Is Cataumet, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Cataumet, Massachusetts, begin by researching local regulations through the Town of Bourne's planning department, as Cataumet falls under Bourne's jurisdiction, where short-term rentals typically require a special permit and must comply with zoning bylaws that often restrict rentals to owner-occupied properties or require conditional use permits in residential districts. Obtain necessary permits including a business certificate from the Town Clerk ($50), a rooms excise tax certificate from the Massachusetts Department of Revenue, and register with the state's short-term rental tax system established in 2019. Find a suitable property within 1-2 miles of Cataumet's waterfront areas like Scraggy Neck or near Red Brook Harbor, with 2-3 bedroom homes typically ranging $400,000-$800,000, ensuring the property meets fire safety codes including smoke and carbon monoxide detectors, emergency egress windows, and maximum occupancy limits (typically 2 people per bedroom plus 2). Furnish the space with coastal New England décor, essential amenities like WiFi, air conditioning, and kitchen supplies, budgeting $15,000-$25,000 for a complete setup. List your property on Airbnb and VRBO with professional photography highlighting proximity to Bourne's beaches, Cape Cod Canal, and ferry access to Martha's Vineyard, setting competitive rates of $150-$350 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services ($75-$125 per turnover), maintenance contractors, and consider property management companies like Cape Cod Vacation Rentals if you're not local, while maintaining compliance with the state's 5.7% short-term rental excise tax and local room occupancy taxes.

To identify profitable short-term rental properties in Cataumet, Massachusetts, focus on waterfront or water-view locations within walking distance of Megansett Beach or Old Silver Beach, as these command premium rates during peak summer months. Target 3-4 bedroom single-family homes or condos built after 1980 with modern amenities, outdoor spaces, parking, and ideally features like decks, fire pits, or beach access that appeal to families and groups visiting Cape Cod. Analyze pricing by studying comparable STR listings on Airbnb and VRBO during different seasons, noting that Cataumet properties typically earn $200-400 per night in summer and $100-200 in shoulder seasons, with annual occupancy rates around 60-70%. Research competition by examining the density of existing rentals in specific neighborhoods, identifying gaps in amenities or property types, and monitoring seasonal availability patterns of successful listings. Utilize tools like AirDNA for market analytics, Mashvisor for investment analysis, and local resources including the Bourne Planning Department for zoning regulations, Cape Cod Commission guidelines, and networking with local property managers like Cape Cod Oceanview Realty or Kinlin Grover who understand the seasonal rental market dynamics and can provide insights on neighborhood performance and regulatory compliance requirements.

To obtain an Airbnb/STR permit in Cataumet, Massachusetts (part of Bourne), you must first register with the Massachusetts Department of Revenue for state lodging taxes and obtain a Certificate of Registration, then apply to the Town of Bourne's Building Department or Planning Department for a short-term rental permit. Required documents typically include a completed application form, proof of property ownership or lease agreement, floor plan of the rental unit, certificate of occupancy, proof of liability insurance (minimum $1 million), contact information for a local representative available 24/7, parking plan, and waste management plan. The application fee is approximately $200-400 annually, with additional inspection fees of around $100-150. You must also comply with Bourne's specific requirements including maximum occupancy limits (typically 2 people per bedroom plus 2 additional), quiet hours from 9 PM to 8 AM, no events or parties, adequate parking (usually 1 space per bedroom), and proper trash disposal arrangements. The timeline is generally 4-8 weeks for approval, depending on inspection scheduling and any required corrections. After approval, you must display your permit number in all advertisements and maintain compliance with annual renewal requirements, health and safety inspections, and tax obligations to both the state and local authorities.

Short-term rentals (STRs) in Cataumet, Massachusetts are generally legal but subject to local regulations under the Town of Bourne's jurisdiction, as Cataumet is an unincorporated village within Bourne. The town requires STR operators to obtain a business license and comply with health and safety standards, including septic system capacity requirements and parking provisions. Properties must meet building and fire codes, and operators typically need to register with the state for tax purposes. Bourne has implemented occupancy limits based on bedroom count and septic capacity, usually allowing 2 people per bedroom plus 2 additional guests. The town prohibits STRs in some residential zones or requires special permits, and there are noise ordinances and quiet hours that must be observed. Recent changes around 2019-2021 included stricter enforcement of existing regulations and enhanced registration requirements, though Bourne has been more permissive than some Cape Cod communities that have implemented moratoriums or bans. Property owners should verify current zoning compliance and obtain proper permits before operating STRs in Cataumet.

