Is Barrington, Rhode Island Good for Airbnb Investment?

To start an Airbnb in Barrington, Rhode Island, begin by researching local zoning laws and regulations through the Barrington Planning Department, as the town requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to owner-occupied properties or specific zones. Contact the Rhode Island Department of Health for lodging establishment permits if renting for less than 30 days, and register with the Rhode Island Division of Taxation for hotel tax collection (currently 5% state tax plus 1% local tax). Find a suitable property by purchasing or leasing in areas zoned for residential use, ensuring compliance with parking requirements (typically 1-2 spaces per unit) and maximum occupancy limits. Furnish the property with essential amenities including Wi-Fi, linens, towels, kitchen basics, and safety equipment like smoke detectors, carbon monoxide detectors, and fire extinguishers as required by state fire codes. Create your Airbnb listing with professional photos, competitive pricing (average $150-250 per night in Barrington as of 2023), and detailed descriptions highlighting proximity to Providence and Newport attractions. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest communications, and keeping detailed records for tax purposes while ensuring compliance with noise ordinances and neighbor relations in this residential community of approximately 16,000 residents.

To identify profitable short-term rental properties in Barrington, Rhode Island, focus on waterfront or water-view locations near Barrington Beach, Warren River, or Palmer River, as these command premium rates year-round with peak demand from May through October. Target 3-4 bedroom single-family homes or historic properties built before 1950 that offer character, modern amenities like updated kitchens and bathrooms, outdoor spaces, and parking for 2+ vehicles. Conduct pricing analysis using AirDNA or Mashvisor to identify properties generating $150-300+ per night during peak season, with annual revenues of $40,000-80,000 for well-positioned homes. Research competition within a 3-mile radius, noting that Barrington has limited STR inventory compared to nearby Newport or Narragansett, creating opportunity for well-executed properties. Utilize Zillow, Realtor.com, and local MLS data to identify properties under $800,000 that can achieve 15%+ annual returns, while checking Barrington's zoning regulations and STR permit requirements through the town's planning department. Monitor seasonal demand patterns tied to nearby attractions like Colt State Park, local sailing events, and proximity to Providence (20 minutes) and Newport (30 minutes), ensuring your property captures both leisure and business travelers seeking quieter alternatives to busier coastal destinations.

To obtain an Airbnb/STR permit in Barrington, Rhode Island, you must first contact the Barrington Building Department at Town Hall located at 283 County Road to inquire about short-term rental regulations, as the town may require a special use permit or business license. You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, floor plans of the rental space, proof of liability insurance (typically $1 million minimum), fire safety inspection certificate, and septic system compliance if applicable. The application fee is estimated at $100-300, with additional inspection fees of approximately $75-150. You must also register with the Rhode Island Division of Taxation for state lodging taxes and obtain a Rhode Island business registration if operating commercially. Barrington specifically requires compliance with residential zoning regulations, parking requirements (typically 2 spaces per unit), and may limit the number of guests or require owner occupancy. The approval timeline typically takes 4-8 weeks depending on inspection scheduling and completeness of application. Contact the Barrington Planning Department at (401) 247-1900 extension 4 for current zoning requirements and the Building Department for safety inspections, as regulations may have been updated since municipal ordinances regarding short-term rentals have evolved rapidly across Rhode Island communities in recent years.

Short-term rentals (STRs) in Barrington, Rhode Island operate under the state's regulatory framework established in 2019, which legalized STRs statewide while allowing municipalities to impose additional restrictions. Barrington has implemented local regulations that require STR operators to obtain proper permits and business licenses, comply with zoning requirements, and adhere to occupancy limits and safety standards. The town generally permits STRs in residential zones but may restrict them in certain historic districts or areas with specific zoning designations. Operators must register with both the state and local authorities, collect and remit state sales tax and local hotel tax, and maintain liability insurance. Recent changes include stricter enforcement of noise ordinances and parking requirements, with the town requiring that STR properties have adequate off-street parking and that operators provide 24/7 contact information for complaints. Barrington has also implemented inspection requirements for safety compliance and may limit the total number of STR permits issued in specific neighborhoods to preserve residential character.

