentucky, and enforcement is rated strict. Operators must hold three approvals: a Zoning Compliance Permit from the Division of Planning, a Business License through the Division of Revenue, and a Special Fees License. The Special Fees License costs $200 per year for the first unit and $100 per year for each additional unit, and it renews annually. The license number must appear on every online listing. Operators also need at least $1,000,000 in general liability insurance and must submit site and floor plans showing legal parking.
The city separates Hosted rentals, where the primary resident is on site during guest stays, from Unhosted rentals, where no resident is on site. Unhosted rentals in residential zones require a conditional use permit and a Board of Adjustment hearing. A December 2024 ordinance added density controls: the city can deny an unhosted permit if more than 2% of homes within 1,000 feet are already STRs, or if another STR sits within 600 feet. Exceptions exist for properties separated by significant environmental features or adjacent to nonresidential zones that allow STRs. The same update cut maximum guest occupancy from 12 to 10 people per property. It followed a July 2023 ordinance, effective January 2024, that created the Hosted and Unhosted framework.
There is no owner-occupancy or primary residence requirement. The occupancy tax is 8.5% local, and with the 1% state transient room tax and 6% state sales tax the stack on rental income is about 15.5%. Major platforms collect and remit the local tax to LFUCG. Unlicensed operators face fines of up to $500 per day. Confirm current rules with the city before buying.
Market Comparison
Lexington’s September 2026 occupancy was 60.4% and its ADR was $208, while luxury listings reached $370, so the premium end of the market sits well above the average.
The market has also held up on a multi-year basis. Occupancy has been between 54.6% and 56.8% in full years 2023 through 2025, and year to date 2026 is 57.6%. ADR has risen from $178 in 2023 to $191 in 2026 year to date.
Competition is moderate. The largest operators in the Lexington area STR market are Experienced Stays with 38 listings, Evolve with 32, Sidney & Austin with 24, 175 Lex with 23 and Kentucky Life Property Management with 20. Their ratings run from 4.6 to 4.8, which sets the quality bar guests compare against. Together those five manage 137 listings, a small share of the 1,854 tracked, so independent hosts make up most of supply.
The market score data supports the picture, with total score of 88.1, investability of 90.8 and revenue growth of 80.2, while regulation scores 65.7, reflecting the permit and density rules.
Frequently Asked Questions About Lexington, Kentucky
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