Middletown, Rhode Island Short-Term Rental Market
New Middletown short-term rentals must be owner-occupied; September 2026 ADR was $574, occupancy 55.0%, revenue $8,493.
Quick Answer: Middletown, Rhode Island is an active short-term rental market. average occupancy is 55%. average monthly revenue is $8,493. average daily rate is $574. the top operator in Middletown is STAY Newport with 81 listings. market score is 59/100 (grade C).
Market data reflects the Newport regional market, which includes Middletown. Regulations, taxes, and permit details below are specific to Middletown.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Middletown, Rhode Island sits in the center of Aquidneck Island between Newport and Portsmouth and has a population of 16,588. This profile uses data through September 2026, the latest month available. In that month the average daily rate across all listings was $574, occupancy was 55.0%, and the average listing earned $8,493 in revenue. Year over year, occupancy is up 4.0%, ADR is up 13.9%, and revenue is up 17.9%.
The Middletown area STR market includes about 1,930 listings. Entire places make up 1,752 of them, private rooms 177, and shared rooms 1. By bedroom count, 2 bedroom homes are the largest group at 585 listings, followed by 1 bedroom at 536, 3 bedroom at 382, 4 bedroom at 254, and 5 bedroom at 171. On distribution channels, 862 listings appear on both Airbnb and Vrbo, 806 on Airbnb only, and 262 on Vrbo only.
Demand is oriented toward beaches and nature. Sachuest Beach (Second Beach) and Sachuest Point National Wildlife Refuge, which reports over 65,000 visitors a year, anchor the summer season, and many guests use Middletown as a lower priced base for visiting nearby Newport. Newport County draws roughly 4 million visitors annually region wide according to Discover Newport, although no Middletown specific visitor count is published.
For new buyers, regulation matters as much as demand. New short-term rentals must be owner-occupied and must win a Special Use Permit from the Zoning Board of Review, which limits new investor supply. The StaySTRA market score for Middletown is 59.2 overall, with revenue growth scoring about 99 out of 100 and investability scoring 69.4.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 29% |
| Feb | 40% |
| Mar | 40% |
| Apr | 48% |
| May | 50% |
| Jun | 60% |
| Jul | 70% |
| Aug | 69% |
| Sep | 52% |
| Oct | 43% |
| Nov | 33% |
| Dec | 38% |
Month-by-month nightly rates and revenue figures for Middletown are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Middletown
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | STAY Newport | 81 | 1,473 | ★ 4.81 |
| 2 | WOODS + COMPANY | 42 | 3,618 | ★ 4.91 |
| 3 | Windward Suites | 37 | 4,019 | ★ 4.89 |
| 4 | Doug | 29 | 194 | ★ 4.29 |
| 5 | The Newport Venture | 26 | 3,368 | ★ 4.83 |
What Kind of STR Should I Buy in Middletown?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Middletown 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 | 41.8% |
| vrbo | 13.6% |
| both | 44.7% |
Home Value Trends (Middletown)
Typical home values, median sale prices, and the 10-year price trend for Middletown 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 Middletown — 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 Middletown, but the rules are strict and now restrictive for new investors. The key change began with the 2024-2025 season: all new or first-time short-term rentals must be owner-occupied, meaning the owner lives on the property, and must obtain a Special Use Permit from the Zoning Board of Review. The board meets on the fourth Tuesday of each month, applications are due the Monday before, and online submission has been required since March 5, 2025. Existing registered rentals, more than 300 of them, continue under annual registration and inspection.
The town adopted its short-term rental ordinance (Chapter 98) on November 15, 2021. Any unit rented for under six months must register annually with the town and pass an inspection, and must also register with the State of Rhode Island, with state registration valid for two years. The town fee is $55 per bedroom with a $55 minimum, and a principal residence pays $55 per dwelling unit. Operators must designate a manager, either the owner or a management company within 10 miles, who can respond to guest, neighbor, and police complaints.
Fines for violations or failure to register can reach $1,000, and the town has added zoning enforcement staff and police oversight. Enforcement is rated strict. No cap on nights per year is published.
Lodging is taxed at about 14% on a whole-home rental: a 7% state sales tax, a 5% whole-home short-term rental tax that began January 1, 2026, and a 2% local hotel tax, up from 1%. Confirm current rules with the town before buying.
Market Comparison
Middletown’s occupancy was 55.0% and its ADR was $574 in September 2026. The ADR is well above Middletown’s own history: the annual ADR was $289 in 2019 and $417 in 2025, and the 2026 year-to-date figure is $477.
Growth is strong. Revenue rose 17.9% year over year, with ADR up 13.9% and occupancy up 4.0%. Occupancy has recovered from 48.6% in 2024, its lowest level since 2019, to 52.7% so far in 2026.
Operator concentration is moderate. The largest operators in the Middletown area STR market are STAY Newport with 81 listings, WOODS + COMPANY with 42, Windward Suites with 37, Doug with 29, and The Newport Venture with 26. Together they manage 215 listings, about 11.1% of the roughly 1,930 tracked, so most supply is run by independent hosts. WOODS + COMPANY and Windward Suites also have large review counts of 3,618 and 4,019 and ratings near 4.9.
Middletown pairs a high rate with a large seasonal swing, and a regulatory gate limits new entrants.
Frequently Asked Questions About Middletown, Rhode Island
Can I buy an investment property in Middletown, RI and run it as a short-term rental?
What is the average Airbnb rate and occupancy in Middletown?
How much revenue does a Middletown short-term rental earn?
What are the best and worst months for short-term rentals in Middletown?
What permits and taxes apply to a Middletown short-term rental?
How far in advance do guests book in Middletown?
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