Indiana's Airbnb Investment Hotspots: Where Opportunity Awaits

Airbnb has emerged as a lucrative investment avenue and Indiana offers a plethora of markets ripe with potential. From hidden gems to bustling city centers, this comprehensive guide delves into the top Airbnb markets in Indiana. It examines the ROI, average daily rates, occupancy rates, and the unique appeal each location provides for investors. Whether you are a seasoned investor or a newcomer to the Airbnb scene, this guide will help you navigate the Indiana market, highlighting the best investment opportunities available.

Effortlessly navigate the top Airbnb markets across the United States with Awning's pioneering Top Airbnb Market tool. With regular updates, this comprehensive tool offers detailed rankings and direct links to each market's Airbnb data, empowering you to make informed decisions with confidence.

Explore the top Airbnb markets in Indiana and discover what makes each uniquely appealing:

1. Nashville, IN - Best for nature-focused experiences
2. Morgantown, IN - Best for university-centered rentals
3. Gary, IN - Best for affordable entry into the market
4. South Bend, IN - Best for capitalizing on growing tourism
5. Indianapolis, IN - Best for high returns in a large, diverse market
6. Monticello, IN - Best for summer tourism potential
7. Michigan City, IN - Best for steady income near Lake Michigan
8. Evansville, IN - Best for affordable property prices
9. Syracuse, IN - Best for outdoor recreational activities
10. La Porte, IN - Best for small town charm near popular vacation spots

1. Nashville, IN

Nestled amidst the picturesque rolling hills of southern Indiana, Nashville emerges as an enticing market for those seeking a profitable investment in the Airbnb rental industry. This charming town, known for its artistic spirit and natural beauty, offers a serene escape for travelers seeking a tranquil retreat.

With its proximity to the renowned Brown County State Park, a haven for outdoor enthusiasts, Nashville captures the hearts of nature lovers and adventure seekers alike. Imagine your guests exploring the park's expansive trails, immersing themselves in the vibrant foliage during autumn, or indulging in a myriad of recreational activities such as hiking, mountain biking, and horseback riding.

The thriving tourism industry in Nashville sets the stage for a promising ROI of 17%, a testament to the market's potential for lucrative returns. With an estimated annual revenue of $52,000, investing in an Airbnb property in this idyllic town can yield substantial financial benefits. The town's average Airbnb price of $326k is reasonable, making it an attractive option for investors looking to enter the market without breaking the bank.

With an average daily rate of $242 and an occupancy rate of 65%, Nashville presents an alluring opportunity to generate revenue in the short-term rental market. The market size of 340 Airbnb listings suggests a healthy supply of rentals, indicating a demand for accommodations in the area.

To maximize the appeal of your Nashville Airbnb, highlight the town's artistic heritage and creative atmosphere. Embrace the town's vibrant arts scene, from local galleries showcasing exquisite works of art to live music performances that captivate visitors with soulful melodies. Encourage your guests to explore the charming downtown area, filled with quaint shops, artisanal crafts, and delightful dining options that reflect the region's rich culinary traditions.

Craft an inviting ambiance within your Airbnb property, blending rustic charm with modern comforts. Think warm wooden accents, cozy furnishings, and tasteful nods to Nashville's artistic spirit. Offer amenities such as outdoor seating areas, fire pits, or private balconies where guests can unwind and soak in the tranquility of the surrounding hills.

Nashville's idyllic setting, artistic heritage, and proximity to outdoor splendors make it a destination that captivates the imagination of travelers. Seize the potential of this enchanting market, position your Airbnb property as a gateway to scenic beauty and artistic inspiration, and let the allure of Nashville weave its magic on guests from far and wide. With a high ROI and steady occupancy rates, Nashville, IN is a promising market for investors seeking a profitable Airbnb investment.

2. Morgantown, IN

Morgantown's appeal extends beyond a single season. Indiana University's academic calendar ensures a consistent flow of visitors throughout the year, including academic conferences, graduations, and alumni events. Furthermore, the natural beauty of Brown County State Park offers year-round attractions, such as fall foliage tours, winter sports, springtime hikes, and summer adventures. This year-round demand creates a reliable income stream for Airbnb investors, bolstering the potential for a significant return on investment.

