Madison Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in South Central Connecticut Planning Region, United States
Is Airbnb profitable in Madison in 2025? Explore comprehensive Airbnb analytics for Madison, South Central Connecticut Planning Region, United States to uncover income potential. This 2025 STR market report for Madison, based on AirROI data from June 2024 to May 2025, reveals key trends in the niche market of 56 active listings.
Whether you're considering an Airbnb investment in Madison, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Madison 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 Madison Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Madison (2025)
Understanding the monthly revenue variations for Airbnb listings in Madison 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 Madison is typically August, while February often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Madison across different performance tiers:
- Best-in-class properties (Top 10%) achieve $9,391+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $6,224 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $2,973 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $1,140, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Madison
Madison Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Madison STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Augustsees the highest demand (peak season occupancy), while February 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 Madison:
- Best-in-class properties (Top 10%) achieve 72%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 50% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 27%.
- Entry-level properties (Bottom 25%) average 14% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Madison
Average Daily Rate (ADR) Airbnb Trends in Madison (2025)
Effective short term rental pricing strategy in Madison involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Madison typically peaks in May and dips lowest during October. 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 $643+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $445 or more.
- Typical properties (Median) charge around $300 per night.
- Entry-level properties (Bottom 25%) earn around $207 per night.
Average Daily Rate (ADR) Trend by Month in Madison
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Airbnb Seasonality Analysis & Trends in Madison (2025)
Peak Season (August, July, June)
- Revenue averages $5,947 per month
- Occupancy rates average 45.1%
- Daily rates average $346
Shoulder Season
- Revenue averages $4,014 per month
- Occupancy maintains around 32.2%
- Daily rates hold near $354
Low Season (January, February, April)
- Revenue drops to average $3,039 per month
- Occupancy decreases to average 25.9%
- Daily rates adjust to average $382
Seasonality Insights for Madison
- The Airbnb seasonality in Madison shows highly seasonal trends requiring careful strategy. 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 Madison's highest earning potential, with monthly revenues capable of climbing to $7,010, occupancy reaching a high of 51.7%, and ADRs peaking at $408.
- 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 $2,322, occupancy could drop to 19.8%, and ADRs may adjust down to $331.
- 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 Madison.
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 Madison seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Madison (2025)
Exploring the top neighborhoods for short-term rentals in Madison? 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 / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Downtown Madison | The bustling heart of the city, offering a vibrant mix of dining, shopping, and entertainment options. Ideal for both tourists and business travelers seeking convenience and accessibility to local attractions. | State Capitol, Wisconsin Historical Museum, Capitol Square, Overture Center for the Arts, Monona Terrace |
| University of Wisconsin-Madison | A prime area for hosting students and families during university events and graduations. The presence of the university brings a youthful energy and demand for short-term stays. | University of Wisconsin-Madison, Camp Randall Stadium, Memorial Union, Chazen Museum of Art, State Street |
| Middleton | A suburban area just outside Madison known for its family-friendly environment and proximity to outdoor activities. Popular among families and group travelers looking for spacious accommodations. | Greenway Station, Lake Mendota, Pheasant Branch Conservancy, Westridge Park, Capital Brewery |
| West Side Madison | Known for its residential neighborhoods and parks, this area appeals to families and offers quieter accommodations while still being close to downtown. | Elver Park, West Towne Mall, Monona Golf Course, State Fair Park, Hawthorne Library |
| East Side Madison | A vibrant area with a diverse mix of culture, restaurants, and recreation. Attractive to young professionals and visitors wanting a local experience. | Olbrich Botanical Gardens, Lakeside Street Coffee House, Atwood Avenue, Quivey's Grove, Carrie’s Lounge |
| Monona | A lakeside community with beautiful views and recreational activities. Great for those seeking a relaxing getaway close to Madison’s attractions. | Monona Park, Winnequah Park, Monona Terrace Community and Convention Center, Lake Monona, Alumni Park |
| Fitchburg | A growing suburb with a blend of residential and commercial areas, making it a convenient option for visitors looking for a quieter stay while being close to Madison. | Fitchburg Community Aquatic Center, McKee Farms Park, City Hall, Fitchburg Center, Leopold Nature Types |
| Oregon | A charming small town with easy access to Madison, offering a quaint atmosphere while still being desirable for visitors wanting a peaceful retreat. | Oregon Area Senior Center, Fireman's Park, Oregon Community Bank, Oregon Public Library, Lake Helen |
Understanding Airbnb License Requirements & STR Laws in Madison (2025)
While Madison, South Central Connecticut Planning Region, 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 Madison to ensure full compliance before hosting.
(Source: AirROI data, 2025, finding no licensed listings among those analyzed)
Top Performing Airbnb Properties in Madison (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Madisonbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
Waterfront Beach House with pool
Entire Place • 3 bedrooms
1 Block from Water: Welcoming 4 Bedroom Home
Entire Place • 4 bedrooms
Historic Beachside Glamour
Entire Place • 6 bedrooms
Spacious Newly Furnished 4 BR Near Beach and Town
Entire Place • 4 bedrooms
Writer's Retreat & Explorer's Adventure!
