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Top Places to Invest in Airbnb in Louisville KY

Louisville, Kentucky, is an attractive option for investors looking to grow their portfolios. With prices lower than larger markets, it is an excellent option for those looking to incorporate geographic diversity into their investments. There are opportunities for both short-term and long-term rental properties in Louisville, making it an ideal location for those looking to increase their portfolio.

Investing in Louisville for short-term rentals is a great idea for a number of reasons. According to the Louisville Visitor and Convention Bureau, our city sees over 22 million visitors annually. This influx of travelers is primarily due to conventions and the famous Bourbon Trail. With the downtown convention center and the Kentucky Fair and Exposition Center, Louisville can easily accommodate hundreds of thousands of guests at any time.

The city of Louisville has regulations to help limit the number of non-owner-occupied properties in residential areas. Short-term rentals are approved through the conditional use permit (CUP) process, which includes a pre-application, neighborhood meeting, formal application, and a hearing in front of the Board of Zoning Adjustments (BOZA). In addition, short-term rentals in residential areas must be at least 600 feet away from another active STR property. While new STR CUP applications are considered case-by-case, BOZA is denying all new residential short-term rental applications within 600 feet of another non-owner-occupied STR.

Click HERE to view our Louisville short-term rental zoning guide that may be helpful for your search.

The city of Louisville has made it easier for short-term rentals to operate in any commercially-zoned property because there is no need for a conditional use permit, making it simpler to begin a short-term rental business. This ease of entry creates an excellent opportunity for those looking to start a short-term rental, as there is no need to worry about whether or not the permit will be approved.

When purchasing a property with a Conditional Use Permit (CUP) in place, it is crucial to ensure that the permit is valid and active before the sale closes. Verifying this information is essential to ensure the CUP will transfer with the sale of the property.

To ensure that the CUP remains with the property you must maintain a valid annual registration. The city may revoke your CUP and deny your registration application if the registration expires. The only way to obtain a new CUP is to start the qualification process from the beginning.

Louisville STR Average stats:

Average Daily Rate: $183 (Feb: $156 / May $308)

Occupancy Rate: 53% (Jan 40% / Jul 71%)

Monthly Revenue: $2,551 (Jan $1,546 / May $4,019)

Active Rental Makeup for Louisville:

Total Active Rentals: 2,011

Studio - 76 (4%)

1 Bedroom - 482 (27%)

2 Bedroom - 478 (26%)

3 Bedroom - 389 (21%)

4 Bedroom - 221 (12%)

5+ Bedrooms - 168 (9%)

Active rentals indicate a property that had at least 1 reserved or available day in the last month.

Notable Trends:

48% Of rentals have a STRICT cancellation policy

16% of properties have a 30-night minimum stay


Many of Louisville's neighborhoods have reached a point where the supply of short-term rentals is greater than the demand. This means that occupancy rates and daily rates will decrease due to increased competition. However, the most desirable properties will still be successful, while other properties may have difficulty staying afloat.

The most popular Louisville STR zip codes for investment, based on the number of active STR properties, are: 40202, 40203, 40204, 40205, 40206, 40208, and 40217

The Louisville zip codes prime for STR growth, based on rental demand and the number of active STRs are 40204, 40214, 40215, 40216, 40217, 40218, 40223, 40229, 40243, 40291.

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