Watertown, MA Airbnb Market Data, Statistics, and Occupancy Rates

Watertown Short-Term Rental Market Overview

Watertown, MA presents an appealing short-term rental opportunity in the Greater Boston metro, with just 44 active Airbnb listings keeping competition relatively thin. The market earns an average annual revenue of $35,043 per listing and benefits from above-average occupancy stability and a favorable supply/demand balance. With average home values around $1,128,921, investors should carefully model returns, but the proximity to Boston's employment and academic hubs provides a reliable demand floor.

Key Market Statistics

According to Rabbu market data, the Watertown 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 Watertown

Watertown's limited supply of just 44 listings combined with above-average occupancy stability and proximity to Boston's economic engines makes it a compelling niche market for STR investors.

Expert Market Assessment

"With an ROI score of 60 out of 100, Watertown earns an "Attractive Opportunity" designation — a market where healthy demand and manageable competition create a viable path to positive returns. Revenue peaks sharply from May through October, with August and October both topping $4,000 in average monthly revenue, while January and February dip below $1,300. This pronounced seasonality means investors should plan for roughly three to four softer months each year. The limited listing count and above-average supply/demand balance help offset the market's high home values, though the revenue-to-price ratio sits at an average level that warrants careful underwriting."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Watertown

Average revenue by month in Watertown

Watertown shows clear seasonality, with peak revenues of $4,035 in August and $4,012 in October — roughly three times the January low of $1,269. The summer-to-fall corridor (May–October) consistently delivers the strongest returns, while winter months represent a meaningful revenue trough that investors should factor into cash-flow planning.

Active Airbnb listings by property size in Watertown

One-bedroom units dominate the supply at 25 of 44 total listings (57%), with 2-bedroom and 3-bedroom properties making up 9 and 7 listings respectively. The relative scarcity of larger properties could signal a supply gap worth exploring, particularly given the stronger revenue performance of 3-bedroom configurations.

Average daily rate (ADR) by property size in Watertown

ADR scales predictably with size: 1-bedrooms at $106, 2-bedrooms at $182, and 3-bedrooms at $244. The jump from 1 to 3 bedrooms more than doubles the nightly rate, suggesting that larger properties command a meaningful premium that may help offset higher acquisition and operating costs.

Average RevPAN by property size in Watertown

Three-bedroom listings lead with a RevPAN of $111, nearly triple the $40 RevPAN for 1-bedroom units and roughly double the $57 for 2-bedrooms. This makes 3-bedroom properties the clear efficiency winner in Watertown when factoring in both rate and occupancy.

Average occupancy rates by property size in Watertown

Three-bedroom properties achieve the highest occupancy at 46%, while 1-bedrooms sit at 38% and 2-bedrooms trail at 31%. The stronger occupancy for 3-bedroom units — despite their higher nightly rates — suggests robust demand for family- or group-sized accommodations in this market.

Average monthly revenue by property size in Watertown

Monthly revenue climbs sharply with property size: 1-bedrooms average $2,020, 2-bedrooms $3,616, and 3-bedrooms lead at $4,825. The 3-bedroom tier generates nearly 2.4 times the monthly income of a 1-bedroom, making larger properties the top earners by a wide margin.

Average annual revenue by property size in Watertown

On an annual basis, 3-bedroom listings generate approximately $57,909 — more than double the $24,245 that 1-bedroom units bring in and 33% above the $43,391 earned by 2-bedrooms. For investors prioritizing gross revenue, 3-bedroom properties clearly offer the strongest return potential in Watertown.

Most common amenities for Airbnb listings in Watertown

Parking (96%) and a kitchen (91%) are near-universal in Watertown listings, reflecting guest expectations for a self-sufficient, car-friendly stay. A workspace (66%) and washer (66%) also appear frequently, signaling demand from longer-stay guests and remote workers — amenities that investors should prioritize to remain competitive.

Understanding Watertown's ROI Score: 60/100

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

Watertown's ROI score of 60 out of 100 places it in the "Attractive Opportunity" band, reflecting a market where above-average occupancy stability and a favorable supply/demand balance help compensate for an average revenue-to-price ratio. The market growth trend is also average, meaning returns are more likely driven by operational execution than by rising tides. Investors should pair this score with thorough local regulatory research and property-level underwriting to confirm that acquisition costs align with realistic revenue expectations.