The best areas for Airbnb investment in Barrington, Rhode Island include the waterfront neighborhoods along Narragansett Bay, particularly around Barrington Beach and Brickyard Pond areas, which attract summer tourists seeking coastal experiences and water activities. The historic village center near County Road offers charm for visitors interested in New England architecture and proximity to local restaurants and shops. Areas near the East Bay Bike Path are highly desirable as this popular 14.5-mile trail draws cycling enthusiasts and outdoor recreation visitors year-round. Properties close to Haines Memorial State Park provide access to beach activities and are popular with families during summer months. The neighborhoods near Rhode Island Country Club attract visitors attending golf events and tournaments. Areas with easy access to Route 114 are strategic for business travelers commuting to Providence (15 minutes away) or visitors exploring the greater Newport region, as Barrington serves as an affordable alternative to more expensive coastal destinations while maintaining waterfront appeal and small-town New England character.

In Barrington, Rhode Island, Airbnb hosts are subject to Rhode Island's state hotel tax of 5% on gross receipts from short-term rental accommodations, which applies to rentals of less than 30 consecutive days. The state also imposes a 1% tourism and marketing tax, bringing the total state lodging tax to 6%. These taxes are typically collected by Airbnb directly from guests and remitted to the Rhode Island Division of Taxation on behalf of hosts through their automated collection system, though individual hosts may need to register and remit taxes themselves if not covered by Airbnb's collection agreement. Barrington itself does not impose additional local occupancy taxes beyond the state requirements as of 2023. Hosts must obtain a Rhode Island sales tax permit and may need to file monthly or quarterly returns depending on their rental volume, with exemptions generally limited to rentals of 30 days or longer which are considered long-term stays rather than transient accommodations. The Rhode Island Division of Taxation requires hosts to maintain detailed records of all rental transactions and tax collections for audit purposes.

The total cost to start an Airbnb in Barrington, Rhode Island is approximately $650,000-$750,000. Property purchase represents the largest expense at $550,000-$650,000 based on median home prices in this affluent coastal town. Furnishing costs range from $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees in Rhode Island include business registration ($50), short-term rental permits ($200-$500), and potential local licensing fees totaling $500-$1,000. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance, supplies, platform fees (3% of bookings), and marketing total $8,000-$12,000 assuming moderate occupancy rates of 50-60% in this seasonal New England market.

Airbnb properties in Barrington, Rhode Island typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $120-$180 depending on property size and amenities. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$2,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 20-35% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% during peak summer months (June-September) when proximity to Newport and Providence drives demand. Properties within walking distance of Barrington Beach or featuring waterfront views command premium rates and achieve higher profitability, with some three-bedroom homes near the waterfront generating over $45,000 annually. Success factors include professional photography, responsive communication, consistent 5-star ratings, and strategic pricing that adjusts for seasonal demand patterns, local events, and weekend premiums. The market benefits from Barrington's reputation as a safe, family-friendly community with excellent schools, attracting both leisure travelers visiting nearby attractions and business travelers seeking alternatives to downtown Providence hotels.

Airbnb investments in Barrington, Rhode Island typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the town's proximity to Newport and Providence markets. Properties in Barrington's desirable neighborhoods near the waterfront or historic district can achieve occupancy rates of 65-75% during peak summer months (June-September) when daily rates average $150-250, while shoulder seasons see rates of $100-150 with 40-50% occupancy. Initial investment recovery typically occurs within 7-10 years, with most investors reaching profitability within 18-24 months after accounting for startup costs, furnishing, and marketing expenses. The market benefits from Barrington's reputation as a safe, family-friendly community with good schools, attracting both leisure travelers visiting nearby attractions and business travelers, though winter months (December-March) see significantly reduced demand with occupancy dropping to 20-30%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Barrington, Rhode Island. Local real estate agents like Lila Delman Real Estate, Residential Properties Ltd., and Gustave White Sotheby's International Realty have agents experienced in investment properties and vacation rentals in the Barrington area. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and investment analysis, and Awning for turnkey Airbnb investment properties. RedAwning offers property management and investment services, while BiggerPockets connects investors with local professionals and resources. Local property management companies like Rhode Island Vacation Rentals and Coastal Property Management can assist with operations once properties are acquired. Additional national platforms include Roofstock, which occasionally features short-term rental properties, and local investment groups through the Rhode Island Real Estate Investors Association provide networking opportunities with professionals specializing in vacation rental investments in the greater Newport County area including Barrington.