Lexington Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Tennessee, United States
Is Airbnb profitable in Lexington in 2025? Explore comprehensive Airbnb analytics for Lexington, Tennessee, United States to uncover income potential. This 2025 STR market report for Lexington, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 19 active listings.
Whether you're considering an Airbnb investment in Lexington, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Lexington 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 Lexington Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Lexington (2025)
Understanding the monthly revenue variations for Airbnb listings in Lexington 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 Lexington is typically May, while February often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Lexington across different performance tiers:
- Best-in-class properties (Top 10%) achieve $3,769+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $2,140 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $1,443 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $883, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Lexington
Lexington Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Lexington STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Junesees the highest demand (peak season occupancy), while January 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 Lexington:
- Best-in-class properties (Top 10%) achieve 75%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 61% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 42%.
- Entry-level properties (Bottom 25%) average 22% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Lexington
Average Daily Rate (ADR) Airbnb Trends in Lexington (2025)
Effective short term rental pricing strategy in Lexington involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Lexington typically peaks in May and dips lowest during February. 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 $163 or more.
- Typical properties (Median) charge around $108 per night.
- Entry-level properties (Bottom 25%) earn around $81 per night.
Average Daily Rate (ADR) Trend by Month in Lexington
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Airbnb Seasonality Analysis & Trends in Lexington (2025)
Peak Season (May, June, July)
- Revenue averages $2,367 per month
- Occupancy rates average 53.4%
- Daily rates average $134
Shoulder Season
- Revenue averages $1,701 per month
- Occupancy maintains around 44.4%
- Daily rates hold near $130
Low Season (January, February, March)
- Revenue drops to average $1,102 per month
- Occupancy decreases to average 33.1%
- Daily rates adjust to average $123
Seasonality Insights for Lexington
- The Airbnb seasonality in Lexington 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 Lexington's highest earning potential, with monthly revenues capable of climbing to $2,586, occupancy reaching a high of 55.7%, and ADRs peaking at $134.
- 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 $875, occupancy could drop to 26.9%, and ADRs may adjust down to $122.
- 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 Lexington.
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 Lexington seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Lexington (2025)
Exploring the top neighborhoods for short-term rentals in Lexington? 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 |
|---|---|---|
| Downtown Lexington | The heart of Lexington with vibrant shops, local restaurants, and cultural attractions. This area appeals to travelers looking for city life and convenience to nearby amenities. | Lexington City Hall, Cascades Park, The Lyric Theatre, Local shops and cafes |
| Lakewood | A scenic area surrounding Kentucky Lake, perfect for nature lovers and those seeking a peaceful retreat. Attractive for families and individuals looking for outdoor activities. | Kentucky Lake, Paris Landing State Park, Fishing and boating, Nature trails |
| North Lexington | A growing neighborhood with affordable housing and a strong community feel. Attracts families and workers, providing a more suburban Airbnb experience. | Local parks, Community centers, Family-friendly restaurants |
| West Lexington | A quieter area with easy access to amenities and outdoor activities. Ideal for guests looking for a relaxing stay with local charm. | Lexington Golf Club, Nature reserves, Local diners |
| South Lexington | Known for its historic homes and tree-lined streets. This area offers a mix of culture and residential comforts, appealing to a diverse range of visitors. | Historic districts, Cultural events, Local art galleries |
| Midtown | A convenient area featuring a mix of residential and commercial spaces. Great for short-term stays with close proximity to downtown and local hotspots. | Shopping centers, Grocery stores, Restaurants |
| East Lexington | An up-and-coming area with new developments, attracting young professionals and families. Offers modern amenities and is close to local schools and parks. | New shopping developments, Community events, Parks |
| Lexington Horse Country | Famous for its horse farms and beautiful landscapes, this area attracts equestrian enthusiasts and tourists looking to experience the Kentucky horse culture. | Horse farms, Riding trails, Horse shows and events |
Understanding Airbnb License Requirements & STR Laws in Lexington (2025)
While Lexington, Tennessee, 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 Lexington to ensure full compliance before hosting.
(Source: AirROI data, 2025, finding no licensed listings among those analyzed)
Top Performing Airbnb Properties in Lexington (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Lexingtonbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
Tennessee Vacation Rental w/ Balcony!
Entire Place • 3 bedrooms
Lakeshore Cottage
Entire Place • 1 bedroom
Pine Lake Lodge (Country Lake Home)
Entire Place • 3 bedrooms
2-bedroom Sweet Retreat in Lexington
Entire Place • 2 bedrooms
Beech Lake Escape - swimming, playground, and more
Entire Place • 2 bedrooms
Wooded Wonderland
Entire Place • 1 bedroom
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Lexington (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Lexington 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 |
|---|---|---|---|---|
| Heather | 4 | $53,620 | 346 | 4.93/5.0 |
| Evolve | 1 | $43,740 | 47 | 4.70/5.0 |
| Beth | 1 | $31,801 | 42 | 5.00/5.0 |
| John | 1 | $31,551 | 167 | 4.90/5.0 |
| Heather | 1 | $25,855 | 157 | 4.96/5.0 |
| Jessica | 1 | $18,042 | 174 | 4.93/5.0 |
| Kaeli | 1 | $18,020 | 39 | 4.74/5.0 |
| Amber | 1 | $16,796 | 81 | 4.85/5.0 |
| Mary | 1 | $15,024 | 91 | 4.88/5.0 |
| Tammy | 1 | $12,479 | 29 | 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 Lexington.
