Is Amherst, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Amherst, Massachusetts, begin by researching local zoning laws and regulations through the Amherst Planning Department, as the town requires short-term rental operators to obtain a special permit and comply with specific occupancy limits (typically 2-4 guests depending on property size). Contact the Amherst Building Department to secure necessary permits including a Certificate of Occupancy for short-term rentals, fire safety inspections, and ensure compliance with the town's 2019 short-term rental bylaw which requires owner-occupied properties and limits rentals to no more than 3 bedrooms. Find a suitable property in residential zones that allow short-term rentals (avoid student-heavy areas near UMass Amherst where restrictions are stricter), ensuring it meets the town's requirement for adequate parking and doesn't violate neighborhood density rules. Furnish the space with quality, durable furniture focusing on comfort for visiting families, professors, and university visitors, including reliable Wi-Fi, kitchen essentials, and local guidebooks featuring attractions like Emily Dickinson Museum and Amherst College. List your property on Airbnb and other platforms with competitive pricing (typically $80-150/night in Amherst depending on season and UMass events), highlighting proximity to the Five College area and Pioneer Valley attractions. Manage your property by maintaining regular communication with guests, coordinating cleaning between stays, collecting the required 14.75% Massachusetts state and local taxes, and ensuring ongoing compliance with Amherst's annual permit renewal requirements and any noise ordinance restrictions that protect the residential character of neighborhoods.

To identify profitable short-term rental properties in Amherst, Massachusetts, focus on locations within 1-2 miles of UMass Amherst campus and downtown areas, particularly near Pleasant Street and North Pleasant Street corridors where student and visitor demand peaks during academic year, graduation, and fall foliage seasons. Target 3-4 bedroom properties built after 1980 with parking, modern amenities, and strong WiFi capability, as these appeal to visiting families, prospective students, and academic conference attendees who drive Amherst's STR market. Analyze pricing using AirDNA and Mashvisor to benchmark against the $150-250 nightly rates typical for quality properties, with premium pricing possible during UMass events, October foliage season, and graduation weekends when occupancy can reach 90%+. Research competition through Airbnb and VRBO searches focusing on properties near campus and downtown, noting that successful listings emphasize proximity to university, parking availability, and family-friendly features. Utilize tools like Rabbu for Amherst-specific market data, monitor UMass academic calendar for demand patterns, and leverage local Facebook groups and Zillow for property identification while ensuring compliance with Amherst's STR regulations which require registration and limit rentals to owner-occupied properties or those in specific zoning districts.

To obtain an Airbnb/STR permit in Amherst, Massachusetts, you must first contact the Amherst Building Department at Town Hall located at 4 Boltwood Avenue to determine if short-term rentals are permitted in your zoning district, as the town requires compliance with local zoning bylaws. You'll need to submit an application that includes a detailed floor plan of the rental unit, proof of property ownership or landlord consent, a copy of your homeowner's or rental insurance policy that covers short-term rentals, contact information for a local representative if you're an absentee owner, and parking plans showing adequate off-street parking. The application fee is typically around $150-200, and you may need additional permits such as a Certificate of Occupancy if the property use is changing. Required documents also include a septic system inspection if applicable, fire safety compliance documentation, and neighbor notification forms. The review process generally takes 4-6 weeks, during which the Building Department and other relevant departments will review your application for compliance with health, safety, and zoning requirements. Amherst specifically requires that short-term rentals maintain the residential character of neighborhoods, provide adequate parking, and comply with noise ordinances, with some areas potentially restricting STRs to owner-occupied properties only.

Short-term rentals (STRs) are legal in Amherst, Massachusetts, but operate under specific regulations established by the town. As of 2023, Amherst requires STR operators to obtain a special permit and business license, with properties limited to a maximum of three bedrooms for rental purposes. The town prohibits STRs in certain residential zones and requires a minimum 150-foot separation between STR properties to prevent over-concentration in neighborhoods. Operators must comply with safety requirements including smoke and carbon monoxide detectors, provide emergency contact information, and maintain liability insurance of at least $1 million. Recent changes in 2022-2023 included stricter enforcement mechanisms and increased penalties for violations, with the town implementing a complaint-driven monitoring system. Properties must also meet specific parking requirements and cannot exceed occupancy limits of two people per bedroom plus two additional guests, with quiet hours enforced between 9 PM and 8 AM to address neighborhood concerns about noise and disruption.

