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 is 62%. average monthly revenue is $3,991. average daily rate is $241. the top operator is Experienced Stays with 38 listings. market score is 88/100 (grade A).
Market Score Breakdown
Five dimensions Apivex 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 | ADR | Revenue |
|---|---|---|---|
| Jan | 42% | $119 | $1,528 |
| Feb | 52% | $122 | $1,585 |
| Mar | 57% | $142 | $2,151 |
| Apr | 60% | $180 | $2,818 |
| May | 56% | $161 | $2,506 |
| Jun | 62% | $159 | $2,639 |
| Jul | 65% | $152 | $2,730 |
| Aug | 63% | $146 | $2,526 |
| Sep | 60% | $156 | $2,490 |
| Oct | 60% | $183 | $3,058 |
| Nov | 49% | $154 | $2,151 |
| Dec | 47% | $136 | $1,862 |
Top Short-Term Rental Operators in Lexington
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | 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 pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 541 |
| 2 bed | 531 |
| 3 bed | 451 |
| 4 bed | 189 |
| 5 bed | 139 |
ADR by Property Tier
| Entire Home | $252 |
| Luxury | $472 |
| Professionally Managed | $269 |
Revenue by Dwelling Type
| Apartment | $2,930 |
| Entire Place | $4,152 |
| House | $4,573 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 52.6% |
| vrbo | 5.1% |
| both | 42.3% |
Investment Analysis
Lexington offers a moderate entry price with strong event-driven demand spikes. The typical home value is $333,000 as of April 2026, with a median sale price of $319,000 and 844 homes for sale. Properties go under contract in just 12 days, and the sale-to-list ratio is 0.851, indicating sellers accept modest discounts. This quick-moving buyer’s market reflects strong underlying demand from both owner-occupants and investors.
Annualized revenue at the April 2026 run rate is approximately $47,886 per listing ($3,991 per month times 12). Against a typical home value of $333,000, that implies a gross yield of roughly 14.4% before expenses and the combined lodging tax burden of approximately 15.5%. Even accounting for the Keeneland-elevated April baseline, the 2025 full-year average of $3,062 per month ($36,744 annualized) implies a gross yield of approximately 11.0% against the typical home value, which is strong for an urban Kentucky market.
ADR tiers: all-listing average is $241, entire-home listings average $252, professionally managed properties average $269 (a 11% premium), and the luxury tier reaches $472 per night. Revenue by listing type: houses average $4,573 per month, entire-place listings average $4,152, and apartments average $2,930. The significant house premium reflects the larger Keeneland-adjacent properties commanding group bookings for race week.
Lexington’s December 2024 STR ordinance update added density constraints for unhosted permits that may affect investor strategy in residential neighborhoods.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Lexington STR bookings average a lead time of 66 days, the longest of any urban market in this batch. This extended window reflects the behavior of Keeneland race meet visitors, who secure lodging weeks in advance for a finite pool of quality properties near the track, and Kentucky basketball season visitors who book months out for high-demand games.
Average length of stay is 3.9 nights, consistent with race meet and extended-weekend event attendance. At 3.9 nights and 62.2% April occupancy, a property handles approximately five to six bookings per month during peak season. Race week properties should implement four-night minimum stays to capture race meet demand while avoiding single-night turnovers during the most profitable window.
For non-event periods (January through February, November through December), shorter minimums of one or two nights and competitive midweek pricing help maintain the relatively stable 41% to 52% off-season occupancy that bourbon tourism and business travel support.
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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