Is Eastham, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Eastham, Massachusetts, begin by researching local regulations as Cape Cod towns have specific short-term rental ordinances - contact Eastham's Building Department and Planning Board to understand zoning restrictions, occupancy limits, and registration requirements which typically include annual permits costing $200-400. Obtain necessary permits including a business certificate from the Town Clerk, lodging license from the Board of Health, and potentially a special permit if in residential zones, while ensuring compliance with Massachusetts state tax registration for rooms tax collection. Find a suitable property considering Eastham's seasonal tourism patterns, proximity to beaches like Coast Guard Beach or Nauset Light Beach, and neighborhood compatibility with short-term rentals. Furnish the property with coastal-themed, durable furniture suitable for beach visitors, including essentials like linens, kitchen supplies, beach equipment, and outdoor furniture for the typical Cape Cod experience. Create your Airbnb listing with professional photos highlighting ocean views, beach access, and local attractions like the Cape Cod National Seashore, pricing competitively for the seasonal market ($150-400/night depending on size and location). Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services familiar with turnover requirements, implementing keyless entry systems, and maintaining responsive communication with guests while collecting and remitting the 5.7% Massachusetts rooms tax plus any local taxes to remain compliant with Eastham's short-term rental regulations.

To identify profitable short-term rental properties in Eastham, Massachusetts, focus on locations within 1-2 miles of Nauset Light Beach, Coast Guard Beach, or Cape Cod National Seashore, as these areas command premium rates of $300-600 per night during peak summer months. Target 3-4 bedroom properties built after 1980 with outdoor spaces, parking for 4+ cars, and modern amenities like central air conditioning, as these features are essential for families visiting Cape Cod. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that Eastham properties typically achieve 60-75% occupancy rates with average daily rates of $250-400 depending on proximity to beaches and property size. Research competition by studying listings within a 3-mile radius, focusing on properties near Wellfleet border and Orleans line which tend to outperform inland locations by 20-30% in revenue. Utilize STR-specific tools like Rabbu for market analysis, check Eastham's short-term rental regulations through the town's official website, and consider properties near the Cape Cod Rail Trail for year-round appeal, as shoulder season bookings (April-May, September-October) can extend profitability beyond the traditional summer peak when properties can generate $15,000-35,000 annually.

To obtain an Airbnb/STR permit in Eastham, Massachusetts, you must first contact the Eastham Building Department at Town Hall located at 2500 State Highway, Eastham, MA 02642, or call (508) 240-5900 to begin the application process. You'll need to submit a completed short-term rental registration application along with required documents including proof of property ownership or lease agreement, a detailed floor plan showing maximum occupancy, proof of liability insurance (minimum $300,000), a septic system inspection certificate if applicable, and contact information for a local property manager if you're not residing locally. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. Eastham requires that all STRs maintain a maximum occupancy of 2 people per bedroom plus 2 additional guests, provide adequate parking (one space per bedroom), install smoke and carbon monoxide detectors in all sleeping areas, and comply with the town's noise ordinance with quiet hours from 9 PM to 8 AM. Properties must also meet all building and health codes, maintain proper waste disposal arrangements, and display the registration number in all advertising. The approval process typically takes 4-6 weeks after submission of complete documentation, and permits must be renewed annually by December 31st, with the town conducting periodic inspections to ensure ongoing compliance with all regulations.

Short-term rentals (STRs) are legal in Eastham, Massachusetts, but operate under strict local regulations implemented around 2019-2020 following community concerns about housing availability and neighborhood character. The town requires STR operators to obtain annual permits, limits rentals to owner-occupied properties or properties owned by year-round residents, and restricts the total number of rental days per year to approximately 90-120 days. Properties must meet specific safety requirements including smoke and carbon monoxide detectors, and operators must pay local taxes and fees. Eastham prohibits STRs in certain residential zones and requires properties to maintain adequate parking and waste management. The regulations also include noise restrictions, occupancy limits based on bedrooms and septic capacity, and mandatory registration with the state. Recent enforcement has become more stringent, with the town actively monitoring compliance and issuing violations for unpermitted operations, reflecting the broader Cape Cod trend of balancing tourism revenue with housing preservation for year-round residents.

The best areas for Airbnb investment in Eastham, Massachusetts are the Nauset Light Beach vicinity, First Encounter Beach area, and properties near the Cape Cod Rail Trail. The Nauset Light Beach neighborhood is highly attractive due to its proximity to one of Cape Cod's most iconic lighthouses and pristine Atlantic Ocean beaches, drawing summer tourists and photography enthusiasts year-round. The First Encounter Beach district offers excellent investment potential with its bayside location providing calmer waters ideal for families with children, kayaking, and sunset viewing, making it popular from May through October. Properties near the Cape Cod Rail Trail, particularly around the Eastham section that connects to neighboring towns, attract active tourists interested in cycling and walking, extending the rental season beyond traditional beach months. The Salt Pond Visitor Center area presents opportunities due to its proximity to Cape Cod National Seashore headquarters, attracting nature enthusiasts, bird watchers, and educational tourists throughout the shoulder seasons. These locations benefit from Eastham's position as a gateway to Provincetown while offering more affordable accommodations than Outer Cape destinations, capturing overflow demand during peak summer months and appealing to visitors seeking authentic Cape Cod experiences near Audubon sanctuaries and historic sites.