With an impressive ROI of 22%, investing in an Airbnb property in Morgantown can deliver substantial returns on your investment. The projected revenue of $23,000 showcases the profitability of the market, providing a lucrative opportunity for investors to capitalize on the demand for short-term rentals.

Morgantown's market size is classified as small, with 65 active Airbnbs. This indicates a manageable and less saturated market, allowing investors to capture a share of the demand without excessive competition. To maximize your property's visibility, consider optimizing your listing with professional photographs, compelling descriptions, and positive guest reviews.

The average Airbnb price in Morgantown stands at $224,000, making it an attractive market with affordable property options. This allows investors to enter the market with reasonable initial investments while still benefiting from the robust demand in the area.

With an average daily rate of $150, guests are willing to invest in quality accommodations in Morgantown. Conduct thorough market research to ensure your pricing remains competitive while considering the value your property offers. By providing unique amenities, such as proximity to outdoor activities, cozy fireplaces, or scenic views, you can justify higher rates and attract guests seeking memorable experiences.

The occupancy rate in Morgantown is 58%, reflecting a healthy demand for short-term rentals in the area. However, it's essential to employ effective marketing strategies to capture the attention of potential guests and maintain a steady stream of bookings. Highlight the proximity to Indiana University, appealing to visiting families, prospective students, and alumni seeking a comfortable and convenient place to stay.

Morgantown's captivating fusion of academia, scenic wonders, and small-town allure offers an enticing proposition for Airbnb investors. Seize the opportunity to cater to the needs of diverse travelers, and let Morgantown's unique appeal pave the way for a successful and fulfilling investment journey.

3. Gary, IN

Gary, IN has potential for Airbnb investors looking to capitalize on the growing tourism industry in the area. Located just 25 miles from Chicago, Gary offers easy access to the city's attractions while providing a more affordable lodging option for visitors. Additionally, the recent designation of the Indiana Dunes National Park has brought even more attention to the area, making it an attractive destination for travelers.

Investing in Airbnb properties in Gary can yield a solid ROI of 9%.  With an average daily rate of $212 and an occupancy rate of 56%, investors can expect to generate around $22k in revenue per year. The average Airbnb price of $233,000 indicates a reasonable entry point for investors looking to tap into the market without significant upfront costs.

Gary boasts a small market size with 117 active Airbnbs, suggesting a relatively exclusive rental market with limited competition. This factor can provide investors with an opportunity to establish a strong foothold and cater to the demand for accommodations in the area.

Emphasize Gary's proximity to Chicago, a major metropolitan hub that attracts a diverse range of visitors. Highlight the ease of access to Chicago's iconic landmarks, world-class museums, vibrant culinary scene, and renowned shopping districts. Additionally, promote the convenience of Gary's location for travelers who prefer a quieter and more affordable stay compared to the bustling city center.

The growing tourism industry in Gary is another key aspect to highlight. Mention the nearby Indiana Dunes National Park, known for its picturesque beaches, diverse ecosystems, and recreational activities. Showcase the natural beauty of the area, enticing outdoor enthusiasts, and nature lovers to choose Gary as their base for exploring the region.

To maximize occupancy rates, consider targeting specific guest segments. Focus on attracting tourists seeking a cost-effective alternative to staying in Chicago while still enjoying convenient access to the city. Additionally, target nature enthusiasts and adventure seekers who wish to explore the nearby Indiana Dunes and participate in outdoor activities such as hiking, birdwatching, or kayaking.

Promote your Gary properties by utilizing online travel platforms, social media, and local tourism websites. Highlight the unique features and amenities of each property, such as comfortable accommodations, modern conveniences, and proximity to local attractions. By emphasizing the value and convenience of staying in Gary, you can position your Airbnb listings as attractive options for a diverse range of travelers.

In summary, Gary, IN offers a promising investment opportunity for those considering Airbnb rentals. Its proximity to Chicago, growing tourism industry, and reasonable market conditions make it an appealing market for investors. By capitalizing on the location's advantages and promoting the unique offerings of the area, you can position your Airbnb properties for success in this evolving market.