The best areas for Airbnb investment in Cataumet, Massachusetts are the waterfront neighborhoods along Buzzards Bay, particularly near Red Brook Harbor and the Cataumet Marina district, which attract summer tourists seeking coastal experiences and boating access. The historic village center around County Road offers charm for visitors interested in Cape Cod's maritime heritage and provides easy access to local restaurants and shops. Properties near the Bourne Recreation Area and along Shore Road are highly desirable due to their proximity to beaches, fishing spots, and scenic walking trails that draw families and outdoor enthusiasts from May through October. The residential areas near Cataumet Arts Center benefit from cultural tourism and weekend visitors attending local events and workshops. Additionally, neighborhoods within walking distance of the Cape Cod Canal offer unique appeal to visitors interested in the engineering marvel and recreational activities like biking the canal path, while also capturing some business travel from workers involved in canal operations and maintenance projects.

Airbnb properties in Cataumet, Massachusetts 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 tax burden of 11.95%. Barnstable County imposes an additional 2.75% county excise tax on short-term rentals, bringing the total tax rate to approximately 14.7%. The Town of Bourne, where Cataumet is located, may impose local room occupancy taxes up to 6% though the exact current rate varies by local ordinance. These taxes are typically collected by platforms like Airbnb directly from guests at the time of booking for properties where the platform has agreements with tax authorities, though hosts remain ultimately responsible for ensuring compliance. For properties not covered by platform collection, hosts must register with the Massachusetts Department of Revenue, collect taxes from guests, and remit payments quarterly using Form ST-9. Exemptions generally apply to stays of 90 days or longer, certain medical-related stays, and accommodations for homeless individuals, while some local exemptions may exist for properties rented fewer than 14 days per year or meeting specific local criteria established by Bourne's municipal regulations.

To start an Airbnb in Cataumet, Massachusetts, the total costs would be approximately $850,000-$950,000. Property purchase represents the largest expense at $750,000-$800,000 for a median-priced home suitable for vacation rental in this Cape Cod area. Furnishing costs would range $25,000-$35,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, and décor. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, and marketing materials. Permits and fees total approximately $2,000-$3,000 including business registration, short-term rental permits from Bourne (the governing municipality), and any required inspections. Insurance costs $3,000-$4,000 annually for comprehensive short-term rental coverage. Utilities including electricity, water, internet, and cable average $400-$500 monthly or $2,400-$3,000 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and marketing would total $8,000-$12,000. Additional considerations include property taxes of approximately $8,000-$10,000 annually and potential HOA fees if applicable, though these vary significantly by specific location within Cataumet.

Airbnb properties in Cataumet, Massachusetts, demonstrate strong seasonal profitability with average daily rates ranging from $150-300 during peak summer months (June-September) and dropping to $80-150 in off-season periods. Properties typically generate annual revenues of $25,000-45,000 for smaller cottages and $40,000-75,000 for larger waterfront homes, with occupancy rates averaging 65-75% during summer and 25-40% in winter months. Operating expenses including cleaning fees ($75-125 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($1,500-3,000 annually), and maintenance ($3,000-6,000 annually) typically consume 40-55% of gross revenue. Net profit margins generally range from 25-35% for well-managed properties, with waterfront and beach-proximate locations commanding premium rates and achieving higher margins. Success factors include proximity to Bourne's beaches and Cape Cod attractions, professional photography, responsive guest communication, and strategic pricing during peak wedding season and summer holidays. A typical 3-bedroom cottage near Red Brook Harbor generates approximately $38,000 annually with $22,000 in expenses, yielding a 42% profit margin, while larger properties near Scraggy Neck can achieve $65,000 in revenue with similar expense ratios, benefiting from Cataumet's position as a gateway to Cape Cod and its appeal to Boston-area visitors seeking coastal retreats.

Airbnb investments in Cataumet, Massachusetts typically generate annual ROI of 12-18% due to the area's proximity to Cape Cod beaches and seasonal tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $200-350 per night during peak summer months (June-September) and $100-180 during shoulder seasons. Most investors achieve profitability within 18-24 months, with vacation rental management companies like Vacasa and RedAwning reporting occupancy rates of 65-75% for well-positioned properties near Buzzards Bay. Properties within walking distance of beaches or with water views command premium rates and can achieve the higher end of ROI ranges, while inland properties typically perform at the lower end but still benefit from overflow demand from nearby Falmouth and Woods Hole markets.

STRSearch leads the national market for Airbnb investment property analysis and market data, providing comprehensive tools for identifying profitable short-term rental opportunities in Cataumet, Massachusetts. Local Cape Cod real estate agents specializing in investment properties include Kinlin Grover Real Estate with agents like Sarah Mitchell and Robert & Company Sotheby's International Realty, while Compass and Coldwell Banker Realty have dedicated investment specialists covering the Bourne and Falmouth areas. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and acquisition assistance, Mashvisor for property analysis and market research, and AirDNA for short-term rental data analytics. Local property management companies like Cape Cod Vacation Rentals and Vacasa provide market insights for potential investors, while investment-focused firms such as Roofstock and Arrived Homes occasionally feature Cape Cod area properties. Regional specialists include New England Vacation Rentals and Cape Associates Real Estate, with agents experienced in waterfront and seasonal rental properties that perform well in Cataumet's summer tourism market.