Old Lyme, CT

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Old Lyme short-term rental market based on reliable data.

Listings

131 / 316

Reliable / Active

Cap Rate

4%

Middle-Earners Gross Yield

Revenue

$30,004

Middle-Earners Revenue

Occupancy

55%

Middle-Earners Occupancy

Home Value

$677,398

Median Home Sale Price

Top Earners

$57,570

Top-Earners Revenue

Old Lyme

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Old Lyme.

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B

Generally Investor friendly

Old Lyme Regulations

Old Lyme permits STRs through defined Bed & Breakfast and Inn categories with moderate, multi‑agency permitting (zoning, building, health, fire) and clear operational rules (owner‑residence B&B cap at 4 rooms; Inns 5–40). The structured, transparent process and lack of harsh caps keep compliance manageable for investors.

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About Old Lyme

Old Lyme is a small, scenic town in New London County, Connecticut, situated on the eastern bank of the Connecticut River where it broadens into Long Island Sound. With a population of approximately 7,500, the town has a quiet, historic character shaped by its waterfront location, tree-shaded lanes, and well-preserved 18th- and 19th-century homes. It is best known as the cradle of American Impressionism, having served as the summer gathering place of the Lyme Art Colony in the early 20th century, and it functions as a gateway to both the lower Connecticut River Valley and the sandy beaches of the Connecticut shoreline. Old Lyme lies about 30 miles east of New Haven and roughly 100 miles northeast of New York City, making it a convenient escape from the metropolitan areas to its southwest.

The Florence Griswold Museum, set on a landscaped property in the heart of Old Lyme, preserves the early-19th-century mansion where Florence Griswold hosted the painters who defined the Lyme Art Colony. The site offers period-decorated rooms, a gallery of American Impressionist works, and a sculpture garden, and it anchors Old Lyme's identity as an artists' haven. The museum sits a short walk from the town's small historic district.

A short drive west along the coast leads to Hammonasset Beach State Park in Madison, Connecticut's largest shoreline park. With more than two miles of sandy beach, a long fishing pier, nature trails, and campgrounds, the park is a popular warm-weather destination for swimming, picnicking, and birdwatching along Long Island Sound.

North of Old Lyme, about ten minutes upriver, the Connecticut River Museum in Essex chronicles the region's maritime and shipbuilding past, including its role in privateering during the Revolutionary War. Across the river in East Haddam, Gillette Castle State Park preserves the whimsical stone mansion of stage actor William Gillette, celebrated for his portrayal of Sherlock Holmes. The park offers river views, hiking trails, and a narrow-gauge railway.

Old Lyme's combination of cultural heritage, natural beauty, and accessibility makes it a compelling base for short-term rentals. Visitors can spend mornings wandering museum grounds and the historic village, afternoons on the Sound's beaches or kayaking the river estuary, and evenings dining in the village's small inns and restaurants. With New Haven and Hartford each within a forty-five-minute drive, and easy day trips to Mystic, the Rhode Island coast, or the Thimble Islands, Old Lyme offers the dual appeal of a tranquil New England retreat and a well-connected home base for exploring southern New England.

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