4. South Bend, IN

South Bend, IN presents a promising investment opportunity for those interested in short-term rentals. Its proximity to Notre Dame University, a renowned educational institution, and the growing tourism industry in the area contribute to its appeal as a lucrative market.

With an estimated ROI of 12%, South Bend offers the potential for a high return on investment. The average annual revenue per listing is projected to be around $20k, considering the market's average daily rate of $201 and an occupancy rate of 53%. Although the market size is medium, with 960 Airbnb listings, it provides a substantial number of opportunities for investors to establish a presence and cater to the demand.

One of the key factors driving the demand for short-term rentals in South Bend is the presence of Notre Dame University. The university attracts a significant number of visitors, including prospective students, families of students, and alumni attending events and football games. Investors can target this specific market segment by offering accommodations that cater to their needs, such as proximity to the university, comfortable amenities, and a welcoming environment.

In addition to Notre Dame, South Bend offers a variety of cultural attractions and outdoor activities that appeal to visitors. The city's vibrant arts scene, including the South Bend Museum of Art and the Morris Performing Arts Center, attracts art enthusiasts and theatergoers. The nearby St. Joseph River provides opportunities for outdoor activities like boating, fishing, and hiking. Investors can highlight these attractions in their property listings to attract tourists seeking a combination of cultural experiences and outdoor recreation.

When evaluating potential investment properties, investors should consider the average Airbnb price of $232k in South Bend. It's important to assess the potential rental income against the purchase price to ensure a profitable investment. Additionally, staying informed about local events, such as football games, graduation ceremonies, and festivals, can help investors capitalize on peak demand periods and maximize occupancy rates.

Create a comfortable and inviting space for guests, incorporating touches that reflect the local charm and cultural heritage. Ensure seamless guest experiences by providing excellent customer service, local recommendations, and personalized touches that will leave a lasting impression. Providing amenities that cater to the needs and preferences of visitors, such as comfortable furnishings, reliable Wi-Fi, and convenient parking, can contribute to positive reviews and encourage repeat bookings.

In the vibrant city of South Bend, your Airbnb investment has the potential to thrive. By capitalizing on the city's proximity to Notre Dame University, its growing tourism industry, and the variety of attractions it offers, you can create a unique and memorable experience for your guests. Whether they're visiting for sports, academics, or leisure, your property can serve as a home away from home, making their stay in South Bend truly exceptional.

5. Indianapolis, IN

Indianapolis, IN is a top market for Airbnb investors due to its thriving tourism industry and growing population. The city is home to numerous attractions, including the Indianapolis Motor Speedway, the Indianapolis Zoo, and the Children's Museum of Indianapolis. Additionally, the city hosts major events such as the Indy 500 and the NCAA Final Four, which attract a large number of visitors each year.

Investing in Indianapolis can yield a respectable 7% ROI, making it an enticing choice for those seeking a profitable venture. With an estimated annual revenue of $15,000, there is potential to generate consistent income from your Airbnb property. The average Airbnb price of $272,000 reflects the affordability of real estate in this market, allowing investors to enter the market with reasonable initial investments.

With a large market size of 2,787 active Airbnbs, Indianapolis provides ample opportunities for investors to find their niche and cater to the diverse needs and preferences of travelers. From downtown lofts to cozy suburban homes, there is a range of accommodation options to suit various guest preferences and budgets.

Position your property strategically to attract guests who visit Indianapolis for its vibrant cultural scene, renowned sports events, and thriving business community. Highlight its proximity to popular attractions such as the Indianapolis Motor Speedway, the Indianapolis Museum of Art, and the vibrant downtown area with its restaurants, shops, and entertainment venues.

Emphasize the affordability and convenience of staying in an Airbnb compared to traditional hotels, making it an attractive choice for budget-conscious travelers or those seeking a more unique and personalized experience. Showcase the local charm of Indianapolis by recommending local eateries, breweries, and live music venues, allowing guests to immerse themselves in the city's vibrant atmosphere.

