Is Edgartown, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Edgartown, Massachusetts, begin by researching the town's strict short-term rental regulations, which require a special permit from the Edgartown Planning Board and compliance with the town's Short-Term Rental Bylaw enacted in 2019. Obtain necessary permits including a business certificate from the Town Clerk, a short-term rental permit (approximately $500 annually), and ensure compliance with Massachusetts lodging tax requirements and local occupancy limits typically capped at 10 people. Find a suitable property within Edgartown's designated areas where short-term rentals are permitted, noting that many residential zones have restrictions, and consider properties near popular areas like Katama Beach or downtown. Furnish the property with coastal-appropriate, durable furniture and amenities including linens, kitchen essentials, beach equipment, and ensure adequate parking as required by local zoning. Create your Airbnb listing with professional photography highlighting Martha's Vineyard charm, set competitive rates (typically $300-800+ per night during peak summer season), and emphasize proximity to Edgartown's attractions like the lighthouse and harbor. Manage the property by establishing relationships with local cleaning services, maintenance providers, and consider hiring a property management company familiar with Martha's Vineyard regulations, while maintaining detailed records for tax purposes and ensuring compliance with the town's noise ordinances and occupancy monitoring requirements that may include guest registration and parking management.

To identify profitable short-term rental properties in Edgartown, Massachusetts, focus on locations within walking distance of downtown, near South Beach or Katama Beach, or in historic neighborhoods like the Old Whaling Church area, as these command premium rates of $400-800+ per night during peak summer season. Target properties with 3-4 bedrooms, outdoor spaces like decks or patios, parking availability, and classic New England charm including original hardwood floors, fireplaces, or water views, as these features attract high-paying guests seeking authentic Martha's Vineyard experiences. Conduct pricing analysis using AirDNA and Mashvisor to track seasonal rate fluctuations, with summer rates typically 300-400% higher than off-season, and calculate potential annual revenue of $75,000-200,000 for well-positioned properties. Research competition by analyzing similar properties on Airbnb and VRBO within a 1-mile radius, noting their occupancy rates, amenities, and guest reviews to identify market gaps. Utilize Martha's Vineyard-specific resources like the Martha's Vineyard Commission for zoning regulations, local real estate agents familiar with STR potential, and the Edgartown Planning Board for permit requirements, while monitoring seasonal tourism patterns through the Martha's Vineyard Chamber of Commerce data and ferry booking trends from the Steamship Authority to optimize investment timing and property selection.

To obtain an Airbnb/STR permit in Edgartown, Massachusetts, you must first apply through the Edgartown Building Department located at 70 Main Street, as the town requires all short-term rentals (under 30 days) to obtain a Short-Term Rental License. Required documents 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), septic system inspection certificate, and fire safety inspection report from the Edgartown Fire Department. You'll also need to provide contact information for a local property manager if you're not residing on-island year-round, parking plan showing adequate off-street parking, and waste management plan. The application fee is approximately $500 annually, with additional fees for required inspections totaling around $200-300. The timeline typically takes 6-8 weeks from submission to approval, provided all documentation is complete and inspections pass. Edgartown-specific requirements include adherence to the town's 3% room occupancy tax, maximum occupancy limits based on septic capacity and bedrooms, quiet hours enforcement from 9 PM to 8 AM, and compliance with the island's seasonal water restrictions. Properties in historic districts may require additional Historic District Commission approval, and all STR operators must register with the Massachusetts Department of Revenue for tax collection purposes.

Short-term rentals (STRs) are legal in Edgartown, Massachusetts, but operate under strict local regulations implemented around 2019-2020 in response to housing concerns on Martha's Vineyard. The town requires STR operators to obtain annual permits and comply with specific zoning restrictions, with rentals typically prohibited in certain residential districts or limited to owner-occupied properties only. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and emergency egress standards, while operators must collect and remit local taxes and maintain liability insurance. Edgartown has implemented occupancy limits based on property size and septic capacity, noise ordinances with quiet hours, and parking requirements to address neighborhood impacts. The town also maintains a registry of permitted STRs and conducts periodic inspections, with violations subject to fines and permit revocation. Recent changes have included stricter enforcement mechanisms and potential caps on the total number of STR permits issued annually, reflecting ongoing tensions between tourism revenue and affordable housing preservation in this popular Vineyard destination.

The most lucrative Airbnb investment areas in Edgartown, Massachusetts center around the historic downtown district near Main Street and Water Street, where proximity to upscale shopping, fine dining, and the harbor attracts premium-paying tourists year-round. The Katama area, particularly near South Beach, offers exceptional summer rental potential due to its pristine beaches and surf culture, drawing families and beach enthusiasts willing to pay top dollar for oceanfront or near-ocean properties. The Chappaquiddick area, accessible by ferry, provides a unique selling point for guests seeking exclusivity and privacy, with properties here commanding higher rates due to limited inventory and the area's mystique. The Vineyard Haven Road corridor offers a sweet spot of accessibility to downtown while maintaining residential charm, appealing to families and groups seeking space and convenience. Properties near the Edgartown Golf Club attract affluent visitors combining leisure with recreation, while areas around Edgartown Harbor capitalize on the town's maritime heritage and yacht culture, drawing boating enthusiasts and luxury travelers during peak season from Memorial Day through Labor Day.

