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

Madison Short-Term Rental Market Overview

Madison, VA is a small rural market in the foothills of the Blue Ridge Mountains with just 47 active Airbnb listings and an average annual revenue of $37,496 per property. While the market's 26% average occupancy rate sits below the Virginia state average of 34%, its modest supply and scenic appeal create a niche opportunity for investors targeting getaway-oriented guests. With an ROI score of 61 out of 100 — rated an "Attractive Opportunity" — Madison balances healthy revenue-to-price dynamics with room for growth as demand for rural retreats continues.

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 rural market with scenic demand drivers and relatively affordable entry compared to Virginia's coastal or urban markets.

Expert Market Assessment

"Madison presents a moderate-to-attractive opportunity for investors comfortable with a seasonal, leisure-driven market. Revenue peaks sharply in August at $4,385 per month and again in October at $4,082, while January dips to just $1,674 — a spread that underscores the importance of pricing strategy and expense management during quieter months. The market's small listing count and outdoor-oriented amenity profile point to a guest base seeking rural escapes rather than urban conveniences. For investors who can acquire the right property and manage through the off-season, the combination of limited competition and scenic demand offers genuine upside."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Madison

Average revenue by month in Madison

Madison's revenue is highly seasonal, peaking in August at $4,385 and October at $4,082 before dropping sharply to $1,674 in January — a $2,711 spread between the best and worst months. Investors should expect roughly 60% of annual revenue to concentrate between May and November, making off-season expense management critical.

Active Airbnb listings by property size in Madison

Two-bedroom properties dominate Madison's supply with 15 of the 47 active listings, followed by 3-bedrooms (10) and 1-bedrooms (7), while 4-bedroom homes account for just 6 listings. The relatively thin supply of larger homes could signal an opportunity for investors willing to acquire 4-bedroom properties, which also command the highest nightly rates and annual revenue.

Average daily rate (ADR) by property size in Madison

ADR scales significantly with property size in Madison, jumping from $165 for 2-bedroom units to $268 for 3-bedrooms and $403 for 4-bedroom homes. Notably, 1-bedroom listings command $229 per night — higher than 2-bedrooms — suggesting that unique or well-positioned smaller properties can punch above their weight in this market.

Average RevPAN by property size in Madison

Four-bedroom properties deliver the strongest RevPAN at $98 per available night, followed by 3-bedrooms at $87, while 1-bedroom and 2-bedroom units trail at $54 and $47 respectively. This gap indicates that larger homes convert their rate premium into meaningfully better yield even after accounting for occupancy.

Average occupancy rates by property size in Madison

Three-bedroom properties lead occupancy at 33%, comfortably above the market average of 26%, while 1-bedroom and 4-bedroom units both sit at 24%. The higher fill rate for 3-bedrooms suggests a sweet spot for group travelers, though the relatively low occupancy across all sizes reflects Madison's weekend-and-season-driven demand pattern.

Average monthly revenue by property size in Madison

Four-bedroom homes earn the most at $4,003 per month, while 1-bedrooms follow at $3,620 — an interesting result given their lower occupancy, driven by a strong ADR. Two-bedroom units lag at $2,048 per month, making them the least lucrative configuration in a market where guests appear willing to pay a premium for either intimate retreats or spacious group accommodations.

Average annual revenue by property size in Madison

Annual revenue ranges from $24,587 for 2-bedroom listings up to $48,045 for 4-bedroom properties, with 1-bedrooms generating a solid $43,449 — nearly matching the top tier. Investors targeting maximum return potential should focus on 4-bedroom homes, though the strong 1-bedroom performance suggests well-curated smaller properties can also compete effectively in Madison.

Most common amenities for Airbnb listings in Madison

Parking (100%), kitchens (96%), and backyards (89%) are near-universal among Madison listings, reflecting a guest base that expects self-sufficient, outdoor-oriented accommodations. Premium differentiators like hot tubs (11%) and pools (13%) remain rare, which could present an opportunity for hosts to stand out by adding higher-end outdoor features.

Understanding Madison's ROI Score: 61/100

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 61 out of 100 places it in the "Attractive Opportunity" band, reflecting average performance across all four key factors: revenue-to-price ratio, occupancy stability, market growth trend, and supply/demand balance. None of these factors are flagged as below average, which suggests a fundamentally sound market without glaring weaknesses — but none are above average either, indicating returns hinge on execution. Investors should pair this score 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, Virginia may be required to obtain permits or register their property with Madison County or the Commonwealth of Virginia. Investors should verify current requirements directly with local planning and zoning offices before listing a property.

