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

Waterford Short-Term Rental Market Overview

Waterford, CT presents an intriguing coastal Connecticut market with just 28 active Airbnb listings and an average daily rate of $439—well above the $373 state average. While occupancy currently sits at 16%, the market's small supply base and strong summer revenue (peaking above $4,500 in August) point to a seasonally driven opportunity where well-positioned properties can capture outsized returns during warm-weather months. With average annual revenue around $27,976 and home values near $589,212, investors should weigh the concentrated summer earning window against year-round carrying costs.

Key Market Statistics

According to Rabbu market data, the Waterford 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 Waterford

Investors are drawn to Waterford for its premium nightly rates, limited existing supply, and coastal Connecticut location that commands seasonal demand.

Expert Market Assessment

"Waterford earns an "Attractive Opportunity" designation, reflecting a balance between healthy premium pricing and a compact, manageable competitive landscape. The market's revenue story is heavily seasonal—August and July account for the lion's share of annual income, while January dips to just $834 on average, creating a wide swing that investors must plan around. Properties with three bedrooms deliver materially better returns across every metric, making larger homes the clearest path to solid cash flow. For buyers who can cover carrying costs through quieter months and capitalize on the summer surge, this coastal Connecticut town offers meaningful upside in a market still early in its supply growth curve."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Waterford

Average revenue by month in Waterford

Waterford's revenue cycle is sharply seasonal: August ($4,538) and July ($4,343) deliver roughly five times the revenue of January ($834), the softest month. Investors should expect roughly 60% or more of annual income to concentrate in the May–September window, making cash reserves essential for carrying costs during winter.

Active Airbnb listings by property size in Waterford

Two-bedroom properties make up the largest share of Waterford's 28 listings with 10 units, followed by 7 three-bedrooms and 6 one-bedrooms. The relatively balanced distribution suggests no single size dominates, though the smaller one-bedroom segment could represent either limited demand or an underserved niche worth exploring.

Average daily rate (ADR) by property size in Waterford

ADR jumps significantly at the three-bedroom tier, commanding $333 per night compared to the relatively flat pricing between one-bedrooms ($182) and two-bedrooms ($187). This nearly 80% premium for adding a third bedroom signals that larger groups and families are willing to pay substantially more, making three-bedroom acquisitions particularly compelling from a rate perspective.

Average RevPAN by property size in Waterford

Three-bedroom properties deliver the strongest RevPAN at $61, more than triple the $19 figure for one-bedroom units and nearly double the $32 for two-bedrooms. This spread indicates that the combination of higher nightly rates and slightly better occupancy makes three-bedroom homes the most efficient earners on a per-available-night basis.

Average occupancy rates by property size in Waterford

Occupancy rates are modest across all sizes, ranging from 11% for one-bedroom units to 18% for three-bedrooms. The relatively narrow spread suggests that property size alone doesn't dramatically change booking frequency, though three-bedrooms do edge ahead—likely benefiting from family and group travel demand in this coastal market.

Average monthly revenue by property size in Waterford

Three-bedroom listings lead with $3,177 in average monthly revenue, outpacing two-bedrooms ($1,877) by nearly 70% and one-bedrooms ($1,431) by more than double. For investors weighing acquisition costs against monthly cash flow, the jump from a two-bedroom to a three-bedroom offers the most meaningful revenue uplift.

Average annual revenue by property size in Waterford

Annual revenue scales meaningfully with size: three-bedroom properties average $38,126, compared to $22,534 for two-bedrooms and $17,176 for one-bedrooms. Against Waterford's average home value of $589,212, the three-bedroom configuration offers the strongest gross yield, though investors should factor in the higher purchase price typically associated with larger properties.

Most common amenities for Airbnb listings in Waterford

Parking tops the amenity list at 96%, reflecting the car-dependent nature of this coastal Connecticut market, while kitchens (86%), washers (71%), and self check-in (71%) round out the essentials. Outdoor-focused amenities like BBQ grills, backyards, and patios each appear in roughly two-thirds of listings, signaling that guests expect a full home-style experience with outdoor living space—a baseline investors should plan to match or exceed.

Understanding Waterford'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

Waterford's ROI Score of 65 out of 100 places it in the "Attractive Opportunity" band, driven by average performance across all four calculation factors: revenue-to-price ratio, occupancy stability, market growth trend, and supply/demand balance. No single factor stands out as a weakness or exceptional strength, which suggests a market with balanced fundamentals rather than outsized risk or reward. Investors should pair this score with local regulatory research and a clear understanding of the seasonal revenue cycle before committing capital.

