Water Mill, NY Airbnb Market Data, Statistics, and Occupancy Rates

Water Mill Short-Term Rental Market Overview

Water Mill, NY, sits in the heart of the Hamptons — one of the most exclusive summer-rental corridors on the East Coast — and its Airbnb data reflects that ultra-premium positioning. With an average daily rate of $888 (more than double the New York state average) and average annual revenue of $126,495 across just 26 active listings, the market commands extraordinary nightly rates but pairs them with steep home values averaging over $9 million. The combination of a 19% average occupancy rate and an extremely high cost of entry places this firmly in the category of a lifestyle or trophy-asset play rather than a conventional cash-flow market.

Key Market Statistics

According to Rabbu market data, the Water Mill 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 Water Mill

Investors are drawn to Water Mill for its ultra-premium nightly rates and the prestige of the Hamptons summer rental market, though the opportunity requires significant capital and comfort with highly seasonal income.

Expert Market Assessment

"Water Mill presents limited investment potential from a pure ROI standpoint, earning a score of 20 out of 100 on Rabbu's proprietary scale. The market's extreme seasonality — August revenue of $36,653 dwarfs January's $1,640 — means owners must plan for long stretches of minimal income. That said, for investors who already own or plan to personally use a Hamptons property, the summer rental window alone can generate over $95,000 in just four months (June through September), partially offsetting carrying costs on a high-value asset. This is a market where the investment thesis hinges on asset appreciation and personal-use value as much as net operating income."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Water Mill

Average revenue by month in Water Mill

Water Mill displays one of the most dramatic seasonal swings you'll find: August leads at $36,653 in average revenue while January bottoms out at just $1,640 — a 22× spread. Roughly 80% of annual income is concentrated between May and September, making cash-flow planning essential for the seven quieter months.

Active Airbnb listings by property size in Water Mill

Supply in Water Mill is tightly concentrated among mid-size homes, with 4-bedroom properties (7 listings) slightly ahead of 3-bedrooms (6) and 5-bedrooms (5). The absence of 1- or 2-bedroom listings in the data underscores that this is exclusively a luxury, full-home rental market — there is no small-unit segment to compete with.

Average daily rate (ADR) by property size in Water Mill

Four-bedroom properties command the highest ADR at $1,210, followed by 3-bedrooms at $860, while 5-bedroom listings average a lower $711 — suggesting that the largest homes in this small sample may be priced more aggressively to attract bookings. The 4-bedroom segment appears to hit the sweet spot between premium pricing and guest willingness to pay.

Average RevPAN by property size in Water Mill

RevPAN tells a clear story: 4-bedroom properties lead at $230 per available night, 3-bedrooms follow at $186, and 5-bedrooms trail significantly at just $46. The sharp drop-off for 5-bedroom homes indicates that their lower ADR and 7% occupancy severely undercut per-night revenue efficiency.

Average occupancy rates by property size in Water Mill

Three-bedroom listings achieve the highest occupancy at 22%, with 4-bedrooms close behind at 19%, while 5-bedroom properties lag considerably at just 7%. For investors focused on cash-flow consistency, the smaller configurations offer modestly better year-round fill rates, though all sizes remain well below the state average.

Average monthly revenue by property size in Water Mill

Four-bedroom properties generate the strongest average monthly revenue at $13,970, outpacing 3-bedrooms ($10,307) and 5-bedrooms ($7,443) by a meaningful margin. The 4-bedroom advantage stems from its combination of the highest ADR and solid occupancy, making it the most productive configuration in this market.

Average annual revenue by property size in Water Mill

On an annual basis, 4-bedroom listings lead with $167,645 in average revenue, while 3-bedrooms generate $123,687 and 5-bedrooms bring in $89,319. Investors evaluating acquisition costs should weigh these revenue differences against the likely price premium for larger properties to determine which size delivers the best return on capital.

Most common amenities for Airbnb listings in Water Mill

Parking (92%), washer (89%), and kitchen (89%) are near-universal, reflecting the self-catering, extended-stay nature of Hamptons summer rentals. Outdoor lifestyle amenities — backyard (77%), BBQ grill (77%), pool (69%), and patio (69%) — are also widespread, signaling that guests in this market expect resort-level outdoor living and properties lacking these features may struggle to compete.

Understanding Water Mill's ROI Score: 20/100

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

Water Mill's ROI Score of 20 out of 100 places it in the 'Limited' investment band, driven primarily by a below-average revenue-to-price ratio — average annual revenue of roughly $126,500 against home values exceeding $9 million makes traditional yield metrics difficult to justify. Occupancy stability also scores below average, reflecting the market's heavy seasonal concentration. Investors considering this market should pair the data with thorough local regulatory research and realistic assumptions about off-season vacancy before committing capital.

