Watertown Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Massachusetts, United States

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Watertown in 2025? Explore comprehensive Airbnb analytics for Watertown, Massachusetts, United States to uncover income potential. This 2025 STR market report for Watertown, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 102 active listings.

Whether you're considering an Airbnb investment in Watertown, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Watertown Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.

Key Watertown Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$156
The average rental revenue earned for an occupied room per day in Watertown.
Occupancy Rate(?)
57.0%
High demand. Good booking frequency.
Median Annual Revenue(?)
$29,237
Typical annual income for an Airbnb listing in Watertown. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
2.4%
Positive growth (2.4%) vs. last year.
Peak Revenue Month(?)
July
The month with the highest average earnings, indicating peak season in Watertown.
Lowest Revenue Month(?)
January
The month with the lowest average earnings, indicating the low season in Watertown.
STR Regulation Level(?)
Low
Fewer regulations, offering more operational flexibility.
Active Airbnb Listings(?)
102
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in Watertown (2025)

Understanding the monthly revenue variations for Airbnb listings in Watertown is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Watertown is typically July, while January often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Watertown across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $7,087+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $4,676 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $2,251 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $1,292, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Watertown

Watertown Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the Watertown STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Septembersees the highest demand (peak season occupancy), while January experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Watertown:

  • Best-in-class properties (Top 10%) achieve 90%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 77% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 61%.
  • Entry-level properties (Bottom 25%) average 37% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Watertown

Average Daily Rate (ADR) Airbnb Trends in Watertown (2025)

Effective short term rental pricing strategy in Watertown involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Watertown typically peaks in July and dips lowest during February. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:

  • Best-in-class properties (Top 10%) command rates of $355+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $225 or more.
  • Typical properties (Median) charge around $117 per night.
  • Entry-level properties (Bottom 25%) earn around $75 per night.

Average Daily Rate (ADR) Trend by Month in Watertown

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Airbnb Seasonality Analysis & Trends in Watertown (2025)

Peak Season (July, June, October)
  • Revenue averages $3,879 per month
  • Occupancy rates average 64.3%
  • Daily rates average $175
Shoulder Season
  • Revenue averages $3,353 per month
  • Occupancy maintains around 59.6%
  • Daily rates hold near $169
Low Season (January, February, March)
  • Revenue drops to average $2,288 per month
  • Occupancy decreases to average 44.6%
  • Daily rates adjust to average $154

Seasonality Insights for Watertown

  • The Airbnb seasonality in Watertown shows moderate seasonality with distinct peak and low periods. While the sections above show seasonal averages, it's also insightful to look at the extremes:
  • During the high season, the absolute peak month showcases Watertown's highest earning potential, with monthly revenues capable of climbing to $3,956, occupancy reaching a high of 72.3%, and ADRs peaking at $176.
  • Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $2,152, occupancy could drop to 42.6%, and ADRs may adjust down to $151.
  • Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Watertown.

Seasonal Strategies for Maximizing Profit

  • Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
  • Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
  • Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
  • Regularly analyze your own performance against these Watertown seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in Watertown (2025)

Exploring the top neighborhoods for short-term rentals in Watertown? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.

Neighborhood / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
Watertown Square
A vibrant commercial area that offers a mix of shopping, dining, and local culture. Close to public transportation, it attracts both visitors and locals looking for convenience and entertainment.
Arsenal Yards, Watertown's Historic District, Charles River Reservation, Watertown Mall, Local restaurants and cafes
Army Corps of Engineers Park
This scenic area along the Charles River is perfect for outdoor recreational activities. Ideal for those looking for a peaceful stay with access to nature and walking trails.
Charles River Recreation Paths, Picnic areas, Kayaking opportunities, Scenic views of the river
Coolidge Square
A quaint neighborhood known for its charming shops and local eateries. A great choice for travelers who appreciate a small-town vibe while being close to Boston.
Coolidge Corner, Local boutiques and shops, Fresh Pond Reservation, Historical sites
Marion Road
A residential neighborhood that attracts families and professionals. Offers a quiet atmosphere while being conveniently close to Boston and Cambridge.
Great for families and longer stays, Access to local parks, Quiet streets for walking and exploring
Watertown's Arsenal Project
A modern mixed-use development that combines living, dining, and shopping. A great hub for urban explorers who enjoy modern amenities and living spaces.
Arsenal Yards Shopping Center, Dining options, Cinemas, Community events
Laurel Park
A lovely residential area that offers parks and green spaces, popular among visitors seeking a relaxing getaway close to nature.
Parks and playgrounds, Walking trails, Community gardens
Great Meadows National Wildlife Refuge
A nature preserve that offers a unique experience for nature lovers. Ideal for those looking to escape the city and enjoy wildlife and outdoor activities.
Birdwatching, Hiking trails, Natural habitats
John Fitzgerald Surface Road
A lively area with access to public transport and short commutes to major attractions in Boston. Ideal for visitors who want to explore the city.
Convenient access to public transport, Close to major Boston attractions, Local dining experiences

