Rhode Island's short-term rental market is thriving due to its scenic coastline, strong tourism industry, and steady demand from vacationers. If you're looking for short-term rentals near me or considering investing in short-term apartment rentals near me, understanding the most promising markets is essential. By leveraging short-term rental data analysis, we've identified the 7 best short-term rental markets in Rhode Island for 2025, based on occupancy rates, rental income potential, and local market trends.
7 Best Short-term Rental Markets in Rhode Island for 2025
1. Newport
Newport is Rhode Island’s top-performing short-term rental market, known for its historic mansions, sailing culture, and summer festivals. Investors can expect occupancy rates above 85% and average nightly rates of $250-$300, making it one of the most lucrative rental markets in the state.
2. Providence
As the state’s capital and largest city, Providence attracts both business travelers and tourists. The city's growing arts scene, universities, and convention centers drive year-round demand, with average occupancy rates of 80% and rental rates around $175 per night.
3. Block Island
Block Island is a seasonal favorite for vacationers looking for beachside getaways. Short-term rental market data shows that rental properties experience peak occupancy of 90% in summer months, with average nightly rates exceeding $350, making it a top seasonal investment location.
4. Narragansett
With its stunning beaches and surf-friendly coastline, Narragansett attracts summer tourists and weekend visitors. Investors can capitalize on average nightly rates of $225 and occupancy rates above 80% during peak seasons, ensuring high rental income potential.
5. Westerly
Home to the popular Watch Hill area, Westerly is a luxury vacation hotspot with strong short-term rental demand. Median home prices hover around $600,000, and rental properties generate ROI Scores of 75+, thanks to high-end visitors seeking premium accommodations.
6. Jamestown
This charming island town offers a mix of nature, history, and waterfront activities, making it a strong contender for short-term rental investments. Average occupancy rates reach 78%, and nightly rental rates can exceed $200, particularly during summer.
7. Bristol
Bristol’s historic charm, waterfront views, and annual 4th of July celebrations make it a great market for short-term rentals. Investors can expect steady occupancy rates of 75% and strong weekend demand, pushing nightly rates to $180+.
Conclusion
Rhode Island offers a variety of short-term rental investment opportunities, with strong demand driven by tourism, seasonal travel, and local events. By analyzing short-term rental data, investors can maximize returns in these top-performing markets. Whether you're searching for short-term rentals near me or exploring free short-term rental data, these seven markets present excellent prospects for 2025.