Dive Deeper: Advanced Lexington STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Lexington. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsLexington Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Lexington
- The Lexington Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 100% of the 19 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Lexington, House properties are the most common (52.6%), reflecting the local real estate landscape.
- Houses represent a significant 52.6% portion, catering likely to families or larger groups.
- The presence of 5.3% Hotel/Boutique listings indicates integration with traditional hospitality.
Lexington Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Lexington
- The dominant room capacity in Lexington is 1 bedroom listings, making up 42.1% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 2 bedrooms properties represent 78.9% of the active Airbnb listings in Lexington, indicating a high concentration in these sizes.
- A significant 21.1% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Lexington.
Lexington Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Lexington
- The most common guest capacity trend in Lexington vacation rentals is listings accommodating 4 guests (47.4%). This suggests the primary traveler segment is likely small families or groups.
- Properties designed for 4 guests and 8+ guests dominate the Lexington STR market, accounting for 68.5% of listings.
- 31.6% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Lexington.
- On average, properties in Lexington are equipped to host 5.2 guests.
Lexington Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Lexington
- The most common availability pattern in Lexington falls within the 181-270 days range, representing 36.8% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 73.6% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 181-270 days range is most frequent in Lexington (36.8%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 36.8% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Lexington Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
5 listings
27.8% of total
2 Nights
12 listings
66.7% of total
30+ Nights
1 listings
5.6% of total
Key Insights
- The most prevalent minimum stay requirement in Lexington is 2 Nights, adopted by 66.7% of listings. This highlights the market's preference for shorter, flexible bookings.
- A strong majority (94.5%) of the Lexington 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 2 Nights minimum stay, as 66.7% of Lexington hosts use this setting.
- If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 27.8% currently do.
- 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 Lexington.
Lexington Airbnb Cancellation Policy Trends Analysis (2025)
Flexible
3 listings
15.8% of total
Moderate
8 listings
42.1% of total
Firm
4 listings
21.1% of total
Strict
4 listings
21.1% of total
Cancellation Policy Insights for Lexington
- The prevailing Airbnb cancellation policy trend in Lexington is Moderate, used by 42.1% of listings.
- There's a relatively balanced mix between guest-friendly (57.9%) and stricter (42.2%) policies, offering choices for different guest needs.
Recommendations for Hosts
- Consider adopting a Moderate policy to align with the 42.1% market standard in Lexington.
- Regularly review your cancellation policy against competitors and market demand shifts in Lexington.
Lexington STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Lexington
- The overall average booking lead time for vacation rentals in Lexington is 34 days.
- Guests book furthest in advance for stays during June (average 58 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in March (average 15 days), indicating more last-minute travel plans during this time.
- Seasonally, Summer (37 days avg.) sees the longest lead times, while Spring (24 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (34 days) as a baseline for your pricing and availability strategy in Lexington.
- For June stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 58 days out to capitalize on advance planning.
- Target marketing efforts for the Summer season well in advance (at least 37 days) to capture early planners.
- Monitor your own booking lead times against these Lexington averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Lexington (2025)
Amenity Prevalence
Amenity Insights for Lexington
- Essential amenities in Lexington that guests expect include: Smoke alarm, Heating, Wifi, TV, Air conditioning, Essentials, Hot water, Free parking on premises. Lacking these (any) could significantly impact bookings.
- Popular amenities like Hair dryer, Coffee maker are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Lexington: Smoke alarm, Heating, Wifi, TV, Air conditioning, Essentials, Hot water, Free parking on premises.
- Consider adding popular differentiators like Hair dryer or Coffee maker 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 Lexington to stay competitive.
Lexington Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Lexington
- The typical guest profile for Airbnb in Lexington consists of primarily domestic travelers (100%), often arriving from nearby Nashville, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
- Domestic travelers account for 100.0% of guests.
- Top languages spoken are English (88.9%) followed by Spanish (6.8%).
- 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 Nashville and Shawnee.
- 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 Lexington 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 |
|---|---|---|---|---|
| Bremen | 23 | $4,643 | $555.48 | 30% |
| Arley | 43 | $4,358 | $448.18 | 40% |
| Pleasant View | 12 | $4,019 | $271.32 | 42% |
| Crane Hill | 98 | $3,479 | $414.20 | 35% |
| Houston | 13 | $3,445 | $476.17 | 35% |
| Taylor | 13 | $3,331 | $593.63 | 25% |
| Oxford | 879 | $3,017 | $519.57 | 31% |
| Town Creek | 13 | $2,896 | $261.26 | 35% |
| Pegram | 19 | $2,890 | $226.75 | 49% |
| Shelby County | 16 | $2,854 | $209.41 | 41% |