Airbnb properties in Edgartown, Massachusetts are subject to multiple lodging taxes including the Massachusetts state lodging excise tax of 5.7%, Martha's Vineyard Commission's Island Housing Bank contribution of 2% on short-term rentals under 30 days, and Edgartown's local room occupancy tax of 6%, resulting in a combined tax rate of approximately 13.7% on short-term rental bookings. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties listed on their platform, with Airbnb remitting the state and local portions to the Massachusetts Department of Revenue and local tax authorities respectively on a monthly basis. Property owners who collect taxes directly must register with the Massachusetts DOR and remit state taxes monthly by the 20th of the following month, while local taxes are remitted to the Town of Edgartown. Exemptions generally apply to stays of 90 consecutive days or longer, rentals to the same occupant for more than 30 consecutive days, and certain properties rented for 14 days or fewer per year, though owners should verify current exemption criteria as regulations have evolved significantly since 2019 when Massachusetts implemented comprehensive short-term rental taxation requirements.

The total cost to start an Airbnb in Edgartown, Massachusetts is approximately $1,850,000-$2,100,000. Property purchase represents the largest expense at $1,600,000-$1,800,000 for a median-priced home suitable for short-term rental in this premium Martha's Vineyard location. Furnishing costs range from $40,000-$60,000 to create an upscale vacation rental experience with quality furniture, linens, kitchen equipment, and décor. Initial setup including professional photography, listing creation, and marketing materials costs $3,000-$5,000. Permits and fees total approximately $2,500-$4,000, including business license, short-term rental permit, and potential homeowner association approvals. Insurance premiums for short-term rental coverage cost $4,000-$6,000 annually. Utilities including electricity, water, internet, cable, and seasonal heating average $800-$1,200 monthly or $4,800-$7,200 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and property management total $15,000-$25,000. Additional considerations include potential property improvements, emergency fund reserves, and seasonal fluctuations in this high-end vacation market where properties command premium nightly rates during summer months but may have limited winter bookings.

Airbnb properties in Edgartown, Massachusetts demonstrate strong profitability potential with average nightly rates ranging from $400-800 during peak summer months (June-September) and $150-300 in off-season, generating annual revenues of $45,000-85,000 for well-positioned properties. Operating expenses typically consume 35-45% of gross revenue, including cleaning fees ($75-150 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($2,000-4,000 annually), and maintenance costs averaging $3,000-6,000 yearly. Properties within walking distance of downtown or beaches achieve occupancy rates of 75-85% during summer and 35-50% off-season, resulting in net profit margins of 25-35% for owner-operated units. Success factors include proximity to South Beach or Main Street, high-quality furnishings and amenities, professional photography, responsive guest communication, and strategic pricing that capitalizes on Martha's Vineyard's premium market positioning. A typical 3-bedroom cottage near the harbor generating $65,000 in annual revenue with $38,000 in expenses yields approximately $27,000 in net profit, representing a 42% profit margin, though properties requiring property management services see margins compress to 20-25% due to additional fees and reduced operational control.

Airbnb investments in Edgartown, Massachusetts typically generate annual ROI of 12-18% due to the town's premium Martha's Vineyard location and strong summer tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties commanding $300-800 per night during peak season (June-September) and $150-300 during shoulder months. Most investors achieve profitability within 18-24 months, with luxury waterfront properties near South Beach and downtown reaching the higher end of returns while modest inland properties perform at the lower range. The market benefits from consistent demand from affluent vacationers, limited hotel inventory, and Edgartown's reputation as a premier New England coastal destination, though investors should expect seasonal cash flow variations with 70-80% of annual revenue concentrated in the May-October period.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Edgartown, Massachusetts. Local real estate agents like Martha's Vineyard Real Estate and Sandpiper Realty have extensive knowledge of Edgartown's vacation rental market and zoning regulations. National services include AirDNA for market analysis, Mashvisor for investment property analytics, and BiggerPockets for connecting with local investors and agents. Vacasa and RedAwning provide property management services that can help investors understand the rental potential of properties in the area. Local companies such as Martha's Vineyard Vacation Rentals and Island Rentals Group offer market insights and property management expertise specific to Edgartown's seasonal rental market. Additional national platforms like Roofstock and HomeUnion occasionally feature vacation rental properties in premium markets like Martha's Vineyard, while local mortgage brokers such as Rockland Trust and Cape Cod Five Cents Savings Bank understand the unique financing requirements for investment properties in Edgartown's high-value real estate market.