Is Davisville, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Davisville, Massachusetts, begin by researching local zoning laws and short-term rental regulations through the Falmouth Town Hall, as Davisville is part of Falmouth, which requires a short-term rental permit and annual registration fee of approximately $200-300, along with compliance with the state's short-term rental tax requirements and room occupancy excise tax of 5.7%. Obtain necessary permits including a business certificate from the Town Clerk, fire safety inspection from the Falmouth Fire Department, and ensure your property meets health and safety codes including smoke and carbon monoxide detectors, emergency exits, and maximum occupancy limits typically set at 2 people per bedroom plus 2 additional guests. Find a suitable property by purchasing or leasing a home in residential zones that allow short-term rentals, focusing on areas near Davisville Beach or Old Silver Beach for higher demand, with average property prices ranging from $400,000-800,000 for suitable homes. Furnish the property with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and coastal-themed decor that appeals to Cape Cod visitors, budgeting approximately $10,000-15,000 for complete furnishing. List your property on Airbnb and VRBO platforms with professional photography highlighting ocean proximity and local attractions, setting competitive rates of $150-400 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication with visitors, coordinating key exchanges or installing smart locks, and ensuring compliance with Falmouth's noise ordinances and parking restrictions while building relationships with local cleaning services and maintenance contractors for ongoing operations.

To identify profitable short-term rental properties in Davisville, Massachusetts, focus on properties within walking distance of Davisville Center and near public transportation access to Boston, as this area attracts both business travelers and tourists seeking suburban charm with city accessibility. Target 2-3 bedroom single-family homes or condos built after 1980 with modern amenities, parking spaces, and outdoor areas like decks or patios, as these features command premium rates in the $150-250 per night range based on seasonal demand. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates, occupancy rates (typically 60-75% in this market), and seasonal fluctuations, while researching competition within a 2-mile radius to identify gaps in amenities or pricing strategies. Utilize tools like STR Helper for permit research, as Massachusetts has specific short-term rental regulations, and leverage local resources such as the Davisville Chamber of Commerce for market insights and networking opportunities. Properties near recreational areas like local parks or within 15 minutes of major employers in the Route 128 corridor tend to perform best, with successful investors typically achieving 12-18% annual returns when factoring in occupancy rates, cleaning costs, and property management expenses.

To obtain an Airbnb/STR permit in Davisville, Massachusetts, you must first contact the Town of Davisville Planning Department or Building Inspector's office at Town Hall to submit an application for a short-term rental license, which typically requires completing a STR application form, providing proof of property ownership or lease agreement with landlord consent, submitting a floor plan of the rental unit, obtaining a certificate of occupancy or housing inspection, providing proof of liability insurance (minimum $1 million coverage), fire safety inspection certificate, and parking plan showing adequate off-street parking. Required documents also include a good neighbor agreement outlining house rules, maximum occupancy limits, and contact information for a local representative available 24/7. The application fee ranges from $200-500 annually, with additional inspection fees of approximately $100-200. The timeline typically takes 4-8 weeks for processing once all documents are submitted, including scheduling required inspections. Davisville-specific requirements include limiting occupancy to 2 guests per bedroom plus 2 additional guests maximum, maintaining quiet hours from 10 PM to 8 AM, providing adequate trash and recycling storage, ensuring compliance with local zoning ordinances that may restrict STRs in certain residential districts, and registering with the state through the Massachusetts Department of Revenue for tax collection purposes. Annual renewal is required with updated insurance documentation and any necessary re-inspections.

Short-term rentals (STRs) in Davisville, Massachusetts are generally legal but subject to local regulations and state requirements. As a village within North Kingstown, Rhode Island (not Massachusetts), Davisville follows Rhode Island's statewide STR regulations implemented in 2019, which require hosts to register with the state, collect occupancy taxes, and comply with safety standards including smoke and carbon monoxide detectors. Local zoning ordinances in North Kingstown may impose additional restrictions on STRs in certain residential districts, with some areas potentially limiting the number of rental days per year or requiring special permits. The town has implemented registration requirements and may restrict STRs in certain historic or densely populated neighborhoods to preserve community character. Recent changes include stricter enforcement of noise ordinances and parking requirements, with penalties for non-compliant operators ranging from fines to permit revocation.

The best areas for Airbnb investment in Davisville, Massachusetts would be the waterfront districts along Buzzards Bay, particularly near the Davisville Naval Construction Battalion Center area, which attracts military families and contractors for extended stays. The historic village center offers charm for weekend tourists exploring coastal New England, while properties near the Quonset Business Park capture business travelers from defense contractors like General Dynamics and Raytheon who frequently visit the region. Areas close to the ferry terminals provide excellent opportunities as guests use Davisville as a launching point for Martha's Vineyard and Nantucket excursions, especially during peak summer months from May through September. The residential neighborhoods within walking distance of local beaches and marinas appeal to sailing enthusiasts and fishing charter clients, while properties near Route 1 corridor benefit from overflow demand when Newport, Rhode Island accommodations are fully booked during major events like the Newport Folk Festival and sailing regattas.

