Louisville, Kentucky Short-Term Rental Market
Louisville, KY STRs averaged $251/night at 54.7% occupancy in April 2026; May Kentucky Derby ADR spikes to $268.
Quick Answer: Louisville, Kentucky is an active short-term rental market. average occupancy is 61%. average monthly revenue is $3,774. average daily rate is $221. the top operator is Venturebnb with 271 listings. market score is 77/100 (grade B).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Louisville, Kentucky (Jefferson County, population 641,962) is one of the largest STR markets in this dataset, welcoming approximately 19 million visitors annually and generating a record $4.4 billion in tourism economic impact in 2024. Primary demand drivers are Churchill Downs and the Kentucky Derby, the urban bourbon distillery scene (gateway to the Kentucky Bourbon Trail), and signature attractions including the Muhammad Ali Center and Louisville Slugger Museum. More than 90% of surveyed Louisville visitors are repeat visitors, indicating a strong repeat-travel base.
In April 2026, the market recorded an ADR of $250.87 and occupancy of 54.7%, producing RevPAR of $137.24. Average monthly revenue per active listing was $3,462. Year-over-year, occupancy improved 2.4%, ADR declined 8.4%, and revenue held essentially flat (+0.9%).
The listing mix is predominantly entire-home properties (4,562 units), with private rooms at 440 and no shared-room listings in the latest snapshot. The bedroom distribution is led by 1-bedroom (1,672 units), 2-bedroom (1,293), and 3-bedroom (1,058) listings, with 4- and 5-bedroom properties adding 553 and 421 units. Airbnb is dominant (2,621 units), with 2,126 cross-listed on both platforms and 255 on VRBO alone.
Market scores: investability 84.64, seasonality 85.28, total 76.78, rental demand 69.94, regulation 62.80, revenue growth 60.08. Louisville’s investability score of 84.64 is among the stronger scores in this dataset, reflecting the large visitor base and affordable housing entry costs.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 45% | $145 | $1,944 |
| Feb | 54% | $156 | $2,014 |
| Mar | 58% | $177 | $2,772 |
| Apr | 56% | $207 | $2,993 |
| May | 52% | $267 | $3,651 |
| Jun | 61% | $196 | $3,176 |
| Jul | 65% | $191 | $3,410 |
| Aug | 55% | $175 | $2,781 |
| Sep | 60% | $206 | $3,093 |
| Oct | 56% | $191 | $3,131 |
| Nov | 51% | $169 | $2,452 |
| Dec | 50% | $159 | $2,256 |
Top Short-Term Rental Operators in Louisville
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Venturebnb | 271 | 9,775 | ★ 4.77 |
| 2 | STR MGMT | 131 | 3,142 | ★ 4.70 |
| 3 | CozySuites | 113 | 1,001 | ★ 3.51 |
| 4 | BNB Louisville | 81 | 3,865 | ★ 4.89 |
| 5 | Evolve | 67 | 1,769 | ★ 4.63 |
What Kind of STR Should I Buy in Louisville?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,672 |
| 2 bed | 1,293 |
| 3 bed | 1,058 |
| 4 bed | 553 |
| 5 bed | 421 |
ADR by Property Tier
| Entire Home | $232 |
| Luxury | $498 |
| Professionally Managed | $270 |
Revenue by Dwelling Type
| Apartment | $3,008 |
| Entire Place | $3,934 |
| House | $4,296 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 52.4% |
| vrbo | 5.1% |
| both | 42.5% |
Investment Analysis
Louisville offers one of the more compelling yield profiles in this dataset. At an April 2026 average monthly revenue of $3,462 per active listing, annualized gross revenue is approximately $41,548. Against a Zillow typical home value of $264,957, that implies a gross yield of approximately 15.7%. The median sale price of $251,000 and median list price of $267,600 (April 2026) confirm the accessible housing market that underlies this yield figure.
Using the 2025 annual average monthly revenue of $3,309, the annualized gross is approximately $39,708, implying a gross yield of approximately 15.0% against the same typical home value. Both yield calculations are gross (before expenses, management fees, and taxes).
The tier split shows meaningful segmentation: all listings average $251 per night, entire-home listings average $264, professionally managed properties average $316 (a 26% premium), and luxury-tier listings command $547 per night. The $547 luxury ADR reflects the premium week-of-Derby and bourbon-trail premium properties.
