Old Lyme, CT Airbnb Market Data, Statistics, and Occupancy Rates

Old Lyme Short-Term Rental Market Overview

Old Lyme, CT is a small but compelling coastal Connecticut market where just 37 active Airbnb listings serve a seasonal demand base anchored by shoreline tourism and summer getaways. Average annual revenue sits at $43,262 with an ADR of $338, and the market has seen a notable 67% year-over-year growth in active listings — a sign that hosts are recognizing the opportunity. While occupancy averages 17% (well below the 37% state average), the strongly seasonal revenue pattern means most income is concentrated in the lucrative summer months, and larger properties can earn upwards of $67,000 annually.

Key Market Statistics

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

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Old Lyme

Old Lyme appeals to investors seeking a seasonal coastal market in Connecticut with growing supply, strong summer demand, and premium nightly rates for larger properties.

Expert Market Assessment

"Old Lyme presents an attractive but clearly seasonal investment opportunity. Revenue swings dramatically from a low of $1,292 in January to a peak of $7,015 in August, meaning hosts should expect roughly five months of strong earnings and a quieter off-season. The market's growth trajectory is above average, and supply remains tight at 37 listings, which limits direct competition. However, the below-average revenue-to-price ratio — driven by average home values near $938,000 — means investors need to carefully evaluate whether summer income alone can support the acquisition cost."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Old Lyme

Average revenue by month in Old Lyme

Old Lyme's revenue is heavily seasonal, peaking at $7,015 in August and bottoming out at $1,292 in January — a spread of nearly 5.4x. The June–September window accounts for the bulk of annual income, making summer pricing optimization critical for maximizing returns.

Active Airbnb listings by property size in Old Lyme

Supply is distributed fairly evenly across property sizes, with 1-bedrooms leading at 10 listings and 4-bedrooms trailing at 6. The relatively balanced distribution means no single segment is dramatically underserved, though the smaller pool of larger homes could represent less competition for investors targeting premium properties.

Average daily rate (ADR) by property size in Old Lyme

ADR nearly triples from $175 for 1-bedroom listings to $504 for 4-bedroom properties, reflecting strong premiums for larger homes that can accommodate families or groups. The jump from 3-bedrooms ($361) to 4-bedrooms ($504) is particularly steep, suggesting meaningful pricing power for investors in the larger property segment.

Average RevPAN by property size in Old Lyme

Four-bedroom properties deliver the highest RevPAN at $72, outperforming 2-bedrooms ($54) and 3-bedrooms ($46) despite lower occupancy rates. This indicates that the premium ADR for larger homes more than compensates for fewer booked nights, making them the most efficient revenue generators on a per-available-night basis.

Average occupancy rates by property size in Old Lyme

Smaller properties stay busier, with 1-bedrooms averaging 23% occupancy and 2-bedrooms at 21%, compared to just 13–14% for 3- and 4-bedroom listings. The lower occupancy for larger homes is offset by significantly higher nightly rates, but investors should factor in more vacant nights when planning cash flow.

Average monthly revenue by property size in Old Lyme

Monthly revenue scales consistently with size, from $1,768 for 1-bedroom units to $5,589 for 4-bedroom properties. The gap between 3-bedrooms ($4,174) and 4-bedrooms ($5,589) adds roughly $1,400 per month, which investors should weigh against the additional acquisition and operating costs of a larger home.

Average annual revenue by property size in Old Lyme

Four-bedroom properties lead with $67,069 in average annual revenue, more than three times the $21,216 earned by 1-bedroom listings. For investors focused on maximizing gross income, the 3-bedroom ($50,089) and 4-bedroom tiers offer the strongest return potential in this market.

Most common amenities for Airbnb listings in Old Lyme

Parking is universal at 100% of listings, and kitchens (92%), outdoor furniture (89%), and backyards (87%) are near-standard — reflecting guest expectations for home-like coastal retreats. Beach access appears in 51% of listings and likely commands a premium, while waterfront and lake access (14–16%) remain rare differentiators that could help a property stand out.