The best areas for Airbnb investment in Amherst, Massachusetts are downtown Amherst near the University of Massachusetts campus, particularly along North Pleasant Street and the town center, which attracts constant demand from visiting parents, prospective students, and university events year-round. The Emily Dickinson Museum area and historic downtown district offer appeal to literary tourists and visitors attending cultural events at venues like the Yiddish Book Center and Eric Carle Museum. The Route 9 corridor provides convenient access for business travelers visiting the Five College Consortium (UMass, Amherst College, Hampshire College, Smith College, and Mount Holyoke College) and offers proximity to restaurants and shopping. Areas near Amherst College, especially around the town common, benefit from alumni visits, graduation ceremonies, and academic conferences. The South Amherst residential neighborhoods attract families visiting students and offer a quieter alternative while remaining close to campus activities, with peak demand during move-in/move-out periods, graduation, homecoming, and major university events throughout the academic year.

In Amherst, Massachusetts, Airbnb hosts are subject to multiple lodging taxes including the state excise tax of 5.7% on short-term rentals under 90 days, plus the Massachusetts sales tax of 6.25%, for a combined state rate of 11.95%. Additionally, Amherst imposes a local room occupancy excise tax of 6% on all transient accommodations, bringing the total tax burden to approximately 17.95%. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts remain ultimately responsible for compliance. The state taxes are remitted monthly to the Massachusetts Department of Revenue, while local taxes are paid to the Town of Amherst. Exemptions may apply for stays exceeding 90 consecutive days, which are considered long-term rentals rather than transient accommodations, and for certain government or non-profit organization bookings. Hosts must register with both state and local tax authorities, obtain the necessary permits from Amherst's building and zoning departments, and maintain detailed records of all rental transactions for tax purposes.

Starting an Airbnb in Amherst, Massachusetts requires approximately $450,000-$550,000 in total initial investment. Property purchase costs average $425,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup expenses including professional photography, listing creation, and basic renovations run $3,000-$5,000. Permits and fees in Massachusetts include short-term rental registration ($200), business license ($50), and potential local permits ($300-$500). Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage. Monthly utilities average $200-$300 including electricity, gas, water, internet, and cable. First six months operating costs including cleaning services ($150 per turnover), supplies and maintenance ($200 monthly), property management software ($50 monthly), and marketing expenses total approximately $4,000-$6,000, assuming 60-70% occupancy rates typical for the Amherst market near University of Massachusetts.

Airbnb properties in Amherst, Massachusetts demonstrate moderate profitability with average annual revenues ranging from $15,000-$35,000 for typical 2-3 bedroom properties, driven primarily by University of Massachusetts student housing demand and seasonal tourism. Operating expenses typically consume 40-60% of gross revenue, including cleaning fees ($50-80 per turnover), property management (10-20%), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near UMass campus achieve higher occupancy rates of 70-85% during academic year with daily rates of $80-150, while downtown locations capture weekend tourism at $100-200 nightly but with lower overall occupancy of 50-65%. Success factors include proximity to university (within 2 miles optimal), parking availability, and targeting the September-May academic calendar when demand peaks. A case study of a 3-bedroom property on North Pleasant Street generated $28,000 gross revenue in 2023 with $16,800 in expenses, yielding a 40% profit margin, while properties further from campus typically see 25-35% margins due to lower occupancy and rates.

Airbnb investments in Amherst, Massachusetts typically generate annual ROI of 8-12% due to strong demand from University of Massachusetts students, parents, and academic visitors throughout the year. Cash-on-cash returns generally range from 6-10% annually, with properties near campus commanding premium rates of $150-250 per night during peak periods like graduation, move-in weekends, and football games. Most investors achieve profitability within 18-24 months, particularly for 3-4 bedroom properties that can accommodate student groups and visiting families. The market benefits from consistent year-round occupancy rates of 65-75%, with seasonal peaks during academic events pushing rates 40-60% higher than baseline. Properties within 2 miles of UMass campus typically see faster returns, with break-even occurring around month 20-22, while those focusing on the broader Pioneer Valley tourism market may require 24-30 months to reach full profitability.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Amherst, Massachusetts. Local real estate agents like Coldwell Banker Residential Brokerage and RE/MAX Rising have agents experienced in investment properties in the Pioneer Valley area. Compass and Keller Williams also have local offices serving the Amherst market with agents who understand the University of Massachusetts rental dynamics. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data analysis, and Awning for turnkey Airbnb investment properties. RedAwning offers property management and investment services, while Vacasa provides both property management and acquisition assistance. Local property management companies like Pioneer Valley Property Management and Amherst Property Services can help investors identify opportunities and manage short-term rentals. BiggerPockets marketplace and Roofstock occasionally feature Massachusetts investment properties, and LoopNet lists commercial and investment residential properties in the area.