Lebanon Market Update (October 2025): Rental & Sales Data for Investors
Lebanon is the final market in this month’s roundup—and while it’s still a small sample market, it’s one we keep reporting on intentionally. The goal is awareness: Lebanon is growing, the wave is coming, and investors who get plugged in early can often benefit most.
A key reminder from this segment: one data point can be misleading. Month-over-month and year-over-year changes can swing sharply in smaller markets as inventory grows and the mix of homes changes. That’s why the focus should be on trend lines over time, not just one percentage.
Lebanon Rental Market (October 2025)
This month’s rental data reinforces why Lebanon remains on the radar. Inventory is still small, but it’s increasing—and leasing speed remains excellent.
- Active single-family rentals: 15 (up 36% month over month)
- Average rent (single-family): $2,213
- Rent change (month over month): up 16%
- Rent change (year over year): down 2% (likely influenced by inventory mix)
- Average days on market (single-family): 25 (one of the best this month)
- Average rent per square foot: $1.29
A quick note on the year-over-year number: as Lebanon grows from a market with just a handful of listings to one with more inventory, you’ll often see the “average” shift simply because the market now includes a wider range of homes. More rentals can mean more variety—some higher-end, some more entry-level—so the average can look “down” even when the market trend is still moving up over time.
Apartments Snapshot
- Apartments available: 36 (more than double the single-family inventory)
- Average apartment rent: $1,324
- Apartment rent per square foot: $1.25 (similar to single-family on a per-foot basis)
Lebanon shows a meaningful gap between single-family rents and apartments—nearly $1,000/month. That spread is worth watching because it can influence tenant behavior and long-term rental demand as more inventory enters the market.
Lebanon Sales Market (Investor View: Under $500K)
On the sales side, Lebanon remains an affordable entry point with strong market velocity—another reason it’s viewed as a growth opportunity tied to broader Boone County development.
- Average days on market: 34
- Average price per square foot: $173
- Average sales price: $282,061
- Sales price change (year over year): up 12%
- Sales price change (month over month): down 8% (context matters in small markets)
- Homes sold (under $500K): 23
The sales trend line for the year appears relatively flat to slightly up overall, with a few “weird” months that can happen when a small number of transactions influences the average. The larger takeaway remains: Lebanon is early, and the combination of affordability plus growth indicators suggests there’s still room for both rents and prices to run over time.
What This Means for Investors
- Don’t overreact to one month: With 15 active rentals and 23 sales, a few unique properties can skew averages.
- Watch the trend line: The bigger story is the longer-term move from roughly $1,500/month earlier in the year to above $2,200/month—an eye-catching shift.
- Leasing speed is strong: 25 days on market in October is excellent and signals demand even as the market expands.
- Affordability is still a core advantage: Sales pricing remains approachable, and the “under $300K” segment still appears active.
- Growth tailwinds matter: If you follow the economic updates tied to Lebanon development, the real estate market may continue to reflect that momentum.
Lebanon may look “small” on paper today, but that’s exactly why it’s worth tracking. Markets often feel quiet right before they accelerate—and the data suggests Lebanon is still early in its growth cycle.
Transcript Here
Lebanon Overview | 0:00
One data point can be misleading.
Yeah.
One way or the other. It’s about looking at the trends. That’s why we report all of this stuff. We don’t want to just report one thing. Month over month it’s up 16%—that sounds great, but maybe there was a weird thing that happened that one month. For me, it’s about looking at this over time. That’s why we include these graphs, because it provides so much more context, a lot more meaning.
That’s right.
All right, I’ll take it. This is our last one. Lebanon. We’ve been reporting on this. It’s like we finally see 15 houses.
I know.
Up 36% month over month. It’s growing.
Yeah. And I have conversations on Lebanon more and more as each month passes. There’s obviously a lot more activity.
Yeah. The flood is coming. The wave is coming. That’s why we’re talking about it now when it seems a little bit silly to talk about a market with 6, 7, 8, 10 homes—even 15 homes—because it’s very small. We’re trying to raise awareness so investors can get plugged in early and take advantage of the opportunity. You’ll see in the sales data on the next slide there’s already been a run-up, and there’s definitely more room to run with sales prices, rental prices, all that kind of stuff.