Short-Term Rental Regulations in Watertown

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

Permit Requirements

Short-term rental operators in Watertown, Massachusetts may be required to register or obtain a permit through the city and comply with state-level STR regulations. Investors should verify current requirements with the Watertown city clerk's office and the Massachusetts Department of Revenue before listing a property.

Key Restrictions

Common restrictions in Massachusetts markets include occupancy limits, minimum stay requirements, noise and nuisance ordinances, and parking provisions. HOA rules may impose additional constraints, and some municipalities cap the number of STR permits available, so confirming local zoning and building regulations is essential before purchasing.

Tax Obligations

Massachusetts requires STR operators to collect and remit state room occupancy tax, and municipalities may levy additional local excise taxes on short-term rentals. Many booking platforms handle tax collection automatically, but hosts should confirm compliance with both state and local tax authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Watertown's STR market is expected to maintain steady demand driven by its close ties to the Boston metro area. Seasonal patterns suggest revenue will concentrate in the May–October window, with monthly averages potentially reaching $3,800–$4,100 during peak months. ADR growth of 2–4% is a reasonable estimate given the market's average growth trend, while occupancy is likely to hover around 38–46% depending on property size. Investors should plan for softer winter months and budget accordingly, but the overall trajectory looks stable."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Watertown, MA

What is the average Airbnb occupancy rate in Watertown?

The average Airbnb occupancy rate in Watertown is currently 40%, which is slightly below the Massachusetts state average of 44%. Occupancy varies by property size — 3-bedroom listings lead at 46%, while 2-bedroom units average 31%. Seasonal demand shifts and listing quality both play significant roles in individual occupancy outcomes.

How much do Airbnb hosts make in Watertown?

Airbnb hosts in Watertown earn an average of $2,920 per month, or approximately $35,043 per year based on trailing 12-month data. Revenue varies significantly by property size: 1-bedroom listings average $24,245 annually, 2-bedrooms bring in around $43,391, and 3-bedroom properties top the market at roughly $57,909 per year. Individual results depend on pricing strategy, guest experience, and seasonal management.

Is Watertown a good market for Airbnb investment?

Watertown earns a Rabbu ROI Score of 60 out of 100, classified as an "Attractive Opportunity." The market benefits from above-average occupancy stability and a favorable supply/demand balance, with only 44 active listings. The main consideration is the average home value of $1,128,921, which means the revenue-to-price ratio is average rather than exceptional. Investors who can acquire properties at or below market value and optimize for peak-season revenue stand to do well here.

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

The average daily rate in Watertown is $147, which is well below the Massachusetts state average of $582 — a reflection of the market's more residential, suburban character compared to resort-heavy areas in the state. ADR scales with property size: 1-bedrooms average $106, 2-bedrooms $182, and 3-bedrooms command $244 per night.

Are short-term rentals legal in Watertown?

Short-term rentals operate in Watertown, MA, but operators should confirm they meet all local permitting, zoning, and registration requirements. Massachusetts has state-level STR regulations including tax obligations, and the City of Watertown may impose additional rules. We recommend consulting local authorities and reviewing any HOA restrictions before investing.

When is peak season for Airbnb in Watertown?

Peak season in Watertown runs from May through October, with average monthly revenues ranging from $3,631 to $4,035 during this stretch. August and October are the strongest months at roughly $4,035 and $4,012 respectively. The off-season from November through February sees revenues drop significantly, with January and February averaging just $1,269–$1,278.

How many Airbnbs are there in Watertown?

As of April 2026, there are 44 active Airbnb listings in Watertown. The majority are 1-bedroom properties (25 listings), followed by 2-bedrooms (9 listings) and 3-bedrooms (7 listings). Year-over-year listing growth of 118% indicates the market is expanding, which investors should monitor for potential competitive shifts.

How is Airbnb revenue calculated in Watertown?

The annual and monthly revenue figures shown for Watertown 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 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. 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 and property size
• Average daily rates, occupancy rates, and RevPAN metrics across property configurations
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Home value data 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, permitting requirements, and tax obligations may change; always verify with municipal and state authorities before investing. Individual property results will vary based on location, condition, pricing strategy, and management quality.