Shelter Island, NY Airbnb Market Data, Statistics, and Occupancy Rates

Shelter Island Short-Term Rental Market Overview

Shelter Island is a highly seasonal, luxury-oriented short-term rental market on New York's East End, where the average daily rate of $689 far exceeds the state average of $381 but occupancy sits at just 12% — well below the 40% state benchmark. With only 29 active Airbnb listings and average annual revenue of $139,239 against home values averaging $3.6 million, the revenue-to-price ratio presents a challenge for investors seeking strong cash-on-cash returns. This is a market that rewards careful property selection and premium positioning rather than broad-based investment.

Key Market Statistics

According to Rabbu market data, the Shelter Island 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 Shelter Island

Investors consider Shelter Island for its premium nightly rates and exclusive island setting, though the narrow booking season and elevated home prices demand careful underwriting.

Expert Market Assessment

"Shelter Island currently scores as a limited-investment-potential market, reflecting the mismatch between very high property costs and compressed annual yields. The revenue pattern is strikingly seasonal: August alone accounts for nearly $40,350 in average monthly revenue, while January through March barely clears $2,000 per month. For investors with the capital to absorb extended off-season periods and the ability to command premium summer rates, select 4-bedroom properties show notably stronger RevPAN and occupancy. However, the overall risk profile calls for deep property-level analysis rather than a market-wide buy signal."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Shelter Island

Average revenue by month in Shelter Island

Shelter Island's revenue profile is one of the most seasonal you'll find: August tops out near $40,350 while January and February sit below $1,900. The roughly 22x spread between peak and trough months means investors need to plan for extended low-revenue periods and should not assume winter income will cover carrying costs.

Active Airbnb listings by property size in Shelter Island

The market's 29 active listings are split between 3-bedroom (10 listings) and 4-bedroom (8 listings) properties, with other sizes either absent or too few to report. This concentrated supply picture suggests limited diversity and could signal opportunity for differentiated property types if demand supports them.

Average daily rate (ADR) by property size in Shelter Island

ADR rises modestly from $709 for 3-bedroom properties to $770 for 4-bedrooms, a roughly 9% premium for the extra room. Given the relatively small price gap, the larger properties may offer a better value proposition when factoring in their substantially higher occupancy and RevPAN.

Average RevPAN by property size in Shelter Island

Four-bedroom properties deliver a RevPAN of $160, more than three times the $45 figure for 3-bedroom listings. This stark gap indicates that the additional bedroom drives disproportionately better revenue efficiency, making 4-bedroom homes the clear performance leaders in this market.

Average occupancy rates by property size in Shelter Island

Occupancy for 4-bedroom properties sits at 21%, while 3-bedroom units lag at just 6%, suggesting guests strongly prefer the larger configurations. Even so, both figures are well below typical STR benchmarks, underscoring the extreme seasonal concentration of demand on Shelter Island.

Average monthly revenue by property size in Shelter Island

Four-bedroom properties average $12,492 per month compared to $11,231 for 3-bedrooms — a meaningful but not dramatic gap of about 11%. The relatively close monthly figures mask the significant occupancy difference, which makes 4-bedrooms considerably more consistent earners on a per-night basis.

Average annual revenue by property size in Shelter Island

On an annual basis, 4-bedroom properties generate approximately $149,907 versus $134,774 for 3-bedrooms. Against average home values of $3.6 million, neither size delivers a strong gross yield, but the 4-bedroom configuration offers the better return potential of the two.

Most common amenities for Airbnb listings in Shelter Island

Kitchens (100%), parking (97%), and washer/dryer (86–90%) are near-universal, reflecting the self-sufficient, home-away-from-home experience guests expect on Shelter Island. Outdoor amenities like BBQ grills (90%), patios (72%), and backyards (72%) are also prevalent, signaling that outdoor living spaces are essentially table stakes for competing in this market.

Understanding Shelter Island's ROI Score: 33/100

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

Shelter Island's ROI score of 33 out of 100 places it in the limited investment potential band, driven primarily by a below-average revenue-to-price ratio and below-average occupancy stability — both reflecting the combination of $3.6M home values and just 12% average occupancy. Market growth trend and supply/demand balance score as average, suggesting the market isn't deteriorating but isn't offering tailwinds either. Investors should pair this data with thorough local regulatory research and property-specific underwriting before committing capital.

