Westerly, RI Airbnb Market Data, Statistics, and Occupancy Rates

Westerly Short-Term Rental Market Overview

Westerly, Rhode Island is a coastal market with pronounced summer seasonality and average annual STR revenue of $70,310 across just 51 active Airbnb listings. While the average daily rate of $409 sits below the state average of $547, the market's small supply base and beach-driven demand create a focused opportunity for investors who can capitalize on peak summer months. With an ROI score of 59 out of 100, Westerly offers attractive short-term rental potential balanced by its highly seasonal booking pattern and elevated home values averaging $1,265,663.

Key Market Statistics

According to Rabbu market data, the Westerly 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 Westerly

Westerly appeals to investors seeking a beach-market entry point with concentrated summer revenue potential and a still-small competitive supply base.

Expert Market Assessment

"Westerly presents a moderately attractive STR opportunity defined by extreme seasonality — August revenue of $18,254 dwarfs the January figure of $986, creating a roughly 18:1 peak-to-trough ratio. The market's small listing count and coastal appeal support premium nightly rates, but the 20% average occupancy rate (well below Rhode Island's 50% state average) reflects the reality that this is fundamentally a summer market. Investors with the financial cushion to absorb thin winter months and the ability to maximize July–September bookings stand to benefit most. Two-bedroom configurations appear to offer the best revenue efficiency, combining strong ADR with the highest RevPAN of any property size tracked."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Westerly

Average revenue by month in Westerly

Westerly's revenue cycle is sharply seasonal, with August ($18,254) and July ($17,385) generating more than 50% of total annual earnings combined, while the slowest months — January ($986) and February ($1,024) — barely cover operating costs. Investors should plan cash reserves around at least five months of minimal income from November through March.

Active Airbnb listings by property size in Westerly

Three-bedroom properties make up the largest share of supply with 18 listings, followed by one-bedrooms at 16 and two-bedrooms at just 9. The relatively thin supply of two-bedroom units is notable given their strong revenue performance, potentially signaling a less competitive niche for new entrants.

Average daily rate (ADR) by property size in Westerly

Two-bedroom listings command the highest ADR at $528 — more than double the $235 rate for one-bedrooms — while three-bedroom properties average $434. The ADR premium for two-bedrooms over three-bedrooms suggests that rate scaling isn't strictly linear and that mid-size properties may benefit from favorable demand dynamics.

Average RevPAN by property size in Westerly

Two-bedroom properties deliver the best RevPAN at $109, significantly outpacing both one-bedrooms ($63) and three-bedrooms ($60). This gap indicates that after accounting for occupancy, two-bedroom units generate nearly twice the revenue per available night as three-bedroom homes despite the latter's larger size.

Average occupancy rates by property size in Westerly

One-bedroom listings achieve the highest occupancy rate at 27%, while two-bedrooms sit at 21% and three-bedrooms trail at 14%. The inverse relationship between property size and occupancy suggests smaller units attract more consistent bookings, though even the top tier remains well below the state average of 50%.

Average monthly revenue by property size in Westerly

Two-bedroom and three-bedroom properties are virtually tied in average monthly revenue at $6,110 and $6,078 respectively, while one-bedrooms earn $4,059. For investors weighing monthly cash flow, the two-bedroom category edges ahead by combining higher revenue with fewer bedrooms and presumably lower acquisition and upkeep costs.

Average annual revenue by property size in Westerly

Two-bedroom units lead annual revenue at $73,320, narrowly ahead of three-bedrooms at $72,947, while one-bedrooms generate $48,719. Given the lower entry costs typically associated with two-bedroom properties, this size configuration appears to offer the strongest return potential relative to investment in Westerly.

Most common amenities for Airbnb listings in Westerly

Parking (98%) and a full kitchen (90%) are near-universal among Westerly listings, reflecting the car-dependent coastal setting and extended-stay guest expectations. Outdoor amenities like backyards (69%), BBQ grills (67%), and patios (65%) are also highly prevalent, while beach access at 37% and waterfront at 16% represent premium differentiators that can command higher nightly rates.

Understanding Westerly's ROI Score: 59/100

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

Westerly's ROI score of 59 out of 100 places it in the 'Attractive Opportunity' band, reflecting average marks across revenue-to-price ratio, occupancy stability, and market growth trend, with supply/demand balance rated below average due to rapid listing growth outpacing demand. The score suggests viable returns for well-positioned properties, particularly during summer, but investors should be realistic about the seasonal revenue concentration and the current 20% occupancy rate. Pairing this data with thorough local regulatory research and a conservative financial model will help set appropriate expectations.

