Fenwick Island, Delaware Short-Term Rental Market
Fenwick Island, DE STRs averaged $269/night at 35.3% occupancy in April 2026, peaking at $345/night in July.
Quick Answer: Fenwick Island, Delaware is an active short-term rental market. average occupancy in the Delaware/Maryland Beaches market area is 68%. average monthly revenue in the Delaware/Maryland Beaches market area is $6,346. average daily rate in the Delaware/Maryland Beaches market area is $409. the top operator in the Delaware/Maryland Beaches market area is Vacasa with 2,346 listings. market score is 49/100 (grade D).
Market data reflects the Delaware/Maryland Beaches regional market, which includes Fenwick Island. Regulations, taxes, and permit details below are specific to Fenwick Island.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Fenwick Island is a small coastal town at Delaware’s southern border, part of what is marketed as ‘The Quiet Resorts’ alongside Bethany Beach and South Bethany. With a year-round population of just 389, the town swells dramatically each summer as second-home owners and vacation renters fill the stock of beach properties that dominate local inventory.
In April 2026, the market posted a 35.3% average occupancy rate and a $268.61 average daily rate, yielding a RevPAR of $94.77. Average monthly revenue per listing was $2,084. Year-over-year, occupancy declined 12.5 percentage points and revenue fell 9.4%, while ADR rose 9.2% — a pattern reflecting fewer booked nights at higher nightly prices, which can indicate demand softening or seasonal timing differences.
The inventory is almost entirely entire-place listings: 14,952 of approximately 15,095 tracked units are entire-place, with just 154 private rooms and 1 shared room. VRBO-only listings (3,920) slightly outnumber Airbnb-only (2,610), while 8,577 properties appear on both platforms. Two-bedroom properties are the most common (4,712 units), closely followed by 3-bedroom (4,397), then 4-bedroom (2,232), 1-bedroom (2,126), and 5-bedroom (1,628). The overall market score is 48.7, with revenue growth at 91.5 — one of the strongest growth signals in the data — partly offset by lower rental demand (47.5) and seasonality (42.6) scores.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 25% |
| Feb | 35% |
| Mar | 39% |
| Apr | 39% |
| May | 46% |
| Jun | 70% |
| Jul | 79% |
| Aug | 78% |
| Sep | 45% |
| Oct | 26% |
| Nov | 25% |
| Dec | 31% |
Month-by-month nightly rates and revenue figures for Fenwick Island are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Delaware/Maryland Beaches market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Delaware/Maryland Beaches market as a whole, which includes Fenwick Island, so these counts are not Fenwick Island-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 2,346 | 60,626 | ★ 4.36 |
| 2 | Coastal Resort Rentals | 355 | 1,646 | ★ 4.39 |
| 3 | Shoreline Properties | 349 | 1,861 | ★ 4.28 |
| 4 | Central Reservations | 328 | 4,890 | ★ 4.53 |
| 5 | VacayHome Connect | 312 | 593 | ★ 4.18 |
What Kind of STR Should I Buy in Fenwick Island?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Fenwick Island are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 17.3% |
| vrbo | 25.9% |
| both | 56.8% |
Home Value Trends (Fenwick Island)
Typical home values, median sale prices, and the 10-year price trend for Fenwick Island 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 Fenwick Island — 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
Short-term rentals are legal in Fenwick Island and permitted townwide for licensed owners, but every owner who rents must obtain a Town rental license annually and remit lodging taxes. The Town offers separate short-term and long-term rental license applications. The rental landlord license fee is $185, renewed each calendar year (due January 1).
Owners file a Short Term Gross Rental Tax form twice annually — due May 30 and November 30. Effective January 1, 2026, total lodging taxes for short-term rentals were set at 12%, equalized with the hotel rate. This breaks down as approximately 4.5% Delaware state lodging tax (effective January 1, 2025) plus a 7.5% town local rate.
There is no owner-occupancy requirement, no primary-residence requirement, and no identified cap on annual rental nights. No cap or moratorium on total STR units was found in the available data. Enforcement focuses on common compliance issues: noise, parking, trash management, permit display, and unremitted taxes; penalties include fines, permit suspension, or legal action. Enforcement severity is rated moderate.
Investors should confirm current requirements and any zone-specific limits directly with Fenwick Island Town Hall at 302-539-3011.
Market Comparison
Fenwick Island’s April 2026 occupancy of 35.3% is below the U.S. STR median of approximately 55%, but April is deep off-season for this market — the same property will run at 79% in July. The $268.61 ADR is modestly above the national median of approximately $220, consistent with premium coastal pricing.
The occupancy year-over-year decline of 12.5 percentage points is notable and warrants attention. ADR growth of +9.2% suggests operators are raising rates, but the net effect is a 9.4% revenue decline — fewer nights at higher prices. Whether this reflects demand softening, increased competition, or seasonal calendar shifts is not determinable from the data alone.
Vacasa dominates professional management here with 2,346 listings and a 4.36 average rating across 60,626 reviews — by far the largest operator. Coastal Resort Rentals (355 listings, 4.39 rating) and Shoreline Properties (349 listings, 4.28 rating) are the next largest. Central Reservations operates 328 listings at a 4.53 rating. Together, the top four operators account for approximately 3,378 listings, representing roughly 22% of the estimated total inventory.
Frequently Asked Questions About Fenwick Island, Delaware
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