Lexington, Kentucky Short-Term Rental Market
Lexington, KY STRs averaged $241/night at 62.2% occupancy in April 2026, driven by Keeneland spring race meet demand.
Quick Answer: Lexington, Kentucky is an active short-term rental market. average occupancy in the Lexington market area is 59%. average monthly revenue in the Lexington market area is $3,568. average daily rate in the Lexington market area is $218. 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
Lexington is the center of Kentucky’s Bluegrass region and the Horse Capital of the World, drawing visitors for Keeneland Race Course (spring April meet and fall October meet), the Kentucky Horse Park, 450-plus surrounding thoroughbred farms, eight in-city craft distilleries, and University of Kentucky athletics. Fayette County recorded a record $1.7 billion in travel economic impact in 2024, supporting 11,851 jobs.
The STR market recorded an average daily rate of $241 in April 2026 at 62.2% occupancy, producing a RevPAR of $150. April coincides with Keeneland’s spring race meet, producing above-average rates. Year-over-year, occupancy rose 3.3%, ADR slipped 0.5%, and revenue grew 8.5%.
Entire-place listings dominate at 1,730 of 1,854 active tracked listings. Private rooms add 122 listings. The bedroom mix skews toward smaller units: 1-bedroom leads at 541 listings, followed by 2-bedroom (531), 3-bedroom (451), 4-bedroom (189), and 5-bedroom (139). Channel distribution is strongly Airbnb-driven: 975 Airbnb-only listings, 785 on both platforms, and just 94 VRBO-only. Market scores: total 88.1, investability 90.8, rental demand 74.8, revenue growth 80.2.
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 (Fayette County) operates one of Kentucky’s more structured STR frameworks. Every operator must secure three approvals: a Zoning Compliance Permit from the Division of Planning, a Business License from the Division of Revenue, and a Special Fees License at $200 per year for the first unit plus $100 per year for each additional unit. The license number must appear on every online listing. Operators must carry at least $1,000,000 in general liability insurance and submit site and floor plans showing legal parking.
The ordinance distinguishes two categories: Hosted STRs (owner or primary resident on site during guest stays) and Unhosted STRs (no resident on site). Unhosted STRs in residential zones require a conditional use permit and a Board of Adjustment hearing.
A December 2024 ordinance tightened density rules for unhosted residential STRs: applications can be denied if more than 2% of homes within 1,000 feet are already STRs, or if another STR sits within 600 feet (with exceptions for properties separated by significant environmental features or adjacent to nonresidential zones). The same update reduced maximum guest occupancy from 12 to 10 per property.
Total lodging tax burden is approximately 15.5%: 8.5% local transient room tax, 1% state transient room tax, and 6% state sales tax. Major platforms collect and remit the local transient room tax directly to the Lexington-Fayette Urban County Government. Enforcement is rated strict: unlicensed STRs face fines up to $500 per day.
Market Comparison
Lexington’s $241 ADR is above the US STR median of approximately $220, reflecting the Keeneland premium and the horse and bourbon tourism rate uplift. At 62.2% occupancy in April 2026, the market significantly exceeds the US annual median of approximately 55%, with strong year-round baseline demand.
The total market score of 88.1 and investability score of 90.8 place Lexington among the top-performing urban STR markets in this batch. Revenue growth of 80.2 and rental demand of 74.8 reflect consistent performance above the national median.
Experienced Stays leads the Lexington operator market with 38 listings and 1,902 reviews at a 4.61 average rating. Evolve has 32 listings with 1,577 reviews at 4.76. Sidney and Austin manages 24 listings with 2,065 reviews at 4.79. 175 Lex holds 23 listings with 2,217 reviews at 4.80. Kentucky Life Property Management rounds out the top five with 20 listings, 2,728 reviews, and a 4.78 rating. The top five collectively manage 137 listings, reflecting a relatively fragmented operator market dominated by smaller regional specialists.
Frequently Asked Questions About Lexington, Kentucky
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