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The highest-performing listings in Frankfort.
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Challenging to Investors
Owner‑occupied STRs are allowed broadly with simple licensing, but non‑owner‑occupied STRs are limited to two special districts with strict caps (5% in Special Capital, max 8 units in Historic) and conditional use approvals, plus a $250 annual fee, business license, inspections, and local tax remittance—making compliance costly and constrained.
Local STR Agent
STR specialist · Frankfort, KY
Frankfort is the capital of Kentucky and the seat of Franklin County, a small city of roughly 28,000 residents set along the Kentucky River in the heart of the Bluegrass region. Despite its modest size, it carries the dual identity of state capital and bourbon country, with a downtown anchored by a striking capitol dome and a working riverfront lined with historic warehouses. The city serves as a quieter, more affordable gateway to the broader central Kentucky landscape, sitting approximately 50 miles east of Louisville and about 30 miles west of Lexington, the region's two largest urban anchors.
A short drive or even a walk from downtown leads to Buffalo Trace Distillery, often cited as the oldest continuously operating distillery in the United States, set on the banks of the Kentucky River just minutes from the state capitol. The distillery offers complimentary tours that walk visitors through the grain-to-glass process, and its grounds and gift shop draw bourbon enthusiasts year-round from across the country.
Just up the hill from the river, the Kentucky State Capitol grounds frame the city skyline with the columned facade of the Old State Capitol and the towering dome of the current Kentucky State Capitol, both open for tours that trace Kentucky's political history. Nearby, the Thomas D. Clark Center for Kentucky History extends the story further with exhibits covering the state's Native American, Civil War, and bourbon heritage, and the nearby Liberty Hall historic site offers a glimpse into early Frankfort life along the river.
Within a half hour's drive, the surrounding Franklin and Woodford counties open up some of the most celebrated stops on the Kentucky Bourbon Trail, including Woodford Reserve near Versailles and the rolling horse country around Lexington. Keeneland Race Course and the Kentucky Horse Park are both within easy reach, and the manicured horse farms that define the region's pastoral scenery unfold in every direction. For travelers willing to venture further, Louisville's Churchill Downs sits about an hour west, while the sandstone cliffs and natural arches of the Red River Gorge are roughly two hours to the east.
Frankfort's appeal as a short-term rental base comes from the rare combination of small-city walkability and a central location within Kentucky's two strongest tourism corridors. Guests can spend mornings touring a historic distillery, afternoons wandering state government landmarks, and evenings driving out to bourbon trail landmarks or horse country estates before returning to a quieter, more residential setting than Lexington or Louisville. For property owners, that positioning translates into steady demand from state government travelers, bourbon tourists mapping out regional itineraries, and visitors who use Frankfort as an affordable, central home base for exploring the wider Bluegrass.