Is Amagansett, New York Good for Airbnb Investment?

To start an Airbnb in Amagansett, New York, begin by researching East Hampton Town's strict short-term rental regulations, which as of 2023 require properties to be registered and comply with zoning laws that typically restrict rentals to properties zoned for commercial use or those with special permits. Obtain necessary permits from East Hampton Town Hall including a Certificate of Occupancy for transient use, fire safety inspection certificate, and business license, which can cost $500-2000 annually. Find a suitable property by purchasing or leasing a home that meets zoning requirements, focusing on areas zoned R-40 or R-80 where short-term rentals may be permitted with proper documentation. Furnish the property with high-quality, coastal-themed furniture and amenities including Wi-Fi, air conditioning, quality linens, and kitchen essentials, budgeting $15,000-30,000 for a complete setup. List your property on Airbnb and VRBO with professional photography highlighting the Hamptons location, beach proximity, and luxury amenities, setting rates between $300-800 per night depending on season and property size. Manage the property by either handling bookings, cleaning, and guest communication yourself or hiring local property management companies like Hamptons Luxury Rentals or East End Property Management, which typically charge 20-30% commission, while ensuring compliance with occupancy limits (usually 2 people per bedroom plus 2), noise ordinances, and parking restrictions specific to Amagansett's residential character.

To identify profitable short-term rental properties in Amagansett, New York, focus on location criteria including proximity to Atlantic Avenue Beach, Indian Wells Beach, and Main Beach, with properties within 0.5 miles commanding premium rates of $800-2,000+ per night during peak summer season (June-September). Target property features such as 3-4 bedroom homes with outdoor spaces, pools, modern kitchens, and parking, as these generate 40-60% higher occupancy rates than basic properties. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds purchase price by 8-12% annually, with Amagansett's average daily rates ranging from $400-600 off-season to $1,200-2,500 peak season. Research competition by analyzing similar properties within 2-mile radius using Airbnb and VRBO data, noting that oceanfront properties typically achieve 75-85% occupancy while inland properties average 60-70%. Utilize tools including Rabbu for market analysis, STR Helper for performance tracking, and local resources like East Hampton Town planning department for zoning compliance, while monitoring seasonal trends where 70% of annual revenue typically occurs between Memorial Day and Labor Day, making properties with strong shoulder season appeal particularly valuable.

To obtain an Airbnb/STR permit in Amagansett, New York, you must apply through the Town of East Hampton's Building Department since Amagansett falls under East Hampton jurisdiction. Required documents include a completed short-term rental application, property deed or lease agreement, floor plans, certificate of occupancy, proof of liability insurance ($1 million minimum), septic system certification, and fire safety inspection certificate. The application fee is approximately $500-750 with annual renewal fees of $300-400. You must also register with New York State and obtain a Certificate of Authority for tax collection purposes. The property must comply with East Hampton's specific requirements including maximum occupancy limits (typically 2 people per bedroom plus 2 additional), off-street parking for each bedroom, proper egress windows, smoke and carbon monoxide detectors, and adherence to the town's 14-day minimum stay requirement during peak season (Memorial Day to Labor Day). The approval timeline typically takes 60-90 days from submission of complete application. Properties must also meet health department septic capacity requirements and may require a special permit hearing depending on zoning district. Contact the East Hampton Town Building Department at 159 Pantigo Road for current applications and specific zoning compliance requirements for your property location.

Short-term rentals (STRs) in Amagansett, New York are heavily restricted and largely prohibited under East Hampton Town's comprehensive STR regulations enacted in 2022. The town banned STRs in most residential areas, including the majority of Amagansett's neighborhoods, allowing them only in specific commercial and mixed-use zones with strict permitting requirements. Properties must obtain special permits, pay substantial fees (approximately $2,000-$3,000 annually), undergo safety inspections, and comply with occupancy limits, noise restrictions, and parking requirements. The regulations were implemented following years of community complaints about noise, traffic, and housing availability issues caused by platforms like Airbnb and VRBO. Existing STR operators were required to register by late 2022 or cease operations, with significant penalties for violations including fines up to $15,000 per violation. The town also established a complaint hotline and enforcement mechanisms, making Amagansett one of the most restrictive STR markets in the Hamptons region, effectively limiting legal short-term rentals to a small number of commercially-zoned properties while protecting the residential character of this popular summer destination.

The most attractive areas for Airbnb investment in Amagansett, New York are the beachfront neighborhoods along Atlantic Avenue and Further Lane, which command premium rates due to direct ocean access and proximity to pristine beaches that draw summer tourists from May through September. The village center around Main Street and Montauk Highway offers strong investment potential with easier access to restaurants, shops, and the Amagansett train station, making it appealing to weekend visitors from New York City who prefer walkability to amenities. The area near Indian Wells Beach and Atlantic Avenue Beach is particularly lucrative as these are among the most popular swimming and surfing spots, attracting families and young professionals willing to pay higher rates for beach proximity. Properties near the Amagansett Farmers Market location on Montauk Highway benefit from the weekly summer market that draws visitors, while homes closer to the nature preserves and walking trails appeal to eco-tourists and wellness travelers seeking peaceful retreats, with companies like Topping Rose House and Topping Rose Spa driving luxury tourism demand in the broader Hamptons area since the early 2000s.

