Madison Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Indiana, United States
Is Airbnb profitable in Madison in 2025? Explore comprehensive Airbnb analytics for Madison, Indiana, United States to uncover income potential. This 2025 STR market report for Madison, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 115 active listings.
Whether you're considering an Airbnb investment in Madison, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Madison Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.
Key Madison Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Madison (2025)
Understanding the monthly revenue variations for Airbnb listings in Madison is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Madison is typically June, while February often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Madison across different performance tiers:
- Best-in-class properties (Top 10%) achieve $4,841+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $3,564 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $2,338 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $1,445, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Madison
Madison Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Madison STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Julysees the highest demand (peak season occupancy), while February experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Madison:
- Best-in-class properties (Top 10%) achieve 79%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 65% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 49%.
- Entry-level properties (Bottom 25%) average 31% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Madison
Average Daily Rate (ADR) Airbnb Trends in Madison (2025)
Effective short term rental pricing strategy in Madison involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Madison typically peaks in March and dips lowest during April. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:
- Best-in-class properties (Top 10%) command rates of $231+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $180 or more.
- Typical properties (Median) charge around $147 per night.
- Entry-level properties (Bottom 25%) earn around $111 per night.
Average Daily Rate (ADR) Trend by Month in Madison
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Airbnb Seasonality Analysis & Trends in Madison (2025)
Peak Season (June, May, April)
- Revenue averages $3,494 per month
- Occupancy rates average 53.0%
- Daily rates average $155
Shoulder Season
- Revenue averages $2,648 per month
- Occupancy maintains around 52.2%
- Daily rates hold near $158
Low Season (January, February, March)
- Revenue drops to average $1,766 per month
- Occupancy decreases to average 35.2%
- Daily rates adjust to average $164
Seasonality Insights for Madison
- The Airbnb seasonality in Madison shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
- During the high season, the absolute peak month showcases Madison's highest earning potential, with monthly revenues capable of climbing to $3,637, occupancy reaching a high of 57.9%, and ADRs peaking at $166.
- Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $1,515, occupancy could drop to 31.5%, and ADRs may adjust down to $153.
- Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Madison.
Seasonal Strategies for Maximizing Profit
- Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
- Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
- Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
- Regularly analyze your own performance against these Madison seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Madison (2025)
Exploring the top neighborhoods for short-term rentals in Madison? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.
| Neighborhood / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Historic District | This area features a charming atmosphere with beautifully preserved buildings and rich history. It's a popular spot for visitors seeking a glimpse of Indiana's past while enjoying local shops and cafes. | Lanier Mansion State Historic Site, Madison Museum of Contemporary Art, Broadway Fountain, Historic Madison Inc. |
| Riverfront | The scenic riverfront area offers stunning views of the Ohio River and outdoor activities. Visitors can enjoy walking trails, parks, and local events along the waterfront, making it a great spot for relaxation. | Riverview Park, Clifty Falls State Park, Ohio River Greenway, Madison Riverfront |
| Downtown Madison | The heart of Madison with an array of dining, shopping, and entertainment options. It's vibrant and draws both tourists and locals, making it an excellent place for Airbnb hosts. | Dairy Queen, Shireman Homestead, Historic Court House, Madison Winery |
| Clifty Falls State Park | A natural wonder just outside of the city, ideal for nature lovers. The park features hiking trails, waterfalls, and beautiful landscapes, attracting visitors who enjoy outdoor adventures. | Clifty Falls, Hiking Trails, Scenic Overlooks, Nature Center |
| East End | This residential area is known for its friendly community and proximity to parks and schools. It appeals to families and longer-term visitors looking for a quieter stay. | Jefferson Proving Ground, Local Parks, Schools, Community Events |
| West Madison | A growing area with new developments and amenities. It's becoming increasingly popular among travelers who want to be close to town with access to newer facilities and conveniences. | Local Shops, Parks, Restaurants, Grocery Stores |
| North Madison | Offers a suburban feel with larger properties. It's perfect for families visiting the area or those wanting more space during their stay. Close to the river and outdoor activities. | Fast Food Restaurants, Parks, Community Center, Ohio River Access |
| South Madison | This area features a mix of residential housing and local businesses. It's becoming more popular for its affordability and access to main roadways, appealing to both tourists and business travelers. | Local eateries, Shopping Centers, Parks, Easy access to Main Roads |
Understanding Airbnb License Requirements & STR Laws in Madison (2025)
While Madison, Indiana, United States currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Madison to ensure full compliance before hosting.
(Source: AirROI data, 2025, finding no licensed listings among those analyzed)
Top Performing Airbnb Properties in Madison (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Madisonbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
#209 Kings, River View, Deck, Bicentennial Park
Entire Place • 4 bedrooms
3-suite cottage spa (aaaah!) house
Entire Place • 3 bedrooms
#207 King Suites, River Views, Deck, Downtown
Entire Place • 4 bedrooms
Historic 1830s Log Cabin in Madison, IN
Entire Place • 2 bedrooms
Livery Loft: BEST location!
Entire Place • 2 bedrooms
Main Street Retreat Prime Location 3 Bedroom
Entire Place • 3 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Madison (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Madison based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Matt | 11 | $344,769 | 1753 | 5.00/5.0 |
| Kelly | 2 | $138,525 | 173 | 4.99/5.0 |
| Michelle | 5 | $97,402 | 54 | 0.98/5.0 |
| Marcy | 2 | $94,799 | 98 | 5.00/5.0 |
| Cyndi | 2 | $82,979 | 36 | 4.89/5.0 |
| Colin | 4 | $79,122 | 76 | 4.83/5.0 |
| Linda | 2 | $72,737 | 141 | 4.99/5.0 |
| Evolve | 2 | $72,587 | 47 | 4.82/5.0 |
| Colene | 1 | $72,523 | 48 | 5.00/5.0 |
| Ron | 1 | $62,133 | 20 | 5.00/5.0 |
Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Madison.
