Waterford, CT

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

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

Listings

49 / 127

Reliable / Active

Cap Rate

7%

Middle-Earners Gross Yield

Revenue

$28,799

Middle-Earners Revenue

Occupancy

52%

Middle-Earners Occupancy

Home Value

$428,979

Median Home Sale Price

Top Earners

$77,628

Top-Earners Revenue

Waterford

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Waterford.

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B

Generally Investor friendly

Waterford Regulations

Short‑term rentals are currently allowed citywide under general zoning with no dedicated STR ordinance; compliance requires only state tax registration and a 15% room occupancy tax. The town is in a public‑outreach phase, signaling future permitting/inspections are likely and introducing moderate regulatory uncertainty.

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About Waterford

Waterford is a coastal town in New London County, Connecticut, with a population of roughly 19,000 residents. It sits along Long Island Sound in the southeastern corner of the state, offering a blend of shoreline scenery and small-town New England character. The town is perhaps best known as the home of the Eugene O'Neill Theater Center and for its proximity to some of southern New England's most popular coastal destinations. Waterford lies approximately 125 miles northeast of New York City and roughly 100 miles southwest of Boston, placing it within an easy drive for travelers exploring the Connecticut and Rhode Island coastlines.

The Eugene O'Neill Theater Center is one of the country's most respected institutions for new theatrical work, hosting residencies, conferences, and performances that draw artists and audiences from around the world. Set on a historic waterfront campus, the center is a cultural anchor for the region and a distinctive draw for visitors interested in American theater and the legacy of the playwright it is named after. The campus is located within Waterford itself, just a short drive from the town's shoreline neighborhoods.

Harkness Memorial State Park, situated on the coast of Waterford, features the historic Eolia mansion, formal gardens, and expansive lawns overlooking Long Island Sound. The park offers a peaceful setting for picnicking, walking, and exploring one of Connecticut's grandest estate properties, with shoreline views and seasonal gardens that attract photographers and day visitors. It lies within a short drive of most Waterford neighborhoods and is a favorite spot for travelers seeking a quieter outdoor experience.

Just a short drive east of Waterford, the town of Mystic offers two of the state's most visited attractions: Mystic Seaport, a living history museum recreating a nineteenth-century seafaring village with historic ships and crafts demonstrations, and the Mystic Aquarium, known for its beluga whales and interactive marine exhibits. The drive from Waterford to Mystic typically takes around 20 minutes along coastal roads, making both destinations easy day trips for families and repeat visitors staying in the area.

Nearby New London, just to the north of Waterford, adds further appeal with its historic downtown, the U.S. Coast Guard Academy, and ferry service across the Sound to Long Island's North Fork. The two major casino resorts of southern Connecticut—Mohegan Sun and Foxwoods—are also within a short drive, offering dining, entertainment, and gaming options for visitors who want variety beyond the shoreline's natural attractions.

Waterford's combination of cultural institutions, coastal scenery, and easy access to Mystic, New London, and the broader southeastern Connecticut region makes it a strong base for short-term rentals. Visitors can enjoy a quieter residential setting while remaining within easy reach of beaches, historic sites, family attractions, and entertainment options that appeal to a wide range of travelers throughout the year.

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