Short-Term Rental Regulations in Westerly

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

Permit Requirements

The Town of Westerly, Rhode Island may require short-term rental operators to obtain a permit or register their property before listing. Investors should verify current requirements directly with the Westerly town clerk or planning department, as well as review any state-level Rhode Island registration obligations.

Key Restrictions

Common STR restrictions in coastal Rhode Island communities can include occupancy limits, minimum stay requirements (especially during peak summer), noise ordinances, and parking mandates. HOA rules may impose additional constraints in certain neighborhoods, and some municipalities cap the number of permits issued, so confirming availability early in the investment process is advisable.

Tax Obligations

Short-term rental hosts in Rhode Island are typically subject to state sales tax and local hotel/room taxes on bookings of fewer than 30 consecutive days. Major platforms like Airbnb often collect and remit these taxes on behalf of hosts, but operators should confirm their specific obligations with the Rhode Island Division of Taxation.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Westerly's summer-dominated revenue cycle is expected to remain the primary earnings driver, with July and August likely continuing to generate the lion's share of annual income. Active listings have grown 116% year-over-year, which could pressure occupancy rates — currently at 20% — if demand doesn't keep pace. Investors should anticipate ADR holding relatively steady in the $400–$430 range given the market's coastal premium, though occupancy during shoulder and winter months may remain soft. Strategic pricing and minimum-stay adjustments during off-peak periods could help narrow the revenue gap between seasons."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Westerly, RI

What is the average Airbnb occupancy rate in Westerly?

The average Airbnb occupancy rate in Westerly is currently 20%, which is notably below the Rhode Island state average of 50%. This lower figure reflects Westerly's highly seasonal demand profile — bookings surge during summer beach season and drop significantly in colder months. One-bedroom properties tend to achieve the highest occupancy at 27%, while three-bedroom listings average around 14%.

How much do Airbnb hosts make in Westerly?

On average, Airbnb hosts in Westerly earn approximately $5,859 per month and $70,310 per year based on trailing 12-month booking data. However, earnings vary significantly by season and property size. Two-bedroom listings lead with average annual revenue of $73,320, while one-bedroom properties bring in around $48,719. The bulk of revenue is concentrated in the summer months, with August alone averaging $18,254.

Is Westerly a good market for Airbnb investment?

Westerly earns an ROI score of 59 out of 100, placing it in the 'Attractive Opportunity' category. The market benefits from strong coastal vacation demand and a small competitive supply of just 51 active listings. However, investors should be aware of the pronounced seasonality — summer months generate the vast majority of revenue — and relatively high average home values of $1,265,663. It works best for investors who can price aggressively during peak season and manage lean winter months.

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

The average daily rate for Airbnb listings in Westerly is $409, which falls below the Rhode Island state average of $547. Rates vary considerably by property size: one-bedroom listings average $235 per night, two-bedroom properties command $528, and three-bedroom homes average $434. The two-bedroom segment stands out for combining a high ADR with the best RevPAN in the market.

Are short-term rentals legal in Westerly?

Short-term rentals operate in Westerly, RI, but hosts may need to obtain permits or register with the town. Local regulations can include occupancy limits, parking requirements, and noise restrictions. Rhode Island also imposes state-level tax obligations on short-term rentals. Investors should check with Westerly's local government and the Rhode Island Division of Taxation for the most current rules before listing a property.

When is peak season for Airbnb in Westerly?

Peak season in Westerly runs from June through August, with July and August being the strongest months by a wide margin. August tops the calendar with average revenue of $18,254, followed closely by July at $17,385. Revenue drops off sharply in September and continues declining through winter, with January averaging just $986. This makes Westerly one of the more seasonally concentrated markets in the region.

How many Airbnbs are there in Westerly?

As of April 2026, there are 51 active Airbnb listings in Westerly. The supply is split across one-bedroom (16 listings), two-bedroom (9 listings), and three-bedroom (18 listings) properties. Notably, active listings have grown 116% year-over-year, indicating increasing investor and host interest in the market.

How is Airbnb revenue calculated in Westerly?

The annual and monthly revenue figures shown for Westerly 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. Because each month uses its own historical performance, the figures naturally reflect seasonal peaks like summer and slower winter periods. Individual results can vary based on property quality, pricing strategy, and how well a 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 Westerly, RI
• Average daily rate, occupancy, and RevPAN metrics based on current market conditions
• Historical monthly and annual revenue averages derived from trailing 12-month booking data
• Supply distribution and performance breakdowns by property size (bedroom count)
• Home value data sourced from Zillow Home Value Index (ZHVI) for investment context

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 performance periods and may not capture the most recent regulatory or market changes. Individual property results will vary based on location, condition, pricing strategy, and operational management.