Block Island

As of May 2026, Block Island has 90 active Airbnb and VRBO listings. This represents a 1% increase from the previous year.

The average Airbnb or VRBO in Block Island generates $53K per year. High-performing properties earn $122K/year, while low-performing properties earn $33K/year. This significant spread suggests that revenue potential is heavily bifurcated, indicating that top-tier assets capture a disproportionate share of the limited demand in this 34% occupancy market.

Average home prices in Block Island vary by property size: 1-bedroom properties cost approximately $0, 2-bedroom homes average $1.2M, 3-bedroom properties are around $1.7M, and 4+ bedroom homes average $2.1M. These prices reflect median home values across the Block Island area.

Airbnb and VRBO can be profitable in Block Island, with an average gross yield of 3% across all properties. High-performing properties achieve yields up to 7%, which is considered poor for short-term rental investment. The low ceiling on returns despite stable supply reflects a challenging environment where even the best assets struggle to outpace traditional capital growth.

The average occupancy rate for Airbnbs and VRBOs in Block Island is 34%. This occupancy level, combined with an average nightly rate of $595, results in a RevPAR (revenue per available room) of $84 per day.

2-bedroom properties demonstrate the strongest performance in Block Island, with an average gross yield of 4% and annual revenue of $48K. These properties balance purchase price ($1.2M), operating costs, and rental demand most effectively in the Block Island market.

Short-term rental regulations vary by jurisdiction in the Block Island area. Block Island: Moderate. Short-term rentals allowed with registration through town clerk, lodging tax collection required (7% state + 1% local). No owner-occupancy mandates or strict caps, but zoning rules apply. Enforcement focuses mainly on tax compliance rather than operations. Most hosts operate legally given tourism-dependent economy, though some unlicensed rentals exist. Generally permissive environment with basic regulatory oversight. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Block Island Airbnb and VRBO market is currently showing balanced conditions. Supply has grown 1% year-over-year, while RevPAR has decreased 61%. This indicates balanced supply-demand dynamics, implying that the sharp drop in revenue is likely driven by broader macroeconomic softening rather than an oversupply of inventory.

Launch around March, 2-3 months before peak summer season (June peaks). This pre-peak timing lets you build reviews when competition is 45% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (March-January) when gaining traction is harder.

The most common amenities in Block Island listings include: Kitchen (90%), Tv (73%), Air Conditioning (70%), Heating (60%), Washing Machine (53%). Amenities that boost revenue the most include Washing Machine, Internet, Bbq, with Washing Machine properties earning approximately 50% more ($144K/year vs $96K/year).

Monthly estimated revenue per listing in Block Island over the last 12 months: May: $4K, June: $6K, July: $5K, August: $5K, September: $4K, October: $2K, November: $1K, December: $846, January: $466, February: $606, March: $709, April: $1K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Block Island is $595, up 10% year-over-year. By property size: 1-bedroom properties average $419/night, 2-bedroom properties average $380/night, 3-bedroom properties average $543/night, 4+ bedroom properties average $857/night. Rates peak in August and are lowest in March.

Guests in Block Island book an average of 39 days in advance, down 30% from last year. By property size: 1-bedroom: 39 days, 2-bedroom: 32 days, 3-bedroom: 34 days, 4+ bedroom: 35 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Block Island Airbnb and VRBO market has seen the following changes: supply grew 1%, revenue per listing decreased 61%, occupancy fell 7%, average nightly rates increased 10%, and lead time decreased 30%. The combination of rising rates and shorter lead times suggests guests are booking more impulsively, while the revenue decline signals reduced overall market spending power.

In Block Island, Saturday sees the highest booking demand while Wednesday has the lowest. Nightly rates peak on Sunday and are lowest on Monday. Weekends show 19% higher occupancy than weekdays.