With an average daily rate of $118 and an occupancy rate of 61%, Indianapolis offers the potential for steady bookings and revenue. To stand out in this competitive market, provide a comfortable and welcoming space for guests, incorporating thoughtful touches that reflect the city's culture and charm. Excellent customer service, responsiveness, and attention to detail will contribute to positive guest experiences and drive positive reviews.

In the diverse and dynamic city of Indianapolis, your Airbnb investment can thrive. By capitalizing on its growing tourism industry, affordability, and range of attractions, you can create a memorable and enjoyable experience for your guests. Whether they are visiting for business, sports events, or cultural exploration, your property can serve as a comfortable and convenient base for their Indianapolis adventure.

6. Monticello, IN

Monticello, IN offers an attractive investment opportunity for those interested in short-term rentals. Its proximity to popular tourist destinations like Indiana Beach Amusement Resort and Lake Shafer positions it as a sought-after location during the summer months, when visitors flock to enjoy the amusement park and the recreational activities offered by the lake.

With a projected ROI of 11%, Monticello offers a favorable return on investment, ensuring that your venture is financially rewarding. With an estimated revenue of $22,000, you can generate consistent income from your Airbnb property in this small but thriving market.

The average Airbnb price of $256,000 reflects the reasonable real estate prices in Monticello, making it accessible for investors seeking to enter the market with a manageable investment. It's important to assess the potential rental income against the purchase price to ensure a profitable investment. Additionally, being aware of the peak season and high-demand periods, such as summer holidays and weekends, can help investors optimize their occupancy rates and maximize rental income.

In a market with only 63 active Airbnbs, there is room to carve out a niche and differentiate your property from the competition. Consider the unique features and amenities of your rental that set it apart, whether it's a waterfront location, a cozy cabin, or a family-friendly retreat. Highlight the convenience and comfort of your property, showcasing its proximity to the area's attractions and the natural beauty of Lake Shafer.

During the peak summer season, when tourist traffic is at its highest, make sure to optimize your property's occupancy rate. With an average daily rate of $155 and an occupancy rate of 58%, there is potential to attract guests seeking a memorable vacation experience in Monticello.

Market your Airbnb as a desirable accommodation option for families, thrill-seekers, and nature enthusiasts alike. Showcase the fun and excitement of Indiana Beach Amusement Resort, highlighting the thrilling rides, water park attractions, and evening entertainment options. Emphasize the picturesque beauty of Lake Shafer, with its opportunities for boating, fishing, and other water-based activities.

Providing attractive amenities and features that cater to the needs of vacationers is crucial for success in the Monticello short-term rental market. These may include amenities such as private access to the lake, outdoor seating areas, and recreational equipment like kayaks or paddleboards. Highlighting the proximity to Indiana Beach and Lake Shafer in property listings can help attract tourists seeking a memorable vacation experience.

By capitalizing on Monticello's unique attractions and positioning your Airbnb property as an exceptional accommodation choice, you can tap into the growing demand for vacation rentals in this promising market. With its proximity to Indiana Beach Amusement Resort and the allure of Lake Shafer, Monticello offers a fantastic opportunity to create memorable experiences for your guests and achieve a successful short-term rental investment.

7. Michigan City, IN

Michigan City, IN offers a compelling investment opportunity for those interested in short-term rentals. Its proximity to Lake Michigan and popular tourist attractions like the Indiana Dunes National Park make it an attractive destination for visitors seeking a combination of outdoor activities and natural beauty throughout the year.

With an estimated ROI of 8%, investing in an Airbnb property in Michigan City can yield favorable returns. Anticipate generating revenue of around $27,000, thanks to the city's appeal to visitors seeking a beach getaway or outdoor adventure in the picturesque dunes.

The average Airbnb price in Michigan City is $332,000, reflecting the reasonable real estate prices in the area. This provides investors with an opportunity to enter the market with a manageable investment while tapping into the demand for vacation rentals.

Within the market of 343 active Airbnbs, it is essential to distinguish your property and make it stand out. Consider the unique features and amenities of your rental that can attract guests, such as a convenient location near the beach, stunning lake views, or modern amenities that enhance the guest experience.