Take a look at the numbers. 15 homes on the market seems kind of small, but it’s actually a pretty big increase. Average rental price $2,213. That’s up 16% month over month.
Let me stop you right there for a second. Some people might look at this as month over month it’s up 16, but year over year it’s down 2%. What do you mean it’s growing? That’s because you have more homes on the market. With more homes, you’ll have some that are $3,000 a month, but you’ll also have more homes that are $2,000 a month. It may appear the overall market is down year over year, but that’s not really the case. You have more inventory.
Go ahead.
Sorry.
It’s fine. You don’t want to take one month and extrapolate too much information. A more meaningful conversation is to look at that bottom left graph and look at price over time—look at the dark blue line because that’s 2025. We started the year at what, 15-something a month, and we’re going to end the year at 2,250. That’s a meaningful increase. That’s a $700 increase from the beginning of the year to the end of the year. That’s a trend line clearly going in the right direction.
To your point, we’re going to see bigger houses, nicer houses. This is a changing of what’s on the market, what’s renting. It’s not these smaller ranch houses anymore. It’s going to be bigger two-stories, that kind of stuff. That’s what you’re seeing in that number, because that’s meaningful—from 1,500 to 2,200.
Yeah. Maybe this market will continue to grow. In these expanding markets, year over year can be misleading. You’re tracking that number from eight homes, and hopefully one day we’ll see 30 homes on the market. That year over year figure is going to be a little less meaningful.
And one data point can be misleading.
Yeah.
One way or the other. Again, it’s looking at the trends. That’s why we report all of this stuff. We don’t want to just report one thing. Month over month it’s up 16%—maybe there was a weird thing that happened that one month. For me, it’s about looking at it over time. That’s why we include these graphs, because it provides so much more context and meaning.
That’s right.
Lebanon Rental Data | 3:36
Days on the market 25. Super healthy. One of the best, if not the best. Whitestown was also at 25, so that’s really good to see, especially in October.
Price per square foot $1.29.
There are still a decent amount of apartments up there—36. So really double apartments versus single-family homes. Substantial price difference between apartments and single-family homes. Single-family homes $2,213. Apartments $1,324. Almost a $1,000 difference.
Price per square foot is almost the same for apartments and single-family homes.
We’ve broken the graphs down by all three types: single-family homes, apartments and condos, and townhomes—over time, 2024, and 2025.
Lebanon Sales Data | 4:31
All right, October sales data for Lebanon.
Average days on the market is 34 days. Average price per square foot is $173. Average sales price $282,061.
That’s up 12% year over year, but down 8% month over month. We’ll put some context on that.
Number of homes sold: 23. Again, that’s under $500,000, investor point of view.
Average sales price over time—February had a weird dip. But honestly it’s relatively flat from the beginning of the year to the end of the year. Kind of started at 280, bumped up to maybe 320, then trending down as we wrap up the year. Up ever so slightly from the beginning to the end, but I believe there’s a lot more room to grow.
Looking at the number of homes sold by price bracket, this is still a pretty affordable market. A decent amount of homes under 200. Just over 100 under 250, and quite a few under 300. Still very affordable, still an early market, lots of room to grow on sales price and rent price.
Closing / Transition | 6:02
Yeah. If you listen to any of our economic updates on the front end of the podcast, you’ll know there’s a lot of growth opportunity happening in Lebanon. That opportunity will trend to the real estate market, and we’re already beginning to see it start to take shape.
I think that wraps us up.
That does—that wraps up our market reports. You may have heard on the front end of the podcast, we added a new segment: the bonehead, where we discuss real-life situations that have happened with clients working with other property management companies, or maybe even ours—spoiler alert, it’s never ours—where the property manager might not have made the right decision, and what they could do differently to achieve a better result for the owner.
We also have this month’s question of the week.
That’ll do it.
Okay, that’ll do it. All right, let’s move on.
