Middletown, Rhode Island Short-Term Rental Market
Middletown, RI (Aquidneck Island) STRs averaged $390/night at 46.3% occupancy in April 2026, with new STRs requiring owner-occupancy.
Quick Answer: Middletown, Rhode Island is an active short-term rental market. average occupancy is 65%. average monthly revenue is $9,105. average daily rate is $564. the top operator 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 Apivex evaluates per market.
Market Overview
Middletown is a town of 16,588 residents on Aquidneck Island in Newport County, Rhode Island, situated between Newport and Portsmouth. It shares the Newport County tourism market, which Discover Newport estimates draws approximately 4 million visitors annually region-wide. Visitors use Middletown as a lower-cost lodging base for Newport’s mansions and waterfront while accessing Sachuest Beach (Second Beach), Sachuest Point National Wildlife Refuge (65,000+ annual visitors), and Newport Vineyards.
IMPORTANT INVESTOR NOTE: As of the 2024-2025 season, all new/first-time STRs in Middletown must be owner-occupied and obtain a Special Use Permit from the Zoning Board of Review. New non-owner-occupied (pure investor) STRs are effectively prohibited. Existing registered STRs (over 300) are grandfathered under annual registration.
The STR market covers approximately 1,930 listings in the latest snapshot. Entire-place units account for 1,752 of 1,930 listings (90.8%), private rooms for 177 (9.2%), and one shared room. Bedroom distribution: two-bedroom units lead at 585 (30.3% of 1,928 bedroom-segmented), followed by one-bedroom (536, 27.8%), three-bedroom (382, 19.8%), four-bedroom (254, 13.2%), and five-or-more-bedroom (171, 8.9%). Channel distribution: 806 listings on Airbnb only, 262 on VRBO only, and 862 cross-listed on both.
In April 2026, the market posted an ADR of $390, occupancy of 46.3%, and RevPAR of $180.41, generating average monthly revenue of $4,236 per listing. Year-over-year, ADR surged 10.8% while occupancy slipped 1.1 percentage points, producing a net revenue gain of 0.9% versus April 2025. The 2025 full-year average was 49.5% occupancy and $418 ADR, producing $5,757/month per listing.
Market scores: total 59.2, investability 69.4, rental demand 63.5, regulation 61.5, seasonality 44.3, revenue growth 98.95.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 29% | $256 | $2,383 |
| Feb | 40% | $256 | $2,316 |
| Mar | 40% | $274 | $2,646 |
| Apr | 48% | $318 | $3,536 |
| May | 50% | $390 | $4,284 |
| Jun | 60% | $460 | $6,517 |
| Jul | 69% | $484 | $8,274 |
| Aug | 68% | $480 | $8,571 |
| Sep | 51% | $413 | $5,462 |
| Oct | 43% | $370 | $4,431 |
| Nov | 33% | $297 | $2,922 |
| Dec | 38% | $296 | $2,926 |
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 pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 536 |
| 2 bed | 585 |
| 3 bed | 382 |
| 4 bed | 254 |
| 5 bed | 171 |
ADR by Property Tier
| Entire Home | $597 |
| Luxury | $1,117 |
| Professionally Managed | $709 |
Revenue by Dwelling Type
| Apartment | $7,863 |
| Entire Place | $9,634 |
| House | $10,205 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 41.8% |
| vrbo | 13.6% |
| both | 44.7% |
Investment Analysis
The April 2026 average monthly revenue of $4,236 implies an annualized run rate of approximately $50,832. At a typical home value of $761,300, the gross yield calculates to approximately 6.7% ($50,832 divided by $761,300). For the 2025 full-year perspective, $5,757/month implies $69,084 annualized, or approximately 9.1% gross yield. Both figures are before operating expenses, management fees, taxes, and vacancy.
A critical investor caveat: since the 2024-2025 season, all new/first-time STRs require owner-occupancy and a Special Use Permit. The only path to non-owner-occupied STR investment in Middletown is acquiring a property with an existing registered STR license. This constraint is reflected in the investability score of 69.4 out of 100.
By revenue sub-type, house-type listings generated $4,796/month in April 2026. Entire-place listings averaged $4,501/month. Apartment-type listings averaged $3,783/month.
By ADR tier: the market-wide average is $390/night. Entire-home listings averaged $410/night, a $20 or 5.1% premium. Professionally managed listings averaged $460/night, a $70 or 18.0% premium. The luxury tier averaged $789/night, a $399 or 102.3% premium. Separate monthly revenue data for the professionally managed and luxury tiers is not available.
Revenue growth scored 98.95 out of 100, reflecting the climb from $3,138/month in 2019 to $5,757 in 2025, a 83.5% cumulative increase. ADR rose from $289 in 2019 to $418 in 2025, a 44.6% gain.