While the occupancy rate stands at 52%, there is potential to optimize your property's performance. With an average daily rate of $198, position your Airbnb as an excellent choice for travelers seeking a comfortable and memorable stay near Lake Michigan and the Indiana Dunes. Emphasize the proximity to the beach, the natural beauty of the area, and the various outdoor activities available, such as hiking, swimming, and birdwatching.

As part of your marketing strategy, highlight the attractions of Michigan City and its surroundings. Showcase the stunning sandy beaches of Lake Michigan, the vast expanses of the Indiana Dunes National Park, and the charming local amenities and dining options. Appeal to families, nature lovers, and those seeking a relaxing beach vacation.

Providing outstanding hospitality and attention to detail will help you earn positive guest reviews and drive repeat business. Consider offering amenities such as beach gear, bicycles, or outdoor seating areas to enhance the guest experience and encourage positive word-of-mouth recommendations.

By positioning your Airbnb property as a sought-after accommodation choice in Michigan City, you can tap into the growing demand for vacation rentals in this attractive market. The combination of Lake Michigan's allure, the natural beauty of the Indiana Dunes, and the city's proximity to major tourist attractions creates a compelling proposition for visitors seeking a memorable getaway.

8. Evansville, IN

Investors looking for affordable real estate prices and a growing tourism industry will find Evansville to be an attractive market. The city's attractions, including museums, parks, and a thriving food and beverage scene, make it a popular destination for travelers. With a growing tourism industry and affordable real estate prices, the city offers a favorable environment for investors to capitalize on the demand for short-term rentals.

With an estimated ROI of 9%, investing in an Airbnb property in Evansville can generate a revenue of around $12,000. While the average Airbnb price is $145,000, reflecting the affordability of real estate in the area, it provides an opportunity to enter the market with a manageable investment.

The market size in Evansville is considered small, with 228 active Airbnbs. This offers a relatively competitive landscape, so it's crucial to differentiate your property and make it stand out. Consider the unique features and amenities your rental can offer, such as a convenient location near popular attractions, stylish interior design, or special amenities that cater to the needs and preferences of your target guests.

The occupancy rate stands at 69%, indicating a healthy demand for short-term rentals in Evansville. However, the average daily rate is $74, suggesting an opportunity to optimize your property's performance and potentially increase the average rate. Consider the value your rental provides, such as its proximity to attractions, the comfort and convenience it offers, and any additional services or amenities that can justify a higher rate.

To market your Airbnb effectively, highlight the attractions and experiences Evansville has to offer. Emphasize the city's vibrant food and beverage scene, museums, parks, and any unique local events or festivals. Appeal to different target groups, such as families, history enthusiasts, or food lovers, by showcasing how your property caters to their specific needs and interests.

Providing excellent hospitality and creating a welcoming and comfortable atmosphere will help you earn positive guest reviews and establish a strong reputation. Pay attention to cleanliness, communication, and responsiveness to guest inquiries. Consider offering special touches, such as local recommendations, welcome baskets, or personalized guest experiences, to exceed guest expectations.

By positioning your Airbnb property as a valuable and attractive choice in Evansville, you can tap into the growing tourism industry and the city's affordability advantage. Focus on showcasing the unique aspects of your property, promoting its convenience and comfort, and highlighting the nearby attractions and experiences that make Evansville an appealing destination for travelers.

9. Syracuse, IN

Located near popular lakes and outdoor recreational activities, Syracuse offers a unique opportunity for investors to attract a variety of travelers. With a small market size and only 66 Airbnbs currently available, there is plenty of room for growth and expansion in this market.

With an estimated ROI of 8%, investing in an Airbnb property in Syracuse can generate a revenue of approximately $33,000. The average Airbnb price in the area is $445,000, indicating a market with higher-value properties. This offers potential for solid returns on investment, but it also emphasizes the importance of positioning your property competitively and appealing to the target market.

To maximize bookings, it's crucial to differentiate your property and make it stand out. Highlight the unique features and amenities of your rental, such as lakefront access, private outdoor spaces, or special equipment for water sports. Consider catering to specific target groups, such as families, fishing enthusiasts, or nature lovers, by offering amenities or services tailored to their interests.