Dive Deeper: Advanced Madison STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Madison. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsMadison Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Madison
- The Madison Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 90.4% of the 115 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Madison, House properties are the most common (57.4%), reflecting the local real estate landscape.
- Houses represent a significant 57.4% portion, catering likely to families or larger groups.
- The presence of 12.2% Hotel/Boutique listings indicates integration with traditional hospitality.
Madison Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Madison
- The dominant room capacity in Madison is 2 bedrooms listings, making up 35.7% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 2 bedrooms and 1 bedroom properties represent 70.5% of the active Airbnb listings in Madison, indicating a high concentration in these sizes.
- A significant 23.5% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Madison.
Madison Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Madison
- The most common guest capacity trend in Madison vacation rentals is listings accommodating 4 guests (31.3%). This suggests the primary traveler segment is likely small families or groups.
- Properties designed for 4 guests and 2 guests dominate the Madison STR market, accounting for 57.4% of listings.
- 28.7% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Madison.
- On average, properties in Madison are equipped to host 4.2 guests.
Madison Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Madison
- The most common availability pattern in Madison falls within the 181-270 days range, representing 36.5% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 60.0% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 91-180 days range is most frequent in Madison (35.7%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 40.8% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Madison Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
48 listings
44.9% of total
2 Nights
45 listings
42.1% of total
3 Nights
3 listings
2.8% of total
7-29 Nights
5 listings
4.7% of total
30+ Nights
6 listings
5.6% of total
Key Insights
- The most prevalent minimum stay requirement in Madison is 1 Night, adopted by 44.9% of listings. This highlights the market's preference for shorter, flexible bookings.
- A strong majority (87.0%) of the Madison Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
Recommendations
- Align with the market by considering a 1 Night minimum stay, as 44.9% of Madison hosts use this setting.
- Explore offering discounts for stays of 30+ nights to attract the 5.6% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Madison.
Madison Airbnb Cancellation Policy Trends Analysis (2025)
Flexible
22 listings
21% of total
Moderate
35 listings
33.3% of total
Firm
26 listings
24.8% of total
Strict
22 listings
21% of total
Cancellation Policy Insights for Madison
- The prevailing Airbnb cancellation policy trend in Madison is Moderate, used by 33.3% of listings.
- There's a relatively balanced mix between guest-friendly (54.3%) and stricter (45.8%) policies, offering choices for different guest needs.
Recommendations for Hosts
- Consider adopting a Moderate policy to align with the 33.3% market standard in Madison.
- Regularly review your cancellation policy against competitors and market demand shifts in Madison.
Madison STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Madison
- The overall average booking lead time for vacation rentals in Madison is 46 days.
- Guests book furthest in advance for stays during July (average 91 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in March (average 30 days), indicating more last-minute travel plans during this time.
- Seasonally, Summer (70 days avg.) sees the longest lead times, while Winter (42 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (46 days) as a baseline for your pricing and availability strategy in Madison.
- For July stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 91 days out to capitalize on advance planning.
- Target marketing efforts for the Summer season well in advance (at least 70 days) to capture early planners.
- Monitor your own booking lead times against these Madison averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Madison (2025)
Amenity Prevalence
Amenity Insights for Madison
- Essential amenities in Madison that guests expect include: Smoke alarm, Air conditioning, TV. Lacking these (any) could significantly impact bookings.
- Popular amenities like Heating, Wifi, Hot water are common but not universal. Offering these can provide a competitive edge.
- Warning: Wifi is not universally provided but is considered essential globally. Ensure reliable Wifi is offered.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Madison: Smoke alarm, Air conditioning, TV.
- Prioritize adding missing essentials: Smoke alarm, Air conditioning, TV.
- Consider adding popular differentiators like Heating or Wifi to increase appeal.
- Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
- Regularly check competitor amenities in Madison to stay competitive.
Madison Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Madison
- The typical guest profile for Airbnb in Madison consists of primarily domestic travelers (99%), often arriving from nearby Indianapolis, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
- Domestic travelers account for 99.4% of guests.
- Key international markets include United States (99.4%) and Canada (0.2%).
- Top languages spoken are English (90.3%) followed by Spanish (5%).
- A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.
Recommendations for Hosts
- Target domestic marketing efforts towards travelers from Indianapolis and Cincinnati.
- Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
- Highlight unique local experiences or amenities relevant to the primary guest profile.
- Consider seasonal promotions aligned with peak travel times for key origin markets.
Nearby Short-Term Rental Market Comparison
How does the Madison Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Crittenden | 13 | $4,224 | $247.39 | 54% |
| Simpsonville | 19 | $4,201 | $313.71 | 43% |
| Oxford | 119 | $3,956 | $524.89 | 39% |
| Nicholasville | 22 | $3,931 | $353.86 | 43% |
| Lebanon | 30 | $3,832 | $238.56 | 50% |
| Lancaster | 21 | $3,798 | $294.01 | 37% |
| Lawrenceburg | 52 | $3,720 | $253.47 | 46% |
| Bee Spring | 11 | $3,685 | $456.07 | 38% |
| Shelbyville | 69 | $3,533 | $315.70 | 42% |
| La Grange | 19 | $3,518 | $308.81 | 49% |