Northeast7.0% avg cap rate

The Hamptons, NY

New York's premier summer escape - highest ADR in the Northeast

The Hamptons - East Hampton, Southampton, Bridgehampton, Montauk - represent the most expensive STR market in the northeastern United States. NYC proximity (2 hours by car, 90 min by train to Montauk) and decades of aspirational brand equity drive extreme summer demand from a high-net-worth visitor base. Summer weekly rates routinely exceed $15,000 for quality properties. Regulatory environment is evolving.

7.0%
Avg Cap Rate
Net operating income / price
50%
Avg Occupancy
Annual average
$1,250
Avg Nightly Rate
All property types
$1.9M
Avg List Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
50% occ × $1,250/night
$228,125
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $91,250
Est. net operating income
Before mortgage & depreciation
$136,875
At $1.9M avg price
Implied cap rate
7.0%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose The Hamptons

Highest weekly summer rental rates in the Northeast US
2-hour NYC drive-to market for 8M+ metro residents
East Hampton has some of the most restrictive STR regulations - verify before purchasing
Montauk offers lower entry prices with comparable summer upside
Peak season: Memorial Day - Labor Day (peak: July 4th)
Top property types: Single Family, Estate, Cottage, Waterfront Home
Primary zip: 11937, 11968, 11932, 11954

The Hamptons STR investing, answered

Is The Hamptons, NY a good short-term rental market?

The Hamptons is a Northeast STR market averaging a 7.0% cap rate, 50% annual occupancy, and $1,250/night across STR-viable listings. The Hamptons - East Hampton, Southampton, Bridgehampton, Montauk - represent the most expensive STR market in the northeastern United States. NYC proximity (2 hours by car, 90 min by train to Montauk) and decades of aspirational brand equity drive extreme summer demand from a high-net-worth visitor base. Summer weekly rates routinely exceed $15,000 for quality properties. Regulatory environment is evolving.

What is the average Airbnb occupancy rate in The Hamptons?

STR-viable properties in The Hamptons average about 50% occupancy across the year. Peak season is Memorial Day - Labor Day (peak: July 4th). Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.

How much do short-term rentals earn in The Hamptons?

At $1,250/night and 50% occupancy, a typical The Hamptons STR grosses roughly $228,125 per year before expenses, leaving an estimated $136,875 in net operating income against a $1.9M average price, an implied 7.0% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in The Hamptons?

The strongest-performing STR property types in The Hamptons are Single Family, Estate, Cottage, Waterfront Home. Highest weekly summer rental rates in the Northeast US. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in The Hamptons?

STR-viable listings in The Hamptons average around $1.9M. Primary STR ZIP codes include 11937, 11968, 11932. Combined with the market's 7.0% average cap rate, that price level sets the return baseline you'd underwrite against.

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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