Last updated on June 21st, 2023
best areas in Louisville for Airbnb
Key Takeaways
- Louisville’s median annual appreciation rate, affordable real estate prices, and cost of living have allowed many Airbnb hosts in the city to earn a good passive income.
- Learn about the advantages of investing in short-term rental properties in Louisville and nearby areas in Kentucky.
- Find out the best profitable neighborhoods and cities near Louisville along with their average property prices and Airbnb data.
Introduction
Louisville is known as the largest city in Kentucky State and is recognized as a top festival and event destination. From its fascinating museums to more than 2,500 top-tier restaurants, Louisville is a city that offers everything, so you will never run out of things to do.
If you’re wondering which areas are the most lucrative ones for Airbnb in Louisville – we have you covered because they’re featured here!
In this article, you will discover the best areas to do Airbnb in Louisville, Kentucky, and some of the expectations for investing in short-term rental properties. Want to know more? Then we recommend you to continue reading.
Why invest in an Airbnb in Louisville, Kentucky?
Louisville offers profitable investment opportunities for property investors. This city is known for its friendly atmosphere and great festivals, but what advantages will investors have if they target this city? Check out some of the reasons why buying a rental property in Louisville is a good investment:
Affordable Real estate market
When it comes to real estate prices, the best advantage that property investors will find in Louisville is its affordable housing market. The median home value in this city is 23% lower than the US average. Furthermore, based on Zillow Index, the average property price is $225,963 and is trending up 6.4% year-over-year.
Guaranteed ROI
An Airbnb property investment can turn into a good source of passive income for investors, but it requires a lot of time, research and money. However, Louisville is not the exception when it comes to offering investors great opportunities and getting a solid return on investment. The median annual appreciation rate is 4.97%, which makes Louisville an attractive option for Airbnb investors as confirmed by Louisville Neighborhoods.
Popular tourist destination
If you’re looking to cater to tourist accommodations, then Louisville is a great city to target. Louisville is full of interesting attractions and throughout the year, there are many festivals and events. In fact, the city welcomes around 16.4M visitors annually!
Is Airbnb Profitable in Louisville?
Airbtics confirms that Airbnb investment properties in Louisville are profitable. But still, investors should keep in mind that the level of profitability depends on the location and property type.
Based on Airbtics’ data, an Airbnb host can expect a median occupancy rate of 65% and an average daily rate of $133 for operating a 2-bedroom property in Louisville.
The 10 Best Places to Airbnb near Louisville, KY
Louisville is the largest city in Kentucky and the 28th most populous city in the US. It has around 134 designated neighborhoods. So you may be wondering, “which area should I target in Louisville for short-term rental investments?”.
Check out the best neighborhoods and nearby cities in Louisville, KY that are highly recommended for starting an Airbnb business:
1. Beechmont, Louisville
- Total Number of Airbnb Listings: 24
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $244,900
- Airbnb Annual revenue: $108,166
- Gross rental yield: 44.17%
2. Downtown, Louisville
- Total Number of Airbnb Listings: 113
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $225,000
- Airbnb Annual revenue: $79,783
- Gross rental yield: 35.46%
3. Crescent Hill, Louisville
- Total Number of Airbnb Listings: 36
- Best bedroom size: 3 bedroom
- Median property price (3 bedroom): $230,000
- Airbnb Annual revenue: $78,140
- Gross rental yield: 33.97%
4. Germantown, Louisville
- Total Number of Airbnb Listings: 38
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $215,000
- Airbnb Annual revenue: $43,348
- Gross rental yield: 20.16%
5. Old Louisville
- Total Number of Airbnb Listings: 77
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $175,000
- Airbnb Annual revenue: $30,880
- Gross rental yield: 17.65%
6. Jeffersonville, IN
- Distance from Louisville: 3 miles
- Total Number of Airbnb Listings: 36
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $264,000
- Airbnb Annual revenue: $46,935
- Gross rental yield: 17.78%
7. Cincinnati, OH
- Distance from Louisville: 31 miles
- Total Number of Airbnb Listings: 815
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $225,000
- Airbnb Annual revenue: $53,521
- Gross rental yield: 23.79%
8. Lexington, KY
- Distance from Louisville: 72 miles
- Total Number of Airbnb Listings: 515
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $256,000
- Airbnb Annual revenue: $52,373
- Gross rental yield: 20.46%
9. Indianapolis, IN
- Distance from Louisville: 103 miles
- Total Number of Airbnb Listings: 1,108
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $151,000
- Airbnb Annual revenue: $46,072
- Gross rental yield: 30.51%
10. Owensboro, KY
- Distance from Louisville: 107 miles
- Total Number of Airbnb Listings: 32
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $159,900
- Airbnb Annual revenue: $36,624
- Gross rental yield: 22.90%
Conclusion
There are plenty of profitable neighborhoods and nearby cities in Louisville that offer great investment opportunities to Airbnb hosts. While there are many locations that you can target and can bring attractive rental yields and annual revenue, it’s important to analyze them carefully to avoid unprofitable neighborhoods.
Now that we revealed the best areas for Airbnb in Louisville, Kentucky, you should also go further and check Airbtics’ short-term rental profit estimator. Take the next step and stand out among your competitors while maximizing your profitability!