Short-Term Rental Regulations in Waterford

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

Permit Requirements

Short-term rental operators in Waterford, Connecticut may need to register or obtain a permit through the town before listing their property. Investors should verify current requirements directly with the Town of Waterford and the Connecticut Department of Revenue Services.

Key Restrictions

Common STR restrictions in Connecticut towns can include occupancy limits, minimum stay requirements, noise ordinances, and parking provisions. HOA or community association rules may add additional layers, so it's important to review any deed restrictions or association bylaws before purchasing an investment property.

Tax Obligations

Connecticut imposes a stateroom occupancy tax on short-term rentals, and hosts may also owe state sales tax on lodging revenue. Platforms like Airbnb often collect and remit some of these taxes automatically, but operators should confirm their full obligations with the state.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Waterford's short-term rental market is expected to continue its seasonal rhythm, with the bulk of revenue concentrated between June and September. Given 56% year-over-year listing growth, new supply could temper per-listing performance somewhat, though the market's coastal appeal and premium ADR suggest ADR may hold steady or rise modestly by 1–3%. Occupancy could drift into the 17–20% range annually if new hosts price strategically and cater to summer visitors, but investors should plan conservatively around the current 16% baseline and treat off-season income as supplemental rather than core."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Waterford, CT

What is the average Airbnb occupancy rate in Waterford?

The average occupancy rate for Airbnb listings in Waterford is currently 16%, compared to the Connecticut state average of 37%. This lower figure reflects the market's strong seasonality—occupancy spikes during summer months when coastal demand peaks, then drops significantly in the off-season. Three-bedroom properties tend to perform slightly better at 18% occupancy, while one-bedroom units average around 11%.

How much do Airbnb hosts make in Waterford?

Airbnb hosts in Waterford earn an average of $2,331 per month, which translates to approximately $27,976 annually based on trailing 12-month data. Earnings vary considerably by property size: one-bedroom listings average $17,176 per year, two-bedrooms bring in around $22,534, and three-bedroom properties lead at $38,126 annually. Revenue is highly seasonal, with summer months generating two to three times what hosts earn during winter.

Is Waterford a good market for Airbnb investment?

Waterford holds a Rabbu ROI Score of 65 out of 100, rated as an "Attractive Opportunity." The market benefits from a high average daily rate of $439 (above the state average), limited competition with only 28 active listings, and strong summer demand. However, the 16% average occupancy rate and pronounced seasonality mean investors need to budget carefully for off-season months. Three-bedroom properties offer the best balance of revenue and occupancy for those entering this market.

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

The average daily rate in Waterford is $439, which is roughly 18% higher than the Connecticut state average of $373. ADR varies by property size: one-bedroom listings average $182 per night, two-bedrooms come in at $187, and three-bedroom properties command a significant premium at $333 per night. This pricing reflects the coastal location and the types of guests—primarily families and groups—seeking vacation rentals in the area.

Are short-term rentals legal in Waterford?

Short-term rentals generally operate in Waterford, CT, but local regulations may require permits, registration, or compliance with zoning ordinances. Connecticut also imposes state-level occupancy and sales taxes on short-term rental income. Prospective hosts should check directly with the Town of Waterford and the Connecticut Department of Revenue Services to confirm all current requirements before listing a property.

When is peak season for Airbnb in Waterford?

Peak season in Waterford runs from June through September, with July and August standing out as the top-performing months. August leads with average monthly revenue of $4,538, closely followed by July at $4,343. Revenue drops sharply heading into winter, with January averaging just $834—making the summer months critical for annual profitability.

How many Airbnbs are there in Waterford?

Waterford currently has 28 active Airbnb listings. The supply breaks down to 6 one-bedroom, 10 two-bedroom, and 7 three-bedroom properties. Notably, active listings have grown 56% year over year, suggesting increasing investor and host interest in the market, though the total count remains small relative to many Connecticut destinations.

How is Airbnb revenue calculated in Waterford?

The annual and monthly revenue figures shown for Waterford 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 aggregate the results into a market-level historical average. Because each month uses its own historical data, the figures naturally reflect seasonal peaks (like summer) and slower months (like winter). Individual results can vary based on property quality, pricing strategy, and how effectively the listing is managed.

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 Waterford market
• Average daily rate, occupancy, and RevPAN metrics across property sizes
• Monthly and annual revenue trends based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Popular amenity prevalence across active listings in the 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. Market data reflects trailing performance and may not account for recent regulatory changes or macroeconomic shifts. Individual results will vary based on property location, condition, pricing strategy, and management quality.