Airbnb Market Analytics, Statistics and Data in Madison, Indiana, United States
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Madison? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Madison:
How much do Airbnb hosts make on average per month in Madison?
The short-term rental market in Madison shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $2,524 per month
- Strong performing properties (top 25%) make $3,843 or more
- Best-in-class properties (top 10%) achieve $5,163+ monthly
- Entry-level properties (bottom 25%) typically earn around $1,538
Revenue Variations by Month
Occupancy Rates Throughout the Year in Madison
The market in Madison shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 52% occupancy rates
- Strong performing properties (top 25%) achieve 68% or higher
- Best-in-class properties (top 10%) reach 82%+occupancy
- Entry-level properties (bottom 25%) average around 31%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Madison
Daily rates in Madison vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $144 per night
- Strong performing properties (top 25%) secure $177 or more
- Best-in-class properties (top 10%) pull in $226+ per night
- Entry-level properties (bottom 25%) earn around $108
Daily Rate Variations by Month
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Seasonality patterns in Madison
Peak Season (June, May, October)
- Revenue peaks at $3573.99 per month
- Occupancy rates reach 57.30%
- Daily rates average $166.47
Shoulder Season
- Revenue averages $2852.19 per month
- Occupancy maintains 50.15%
- Daily rates hold at $156.13
Low Season (September, December, January)
- Revenue drops to $1709.23 per month
- Occupancy decreases to 33.76%
- Daily rates adjust to $143.31
Is it still profitable to do Airbnb in Madison in 2025?
Yes! Madison demonstrates highly seasonal trends requiring strategic adaptation, featuring a healthy occupancy rate of 50% and strong monthly revenue averaging $2852 and The market's 112 active listings indicate growing demand with plenty of opportunity for new properties. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (business travelers, long-term stays, holiday visitors, event attendees, remote workers)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Madison
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| Historic District | Madison’s Historic District is known for its well-preserved 19th-century architecture and charming streets. It attracts tourists interested in history and culture, offering a unique staying experience. | Lanier Mansion, Madison Historic Society, Regatta Park, Shakespeare Festival, Madison Arts Coalition |
| Madison Riverfront | The Riverfront area provides beautiful views of the Ohio River, with opportunities for outdoor activities and events. It's a perfect spot for nature lovers and families. | Riverfront Park, Jefferson County Historical Society, Ohio River Scenic Byway, Madison Splash Park |
| Downtown Madison | Downtown Madison is vibrant and bustling with shops, restaurants, and cafes. It’s popular for its accessibility to local amenities and entertainment. | Broadway Fountain, Madison Theatre, Local shops and cafes, Vintage shops, Eatery Row |
| Clifty Falls State Park | This area is ideal for nature lovers and adventure seekers, offering hiking trails and stunning waterfalls. It attracts visitors looking to explore the outdoors. | Clifty Falls, Trail 3, Historic Shelter House, Nature Center, Camping Sites |
| Main Street | Main Street features a mix of historic charm and modern businesses. It’s a welcoming area for both visitors and residents with plenty to do. | The Red Bicycle, Madison Antique Mall, Coffee shops, Art galleries, Restaurants |
| The Knobs | An area known for its scenic views and trails, The Knobs is perfect for those wanting to escape the urban hustle and enjoy nature. | Knobstone Trail, Scenic Overlook, Nature exploration, Biking and hiking trails |
| East Madison | East Madison is a quieter residential area with local parks and schools, ideal for families traveling for events or visiting relatives. | Parks, Community Center, Local eateries, Nearby shopping |
| Historic Madison Railroad | The historical railroad area offers unique experiences related to transportation history, great for history enthusiasts and families. | Indiana Railway Museum, Madison Depot, Walking trails, Events and outings |
Do you need a license for Airbnb in Madison?
We recommend checking directly with Madison's local government regarding short-term rental licensing requirements. Current market data shows limited licensing information (0% of listings), making it essential to verify current regulations before starting your Airbnb business.
Top Performing Airbnb Properties in Madison
3-suite cottage spa (aaaah!) house
Entire Place • 3 bedrooms
Livery Loft: BEST location!