The median list price for Middletown area homes was $802,283 in April 2026, with only 26 homes for sale, indicating very limited inventory. Typical home value is $761,300.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
In April 2026, the average booking lead time for Middletown STRs was 63.4 days, meaning guests typically reserve about nine weeks ahead of arrival. Average length of stay was 3.2 nights.
A 63.4-day lead time is consistent with the Newport County travel market, where high-demand summer weeks (Memorial Day through Labor Day) fill well in advance. Operators should hold summer rates firm through the 60-to-90-day pre-arrival window, particularly for July and August when average revenue exceeds $8,200 per month.
A 3.2-night average stay is shorter than many comparable coastal markets, reflecting the mix of Newport weekend trips and short leisure visits that Middletown accommodates as a lower-cost alternative to Newport proper. Minimum-night policies of 3 to 4 nights during peak summer weekends help balance occupancy and turnover costs. During the off-season (November through March), shorter minimums of 1 to 2 nights capture limited event demand from nearby Naval Station Newport and seasonal visitors.
Combined, the 63.4-day lead time and 3.2-night average stay suggest the 45-to-75-day pre-arrival window as the primary zone for dynamic pricing decisions, with peak summer weekends held at maximum rates as far as 90 days out.
Short-Term Rental Regulations
Middletown has one of the most restrictive STR regulatory environments in Rhode Island. The critical investor alert: as of the 2024-2025 season, all new/first-time STRs must be owner-occupied (the owner must reside on the property) and must obtain a Special Use Permit from the Zoning Board of Review before registering. The Zoning Board meets the fourth Tuesday of each month; applications are due the Monday before; online submission via the town’s E-Permitting Portal has been required since March 5, 2025. This requirement effectively prohibits new non-owner-occupied (pure investor) STRs. Acquiring a property with an existing registered STR license is the only path to non-owner-occupied operation.
For existing registered STRs (over 300 are grandfathered), the Town of Middletown STR ordinance (Chapter 98, adopted November 15, 2021) requires annual registration at $55 per bedroom (minimum $55; for an owner’s principal-residence unit, $55 per dwelling unit regardless of bedrooms), plus Rhode Island state STR registration (valid two years). Operators must designate a manager within 10 miles available to respond to complaints around the clock. Violations and failure to register can draw fines up to $1,000.
On taxes, effective January 1, 2026: 7% Rhode Island state sales tax + 5% whole-home STR tax + 2% local hotel tax = approximately 14.0% total on whole-home rental stays. This is among the higher lodging tax rates in New England.
No cap on nights per year is published. Enforcement is rated strict, with added zoning enforcement staff and increased police oversight since 2021.
Market Comparison
Middletown’s April 2026 occupancy of 46.3% is below the U.S. STR median of 55%, reflecting April’s position in the spring shoulder ahead of Newport County’s summer peak. The 2025 full-year occupancy of 49.5% also falls below the national median, consistent with the market’s sharply seasonal profile.
ADR at $390 is substantially above the U.S. STR median of approximately $220, reflecting the premium commanded by Aquidneck Island’s proximity to Newport’s mansions, Gilded Age architecture, and waterfront. RevPAR at $180.41 is below the $214.50 that U.S. median occupancy of 55% at this ADR would imply ($390 x 0.55), because April’s 46.3% occupancy falls short of the national median.
Among active property managers, STAY Newport leads with 81 listings and 1,473 reviews (rating 4.81). WOODS + COMPANY holds 42 listings with 3,618 reviews (rating 4.91). Windward Suites manages 37 listings (4,019 reviews, 4.89 rating). Doug operates 29 listings (194 reviews, 4.29 rating). The Newport Venture holds 26 listings (3,368 reviews, 4.83 rating). The top five together account for 215 of approximately 1,930 tracked listings (11.1%), indicating the market is largely independently operated.
Revenue growth scored 98.95 out of 100, the highest in this batch, reflecting the extraordinary revenue increase from $3,138/month in 2019 to $5,757 in 2025. The 2024-2025 new-STR owner-occupancy requirement is captured in the regulation score of 61.5, reflecting meaningful regulatory friction for new market entrants.
Frequently Asked Questions About Middletown, Rhode Island
Can new investors operate a non-owner-occupied STR in Middletown, RI?
What is the average daily rate for Middletown, RI STRs?
What is the typical revenue for a Middletown, RI STR?
When is the peak season for Middletown, RI short-term rentals?
What are the STR registration requirements in Middletown, RI?
What are the lodging taxes for Middletown, RI STRs?
Who are the top property managers in the Middletown, RI STR market?
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