Madison, CT Airbnb Market Data, Statistics, and Occupancy Rates

Madison Short-Term Rental Market Overview

Madison, CT is a small but growing coastal Connecticut market with just 18 active Airbnb listings and an average annual revenue of $51,662 per property. With a 74% year-over-year increase in active listings and an above-average market growth trend, the town is clearly gaining traction among short-term rental operators. While the average daily rate of $329 sits slightly below the Connecticut state average of $373, the market's seasonal appeal — driven by beach access and New England charm — gives it a distinct revenue profile that peaks strongly in summer months.

Key Market Statistics

According to Rabbu market data, the Madison short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Madison

Madison appeals to investors seeking a low-competition coastal market with strong summer demand and meaningful supply growth signals.

Expert Market Assessment

"Madison earns a 65 out of 100 ROI score — an "Attractive Opportunity" rating that reflects balanced demand fundamentals against relatively high property values averaging $1,147,891. The market's pronounced seasonality is its defining characteristic: revenue swings from a low of roughly $2,268 in January to $7,022 in August, meaning cash flow management through the winter months is essential. With average revenue-to-price and occupancy stability ratings, Madison isn't a set-it-and-forget-it market, but its above-average growth trend and limited supply create real upside for well-positioned properties."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Madison

Average revenue by month in Madison

Madison's revenue pattern is sharply seasonal: August leads at $7,022 and July follows at $6,462, while January bottoms out at $2,268 — a spread of nearly $4,800 between the strongest and weakest months. Investors should expect roughly 55% of annual revenue to concentrate in the May–September window, making winter cash reserves a key planning consideration.

Active Airbnb listings by property size in Madison

The available data shows only 1-bedroom listings (7 total) broken out by property size, suggesting either a very small market with limited larger-property data or that most hosts are operating smaller units. This could signal an opportunity for investors willing to list 2+ bedroom properties in an underserved segment.

Average daily rate (ADR) by property size in Madison

One-bedroom listings in Madison command an average daily rate of $226, which sits below the market-wide ADR of $329 — indicating that the larger or more premium properties not broken out individually are pulling the overall average significantly higher. Investors considering larger properties may find a meaningful ADR premium awaiting them.

Average RevPAN by property size in Madison

One-bedroom listings generate a RevPAN of $72, which is below the market-wide average of $118. This gap suggests that properties with more bedrooms or premium positioning are capturing substantially more revenue per available night after accounting for occupancy.

Average occupancy rates by property size in Madison

One-bedroom properties average 32% occupancy, slightly below the market-wide 36% average. While this is modest, it's consistent with a seasonal vacation market where most bookings cluster in warmer months.

Average monthly revenue by property size in Madison

One-bedroom listings average $3,483 per month, which falls below the overall market average of $4,305. The difference underscores that larger or higher-end properties in Madison are likely earning meaningfully more on a monthly basis.

Average annual revenue by property size in Madison

At $41,798 per year, 1-bedroom units generate solid income but trail the market-wide annual average of $51,662 by nearly $10,000. Investors targeting higher returns may want to explore multi-bedroom configurations that appear to command a revenue premium in this market.

Most common amenities for Airbnb listings in Madison

Parking dominates at 94%, followed by backyard access (83%) and a full kitchen (83%) — reflecting a market geared toward family and leisure travelers who expect suburban-style comfort. Beach access (33%) and waterfront positioning (17%) are less common and could serve as powerful differentiators for properties that offer them.

Understanding Madison's ROI Score: 65/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Madison's ROI score of 65 out of 100 places it in the "Attractive Opportunity" band, reflecting a market with real potential tempered by high property costs and moderate occupancy. The above-average market growth trend is a standout factor, while revenue-to-price ratio, occupancy stability, and supply/demand balance all rate as average — meaning returns are achievable but not automatic. Investors should pair this data with on-the-ground regulatory research and a realistic seasonal cash flow model before committing capital.