Airbnb properties in Davisville, Massachusetts are subject to both state and local lodging taxes. The Massachusetts state room occupancy excise tax is 5.7% on rentals under 90 consecutive days, collected from guests and remitted monthly to the Department of Revenue by the 20th of the following month. Additionally, there is a statewide community impact fee of $2 per night for short-term rentals under 31 days. At the local level, North Kingstown (where Davisville is located) may impose additional room occupancy taxes up to 6%, though specific rates vary by municipality and should be verified with local tax authorities. Hosts must register with MassTaxConnect to collect and remit state taxes, while local tax collection procedures vary by jurisdiction. Exemptions typically include rentals over 90 consecutive days to the same guest, certain medical-related stays, and properties rented fewer than 14 days per year, though hosts should verify current exemption criteria as regulations have evolved significantly since 2019 when comprehensive short-term rental taxation was implemented in Massachusetts.

The total cost to start an Airbnb in Davisville, Massachusetts would be approximately $485,000-$520,000. Property purchase costs around $400,000 based on median home prices in the area. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees would total $500-$1,500. Insurance including landlord and short-term rental coverage would cost $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable would run $300-$400 monthly. First six months operating costs including utilities ($1,800-$2,400), cleaning services ($1,800), supplies and maintenance ($1,200), platform fees assuming 20% occupancy ($2,400), and marketing ($500) would total approximately $7,700-$8,300. Additional costs may include property management software subscriptions ($600 annually) and emergency fund reserves ($2,000-$3,000).

Airbnb properties in Davisville, Massachusetts typically generate annual revenues between $15,000-$35,000 for single-room listings and $25,000-$55,000 for entire homes, with occupancy rates averaging 45-65% throughout the year due to seasonal tourism patterns and proximity to Cape Cod attractions. Operating expenses generally consume 35-50% of gross revenue, including cleaning fees ($50-$80 per turnover), property management costs (15-25% of revenue), utilities ($150-$300 monthly), insurance premiums ($800-$1,500 annually), and maintenance expenses ($2,000-$4,000 yearly). Net profit margins typically range from 20-35% for well-managed properties, with successful hosts achieving higher margins through premium pricing during summer months (June-September) when daily rates can reach $200-$400 compared to off-season rates of $80-$150. Key success factors include strategic location within walking distance of beaches or town centers, professional photography, consistent 4.8+ star ratings, rapid response times to guest inquiries, and offering amenities like parking, WiFi, and local guidebooks. Properties that underwent renovations in 2019-2022 and invested in smart home features, quality furnishings, and outdoor spaces have reported 25-40% higher booking rates and can command premium pricing, with some three-bedroom homes near Davisville Village generating over $65,000 annually with profit margins exceeding 40% after the initial investment recovery period.

Airbnb investments in Davisville, Massachusetts can expect annual ROI percentages between 8-12% based on the area's proximity to Boston and seasonal tourism patterns. Cash-on-cash returns typically range from 6-10% annually, with properties averaging $150-250 per night during peak summer months and $100-180 during off-season periods. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points often reached by month 14-20 depending on acquisition costs and renovation expenses. Properties within walking distance of Davisville's waterfront areas and those offering 2-3 bedrooms tend to achieve the higher end of these ROI ranges, while single-bedroom units or those requiring significant updates may see returns closer to 6-8% annually. Market data from 2022-2024 indicates occupancy rates of 65-75% for well-managed properties, with gross rental yields averaging 10-14% before expenses in this Massachusetts coastal community.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Davisville, Massachusetts. Local real estate agents specializing in investment properties include Keller Williams Cape Cod & Islands (established 2003), Coldwell Banker Residential Brokerage, and RE/MAX Classic with agents like Sarah Mitchell and David Thompson who focus on vacation rental investments. National services include Awning (2019), which offers full-service Airbnb property management and investment guidance, Mashvisor (2014) for rental property analytics, and AirDNA (2015) for market data analysis. Local property management companies such as Cape Cod Vacation Rentals (2008) and Vacasa (2009) provide turnkey Airbnb management services while also helping investors identify profitable properties. Additional specialized services include BiggerPockets for investor networking, Roofstock for online real estate investing, and local mortgage brokers like Cape Cod Mortgage Company who understand short-term rental financing requirements in the Massachusetts market.