Introduction
Indianapolis, Indiana, is a city known for its rich history, diverse culture, and vibrant community. It’s also becoming a popular destination for travelers seeking unique short-term accommodations through platforms like Airbnb. In this comprehensive guide, we’ll delve into the short-term rental market in Indianapolis, covering essential data points, local insights, and answers to important questions for potential hosts and guests.
Indianapolis Housing Market Overview
To understand the short-term rental market, we must first examine the local housing landscape:
Home Values and Depreciation
According to Zillow, the median home value in Indianapolis stands at $218,591. Homes in the area experienced a modest depreciation of 1.70%. This data suggests that Indianapolis homeowners may seek alternative income sources, such as short-term rentals, to offset property expenses.
Short-Term Rental Market Statistics
Indianapolis boasts a thriving short-term rental market, offering diverse opportunities for hosts and guests:
Number of Active Short-Term Rentals
As per Chalet, Indianapolis currently boasts a remarkable 3,156 active short-term rentals. This abundance of available properties indicates a robust market for both hosts and travelers.
Pricing and Occupancy
The average daily rate for short-term rentals in Indianapolis is $186.80, making it an attractive option for travelers seeking affordable accommodations. The occupancy rate of 47% reflects consistent demand throughout the year.
Annual Revenue and Yield
Hosts in Indianapolis can expect an annual revenue of approximately $26,600 from their short-term rentals, translating to an average gross yield of 12.17%. These numbers highlight the potential for lucrative returns on investment.
Property Taxes
It’s important to consider expenses when entering the short-term rental market. The average property tax rate in Indianapolis is 0.85%, a factor that hosts should factor into their financial planning, but it remains reasonable compared to other markets.