Understanding Old Lyme's ROI Score: 55/100

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

Old Lyme's ROI score of 55 out of 100 places it in the 'Attractive Opportunity' band, reflecting a market with genuine upside tempered by some challenges. The below-average revenue-to-price ratio is the primary drag, driven by high home values near $938,000 relative to $43,262 in average annual revenue, while above-average market growth and stable supply-demand dynamics provide a favorable tailwind. Investors should pair this data with thorough local regulatory research and a realistic seasonal cash-flow model before committing.

Short-Term Rental Regulations in Old Lyme

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

Permit Requirements

Short-term rental operators in Old Lyme, Connecticut may be required to obtain a permit or register their property with local authorities. Investors should verify current requirements directly with the Town of Old Lyme and the State of Connecticut before listing.

Key Restrictions

Common restrictions in Connecticut coastal communities can include occupancy limits, minimum stay requirements, noise ordinances, and parking rules. HOA covenants may also apply, particularly in waterfront or residential neighborhoods, so reviewing any deed restrictions is strongly recommended.

Tax Obligations

Connecticut imposes a room occupancy tax on short-term rentals, and hosts may also owe state sales tax on bookings. Most major platforms collect and remit these taxes on behalf of hosts, 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 Old Lyme can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Old Lyme's short-term rental market should continue benefiting from its above-average growth trend, with listing supply likely expanding further as investor interest builds. Summer months will remain the primary revenue driver, and hosts who optimize pricing for the July–August peak could see ADR hold steady or edge up by 2–5%. Off-season occupancy may remain soft, so annual revenue estimates in the $40,000–$50,000 range for an average property seem realistic. Investors should plan for pronounced seasonality and budget accordingly for the quieter winter months."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Old Lyme, CT

What is the average Airbnb occupancy rate in Old Lyme?

The average Airbnb occupancy rate in Old Lyme is currently 17%, which is below the Connecticut state average of 37%. This reflects the market's strong seasonality — occupancy spikes during the summer beach season and drops considerably during winter months. One-bedroom properties tend to stay the busiest at 23% occupancy, while 3-bedroom listings average around 13%.

How much do Airbnb hosts make in Old Lyme?

Airbnb hosts in Old Lyme earn an average of $3,605 per month and approximately $43,262 per year based on trailing 12-month booking data. Revenue varies significantly by property size: 1-bedroom listings average about $21,216 annually, while 4-bedroom properties can generate around $67,069 per year. Peak summer months like July and August account for a large share of total annual income.

Is Old Lyme a good market for Airbnb investment?

Old Lyme earns an ROI score of 55 out of 100, rated as an 'Attractive Opportunity.' The market benefits from above-average growth trends and balanced supply and demand, but the revenue-to-price ratio is below average due to high home values averaging $937,632. It works best for investors who already own property in the area or can acquire at a favorable price, and who are comfortable with heavily seasonal income concentrated in the summer months.

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

The average daily rate for Airbnb listings in Old Lyme is $338, slightly below the Connecticut state average of $373. ADR scales significantly with property size — 1-bedroom units average $175 per night, 2-bedrooms average $251, 3-bedrooms average $361, and 4-bedroom properties command a premium at $504 per night.

Are short-term rentals legal in Old Lyme?

Short-term rentals are generally permitted in Old Lyme, CT, though operators may need to comply with local permitting or registration requirements. Regulations can change, so prospective hosts should check with the Town of Old Lyme and the State of Connecticut for the most current rules regarding permits, zoning, and tax obligations before listing a property.

When is peak season for Airbnb in Old Lyme?

Peak season in Old Lyme runs from June through September, with July and August standing out as the highest-earning months. August leads with average revenue of $7,015, followed closely by July at $6,712. The off-season from November through March sees much lower earnings, with January being the slowest month at just $1,292 in average revenue.

How many Airbnbs are there in Old Lyme?

As of April 2026, there are 37 active Airbnb listings in Old Lyme. The supply is relatively evenly distributed: 10 one-bedroom listings, 9 two-bedrooms, 7 three-bedrooms, and 6 four-bedrooms. Notably, the market has experienced 67% year-over-year growth in active listings, indicating rising interest from hosts and investors.

How is Airbnb revenue calculated in Old Lyme?

The annual and monthly revenue figures for Old Lyme are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — not a forward-looking projection. 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 figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses 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 by market
• Average daily rate, occupancy, and RevPAN trends across property sizes
• Monthly and annual revenue estimates based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data reflecting current listing features in the market

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.