Understanding Airbnb License Requirements & STR Laws in Watertown (2025)

While Watertown, Massachusetts, United States currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Watertown to ensure full compliance before hosting.

(Source: AirROI data, 2025, based on 1% licensed listings)

Top Performing Airbnb Properties in Watertown (2025)

Benchmark your potential! Explore examples of top-performing Airbnb properties in Watertownbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.

Luxury large house minutes to Cambridge and Boston

Luxury large house minutes to Cambridge and Boston

Entire Place • 4 bedrooms

$131,760
Revenue
73.1%
Occupancy
$483.60
Daily Rate
Luxury Massive Penthouse in Watertown 8751

Luxury Massive Penthouse in Watertown 8751

Entire Place • 3 bedrooms

$102,508
Revenue
60.9%
Occupancy
$426.42
Daily Rate
Beautiful, Bright, 3 BR Close to Boston w/Parking.

Beautiful, Bright, 3 BR Close to Boston w/Parking.

Entire Place • 3 bedrooms

$100,737
Revenue
67.1%
Occupancy
$356.55
Daily Rate
Spacious 4-Bedroom Home Near Downtown Boston

Spacious 4-Bedroom Home Near Downtown Boston

Entire Place • 4 bedrooms

$100,034
Revenue
50.0%
Occupancy
$410.61
Daily Rate
Absolutely Gorgeous 3 Bedroom Close to Boston

Absolutely Gorgeous 3 Bedroom Close to Boston

Entire Place • 3 bedrooms

$98,616
Revenue
68.1%
Occupancy
$324.22
Daily Rate
Luxury Charm by the Charles. 3Bed 2Bath and office

Luxury Charm by the Charles. 3Bed 2Bath and office

Entire Place • 3 bedrooms

$84,648
Revenue
69.2%
Occupancy
$299.80
Daily Rate

Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.

Top Performing Airbnb Hosts in Watertown (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Watertown based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.

Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
Domenic3$269,1533314.97/5.0
Jenny3$208,6003954.67/5.0
Gaurav2$159,6641104.80/5.0
Evonify MA2$141,387364.71/5.0
Anvita1$131,760954.86/5.0
B&Y2$112,8801174.86/5.0
Mark1$100,034264.77/5.0
Mehmet2$94,7094864.98/5.0
Arik2$82,1523244.91/5.0
Nancy2$80,4481014.79/5.0

Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Watertown.

Dive Deeper: Advanced Watertown STR Market Data (2025)

Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Watertown. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.

Explore Advanced Metrics

Watertown Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for Watertown

  • The Watertown Airbnb market composition is heavily skewed towards Private Room listings, which make up 52.9% of the 102 active rentals. This indicates strong guest preference for privacy and space.
  • Looking at the property type distribution in Watertown, Apartment/Condo properties are the most common (53.9%), reflecting the local real estate landscape.
  • Houses represent a significant 40.2% portion, catering likely to families or larger groups.
  • Smaller segments like others, hotel/boutique (combined 5.9%) offer potential for unique stay experiences.

Watertown Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Watertown

  • The dominant room capacity in Watertown is 1 bedroom listings, making up 18.6% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 1 bedroom and 2 bedrooms properties represent 36.2% of the active Airbnb listings in Watertown, indicating a high concentration in these sizes.

Watertown Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Watertown

  • The most common guest capacity trend in Watertown vacation rentals is listings accommodating 6 guests (12.7%). This suggests the primary traveler segment is likely larger groups.
  • Properties designed for 6 guests and 4 guests dominate the Watertown STR market, accounting for 23.5% of listings.
  • 23.5% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Watertown.
  • On average, properties in Watertown are equipped to host 2.5 guests.