Short-Term Rental Regulations in Madison

Understanding local STR regulations is essential before investing in Madison. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Madison, CT may need to register or obtain a permit through the town or the State of Connecticut before listing a property. Investors should verify current requirements directly with Madison's municipal offices and Connecticut's Department of Revenue Services.

Key Restrictions

Common restrictions that may apply include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. HOA rules can also limit or prohibit short-term rentals in certain neighborhoods, so it's important to review any applicable covenants before purchasing a property.

Tax Obligations

Connecticut imposes a room occupancy tax on short-term rentals, and hosts may also owe state sales tax on their rental income. Major booking platforms like Airbnb often collect and remit these taxes automatically, but operators should confirm their obligations with the Connecticut Department of Revenue Services.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Madison can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Madison's STR market is likely to see continued supply growth as more hosts recognize the town's summer revenue potential — August alone averages $7,022 per listing. Occupancy rates, currently at 36%, may face modest pressure as new listings enter but could stabilize around 33–38% given the market's above-average growth trajectory. ADR is expected to hold steady or inch up 1–3% as the market matures and operators invest in higher-quality amenities. Investors should plan for significant seasonal swings, with winter months generating less than a third of peak-summer revenue."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Madison, CT

What is the average Airbnb occupancy rate in Madison?

The average Airbnb occupancy rate in Madison, CT is currently 36%, which is roughly in line with the Connecticut state average of 37%. Occupancy varies significantly by season, with summer months driving the highest booking activity and winter months seeing considerably less demand.

How much do Airbnb hosts make in Madison?

Airbnb hosts in Madison earn an average of $4,305 per month and approximately $51,662 per year based on trailing 12-month performance data. Revenue is heavily seasonal — August is the strongest month at $7,022 on average, while January dips to around $2,268. Individual results vary based on property quality, pricing strategy, and guest experience.

Is Madison a good market for Airbnb investment?

Madison scores 65 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" category. The market benefits from above-average growth, limited competition with just 18 active listings, and strong summer demand tied to its coastal location. However, average home values of nearly $1.15 million mean the revenue-to-price ratio is moderate, so investors should carefully model seasonal cash flow before committing.

What is the average daily rate (ADR) for Airbnb in Madison?

The average daily rate for Airbnb listings in Madison is $329, which is slightly below the Connecticut state average of $373. For 1-bedroom properties specifically, the ADR averages $226. Rates tend to climb during the peak summer season when demand for coastal rentals is strongest.

Are short-term rentals legal in Madison?

Short-term rentals are generally permitted in Madison, CT, though operators may need to comply with local registration or permitting requirements as well as Connecticut state regulations. Rules can change, so prospective hosts should check with Madison's town offices and the Connecticut Department of Revenue Services for the most current requirements before listing a property.

When is peak season for Airbnb in Madison?

Peak season in Madison runs from June through August, with August being the single highest-earning month at an average of $7,022 in revenue. July follows closely at $6,462. The shoulder months of May, September, and October also perform well, each averaging between $4,700 and $4,900. Winter months represent the off-peak period, with January being the slowest at $2,268.

How many Airbnbs are there in Madison?

As of April 2026, there are 18 active Airbnb listings in Madison, CT. This represents a 74% increase year-over-year, indicating rapid growth in the local short-term rental market. The relatively small supply means there's limited competition, which can be advantageous for new entrants offering quality accommodations.

How is Airbnb revenue calculated in Madison?

The annual and monthly revenue figures shown for Madison are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month draws on its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for Madison, CT
• Average daily rate, occupancy, and RevPAN metrics based on active listings
• Monthly and annual revenue averages derived from trailing 12-month booking data
• Home value estimates sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence and property size distribution across the local market

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Local regulations and tax requirements may change; always verify with municipal and state authorities before investing. With only 18 active listings, small sample sizes may cause metrics to shift meaningfully as new properties enter the market.