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Short-Term Rentals

STR / Airbnb Pro Forma

Short-term rental modeling with occupancy, average daily rate, cleaning costs, platform fees, and seasonality baked in. Indianapolis runs roughly 4,900 active short-term rental listings averaging about $34,000 a year in revenue at 57% occupancy and a $182 average daily rate (AirDNA, 2026) — here is how to model where you'd land.

Best for

  • Investors weighing an Airbnb against a long-term rental
  • Hosts setting rates and occupancy expectations before launch
  • Buyers checking whether a property’s STR premium justifies the effort

Use it when

  • Before buying a property you plan to run as an STR
  • When comparing an STR’s net income against leasing it long-term
  • Before furnishing and launching a new listing

Run your numbers

Every figure updates as you type — the defaults are typical Indianapolis numbers.

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Your short-term rental, by the month

Booked nights19.8
Turnovers6.6
Gross monthly revenue$3,265
Platform + cleaning costs$1,083
Monthly cash flow$751
Annual cash flow$9,017
Premium over long-term rental$281

Indianapolis benchmarks

57%

Average Indianapolis STR occupancy across active listings (AirDNA, 2026)

$182

Average daily rate in the Indianapolis market (AirDNA, 2026)

$34.1K

Average annual revenue per active Indianapolis listing (AirDNA, 2026)

~$1,500

Average long-term rent it competes against (Zillow, 2026)

The math behind this calculator

Every number in the tool above comes from these formulas — nothing hidden.

Booked nights

Booked nights = available nights × occupancy rate

A full year has 365 nights; a full month averages 30.4. Occupancy is measured against the nights you make available, not the calendar.

Gross revenue

Revenue = booked nights × average daily rate (ADR)

ADR is your blended average across seasons and weekdays — not your best weekend rate. Cleanings and fees are handled separately below.

Revenue per available night

RevPAR = ADR × occupancy

The single best metric for comparing STR properties: it prices both pricing success and booking frequency at once. A $200 ADR at 40% occupancy loses to a $150 ADR at 65%.

Turnovers

Stays per month = booked nights ÷ average stay length

Every stay is a cleaning, a check-in, and a chance for a bad review. Two-night averages turn far more than four-night averages at the same occupancy.

Net STR income

Net income = revenue × (1 − platform fee %) − cleanings × stays − utilities − operating costs

Platform fees run roughly 15–17% all-in. Utilities run 3–5× a long-term rental because guests treat utilities like they’re free — because for them, they are.

The Indianapolis STR market, honestly

Indianapolis runs roughly 4,850 active short-term rental listings earning an average of $34,100 a year, booked 57% of available nights at an average daily rate of $182 (AirDNA, August 2026). Those are market averages across everything from downtown condos to far-suburban houses — the spread around them is enormous.

Published occupancy estimates for the city range from the high 30s to over 70% depending on methodology and sample, and that spread is itself the lesson: performance is hyper-local. A well-run, well-located property beats the average while a distant or dated listing drags it. Underwrite your property against genuine comparables in the same zip, never against the citywide headline.

The income stack: occupancy, ADR, and RevPAR

Short-term revenue is built from two dials: how many nights you sell (occupancy) and the price you sell them at (ADR). Neither dial means much alone — a high ADR with empty nights and a low ADR sold out can produce identical revenue. RevPAR multiplies them into one comparable number: revenue per available night.

This model computes nights from your occupancy assumption, applies your ADR, then subtracts the real cost stack — platform fees on revenue, cleaning costs on every turnover, and utilities that run several times a long-term rental’s. The number left over is the only one that competes with a tenant’s rent check.

Seasonality and events — the Indianapolis calendar

  • The event calendar carries this market: Gen Con, the Indy 500, NCAA tournaments, conventions at the convention center, and Colts and Fever seasons spike rates and occupancy downtown and near-downtown.
  • Seasonality is real: April, May, and October run hot; January and February run cold. Underwrite the year at your blended average — not your best month, and never your race-weekend rate.
  • Location decides how much of the event premium you catch. Downtown, Fountain Square, Irvington, and Mass Ave-area listings ride the surges; far-flung suburbs mostly ride the base demand.

Dynamic pricing — the difference between a listing that works and one that doesn’t

A static nightly rate is a bet that the market won’t move this week — and that bet rarely pays off. Demand in short-term rentals shifts by day of week, season, event calendar, and booking pace, and industry benchmarks consistently point to double-digit revenue improvements when hosts move from flat rates to dynamic pricing tools.