The occupancy rate in Syracuse stands at 55%, indicating a moderate level of demand for short-term rentals. To optimize your property's occupancy, focus on effective marketing strategies and providing exceptional guest experiences. Showcase the proximity of your property to popular lakes and outdoor activities, highlighting the convenience and accessibility it offers. Use high-quality photographs and detailed descriptions to capture the attention of potential guests.

The average daily rate in Syracuse is $275, which suggests a willingness among guests to pay for quality accommodations in this desirable location. However, it's important to conduct market research and analyze the rates of comparable properties to ensure your pricing is competitive. Consider the value proposition of your rental, such as its unique features, amenities, or proximity to attractions, and set a rate that reflects the level of quality and experience you offer.

To market your Airbnb effectively in Syracuse, leverage online platforms and social media to reach potential guests who are interested in lakeside getaways and outdoor activities. Highlight the local attractions and recreational opportunities, including popular lakes for fishing, boating, or swimming, hiking trails, and nearby golf courses. Emphasize the serene and natural beauty of the area and position your property as a comfortable and convenient base for enjoying all that Syracuse has to offer.

10. La Porte, IN

La Porte, IN is an investor's dream when it comes to the Airbnb market. With its close proximity to the stunning shores of Lake Michigan and the renowned Indiana Dunes National Park, this charming city offers a wealth of opportunities for both outdoor enthusiasts and beach lovers.

With a remarkable ROI of 15%, investing in an Airbnb property in La Porte can provide a substantial return on your investment. The estimated revenue of $31,000 demonstrates the potential for a profitable venture. Moreover, the average Airbnb price in the area is $292,000, making it an attractive market with affordable property options for investors.

In terms of market size, La Porte is on the smaller side, with just 34 active Airbnbs. This means you'll face less competition compared to larger markets, allowing you to capture the attention of potential guests more effectively. It's crucial to stay informed about the local market dynamics and adapt your pricing and marketing strategies accordingly to stay ahead of the game.

Promote the town's proximity to Lake Michigan, one of the Great Lakes and a beloved destination for beachgoers and outdoor enthusiasts. Showcase the natural beauty and recreational activities available, such as swimming, boating, fishing, and relaxing on the sandy shores. Emphasize the allure of this serene coastal escape and position your properties as ideal accommodations for those seeking a peaceful and rejuvenating getaway.

Highlight the appeal of nearby attractions like the Indiana Dunes National Park, a treasure trove of diverse ecosystems, scenic trails, and opportunities for outdoor exploration. Encourage guests to immerse themselves in the park's natural wonders, whether it be hiking through lush forests, birdwatching along the shoreline, or admiring the towering sand dunes.

The occupancy rate in La Porte stands at 53%, indicating a moderate level of demand for short-term rentals in the area. To optimize your property's occupancy, focus on implementing effective marketing strategies and consider highlighting unique features or amenities that make your rental stand out. Emphasize the convenience of being near Lake Michigan, accentuating water activities, beach access, and breathtaking scenic views.

To increase occupancy rates, consider targeting specific guest segments. Tailor your marketing efforts to attract families, nature enthusiasts, and travelers seeking a tranquil retreat. Highlight the unique features and amenities of your La Porte properties, such as access to hiking trails, proximity to local attractions and dining options, outdoor recreational equipment, or a tranquil patio perfect for soaking in the scenic views.

With a strong ROI, competitive ADR, and a moderate market size, there is tremendous potential for profitable returns in La Porte. By distinguishing your rental, setting competitive rates, and implementing effective marketing strategies that showcase its unique features and proximity to attractions, you can position your Airbnb property for success in vibrant La Porte.

Bottom Line

Indiana presents a variety of investment opportunities for Airbnb investors. From the natural allure of Nashville to the urban charm of Indianapolis, the state offers a range of markets to suit different investor preferences. By focusing on ROI, occupancy rates, and the unique appeal of each location, investors can identify the best opportunities for profitable Airbnb investments in Indiana.