Entire Place • 2 bedrooms
Mulberry Manor*Walkable*8 Guests*4 Bed/2.5 Bath
Entire Place • 4 bedrooms
#209 Kings, River View, Deck, Bicentennial Park
Entire Place • 4 bedrooms
Historic 1830s Log Cabin in Madison, IN
Entire Place • 2 bedrooms
#207 King Suites, River Views, Deck, Downtown
Entire Place • 4 bedrooms
Top Performing Professional Hosts in Madison
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Matt | 11 | $324,597 | 1753 | 5.00/5.0 |
| Kelly | 2 | $134,733 | 173 | 4.99/5.0 |
| Colin | 4 | $108,171 | 76 | 4.83/5.0 |
| Colene | 1 | $100,611 | 48 | 5.00/5.0 |
| Michelle | 5 | $96,494 | 54 | 0.98/5.0 |
| Cyndi | 2 | $94,596 | 36 | 4.89/5.0 |
| Evolve | 2 | $80,168 | 47 | 4.82/5.0 |
| Linda | 2 | $75,051 | 141 | 4.99/5.0 |
| Ron | 1 | $73,070 | 20 | 5.00/5.0 |
| Michelle | 1 | $70,201 | 69 | 5.00/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Madison
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (90.2%), with house and apartment & condo properties comprising 77.6% of inventory
- Strong specialty sector (22.3%) combining boutique hotels, unique stays, and outdoor accommodations indicates market maturity and premium opportunities
Room Capacity Distribution
Analysis of 112 properties in Madison shows that 2 bedrooms properties are most prevalent, making up 35.7% of the market. The market tends to favor smaller properties, with 2 bedrooms and 1 bedroom together representing 70.5% of all listings.
Key Insights
- Most common: 2 bedrooms (35.7%)
- Least common: 4 bedrooms (6.3%)
- Market concentration: 70.5% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 112 properties in Madison reveals that 4 guests properties dominate the market, representing 30.4% of all listings. The average property accommodates 4.2 guests, with a clear trend towards larger guest capacities. Properties accommodating 4 guests and 2 guests make up 57.1% of the market.
Key Insights
- Most common capacity: 4 guests (30.4% of market)
- Least common capacity: 7 guests (1.8% of market)
- Average guest capacity: 4.2 guests per property
- Market concentration: 57.1% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 112 properties in Madison, the most common availability pattern is 181-270 days (36.6% of properties). For actual bookings, properties most frequently secure bookings for 91-180 days (33% of properties).
Key Insights
- Most common availability window: 181-270 days (36.6%)
- Most common booking duration: 91-180 days (33%)
- Properties with high availability (180+ days): 58.0%
- Properties with long-term bookings (180+ days): 45.5%
Minimum Stay Distributions
1 Night
48 listings
45.7% of total
2 Nights
44 listings
41.9% of total
3 Nights
4 listings
3.8% of total
7-29 Nights
5 listings
4.8% of total
30+ Nights
4 listings
3.8% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 87.6%
- Mid-length stays (4-6 nights) represent 0% of listings
- Monthly+ stays (3.8%) suggest a stable extended-stay market
- High market flexibility with 91.4% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Flexible
22 listings
21.2% of total
Moderate
35 listings
33.7% of total
Firm
25 listings
24% of total
Strict
22 listings
21.2% of total
Key Insights
- Moderate is the preferred policy at 33.7% of listings
- The market shows a balanced distribution between guest-friendly (54.9%) and strict (45.2%) policies
- Strict policies are least common at 21.2% of listings
Recommendations
- Market supports various policies - choose based on your property type and target guests
- Diverse policy distribution indicates an opportunity to differentiate through policy choice
- Consider generous cancellation terms as a competitive advantage
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in Jul, May, Apr, averaging 74 days
- Shortest booking windows are in Jan, Mar, Feb, averaging 41 days
- Summer shows the longest average booking window at 71 days, while Winter has the shortest at 43 days
Recommendations
- Implement dynamic pricing strategies for Summer bookings at least 71 days in advance
- Consider early bird discounts during Winter to encourage longer lead times
- Focus on last-minute booking promotions during Jan-Feb when lead times are shortest
Popular Airbnb Amenities in Madison
Below is the distribution of amenities across listings in Madison:
Traveler Demographics
Key Insights
- Domestic travelers make up 99.4% of total guests, indicating a dominant local market share.
- Primary international markets: Canada (0.2%) and DC (0.1%)
- English is the top language at 91.6%, followed by Spanish (4.9%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 7.9%
Recommendations
- Target marketing campaigns for Indianapolis and Cincinnati markets
- Develop localized content for Canada and DC
- Prioritize English and Spanish language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Madison. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Crittenden | 12 | $4,755 | $250.21 | 58% |
| Simpsonville | 19 | $4,292 | $314.98 | 46% |
| Nicholasville | 22 | $4,212 | $350.81 | 46% |
| Oxford | 119 | $4,170 | $507.20 | 39% |
| Lebanon | 29 | $4,169 | $241.42 | 50% |
| Burlington | 20 | $3,964 | $210.50 | 53% |
| Lancaster | 22 | $3,863 | $291.28 | 40% |
| Lawrenceburg | 53 | $3,848 | $245.52 | 48% |
| Shelbyville | 70 | $3,765 | $329.54 | 43% |
| Zionsville | 16 | $3,697 | $258.22 | 47% |
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