Year-over-year, ADR declined 8.4% through April 2026, continuing a normalization trend from the 2022-2023 peak. Revenue is nearly flat (+0.9%) as occupancy gains (+2.4%) partially offset the rate decline.
Regulatory structure: non-owner-occupied investment STRs require a Conditional Use Permit (CUP) obtained through a public board hearing, plus annual registration at $250. The September 2023 amendments raised the registration fee and added a 6-month prior-residency requirement for owner-occupied registrations. Investors purchasing properties solely for STR use must budget for the CUP process and confirm eligibility of the specific zoning district.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
In April 2026, the average booking lead time for Louisville was 64.5 days, and the average length of stay was 3.52 nights.
A 64-day lead time is among the longest in this batch, reflecting Louisville’s large event-driven tourism base. The Kentucky Derby is the clearest example: the race occurs the first Saturday of May, meaning peak-week bookings originate in February and March. Operators who hold firm on Derby-week pricing through spring rather than discounting early can capture the full rate premium from planners who book months out.
Beyond the Derby, Louisville’s convention complex and repeat-visitor base (over 90% are return visitors) support consistent advance bookings throughout the year. Operators should publish full annual calendars with distinct pricing tiers for Derby week, summer peak (July), fall shoulder (September-October), and off-season.
An average stay length of 3.52 nights reflects a mix of weekend leisure visits, 2-3 night Derby and event stays, and short business trips. Setting a 3-night minimum for major events and weekend stays manages turnover cost while fitting the typical trip pattern.
Short-Term Rental Regulations
Louisville Metro requires all short-term rentals (stays under 30 consecutive days) to register annually with the Office of Planning at a $250 fee and register separately with the Louisville Metro Revenue Commission for tax purposes.
The key regulatory distinction is owner-occupancy:
– Owner-occupied STRs where the property is the host’s primary residence in residentially or office-residentially zoned districts can typically operate with the annual administrative registration only. Hosts must document residency and must have lived at the property for at least 6 months before applying (a requirement added in September 2023).
– Non-owner-occupied STRs (investor-owned properties not serving as the host’s primary residence), condo units even if owner-occupied, and properties in certain residential zoning districts (R-R, R-E, R-1 through R-8A, U-N, or TNZD) require a Conditional Use Permit (CUP) granted by a public board following a public hearing.
– Properties in the Old Louisville and Limerick neighborhoods always require both a CUP and annual registration, even if owner-occupied.
Advertising an STR on any platform without a valid registration carries fines of $125 per day.
On taxes, operators must collect and remit the 8.5% Louisville Metro Transient Room Tax plus applicable Kentucky state taxes and occupational license taxes, for a combined rate of approximately 14.5-15.5%. No annual night cap was identified.
September 2023 amendments tightened the framework: the owner standard shifted to require documented owner (not just host) occupancy, the 6-month prior-residency requirement was added, and the registration fee increased from the prior $100 level to $250. Enforcement is classified as moderate.
Market Comparison
Louisville’s 54.7% occupancy in April 2026 is close to the US STR median of approximately 55%, with peak months (July: 64.5%) substantially above the median. The ADR of $251 modestly exceeds the national median of approximately $220, and the May Kentucky Derby premium ($268 ADR) places it well above the norm for that month.
Relative to other major Kentucky and Southern metro STR markets, Louisville’s affordable housing market (typical home value $264,957, median sale $251,000) combined with $41,548 in gross annual revenue creates a gross yield profile of approximately 15.7% that few comparable markets can match. This is a primary driver of the investability score of 84.64.
The 2025 annual average ADR of $215 (versus $223 in 2024) reflects market normalization from post-pandemic pricing peaks. Occupancy has held steady in the 54-55% range across 2024-2025.
Among active property managers, Venturebnb leads with 271 listings and 9,775 reviews at a 4.77 rating. STR MGMT operates 131 listings (4.70 rating). BNB Louisville manages 81 listings with 3,865 reviews and a notably high 4.89 rating. CozySuites operates 113 listings (3.51 rating). Evolve manages 67 listings (4.63 rating). The locally-focused operators (Venturebnb, BNB Louisville) show strong ratings relative to the market average.
Frequently Asked Questions About Louisville, Kentucky
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