Paducah, Kentucky Short-Term Rental Market
Paducah, KY short-term rentals averaged $219/night at 56.9% occupancy in June 2026, with zoning-based access to whole-house rentals.
Quick Answer: Paducah, Kentucky is an active short-term rental market. average occupancy in the Kentucky Area market area is 57%. average monthly revenue in the Kentucky Area market area is $3,402. average daily rate in the Kentucky Area market area is $219. the top operator in the Kentucky Area market area is Evolve with 344 listings. market score is 89/100 (grade A).
Market data reflects the Kentucky Area regional market, which includes Paducah. Regulations, taxes, and permit details below are specific to Paducah.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Paducah is a UNESCO Creative City of Crafts & Folk Art at the confluence of the Ohio and Tennessee rivers in western Kentucky, with a population of 26,845. Tourism is a significant local economic driver: the Paducah CVB reported a record $326.7 million in visitor-related economic impact in 2025, up from $321.6 million in 2024. In June 2026, the latest month of available data, short-term rentals in the market averaged $219.40 per night at 56.9% occupancy, generating $3,402 in average monthly revenue per listing. Revenue rose 3.2% year over year while ADR eased 0.5% and occupancy held roughly flat. By property type, apartments averaged $2,372/month, entire homes $3,493/month, and houses $3,797/month. In the wider western Kentucky lakes submarket that this data draws from, entire-place listings make up roughly 95% of inventory, private rooms most of the remainder. Unlike neighboring Murray, Paducah allows ongoing whole-house short-term rentals by right in higher-density residential zones, subject to zoning and licensing rules described below.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 34% | $123 | $1,328 |
| Feb | 44% | $124 | $1,370 |
| Mar | 53% | $144 | $1,926 |
| Apr | 51% | $154 | $2,093 |
| May | 51% | $167 | $2,231 |
| Jun | 60% | $191 | $3,023 |
| Jul | 63% | $190 | $3,314 |
| Aug | 52% | $179 | $2,618 |
| Sep | 47% | $166 | $2,150 |
| Oct | 51% | $161 | $2,335 |
| Nov | 45% | $150 | $1,903 |
| Dec | 41% | $143 | $1,732 |
Top Short-Term Rental Operators in Kentucky Area market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Kentucky Area market as a whole, which includes Paducah, so these counts are not Paducah-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 344 | 14,456 | ★ 4.76 |
| 2 | Green Turtle Bay Resort | 85 | 274 | ★ 4.73 |
| 3 | Neat Suites | 41 | 1,165 | ★ 4.81 |
| 4 | Lyric | 39 | 3,002 | ★ 4.81 |
| 5 | Lake Cumberland Resort III | 30 | 902 | ★ 4.66 |
What Kind of STR Should I Buy in Paducah?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 2,293 |
| 2 bed | 2,493 |
| 3 bed | 2,234 |
| 4 bed | 859 |
| 5 bed | 566 |
ADR by Property Tier
| Entire Home | $223 |
| Luxury | $371 |
| Professionally Managed | $274 |
Revenue by Dwelling Type
| Apartment | $2,372 |
| Entire Place | $3,493 |
| House | $3,797 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 46.7% |
| vrbo | 9.6% |
| both | 43.7% |
Investment Analysis
Paducah’s market-wide ADR of $219.40 trails the professionally-managed tier average of $273.54 and the luxury tier average of $370.57 by a wide margin, suggesting real upside for investors who position and manage a property at the higher end of the market. The entire-home tier ADR ($223.43) is close to the overall average, meaning most of the pricing gap comes from management quality and finish level rather than unit type alone. Revenue per listing grew 3.2% year over year even as ADR declined slightly, indicating the market absorbed rate softness through higher booked nights. No current typical home value is published in the housing dataset for this market, so a gross rental yield cannot be calculated; investors should pull comparable local sale prices directly. On regulation, Paducah is meaningfully friendlier to the standard investor model than Murray: ongoing STRs are allowed by right in R-4 and higher-density zones, with a Conditional Use Permit required in R-2, R-3, and some other residential zones, and no owner-occupancy or primary-residence requirement citywide.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Guests book listings in this market an average of 58.2 days ahead and stay 3.7 nights per trip. That lead time supports planning promotions or rate adjustments several weeks before Paducah’s festival and event calendar (arts district events, river-history tourism, quilting-related visitation), rather than relying on last-minute bookings. A sub-4-night average stay indicates the market skews toward weekend and short getaways, meaning cleaning-turnover costs weigh more heavily on per-stay margins than in destinations with longer average stays.
Short-Term Rental Regulations
Short-term rentals are legal in Paducah and regulated through zoning, business licensing, and tax rules administered by the city’s Planning and Finance departments. Operators need a business license and, in most residential zones, a Conditional Use Permit from the Board of Adjustment (or the Historic & Architectural Review Commission in historic districts); STRs are allowed by right only in R-4 and higher-density zones, while R-2, R-3, Planned Office Park, and Neighborhood Services zones require a CUP, and R-1 low-density zones permit only limited ‘Special Event’ rentals of about 7 days per two-week window annually. There is no stated owner-occupancy or primary-residence requirement. Operators must collect and remit a combined roughly 10% local lodging tax (4% city transient room tax plus 6% McCracken County tax) on top of Kentucky’s statewide 1% transient room tax and state sales tax; rentals of 30+ days are exempt. Enforcement is rated moderate, with tax violations classified as misdemeanors carrying fines up to $500 and up to 30 days imprisonment. Investors should confirm the specific zoning of a target property and current CUP or business-license fees directly with the city.
Market Comparison
Paducah’s 56.9% occupancy in June 2026 runs above the roughly 55% figure often cited as the U.S. median for short-term rentals, while its $219.40 ADR sits below the roughly $220 national median, positioning Paducah as a moderately priced, above-average-occupancy market. Evolve leads regional professional management with 344 listings, 14,456 reviews, and a 4.76 average rating, more than four times the listing count of the second-ranked operator, Green Turtle Bay Resort (85 listings, 4.73 rating). Neat Suites, Lyric, and Lake Cumberland Resort III round out the top five with 30 to 41 listings each. That concentration suggests an investor entering the Paducah market will be competing primarily against a small number of established professional operators rather than a fragmented field of individual hosts.
Frequently Asked Questions About Paducah, Kentucky
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Is owner-occupancy required for a Paducah short-term rental?
What taxes apply to short-term rentals in Paducah?
What is the busiest month for Paducah short-term rentals?
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