Lexington, KY short-term rental market report (2026)
Fayette County, Kentucky. Rules, revenue, home values, demand, climate, reach and risk, each figure with its source.
- RulesModerate (3/5)
- 4-BR typical value$453K
- FEMA riskRelatively Moderate
- Demand drivers within 50 mi3
- People within 300 mi51.4 million
- ClimateFour-season
Everything STR HUB holds on Lexington, KY in one place, in the order an investor needs it: whether you can operate, what the numbers are, why and when people come, who can reach it, and what could go wrong.
Every figure comes from a named dataset listed under Sources and method, dated September 21, 2026. Where we do not hold a figure, that part of the report is left out rather than estimated. The Opportunity Score here is partial: it was calculated without revenue data, with the cash-flow component assumed to be below average, so it can understate the market.
Can you operate in Lexington?
| Rule | What we hold on file |
|---|---|
| Jurisdiction | Lexington-Fayette Urban County Government (Division of Planning for zoning; Division of Revenue for licensing) |
| Permit or licence | Applicants need a Zoning Compliance Permit (Division of Planning) confirming the property is eligible, then a Special Fees License (Division of Revenue) plus an underlying Occupational/Business License. The 'Hosted Short-Term Rental' category additionally requires that a permanent resident live at the unit, verified with two forms of documentation (e.g., driver's license, vehicle registration, voter registration, tax documents or a utility bill). |
| Permit fee | $200/year for the first unit, plus $100/year for each additional unit (Special Fees License). |
| Owner occupancy | Required for the 'Hosted Short-Term Rental' category specifically (a permanent resident must live at the dwelling). Whether a separate non-owner-occupied/'unhosted' STR category exists citywide, and which zones allow it, was not confirmed from available sources. |
| Lodging and sales taxes | Kentucky's 6% state sales tax plus the 1% state transient room tax, plus Lexington's local transient room tax (exact local rate not confirmed). |
| Penalties | Operating an unlicensed short-term rental can draw fines of up to $500 per day. |
Rules for Lexington last verified September 20, 2026. Rules change, and a city rating does not cover HOA or deed restrictions. Confirm current requirements with the jurisdiction before you buy or list.
The numbers
We have not verified revenue figures for this market yet.
Home values in Fayette County
Zillow Home Value Index: county-wide typical values for Fayette County, not list prices. A specific property can sit well above or below them.
What it costs to own
Screening figures, not a bill or a quote. The tax rate is a county-wide median for owner-occupied homes (U.S. Census Bureau, ACS 2018-2022); second homes and rentals are often taxed more heavily, and a purchase usually resets the assessed value. Expected annual loss is from the FEMA National Risk Index.
Housing market momentum
County-level, for-sale housing market: it says nothing directly about STR bookings. A relative ranking among tracked markets, not a forecast. Sources: Realtor.com Economic Research, U.S. Census Bureau, Zillow Home Value Index.
Why people come
3 demand drivers sit within 50 miles of Lexington. Ordered by published attendance. Attendance appears only where a source publishes it.
Attractions
- Ark Encounter
- When
- March to December; summer and church-group season are busiest.
- Attendance
- 1,000,000 (Wikipedia (Ark Encounter): Answers in Genesis reported about 1 million visitors for July 2017–June 2018; county ticket-tax records reflected roughly 860,000 paid admissions.)
- STR angle
- Faith-based coach tours and multi-generation families visit this and the Creation Museum 45 minutes away, usually over two days. Grant County has very little lodging, so larger houses that sleep groups fill a real gap.
- Source
- Wikipedia: Ark Encounter
Outdoor activities
- Kentucky Horse Park & Lexington horse country
- When
- Show season runs spring through fall.
- Attendance
- 800,000 (Park visitation per the Wikipedia infobox (2013).)
- STR angle
- Horse shows, Keeneland race meets and sales, and bourbon tourism overlap around Lexington. Houses north of the city near the park suit competitors on week-long stays; farm cottages appeal to leisure visitors.
Landmarks
- Shaker Village of Pleasant Hill
- When
- Year-round; spring through fall peaks.
- STR angle
- The restored village runs its own inn, so nearby rentals mostly catch overflow, weddings and travellers combining it with the Bourbon Trail and Lexington horse country. It strengthens the case for a farm or river-palisades property in Mercer or Jessamine County rather than standing alone.
When they come
Four-season climate: comfortable months are spread across the year without one dominant season. 7 of 12 months have an average high between 60°F and 88°F. Warmest month: July (average high 86°F). Coldest: January (average low 29°F).
- Jan43°29°Cold
- Feb48°30°Cool
- Mar57°37°Cool
- Apr64°44°Comfortable
- May74°55°Comfortable
- Jun83°63°Comfortable
- Jul86°68°Comfortable
- Aug85°66°Comfortable
- Sep80°61°Comfortable
- Oct68°50°Comfortable
- Nov54°37°Cool
- Dec49°33°Cool
| Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average high (°F) | 43 | 48 | 57 | 64 | 74 | 83 | 86 | 85 | 80 | 68 | 54 | 49 |
| Average low (°F) | 29 | 30 | 37 | 44 | 55 | 63 | 68 | 66 | 61 | 50 | 37 | 33 |
| Precipitation (in) | 4.8 | 5.9 | 4.3 | 4.4 | 3.8 | 5.0 | 5.5 | 4.5 | 2.3 | 4.0 | 3.1 | 4.4 |
| Snowfall (in) | 4.1 | 2.2 | 1.5 | 0.4 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.9 | 1.0 |
| Sunshine (hours a day) | 5.4 | 5.9 | 7.9 | 8.7 | 9.8 | 11.4 | 11.6 | 11.0 | 10.4 | 8.1 | 7.2 | 5.5 |
This is climate and events, not booking data. Monthly normals are 2019-2023 averages from the Open-Meteo Historical Weather API (ERA5 reanalysis) at the market pin. We do not hold monthly occupancy or rate data for this market.
