Madison, Connecticut Short-Term Rental Market
Madison, CT has no STR ordinance; the town calls current rentals 'not allowed, but happening.' June 2026 ADR was $234.
Quick Answer: Madison, Connecticut is an active short-term rental market. average occupancy in the Stamford/New Haven market area is 65%. average monthly revenue in the Stamford/New Haven market area is $4,095. average daily rate in the Stamford/New Haven market area is $234.
Market data reflects the Stamford/New Haven regional market, which includes Madison. Regulations, taxes, and permit details below are specific to Madison.
Market Overview
Madison has no formal, comprehensive short-term rental ordinance. STRs operate town-wide, but in a genuine legal gray area: the zoning code never explicitly lists short-term rentals as a permitted use in residential districts (only registered bed-and-breakfasts are named), so some residents and officials argue STRs are technically already disallowed, though enforcement has been inconsistent to nonexistent. The town’s Planning & Zoning Commission has been debating regulation since roughly 2021 under the banner ‘not allowed, but it’s happening,’ and Connecticut Public Act 24-143 (effective October 1, 2024) now gives Madison clear legal authority to adopt permits, fees, caps, or owner-occupancy rules; local commentary expects comprehensive regulation within one to two years. Investors should treat the current permissive environment as temporary.
Madison is a Long Island Sound shoreline town in New Haven County, population 17,898, anchored by Hammonasset Beach State Park, Connecticut’s largest shoreline park, which draws an estimated one million visitors a year.
StaySTRA tracks Madison’s ADR, occupancy, and revenue at a shared regional level with Shelton, an inland Naugatuck Valley city with a very different character, so the figures below describe the south-central Connecticut area STR market rather than Madison’s shoreline market specifically. In June 2026, that area STR market posted a blended ADR of $233.81 and 65.4% occupancy, with average monthly revenue of $4,095/listing. Revenue is up 6.54% year over year and ADR is up 6.90%, while occupancy is roughly flat (down 0.27 percentage points).
Bedroom mix, listing-type breakdown, and the top-property-manager list are not currently published for this market, so this profile omits those breakdowns.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 48% | $124 | $1,792 |
| Feb | 58% | $122 | $1,785 |
| Mar | 59% | $124 | $1,983 |
| Apr | 63% | $132 | $2,147 |
| May | 64% | $168 | $2,630 |
| Jun | 67% | $184 | $3,159 |
| Jul | 71% | $188 | $3,570 |
| Aug | 71% | $194 | $3,649 |
| Sep | 62% | $165 | $2,707 |
| Oct | 61% | $156 | $2,665 |
| Nov | 57% | $149 | $2,295 |
| Dec | 53% | $150 | $2,254 |
Investment Analysis
Madison’s biggest investment risk is regulatory uncertainty, not restriction: there is currently no permit, license, or occupancy cap, but Connecticut Public Act 24-143 (effective October 1, 2024) gives the town clear legal authority to adopt one, and the Planning & Zoning Commission has been actively working on it since 2021. Local commentary expects a comprehensive ordinance within one to two years. Investors should factor in the real possibility of new permit fees, caps, or an owner-occupancy requirement arriving during a typical hold period, and monitor P&Z proceedings before purchasing.
Listing-tier ADR and property-type revenue data are not currently published for this market, so a tier-by-tier comparison isn’t possible here. Using StaySTRA’s seasonal-sum method, a typical listing in this south-central Connecticut area cluster generates roughly $30,636/year in revenue. Housing-value data is not currently published for Madison in this snapshot, so a gross-yield calculation against local home prices isn’t possible here.
The only firm cost today is Connecticut’s statewide 15% room occupancy tax on stays of 30 days or less, among the highest state lodging tax rates StaySTRA tracks.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking lead time and average length of stay are not currently published for Madison in this data snapshot, so this profile can’t quantify how far in advance guests book or typical stay length.
What the seasonal data does show: demand concentrates from June through August (67-71% occupancy), tied to Hammonasset Beach State Park’s summer season, with February and January the softest months.
Short-Term Rental Regulations
As of mid-2026, Madison has no formal, comprehensive short-term rental ordinance. STRs operate town-wide, but the town’s zoning regulations never explicitly list short-term rentals as a permitted use in residential districts (only registered bed-and-breakfasts are named), so some residents and officials argue STRs are technically already disallowed in residence zones, though enforcement has been inconsistent to nonexistent.
No local permit or license is currently required, there is no local occupancy cap, and there is no owner-occupancy or primary-residence mandate. The only firm cost is Connecticut’s statewide room occupancy tax of 15% on stays of 30 days or less; Airbnb and VRBO collect and remit this automatically for platform bookings, while direct-booking hosts must register with and remit to the CT Department of Revenue Services.
Connecticut Public Act 24-143, effective October 1, 2024, explicitly empowers municipalities to adopt ordinances licensing and regulating STRs, so Madison now has clear legal authority to impose permits, fees, caps, or owner-occupancy rules. The town’s Planning & Zoning Commission has been actively debating regulation since roughly 2021, and local commentary expects comprehensive regulation within one to two years. Enforcement today is rated minimal. Investors should treat the current permissive environment as temporary and monitor Planning & Zoning proceedings closely.
Market Comparison
The south-central Connecticut area STR market’s June 2026 occupancy of 65.4% runs above the commonly cited US STR median of roughly 55%, while its $233.81 blended ADR sits above the roughly $220 US median as well, a market performing above national benchmarks on both metrics.
Top-property-manager data is not currently published for Madison in this snapshot, so this profile omits a named-operator comparison.
Frequently Asked Questions About Madison, Connecticut
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