Short-Term Rental Regulations in Shelter Island

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

Permit Requirements

Short-term rental operators in Shelter Island, New York, should verify whether a rental permit or registration is required through the Town of Shelter Island before listing a property. New York State may also impose additional compliance requirements, so consulting local authorities and legal counsel is strongly recommended.

Key Restrictions

Common STR restrictions in markets like Shelter Island can include occupancy limits, minimum stay requirements, noise and parking regulations, and caps on the number of permits issued. Homeowner association rules and community covenants may impose additional limits, particularly in residential neighborhoods on the island.

Tax Obligations

Short-term rental hosts in New York are generally subject to state and local occupancy taxes, as well as applicable sales taxes. Many booking platforms collect and remit a portion of these taxes automatically, but operators should confirm their full obligation with a tax professional familiar with Suffolk County and New York State requirements.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Shelter Island's extreme summer seasonality — with August revenue reaching roughly $40,350 and winter months dipping below $2,000 — is unlikely to shift meaningfully. Occupancy may edge modestly higher during shoulder months if operators price aggressively in spring and fall, but the core demand window will remain concentrated from June through September. ADR could hold steady or see modest 1–3% increases given limited supply and the affluent guest profile, though investors should plan cash reserves for the seven or more low-revenue months each year."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Shelter Island, NY

What is the average Airbnb occupancy rate in Shelter Island?

The average Airbnb occupancy rate in Shelter Island is currently 12%, which is significantly below the New York state average of 40%. This low figure reflects the market's extreme seasonality, with most bookings concentrated in the summer months and very limited demand during the off-season.

How much do Airbnb hosts make in Shelter Island?

Based on trailing 12-month data, the average Airbnb host in Shelter Island earns approximately $139,239 per year, or about $11,603 per month. However, revenue is heavily concentrated in the summer — August averages around $40,350, while winter months may generate under $2,000. Actual results vary based on property quality, pricing strategy, and guest experience.

Is Shelter Island a good market for Airbnb investment?

Shelter Island currently carries a limited investment potential rating with an ROI score of 33 out of 100. While the average daily rate of $689 is impressively high, below-average occupancy stability and a revenue-to-price ratio that reflects home values averaging $3.6 million make broad profitability challenging. Investors with deep pockets and a tolerance for seasonal cash flow may find opportunities in well-positioned 4-bedroom properties, but thorough property-level diligence is essential.

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

The average daily rate for Airbnb listings in Shelter Island is $689, which is roughly 81% higher than the New York state average of $381. This premium reflects the island's luxury appeal and the affluent demographics of its seasonal visitors. Four-bedroom properties command slightly higher rates at $770 per night.

Are short-term rentals legal in Shelter Island?

Short-term rentals may be subject to permitting, registration, and specific operating rules set by the Town of Shelter Island and New York State. Regulations can change, so prospective hosts should contact local government offices and consult legal counsel to confirm current requirements before purchasing or listing a property.

When is peak season for Airbnb in Shelter Island?

Peak season in Shelter Island runs from June through August, with revenue peaking in August at an average of approximately $40,350 per month. July is also exceptionally strong at around $33,939. September provides a meaningful shoulder-season boost at roughly $13,306, but revenue drops sharply from October onward into the winter months.

How many Airbnbs are there in Shelter Island?

There are currently 29 active Airbnb listings in Shelter Island as of April 2026. The supply is concentrated in 3-bedroom and 4-bedroom properties, with 10 and 8 listings respectively. This limited inventory means competition is relatively low, though it also reflects the small scale of the island's rental market.

How is Airbnb revenue calculated in Shelter Island?

The annual and monthly revenue figures for Shelter Island 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 aggregate the results into 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 the Shelter Island market
• Trailing 12-month revenue, occupancy, and average daily rate metrics by property size
• Revenue per available night (RevPAN) calculations combining ADR and occupancy data
• Home value estimates sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to benchmark guest expectations

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 are subject to change; always verify with municipal authorities before investing. Individual property results will vary based on location, condition, pricing strategy, and management quality.