The practical version: set a floor price you can live with, a ceiling you can defend, and let a pricing tool move between them using market data. You keep the guardrails; the tool does the nightly work. For a single listing it’s an hour of setup that compounds across every booked night.

The cost stack that surprises new hosts

  • Cleanings scale with stays, not revenue — every turn costs the same whether the guest paid $120 or $260. Shorter stays mean more turns at the same occupancy.
  • Platform fees run roughly 15–17% all-in once host and guest fees are counted.
  • Utilities run 3–5× a long-term rental: guests set thermostats aggressively, run laundry daily, and take long showers.
  • Furnishing and setup is a $15,000–$30,000 upfront capital cost — invisible in monthly cash flow, visible in your bank account. Model it into your total invested cash when you judge returns.
  • Insurance differs: standard landlord policies usually exclude short-term use, so budget for proper STR coverage.
  • Lodging and income taxes apply to rental revenue — Indianapolis STRs are subject to lodging taxes that long-term rentals avoid.

STR versus long-term rental — the premium calculation

The calculator compares your STR cash flow against what the property would earn with a long-term tenant. The premium has to be meaningful — roughly $150–300 a month after the extra costs — to justify furnishing, turnover labor, guest messaging, and the operational intensity of hosting. Running an STR is a part-time hospitality job; the numbers should pay you for it.

In Indianapolis, that premium is achievable downtown and in walkable, event-adjacent neighborhoods. It is much harder in far-suburban areas where $1,500 of long-term rent — the city-wide average (Zillow, 2026) — is already a strong number to beat. If your STR barely outearns a tenant, the tenant is the better business.

Regulations and due diligence before you buy

  • Verify it’s legal: City of Indianapolis short-term rental registration and zoning rules vary by district and by whether the property is your primary residence. Confirm current requirements for your specific parcel before buying.
  • Read the HOA covenants if any exist — an HOA ban discovered after closing is an expensive surprise.
  • Verify the demand with actual comps: same zip, similar size and finish, look at their calendars and reviews, not just their rates.
  • Budget for Marion County property taxes plus lodging taxes on revenue — the tax stack on an STR is heavier than a long-term rental’s.

Common questions

What occupancy should I assume for Indianapolis?

The market average is 57% (AirDNA, 2026), with published estimates ranging from the high 30s to over 70% depending on methodology and sample. For underwriting, well-run properties in event-adjacent locations commonly plan around 55–65%, and conservative first-year models use the low end while the listing builds reviews. Underwrite against genuine same-zip comps, not the citywide average.

What average daily rate should I use?

The market average is $182 (AirDNA, 2026), but ADR varies more than occupancy — from roughly $100 for modest rooms to $300+ for premium homes on event weekends. Set yours from actual comparables in your zip with similar size and finish, then average across seasons. Your race-weekend rate is marketing data, not an underwriting input.

Is an Airbnb better than a long-term rental in Indianapolis?

It depends entirely on the premium. Run this calculator against the property’s realistic long-term rent: if the STR clears roughly $150–$300 a month more after cleaning, fees, and higher utilities — and you’re willing to operate it — it can be worth it. If the two are close, the long-term rental delivers similar money with a fraction of the work.

How many turnovers should I expect?

It’s driven by average stay length: booked nights ÷ average stay = stays per month. At 60% occupancy with 3-night stays, that’s about six turns a month — six cleanings, six check-ins, and six chances for a bad review. Longer stays reduce turns but also shrink the guest pool. The cleaning cost input in this model is applied per stay, so stay length flows straight through your bottom line.

What permits do I need for a short-term rental in Indianapolis?

Indianapolis regulates short-term rentals and requires proper registration and adherence to zoning rules, which vary by district and whether the property is your primary residence. HOA covenants can add restrictions on top. Confirm current requirements with the city and any HOA before purchasing — Austin helps investors verify this during due diligence.

Can I short-term rent my primary residence or house hack with STR income?

Yes — renting a spare bedroom or a unit in your primary residence via Airbnb is a common house hack variant, and primary-residence STRs usually face lighter regulation than whole-investment-home listings. Note that lenders rarely count bedroom income toward qualifying, and the operations are entirely yours: guests, cleanings, and reviews on top of normal homeowner life.

What taxes apply to an Indianapolis STR?

Beyond normal property taxes, short-term rental revenue is subject to lodging taxes, and the net income is taxable like any rental income. Standard landlord insurance also usually excludes short-term use, so budget for a proper STR policy. Your CPA should model the tax stack before you commit — it’s part of the premium calculation, not a footnote.

These calculators are educational tools. Good underwriting still depends on accurate rents, expenses, financing, repairs, vacancy, management, and local market judgment.

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