Lexington, KY

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Lexington short-term rental market based on reliable data.

Listings

1095 / 1830

Reliable / Active

Cap Rate

10%

Middle-Earners Gross Yield

Revenue

$31,611

Middle-Earners Revenue

Occupancy

61%

Middle-Earners Occupancy

Home Value

$322,743

Median Home Sale Price

Top Earners

$66,071

Top-Earners Revenue

Lexington

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Lexington.

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C

Challenging to Investors

Lexington Regulations

Short‑term rentals are explicitly legal but face strict density caps (e.g., a 2% STR cap in a 1,000‑ft radius), require a Conditional Use Permit for unhosted units in residential areas, and have multiple permits/licensing steps and lower occupancy limits (10 guests). These constraints, along with active enforcement, create a compliance burden that can deter investors.

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About Lexington

Lexington, Kentucky, often referred to as the "Horse Capital of the World," is a vibrant city located in the heart of the Bluegrass region. The city has a population of approximately 320,000 residents and is renowned for its rich equestrian culture and rolling hills of bluegrass pastures. Lexington is located about 80 miles southeast of Louisville, the closest major city, which is approximately a 90-minute drive away.

One of the key attractions making Lexington appealing for short-term rentals is its picturesque horse farms and racetracks, such as the renowned Keeneland Racecourse (Keeneland). Keeneland offers visitors an authentic and historic racing experience and is a must-visit for horse racing enthusiasts.

Another significant landmark is the University of Kentucky, which contributes to the city's youthful energy and diverse cultural scene. The campus itself is worth exploring, and visitors can enjoy sports events or take a stroll through the Arboretum, State Botanical Garden of Kentucky (The Arboretum).

Lexington is also known for its historic homes and buildings. Travelers can visit the Mary Todd Lincoln House (Mary Todd Lincoln House), the girlhood home of Abraham Lincoln's wife, to explore a piece of American history. Additionally, the Lexington Opera House (Lexington Opera House), built in 1886, continues to host a variety of performances and is a beautiful example of 19th-century architecture.

The city's vibrant downtown area offers numerous dining, shopping, and entertainment options, as well as unique spots like the Distillery District, which features craft breweries, artisan shops, and live music venues. Visitors can explore Town Branch Distillery (Town Branch Distillery) as part of the Kentucky Bourbon Trail.

Lexington's historic neighborhoods, parks, equine heritage, cultural landmarks, and close proximity to Louisville make it an attractive destination for short-term rentals, offering a unique blend of Southern charm and modern amenities.

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