Short-Term Rental Regulations in Water Mill

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

Permit Requirements

Short-term rental operators in Water Mill and the broader Town of Southampton, New York, should expect to comply with local rental permit or registration requirements. Investors are strongly encouraged to verify current permit obligations with the town clerk or building department before listing a property.

Key Restrictions

Common restrictions in Hamptons communities include occupancy limits, minimum-stay requirements (often seven nights during peak summer), noise ordinances, parking mandates, and potential caps on the total number of STR permits issued. HOA covenants are also prevalent in upscale residential areas and may impose additional limitations on rental activity.

Tax Obligations

Short-term rental hosts in New York are generally subject to state and county occupancy taxes, and Suffolk County may impose additional hotel/motel taxes. Many booking platforms collect and remit a portion of these taxes automatically, but hosts should confirm their full obligation with a local tax advisor.

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

Future Outlook & Long-Term Forecast

"Summer demand in Water Mill is likely to remain robust over the next 12–18 months, with July and August continuing to drive the lion's share of revenue. ADR could hold steady or edge up 2–5% given the area's scarcity of supply and affluent guest profile, though occupancy is unlikely to climb meaningfully above 20% on an annualized basis given the market's extreme seasonal concentration. Investors should expect that roughly 75% of annual income will be generated between May and September, making off-season cash-flow management a critical planning consideration. The 132% year-over-year growth in active listings, while starting from a tiny base, is worth monitoring — additional supply in a low-occupancy market could pressure rates or further dilute bookings outside peak weeks."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Water Mill, NY

What is the average Airbnb occupancy rate in Water Mill?

The average occupancy rate for active Airbnb listings in Water Mill is currently 19%, well below the New York state average of 40%. This low annualized figure reflects the market's extreme summer-season concentration — properties are in high demand from June through September but see very limited bookings during the colder months.

How much do Airbnb hosts make in Water Mill?

Based on trailing 12-month booking data, the average active Airbnb listing in Water Mill generates approximately $126,495 per year, or about $10,541 per month. Revenue is heavily weighted toward summer, with August averaging $36,653 and July averaging $30,832, while winter months typically bring in under $2,000.

Is Water Mill a good market for Airbnb investment?

Water Mill carries a Rabbu ROI Score of 20 out of 100, indicating limited investment potential from a conventional cash-flow perspective. The below-average revenue-to-price ratio — driven by average home values above $9 million — and low annualized occupancy make it challenging to achieve strong returns on investment. However, for buyers who value personal summer use or long-term Hamptons appreciation, the rental income can meaningfully offset carrying costs.

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

The current average daily rate in Water Mill is $888, which is more than double the New York state average of $381. Four-bedroom listings command the highest ADR at $1,210, while three-bedroom properties average $860 and five-bedroom properties come in at $711.

Are short-term rentals legal in Water Mill?

Short-term rentals do operate in Water Mill, but hosts should be aware that the Town of Southampton and New York State may require permits, registrations, or compliance with specific rental regulations. Local rules can change, so it's important to verify current requirements with the town's planning or building department before launching a listing.

When is peak season for Airbnb in Water Mill?

Peak season in Water Mill runs from June through August, consistent with the Hamptons' traditional summer season. August is the highest-earning month with average revenue of $36,653, followed by July at $30,832 and June at $16,302. Shoulder months like May ($9,836) and September ($12,087) also produce meaningful income, while November through March sees the slowest activity.

How many Airbnbs are there in Water Mill?

As of April 2026, there are 26 active Airbnb listings in Water Mill. The supply is concentrated among 3-bedroom (6 listings), 4-bedroom (7 listings), and 5-bedroom (5 listings) properties. Year-over-year listing growth has been 132%, though that dramatic percentage reflects the market's very small base of inventory.

How is Airbnb revenue calculated in Water Mill?

The annual and monthly revenue figures shown for Water Mill 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 into a market-level historical average. Because each month uses its own historical data, the figures naturally capture seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and how actively a host manages their listing.

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 Water Mill market
• Average daily rate, occupancy, and RevPAN metrics benchmarked against state averages
• Monthly and annual revenue estimates based on trailing 12-month booking performance
• Property-size breakdowns for supply, rates, occupancy, and revenue
• Home value data 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. Data reflects trailing 12-month performance as of April 2026 and may not capture very recent market shifts. Individual results will vary based on property location, condition, pricing strategy, and local regulatory compliance.