Airbnb properties in Amagansett, New York are subject to multiple lodging taxes including New York State sales tax of 8% on short-term rentals under 90 days, Suffolk County hotel occupancy tax of 3%, and East Hampton Town hotel occupancy tax of 3%, resulting in a combined tax rate of approximately 14% on rental income. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties listed on their platform, with Airbnb remitting payments quarterly to the respective tax authorities including the New York State Department of Taxation and Finance, Suffolk County, and East Hampton Town. Property owners who collect payments outside of Airbnb's platform must register with each tax authority, collect taxes from guests, and remit payments according to each jurisdiction's schedule - monthly for state sales tax and quarterly for local occupancy taxes. Exemptions may apply for rentals exceeding 90 consecutive days, certain corporate housing arrangements, and properties rented to permanent residents, though specific exemption criteria vary by jurisdiction and property owners should verify current requirements with each tax authority as rates and regulations have evolved significantly since 2018 when many of these collection mechanisms were implemented.

To start an Airbnb in Amagansett, New York, expect total costs around $1,850,000-$2,100,000. Property purchase represents the largest expense at approximately $1,600,000-$1,800,000 for a median 3-bedroom home in this Hamptons area. Furnishing costs range $25,000-$40,000 for quality furniture, linens, kitchen essentials, and decor suitable for luxury vacation rental guests. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,500. Permits and fees total $1,500-$3,000, covering short-term rental permits from East Hampton Town, business licenses, and potential homeowner association approvals. Insurance including liability and property coverage specifically for short-term rentals runs $3,000-$5,000 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable cost $1,000-$2,000. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance ($2,000), property management if used ($12,000), supplies and amenities ($1,500), and marketing ($1,000) total approximately $21,900. Additional considerations include potential property taxes of $20,000-$30,000 annually and seasonal demand fluctuations typical in Hamptons markets.

Airbnb properties in Amagansett, New York, demonstrate strong seasonal profitability with average daily rates ranging from $400-800 during peak summer months (June-September) and dropping to $150-300 in off-season periods. A typical 3-bedroom property generates approximately $80,000-120,000 in annual gross revenue, with expenses including property taxes ($15,000-25,000), utilities ($8,000-12,000), cleaning fees ($6,000-10,000), maintenance ($5,000-8,000), and Airbnb fees (3% host fee plus guest service fees), resulting in net profit margins of 35-45% for well-managed properties. Success factors include proximity to beaches like Atlantic Avenue Beach, high-end furnishings and amenities, professional photography, dynamic pricing strategies, and maintaining super-host status. Properties within walking distance of Main Beach or with pool access command premium rates, with some luxury 4-5 bedroom homes generating over $200,000 annually during 2022-2023. The market benefits from Amagansett's reputation as a quieter alternative to East Hampton, attracting families and professionals seeking upscale Hamptons experiences, though profitability heavily depends on seasonal occupancy rates averaging 70-85% in summer and 25-40% in winter months.

Airbnb investments in Amagansett, New York typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% for properties purchased in the $800,000-$1.5 million range that characterizes this Hamptons market. Properties like those managed by companies such as Vacasa or local management firms can achieve gross rental yields of 12-18% during peak summer months (June-September) when nightly rates range from $400-800, though annual occupancy rates average 45-60% due to seasonal demand patterns. Initial profitability usually occurs within 18-24 months after accounting for furnishing costs ($25,000-40,000), property management fees (20-30%), and local regulations compliance, with investors typically seeing positive cash flow by the second summer season if leveraging 70-80% financing on properties that appreciate 3-5% annually in this established East Hampton township market.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Amagansett, New York, using data analytics to evaluate potential returns. Local Hamptons real estate agents like Sotheby's International Realty, Corcoran Group, and Brown Harris Stevens have specialized teams familiar with Amagansett's vacation rental market and zoning regulations. National services include Mashvisor, which provides Airbnb investment analysis tools, AirDNA for market data and revenue projections, and Awning, a full-service platform that helps investors buy and manage short-term rental properties. Regional specialists such as Hamptons Real Estate Showcase and Town & Country Real Estate focus specifically on East End investment properties. Additional services include BiggerPockets for investor networking and education, Roofstock for turnkey rental property investments, and local property management companies like Hamptons Luxury Rentals and Elite East End Properties that can provide market insights and post-purchase management services to maximize rental income in this premium Hamptons market.