Top 14 Airbnb Markets in Kentucky

The Bluegrass State is more than bourbon and horse racing—Kentucky also hosts a variety of high-performing short-term rental (STR) destinations, from lake communities and college towns to historic cities and outdoor recreation hubs. Whether you’re looking for affordable entry points, year-round demand, or strong nightly rates, these are Kentucky’s top-ranking Airbnb markets based on AirDNA’s proprietary data.

What Is AirDNA’s Market Score?

Market Score is a proprietary metric that ranks how attractive a location is for STR investment. Each score is calculated using five core metrics:

• Investability
• Rental Demand
• Revenue Growth
• Seasonality
• Regulation

Scores range from 0 to 100, with higher scores indicating stronger overall market health. Inside the AirDNA platform, investors can also drill down into each of the five sub-scores to pinpoint a market’s specific strengths or weaknesses.

Understanding Markets vs. Submarkets

This list contains both markets and submarkets, defined as:

• Markets are larger, well-defined geographic areas, like metro regions or well-known tourism corridors.
• Submarkets are smaller towns, neighborhoods, or lake communities located within or adjacent to those larger markets.

Evaluating both levels helps investors uncover pockets of opportunity that might be hidden inside broader market data.

Airbnb Market Overview in Kentucky

Kentucky’s STR landscape is shaped by several demand drivers: bourbon tourism, college athletics, national events like the Kentucky Derby, and abundant outdoor recreation in the state’s park and lake systems. While big names such as Lexington continue to draw steady business and leisure travel, emerging lakefront submarkets and historic small towns are delivering attractive returns with less competition.

Top 14 Airbnb Markets in Kentucky (Ranked by Market Score)

14. Rough River Lake

Market Score: 36.68

Average Annual Revenue: $22,210

Rough River Lake is a laid-back reservoir destination popular among anglers, boaters, and weekenders from Louisville. Low property prices give investors a budget-friendly entry point, though seasonality keeps overall scores modest.

13. London

Market Score: 50.88

Average Annual Revenue: $19,578

Located near Daniel Boone National Forest and I-75, London attracts outdoor enthusiasts and interstate travelers alike. Limited competition and improving demand hint at upside despite its mid-tier score.

12. Lexington

Market Score: 60.87

Average Annual Revenue: $34,538

Home to the University of Kentucky and world-class horse farms, Lexington benefits from a mix of college, leisure, and business travel. Regulations are manageable, but higher inventory keeps scores moderate.

11. Harrodsburg / Danville

Market Score: 63.10

Average Annual Revenue: $27,442

This historic corridor features Kentucky’s oldest town (Harrodsburg) and Centre College in Danville. Boutique inns and colonial charm fuel tourism, giving STR operators space to differentiate with niche properties.

10. Richmond / Berea

Market Score: 69.38

Average Annual Revenue: $20,767

Anchored by Eastern Kentucky University and the artisan hub of Berea, this submarket offers year-round academic demand plus arts-focused tourism. Moderate home prices and growing events calendars bolster its STR appeal.

9. Bardstown

Market Score: 71.99

Average Annual Revenue: $39,669

Dubbed the “Bourbon Capital of the World,” Bardstown lures spirit aficionados to its distilleries and festivals. High ADRs during peak bourbon season lift revenue potential despite limited room count.

8. Paducah

Market Score: 81.69

Average Annual Revenue: $19,571

This UNESCO Creative City on the Ohio River hosts quilt conventions, art walks, and riverboat traffic. Consistent event calendars and interstate access help smooth out seasonality for hosts.

7. Ashland

Market Score: 84.98

Average Annual Revenue: $18,057

Positioned at the tri-state border with Ohio and West Virginia, Ashland capitalizes on regional healthcare, concerts at the historic Paramount Arts Center, and easy highway access, keeping occupancy steady.

6. Cincinnati (Northern Kentucky)

Market Score: 86.44

Average Annual Revenue: $31,622

Although the urban core lies in Ohio, Northern Kentucky neighborhoods feed into the greater Cincinnati metro, benefiting from stadium events, corporate travel, and CVG Airport traffic. Cross-state demand helps shore up ADRs.

5. Cave Run Lake

Market Score: 89.52

Average Annual Revenue: $27,187

Known for its scenic shoreline within Daniel Boone National Forest, Cave Run Lake draws anglers, hikers, and house-boaters. Limited inventory plus strong summer demand create room for revenue growth.

4. Owensboro

Market Score: 89.75

Average Annual Revenue: $24,979

Owensboro’s riverfront amphitheater, barbecue festivals, and Bluegrass Music Hall of Fame generate consistent tourism. Affordable housing keeps entry costs low, while civic investment continues to boost demand.

3. Williamstown

Market Score: 95.73

Average Annual Revenue: $48,706

Home to the nationally known Ark Encounter theme park, Williamstown enjoys high ADRs and near-constant visitor flow. Submarket status means inventory is still catching up with demand, giving investors early-mover advantage.

2. Red River Gorge

Market Score: 97.66

Average Annual Revenue: $38,141

As one of the country’s premier rock-climbing and hiking destinations, Red River Gorge combines breathtaking scenery with year-round adventure tourism. Cabins and unique stays command premium nightly rates.

1. Frankfort

Market Score: 97.83

Average Annual Revenue: $44,411

Kentucky’s capital city offers government, bourbon trail, and riverfront tourism all in one. Low saturation, attractive property prices, and steady legislative travel push Frankfort to the top of the list.

Should You Invest in Kentucky?

Kentucky stands out for its affordability, diverse tourism drivers, and generally favorable regulatory climate. Investors seeking value can target high-scoring submarkets like Frankfort or Williamstown, while outdoor enthusiasts may prefer lake communities or Red River Gorge for strong seasonal premiums.

Bigger metros such as Lexington and the Cincinnati-Northern Kentucky area provide dependable occupancy from business and collegiate demand, albeit with higher competition. Meanwhile, historic towns like Bardstown and Owensboro leverage cultural events to deliver robust ADRs.

Combined, these factors make Kentucky a compelling choice for STR investors looking to balance cash-flow potential with relatively low barriers to entry.