Entire Place • 3 bedrooms
Idyllic Beach Retreat
Entire Place • 4 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Madison (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Madison based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Meaghan | 2 | $219,741 | 68 | 4.95/5.0 |
| Kevin | 3 | $185,476 | 152 | 5.00/5.0 |
| Julie | 1 | $117,197 | 17 | 5.00/5.0 |
| Jessica | 1 | $87,165 | 23 | 4.87/5.0 |
| Lori | 2 | $84,880 | 4 | 4.75/5.0 |
| Katie | 9 | $78,497 | 585 | 4.75/5.0 |
| Alison | 1 | $72,156 | 46 | 5.00/5.0 |
| Ally | 1 | $68,375 | 4 | 5.00/5.0 |
| Brian | 1 | $68,370 | 14 | 5.00/5.0 |
| Peter + Vicky | 1 | $59,419 | 75 | 4.97/5.0 |
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 Madison.
Dive Deeper: Advanced Madison STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Madison. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsMadison Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Madison
- The Madison Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 80.4% of the 56 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Madison, House properties are the most common (58.9%), reflecting the local real estate landscape.
- Houses represent a significant 58.9% portion, catering likely to families or larger groups.
- The presence of 26.8% Hotel/Boutique listings indicates integration with traditional hospitality.
- Smaller segments like unique stays (combined 1.8%) offer potential for unique stay experiences.
Madison Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Madison
- The dominant room capacity in Madison is 1 bedroom listings, making up 25% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 3 bedrooms properties represent 46.4% of the active Airbnb listings in Madison, indicating a high concentration in these sizes.
- A significant 44.6% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Madison.
Madison Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Madison
- The most common guest capacity trend in Madison vacation rentals is listings accommodating 4 guests (26.8%). This suggests the primary traveler segment is likely small families or groups.
- Properties designed for 4 guests and 8+ guests dominate the Madison STR market, accounting for 51.8% of listings.
- 42.9% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Madison.
- On average, properties in Madison are equipped to host 4.8 guests.
Madison Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Madison
- The most common availability pattern in Madison falls within the 271-366 days range, representing 60.7% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 91.1% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 31-90 days range is most frequent in Madison (33.9%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 8.9% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Madison Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
11 listings
20.8% of total
2 Nights
17 listings
32.1% of total
3 Nights
15 listings
28.3% of total
4-6 Nights
2 listings
3.8% of total
7-29 Nights
4 listings
7.5% of total
30+ Nights
4 listings
7.5% of total
Key Insights
- The most prevalent minimum stay requirement in Madison is 2 Nights, adopted by 32.1% of listings. This highlights the market's preference for shorter, flexible bookings.
Recommendations
- Align with the market by considering a 2 Nights minimum stay, as 32.1% of Madison hosts use this setting.
- If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 20.8% currently do.
- Explore offering discounts for stays of 30+ nights to attract the 7.5% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Madison.
Madison Airbnb Cancellation Policy Trends Analysis (2025)
Flexible
5 listings
9.8% of total
Moderate
12 listings
23.5% of total
Firm
14 listings
27.5% of total
Strict
20 listings
39.2% of total
Cancellation Policy Insights for Madison
- The prevailing Airbnb cancellation policy trend in Madison is Strict, used by 39.2% of listings.
- A majority (66.7%) of hosts in Madison utilize Firm or Strict policies, indicating a market where hosts prioritize booking security.
Recommendations for Hosts
- Consider adopting a Strict policy to align with the 39.2% market standard in Madison.
- With 39.2% using Strict terms, this is a viable option in Madison, particularly for high-value properties or during peak demand periods.
- Regularly review your cancellation policy against competitors and market demand shifts in Madison.
Madison STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Madison
- The overall average booking lead time for vacation rentals in Madison is 57 days.
- Guests book furthest in advance for stays during November (average 121 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in March (average 22 days), indicating more last-minute travel plans during this time.
- Seasonally, Fall (98 days avg.) sees the longest lead times, while Spring (43 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (57 days) as a baseline for your pricing and availability strategy in Madison.
- For November stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 121 days out to capitalize on advance planning.
- Target marketing efforts for the Fall season well in advance (at least 98 days) to capture early planners.
- Monitor your own booking lead times against these Madison averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Madison (2025)
Amenity Prevalence
Amenity Insights for Madison
- Essential amenities in Madison that guests expect include: Wifi, TV, Smoke alarm, Air conditioning, Free parking on premises. Lacking these (any) could significantly impact bookings.
- Popular amenities like Heating, Essentials, 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 Madison: Wifi, TV, Smoke alarm, Air conditioning, Free parking on premises.
- Prioritize adding missing essentials: TV, Smoke alarm, Air conditioning, Free parking on premises.
- Consider adding popular differentiators like Heating or Essentials 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 Madison to stay competitive.
Madison Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Madison
- The typical guest profile for Airbnb in Madison consists of primarily domestic travelers (94%), 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 94.2% of guests.
- Key international markets include United States (94.2%) and DC (0.8%).
- Top languages spoken are English (70.6%) followed by Spanish (7.6%).
- 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 Madison 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.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| North Andover | 10 | $5,541 | $391.63 | 53% |
| Brookfield | 12 | $5,384 | $540.52 | 50% |
| Town of East Hampton | 1,471 | $5,335 | $968.73 | 36% |
| Town/Village of Harrison | 10 | $5,205 | $562.47 | 55% |
| Town of Southampton | 1,380 | $5,091 | $963.66 | 34% |
| Town of Pawling | 16 | $5,041 | $387.66 | 53% |
| Town of Pleasant Valley | 32 | $4,915 | $514.99 | 41% |
| Middletown | 407 | $4,775 | $545.67 | 44% |
| Town of Ancram | 24 | $4,768 | $479.80 | 41% |
| Town of Putnam Valley | 53 | $4,761 | $405.79 | 48% |