Lebanon, KY

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Lebanon short-term rental market based on reliable data.

Listings

71 / 113

Reliable / Active

Cap Rate

9%

Middle-Earners Gross Yield

Revenue

$19,830

Middle-Earners Revenue

Occupancy

54%

Middle-Earners Occupancy

Home Value

$232,828

Median Home Sale Price

Top Earners

$39,989

Top-Earners Revenue

Lebanon

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Lebanon.

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B

Generally Investor friendly

Lebanon Regulations

Allowed under Kentucky law with no identified local caps or bans, and the tone is permissive, but Lebanon lacks published city-specific rules, making permitting, fees, inspections, and enforcement uncertain and moderate in practice.

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About Lebanon

Lebanon is a small historic city in central Kentucky, serving as the county seat of Marion County. With a population of approximately 6,000 residents, it carries the character of a traditional Bluegrass town while sitting at the heart of one of America's most celebrated bourbon-producing regions. Best known as a convenient base for exploring the Kentucky Bourbon Trail, Lebanon offers travelers a quieter, more affordable alternative to the busier tourist hubs of the state. It lies about 65 miles south of Louisville and roughly 90 miles southwest of Lexington, placing it within easy reach of both major cities for weekend getaways and longer Bourbon Trail circuits.

Just a short drive south of Lebanon in the small community of Loretto sits Maker's Mark, one of the bourbon industry's most iconic names and a flagship stop on the official Kentucky Bourbon Trail. Visitors tour the historic grounds, watch the signature red wax bottling process by hand, and walk landscaped paths designed to reflect the distillery's heritage. The drive from downtown Lebanon to the distillery is roughly 20 to 25 minutes along rural Kentucky backroads, making it a natural day trip for guests staying in the area.

A short drive west in Hodgenville lies the Abraham Lincoln Birthplace National Historical Park, which preserves the symbolic birthplace cabin of the 16th U.S. president and features a more formal memorial building set atop a landscaped hillside. The site draws visitors interested in presidential history, Civil War-era heritage, and the broader Lincoln Trail that threads through central Kentucky. The drive from Lebanon is approximately 30 to 40 minutes, depending on the route taken.

Downtown Lebanon itself is anchored by the historic Marion County Courthouse and its traditional square, surrounded by locally owned shops, cafes, and small restaurants. The compact core reflects the architectural heritage of a 19th-century county seat, and the town hosts seasonal community events that give visitors a feel for local Bluegrass culture. Surrounding the city, the rolling pastures and horse country of central Kentucky offer scenic drives connecting to additional Bourbon Trail distilleries near Bardstown, Springfield, and beyond, broadening the appeal for travelers who want to string multiple stops together.

Lebanon's combination of small-town character, its proximity to marquee bourbon and presidential-history destinations, and its position within a comfortable drive of both Louisville and Lexington makes it a compelling base for short-term rental guests. Visitors can experience the authentic pace of small-town Kentucky while still being a short drive from nationally significant attractions, giving property owners a steady mix of bourbon tourists, history enthusiasts, and weekend road-trippers looking for a quieter alternative to the state's larger cities.

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