In Eastham, 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 state sales tax of 6.25%, for a combined state rate of 11.95%. Additionally, Eastham imposes a local room occupancy tax of 6% on short-term rentals, bringing the total tax burden to approximately 17.95%. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system for most bookings, with Airbnb remitting payments directly to the Massachusetts Department of Revenue and local authorities on behalf of hosts. However, hosts remain responsible for ensuring compliance and may need to register with the state and file returns if Airbnb doesn't collect taxes for certain bookings or if they use other platforms. The taxes apply to all short-term rentals regardless of the number of nights, with limited exemptions for stays exceeding 90 consecutive days or rentals to certain tax-exempt organizations. Hosts should register for a Massachusetts tax identification number and may need to file quarterly returns depending on their booking volume and collection arrangements.

Starting an Airbnb in Eastham, Massachusetts requires approximately $650,000-750,000 in total initial investment. Property purchase costs average $580,000-650,000 for a median 3-bedroom home suitable for vacation rental in this Cape Cod location. Furnishing costs range $25,000-35,000 including beds, linens, kitchen appliances, outdoor furniture, and coastal-themed decor appropriate for the beach market. Initial setup expenses total $8,000-12,000 covering professional photography, listing optimization, welcome materials, and basic renovations. Permits and fees include a $500 short-term rental license, $300 annual registration, $200 fire inspection, and $150 health department approval. Insurance costs $3,500-4,500 annually for specialized short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits require $1,500 including electricity, gas, water, internet, and cable services. First six months operating costs total approximately $18,000-22,000 including property management fees (20-25% of revenue), cleaning services ($150 per turnover), maintenance reserves, marketing, supplies, and platform fees to Airbnb and VRBO, assuming 60-70% occupancy rates during peak Cape Cod season generating $8,000-12,000 monthly revenue.

Airbnb properties in Eastham, Massachusetts demonstrate strong seasonal profitability with average annual revenues ranging from $35,000-$65,000 for typical 2-3 bedroom properties, driven by the town's proximity to Cape Cod National Seashore and peak summer tourism from June through September. Properties typically achieve 65-80% occupancy during peak season with nightly rates of $200-$400, while off-season rates drop to $100-$150 with 25-35% occupancy. Operating expenses including property management (15-25% of revenue), cleaning fees ($75-$125 per turnover), utilities ($3,000-$5,000 annually), insurance ($2,500-$4,000), and maintenance ($4,000-$8,000) typically consume 40-55% of gross revenue, resulting in net profit margins of 25-35% for well-managed properties. Success factors include proximity to beaches like Coast Guard Beach and Nauset Light Beach, modern amenities, professional photography, and responsive guest communication, with properties within 1-2 miles of major beaches commanding premium rates. A case study of a renovated 3-bedroom cottage near First Encounter Beach generated $58,000 in 2023 revenue with $22,000 in expenses, achieving a 62% profit margin through strategic pricing and excellent guest reviews, while properties further inland or lacking beach access typically see 15-20% lower revenues and occupancy rates.

Based on Eastham, Massachusetts market data, Airbnb investments typically generate annual ROI of 12-18% due to the town's prime Cape Cod location and strong summer tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties near Coast Guard Beach and National Seashore commanding premium rates of $200-400 per night during peak season (June-September). Initial profitability usually occurs within 18-24 months, assuming a 20-25% down payment on properties averaging $600,000-900,000. The seasonal nature of Eastham's market creates concentrated revenue generation during 16-20 weeks of high-demand periods, with shoulder seasons (May, October) contributing additional 15-25% of annual income. Properties with 3-4 bedrooms and proximity to beaches or bike trails typically achieve 65-75% occupancy rates during peak season, while off-season occupancy drops to 20-30%, resulting in blended annual occupancy of 45-55% and gross rental yields of 6-9% before expenses.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment opportunities in Eastham, Massachusetts, providing comprehensive market analysis and property recommendations. Local real estate agents serving the Eastham market include Cape Cod & Islands Association of Realtors members such as Kinlin Grover Real Estate, Robert Paul Properties, and Compass Real Estate, many of whom have developed expertise in vacation rental investments since 2018. National services like Awning (founded 2020), RedAwning, and Mashvisor offer data-driven analysis for Airbnb investments in the Cape Cod area, while AirDNA provides market intelligence and revenue projections for Eastham properties. Local property management companies such as Cape Cod Oceanview Realty, Nauset Vacation Rentals, and WeNeedaVacation.com have been assisting investors with turnkey Airbnb operations since the mid-2010s. Additional specialized services include BiggerPockets for investor networking, Roofstock for turnkey rental properties, and local vacation rental management firms like Cape Cod Holiday Estates and Atlantic Bay Resort that help investors maximize their rental income in this popular Cape Cod destination market.