Who can reach it
Largest counties within 150 miles
| County | Population |
|---|---|
| Marion County, IN | 971,737 |
| Hamilton County, OH | 827,671 |
| Jefferson County, KY | 779,232 |
County populations (U.S. Census Bureau, ACS 2018-2022) summed for every county whose centre lies within each straight-line radius. Straight lines are shorter than roads, so read these as generous upper bounds, not drive-time counts.
What could go wrong
| Hazard | FEMA rating | Score (0-100) |
|---|---|---|
| Tornado | Relatively High | 98.0 |
| Winter weather | Relatively High | 96.4 |
| Hail | Relatively Moderate | 93.1 |
| Earthquake | Relatively Moderate | 93.0 |
| River flooding | Relatively Moderate | 92.7 |
| Hurricane | Very Low | 57.0 |
| Wildfire | Very Low | 26.9 |
This is a county-level index, not an insurance quote or a flood-zone determination. A coastal or wildfire-fringe rental can carry far more exposure than its county average suggests. FEMA does not model coastal flooding for this county, which is not the same as zero risk. Get property-level flood, wind and wildfire quotes before you buy.
Market context
Housing and jobs in Fayette County
U.S. Census Bureau, American Community Survey 2018-2022. Vacation-home share is housing units held for seasonal, recreational or occasional use. All three describe the whole county, not one town or neighbourhood.
What is within 15 km of the Lexington pin
Counts of features mapped in OpenStreetMap within 15 km of the market pin. A fixed radius favours dense metros, and map coverage varies by area.
Similar markets
The 4 tracked markets whose numbers sit closest to Lexington's. Each links to its own report.
Closest by normalised distance across the figures both markets hold (typical 4BR value, revenue, occupancy, regulation rating, vacation-home share, tourism job share, 4+ bedroom share, amenity score, population within 300 miles, comfortable months and FEMA risk score). At most 2 of the 4 come from Kentucky, so the list is not just the neighbours. Similar numbers do not mean similar rules: check each market's regulation section.
See Lexington on the map
Open Lexington on the National STR Map to see it against its neighbours, switch overlays and run the deal calculator on your own assumptions.
Lexington STR questions, answered from the data
Is Airbnb legal in Lexington?
STR HUB rates Lexington's short-term rental rules 3/5 (Moderate) on a scale from 1 (relaxed) to 5 (very strict). That rating was derived from the regulation text we hold and has not yet been reviewed by a person. Permit rule on file: Applicants need a Zoning Compliance Permit (Division of Planning) confirming the property is eligible, then a Special Fees License (Division of Revenue) plus an underlying Occupational/Business License. The 'Hosted Short-Term… Rules change, so confirm current requirements with the local jurisdiction before you buy or list.
How much does a 4-bedroom home cost in Lexington?
The typical 4-bedroom home in Fayette County is valued at $452,684 (Zillow Home Value Index), and the typical home of any size at $332,844, with all-home values up 3.4% over the past year. These are county-wide typical values, not list prices.
What brings visitors to Lexington?
3 demand drivers sit within 50 miles of Lexington: Ark Encounter (1,000,000 published attendance), Kentucky Horse Park & Lexington horse country (800,000 published attendance) and Shaker Village of Pleasant Hill. Attendance is shown only where a source publishes it, and each driver's source is linked in the report.
What natural hazards affect Lexington?
FEMA's National Risk Index rates Fayette County "Relatively Moderate" overall, with a score of 92.0 out of 100 (a national percentile). The highest-scoring hazards we track there are tornado and winter weather. It is a county-wide index, not an insurance quote or a flood-zone determination.
When is the weather best in Lexington?
7 of 12 months have an average high between 60°F and 88°F (April, May, June, July, August, September and October). Four-season climate: comfortable months are spread across the year without one dominant season. These are 2019-2023 climate normals, not booking data.
Sources and method
- Regulation summary and strictness rating: STR Agent HUB regulation research (official source: lexingtonky.gov).
- Home values: Zillow Home Value Index (ZHVI), county level. Data provided by Zillow Group.
- Housing, employment and population figures: U.S. Census Bureau, American Community Survey (ACS) 5-year estimates, 2018-2022.
- Natural hazard risk: FEMA National Risk Index, county level.
- Amenity counts: © OpenStreetMap contributors.
- Climate normals: Open-Meteo Historical Weather API (CC BY 4.0), 2019-2023 averages.
- Demand drivers: each entry links its own published source in the list above.
Figures come from the STR HUB national dataset dated September 21, 2026 and this page is regenerated whenever that dataset is rebuilt. County-level figures describe Fayette County as a whole, not one street or neighbourhood. The Opportunity Score (0-100) is a screening heuristic that weighs revenue (35%), regulatory climate (25%), tourism employment (15%), nearby amenities (15%) and large-home supply (10%) relative to the other tracked markets.
Confirm before you act. Short-term rental rules change. Confirm current requirements with the jurisdiction, and work with a licensed local agent who knows which properties can legally operate. This report is screening data, not investment, legal or tax advice.
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