Managing Your Property
Guide · Author: Austin Coon
Indianapolis runs roughly 4,850 active short-term rental listings averaging about $34,100 a year in revenue, booked 57% of available nights at a $182 average daily rate (AirDNA, 2026). Those are averages across everything from downtown condos to far-suburban houses — the spread around them is enormous, and it’s decided by location, operations, and honest cost modeling.
This guide is the decision framework: when a short-term rental beats a tenant, and when it just beats you.
Run the STR’s net income against what the property would earn with a long-term tenant — roughly $1,500 a month on average in Indianapolis (Zillow, 2026). The STR 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.
In walkable, event-adjacent neighborhoods the premium is achievable. In far suburbs where $1,500 of rent is already a strong number, the tenant is usually the better business.
What occupancy should I assume?
The market average is 57%, with well-run event-adjacent listings planning 55–65%. Underwrite your first year at the low end while the listing builds reviews.
Can I STR part of my primary residence?
Yes — renting a spare bedroom is a common house hack variant, and primary-residence STRs usually face lighter regulation. Lenders rarely count bedroom income toward qualifying, and the operations are entirely yours.
Where does the math live?
The STR / Airbnb Pro Forma calculator on this site models occupancy, ADR, cleanings, fees, and the long-term comparison side by side.