Key Restrictions

Common restrictions in rural Virginia markets can include occupancy limits, noise ordinances, parking requirements, and signage rules. HOA covenants may also apply in certain subdivisions, so it's important to review any deed restrictions or community guidelines alongside county regulations.

Tax Obligations

Short-term rental hosts in Virginia are typically subject to state sales tax, local transient occupancy tax, and potentially tourism-related levies. Many booking platforms collect and remit some of these taxes automatically, but operators should confirm their full obligations with the Virginia Department of Taxation and Madison County.

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 short-term rental market is expected to maintain its seasonal rhythm, with peak revenue concentrated in the summer and fall months and softer performance through winter. ADR may see modest increases in the range of 1–3% as hosts continue to improve amenities and target weekend travelers. Occupancy could edge upward to the 28–31% range if supply growth remains measured, though the market's rural character means it will likely stay below state averages. Investors should plan conservatively around seasonality and treat winter months as a cash-flow drag rather than a surprise."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Madison, VA

What is the average Airbnb occupancy rate in Madison?

The average occupancy rate for Airbnb listings in Madison, VA is currently 26%, which sits below the Virginia state average of 34%. Occupancy varies by property size — 3-bedroom units lead at 33%, while 1-bedroom and 4-bedroom properties average around 24%. The rural, leisure-oriented nature of the market means occupancy tends to be concentrated around weekends and peak travel seasons rather than spread evenly throughout the year.

How much do Airbnb hosts make in Madison?

Airbnb hosts in Madison, VA earn an average of $3,124 per month or approximately $37,496 per year based on trailing 12-month booking data. Earnings vary significantly by property size: 4-bedroom listings lead with about $4,003 per month ($48,045 annually), while 2-bedroom properties average $2,048 per month ($24,587 annually). Seasonal fluctuations also play a major role, with August being the highest-earning month at $4,385 and January the lowest at $1,674.

Is Madison a good market for Airbnb investment?

Madison earns a Rabbu ROI Score of 61 out of 100, placing it in the "Attractive Opportunity" category. The market benefits from limited competition (just 47 active listings), scenic Blue Ridge appeal, and a workable revenue-to-price ratio with average home values around $639,202 and annual revenue near $37,496. That said, occupancy at 26% is below the state average, and investors should plan for meaningful seasonal swings. Properties that are well-appointed with outdoor amenities and priced strategically tend to perform best here.

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

The average daily rate for Airbnb listings in Madison, VA is $284, compared to the Virginia state average of $339. ADR varies considerably by property size: 4-bedroom homes command the highest rates at $403 per night, while 2-bedroom properties average just $165. Three-bedroom listings sit at $268, and 1-bedroom units come in at $229, suggesting that unique smaller properties may capture a premium in this market.

Are short-term rentals legal in Madison?

Short-term rentals are generally permitted in Madison, Virginia, though operators may need to obtain specific permits or register with Madison County and comply with state regulations. Local zoning rules, occupancy limits, and other restrictions may apply. We recommend contacting Madison County's planning and zoning office and reviewing Virginia state guidelines to confirm all requirements before launching a listing.

When is peak season for Airbnb in Madison?

Peak season in Madison runs from roughly June through November, with the highest average monthly revenue occurring in August ($4,385) and October ($4,082). The fall foliage season is a particularly strong driver, and summer months benefit from outdoor recreation in the Blue Ridge foothills. Winter months — especially January ($1,674) and February ($1,861) — represent the slowest period, so investors should budget accordingly for off-season cash flow.

How many Airbnbs are there in Madison?

There are currently 47 active Airbnb listings in Madison, VA as of April 2026. The supply breaks down primarily into 2-bedroom units (15 listings), 3-bedroom properties (10), 1-bedroom units (7), and 4-bedroom homes (6). This small listing count means competition is limited, but it also reflects the niche, rural character of the market.

How is Airbnb revenue calculated in Madison?

The annual and monthly revenue figures 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. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remainder 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 uses its own historical performance data. 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 the Madison, VA market
• Average daily rate, occupancy, and RevPAN trends across property sizes
• Monthly and annual revenue metrics based on trailing 12-month booking performance
• Popular amenity prevalence across active listings to inform property setup decisions
• Home value estimates sourced from the Zillow Home Value Index (ZHVI)

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, permit requirements, and tax obligations can change; always verify with Madison County and Virginia state authorities before investing. Individual property results will vary based on location, condition, amenities, pricing strategy, and management quality.