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 |
|---|---|
| Jan | 48% |
| Feb | 58% |
| Mar | 59% |
| Apr | 63% |
| May | 64% |
| Jun | 67% |
| Jul | 71% |
| Aug | 71% |
| Sep | 62% |
| Oct | 61% |
| Nov | 57% |
| Dec | 53% |
Month-by-month nightly rates and revenue figures for Madison are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Madison — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
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
Are short-term rentals legal in Madison, CT?
Could Madison, CT restrict short-term rentals soon?
What is the average daily rate for short-term rentals near Madison, CT?
What taxes apply to short-term rentals in Madison, CT?
When is the busiest season for short-term rentals in Madison, CT?
Does Madison require an STR permit?
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