Watertown Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Watertown

  • The most common availability pattern in Watertown falls within the 181-270 days range, representing 31.4% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 53.9% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 181-270 days range is most frequent in Watertown (30.4%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 49.0% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Watertown Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (24.7%)

1 Night

24 listings

24.7% of total

2 Nights (5.2%)

2 Nights

5 listings

5.2% of total

3 Nights (11.3%)

3 Nights

11 listings

11.3% of total

4-6 Nights (11.3%)

4-6 Nights

11 listings

11.3% of total

7-29 Nights (13.4%)

7-29 Nights

13 listings

13.4% of total

30+ Nights (34%)

30+ Nights

33 listings

34% of total

Key Insights

  • The most prevalent minimum stay requirement in Watertown is 30+ Nights, adopted by 34% of listings. This highlights the market's preference for longer commitments.
  • A significant segment (34%) caters to monthly stays (30+ nights) in Watertown, pointing to opportunities in the extended-stay market.

Recommendations

  • Align with the market by considering a 30+ Nights minimum stay, as 34% of Watertown hosts use this setting.
  • If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 24.7% currently do.
  • Explore offering discounts for stays of 30+ nights to attract the 34% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Watertown.

Watertown Airbnb Cancellation Policy Trends Analysis (2025)

Flexible (14.3%)

Flexible

13 listings

14.3% of total

Moderate (33%)

Moderate

30 listings

33% of total

Firm (30.8%)

Firm

28 listings

30.8% of total

Strict (22%)

Strict

20 listings

22% of total

Cancellation Policy Insights for Watertown

  • The prevailing Airbnb cancellation policy trend in Watertown is Moderate, used by 33% of listings.
  • A majority (52.8%) of hosts in Watertown utilize Firm or Strict policies, indicating a market where hosts prioritize booking security.

Recommendations for Hosts

  • Consider adopting a Moderate policy to align with the 33% market standard in Watertown.
  • Regularly review your cancellation policy against competitors and market demand shifts in Watertown.

Watertown STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Watertown

  • The overall average booking lead time for vacation rentals in Watertown is 51 days.
  • Guests book furthest in advance for stays during May (average 79 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in March (average 30 days), indicating more last-minute travel plans during this time.
  • Seasonally, Summer (64 days avg.) sees the longest lead times, while Winter (40 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (51 days) as a baseline for your pricing and availability strategy in Watertown.
  • For May stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 79 days out to capitalize on advance planning.
  • Target marketing efforts for the Summer season well in advance (at least 64 days) to capture early planners.
  • Monitor your own booking lead times against these Watertown averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Watertown (2025)

Amenity Prevalence

Amenity Insights for Watertown

  • Essential amenities in Watertown that guests expect include: Wifi, Hot water, Heating. Lacking these (any) could significantly impact bookings.
  • Popular amenities like Essentials, Smoke alarm, Carbon monoxide alarm are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Watertown: Wifi, Hot water, Heating.
  • Prioritize adding missing essentials: Hot water, Heating.
  • Consider adding popular differentiators like Essentials or Smoke alarm to increase appeal.
  • Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
  • Regularly check competitor amenities in Watertown to stay competitive.

Watertown Airbnb Guest Demographics & Profile Analysis (2025)

Guest Origin: Domestic vs. International
Top 5 Cities of Origin
Top 5 Countries of Origin
Top 5 Languages Spoken
Guest Age Distribution (Birth Decade)

Guest Profile Summary for Watertown

  • The typical guest profile for Airbnb in Watertown consists of primarily domestic travelers (80%), often arriving from nearby New York, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
  • Domestic travelers account for 79.5% of guests.
  • Key international markets include United States (79.5%) and Canada (3.9%).
  • Top languages spoken are English (55.6%) followed by Spanish (11.4%).
  • A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.

Recommendations for Hosts

  • Target domestic marketing efforts towards travelers from New York and Boston.
  • Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
  • Highlight unique local experiences or amenities relevant to the primary guest profile.
  • Consider seasonal promotions aligned with peak travel times for key origin markets.

Nearby Short-Term Rental Market Comparison

How does the Watertown Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.

MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
Nantucket539$6,999$952.5842%
Milford11$6,343$500.1059%
Pomfret13$6,142$449.7949%
Town of East Hampton1,420$6,008$940.0238%
Middletown384$5,575$548.0046%
Hanover28$5,449$863.4939%
Nahant17$5,435$521.6450%
Middleton10$5,234$321.4150%
Westminster11$5,179$379.9257%
Kennebunkport145$5,109$614.2945%

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