Is Exeter, New Hampshire Good for Airbnb Investment?

To start an Airbnb in Exeter, New Hampshire, begin by researching local zoning laws and regulations through the Exeter 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 districts. Contact the Exeter Building Department to secure necessary permits including a Certificate of Occupancy for short-term rentals, fire safety inspections, and ensure compliance with the town's life safety codes which typically require smoke detectors, carbon monoxide detectors, and proper egress windows. Find a suitable property by working with local real estate agents familiar with Exeter's historic district regulations if applicable, focusing on areas zoned for residential use that allow short-term rentals, with properties near downtown Exeter or close to Phillips Exeter Academy commanding higher rates of $150-250 per night. Furnish the space with quality furniture, linens, and amenities while ensuring compliance with New Hampshire's innkeeper laws, including providing adequate lighting, heating, and bathroom facilities that meet state health codes. List your property on Airbnb and other platforms like VRBO, highlighting Exeter's proximity to the seacoast, historic downtown, and prestigious academy, while setting competitive rates based on seasonal demand with higher prices during academy events and summer months. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services, and ensuring ongoing compliance with Exeter's annual business license renewal requirements and any changes to local short-term rental ordinances.

To identify profitable short-term rental properties in Exeter, New Hampshire, focus on locations within walking distance of Phillips Exeter Academy, downtown historic district, and near the Exeter River for scenic appeal, as these areas command premium rates year-round due to visiting families, prospective students, and tourists. Target 2-4 bedroom properties built after 1950 with modern amenities, parking, and outdoor spaces, as colonial-style homes with character perform well but avoid properties requiring extensive renovations. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $150-300 per night depending on size and season, with peak demand during academy events, fall foliage (September-October), and summer months. Research competition by studying existing STR listings within 3 miles, identifying gaps in amenities or property types, and noting that Exeter has limited hotel inventory which benefits STR demand. Utilize tools like Rabbu and STR Helper for market analysis, check Exeter's zoning regulations and STR permit requirements through the town planning department, leverage local real estate agents familiar with investment properties, and monitor seasonal trends through Google Trends and local event calendars to optimize acquisition timing and pricing strategies.

To obtain an Airbnb/STR permit in Exeter, New Hampshire, you must first contact the Exeter Planning Department at Town Hall located at 9 Front Street to determine if short-term rentals are permitted in your zoning district, as the town requires compliance with local zoning ordinances. Submit an application to the Planning Department including a completed short-term rental registration form, proof of property ownership or lease agreement, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, and proof of liability insurance with minimum $1 million coverage. You'll also need to obtain a business license from the Town Clerk's office and may require a special exception or conditional use permit depending on your property's zoning, which involves a public hearing process through the Planning Board. The application fee is typically around $100-200 for the registration plus additional fees for any required hearings (approximately $300-500). Ensure compliance with New Hampshire state requirements including registering with the Department of Revenue Administration for rooms and meals tax collection, obtaining a business license, and meeting fire safety codes which may require inspection by the local fire department. The timeline ranges from 30-90 days depending on whether zoning approvals are needed, with simple registrations processed within 30 days while special exceptions requiring Planning Board review can take 60-90 days including the mandatory public hearing and notification periods.

Short-term rentals (STRs) are legal in Exeter, New Hampshire, but operate under specific local regulations established by the town. Exeter requires STR operators to obtain a business license and comply with zoning ordinances, with rentals generally permitted in residential zones but subject to occupancy limits, parking requirements, and noise restrictions. The town has implemented registration requirements and safety standards including smoke and carbon monoxide detectors, and operators must provide contact information for a local representative available 24/7. Recent changes around 2019-2021 included more formalized permitting processes and enhanced enforcement mechanisms, with the town requiring annual renewals and conducting periodic inspections. Properties in certain historic districts may face additional restrictions, and the town reserves the right to revoke permits for violations of noise ordinances, parking regulations, or other municipal codes, reflecting Exeter's approach to balance tourism revenue with neighborhood character preservation.

The best areas for Airbnb investment in Exeter, New Hampshire include the Historic Downtown District near Water Street and Front Street, which attracts visitors to Phillips Exeter Academy events, local restaurants, and historic sites year-round. The Squamscott River waterfront area offers scenic appeal for leisure travelers and families visiting the academy. The Route 108/Portsmouth Avenue corridor provides convenient access for business travelers visiting nearby companies like Timberland and other Seacoast businesses, while being close to major highways for Boston commuters. The residential neighborhoods near Swasey Parkway combine proximity to downtown attractions with parking availability that downtown properties often lack. The area near the Exeter Country Club attracts visitors attending golf events and weddings, while properties within walking distance of the Ioka Theatre benefit from cultural tourism. These locations capitalize on Exeter's position as an educational hub with Phillips Exeter Academy driving consistent parent and visitor traffic, its proximity to Portsmouth and the Seacoast region for tourism overflow, and its location along the Route 95 corridor for business travelers heading to Boston or Portland markets.

In Exeter, New Hampshire, Airbnb hosts are subject to the state's Rooms and Meals Tax of 8.5% on rental income, which applies to all short-term rentals under 185 days and is collected by the New Hampshire Department of Revenue Administration with quarterly remittance required by the 25th of January, April, July, and October. Additionally, hosts must collect and remit a local occupancy tax of 3% imposed by the Town of Exeter, which is administered through the town's tax collector office with monthly remittance typically due by the 15th of the following month. The state tax is collected on the gross rental receipts including cleaning fees, while the local tax applies to the room rate only, and both taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system when enabled, though hosts remain ultimately responsible for ensuring proper collection and remittance. Exemptions include stays of 185 consecutive days or longer, rentals to permanent residents, and certain government or charitable organization bookings, with hosts required to register with both state and local authorities and maintain detailed records of all transactions for audit purposes.

To start an Airbnb in Exeter, New Hampshire, expect total costs around $450,000-$500,000. Property purchase represents the largest expense at approximately $400,000 based on median home prices in the Exeter area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, bedding, kitchenware, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies run $2,000-$3,000. Permits and fees in New Hampshire vary by municipality but generally include business registration ($50-$100), potential short-term rental permits ($200-$500), and any required inspections ($300-$800). Insurance costs increase significantly for short-term rentals, adding approximately $2,000-$4,000 annually above standard homeowner's insurance. Utilities including electricity, heating, water, internet, and cable average $300-$500 monthly in New Hampshire. First six months of operating costs encompass utilities ($1,800-$3,000), cleaning services between guests ($150-$200 per turnover), maintenance and supplies ($1,000-$2,000), platform fees to Airbnb (3% host fee), and marketing expenses ($500-$1,000), totaling approximately $8,000-$12,000 for the initial operating period.

Airbnb properties in Exeter, New Hampshire typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Phillips Exeter Academy command premium rates during graduation, parent weekends, and academic events, with some hosts reporting 70-80% occupancy rates during peak seasons (May-October). A typical 3-bedroom colonial near downtown Exeter generating $28,000 annually might incur $16,000 in expenses, yielding a 43% profit margin or roughly $12,000 net income. Success factors include proximity to the academy, professional photography, responsive communication, and seasonal pricing strategies that capitalize on academic calendar events and New England fall foliage tourism. Properties within walking distance of Water Street restaurants and shops consistently outperform suburban listings by 20-30% in both occupancy and nightly rates, with some experienced hosts in prime locations achieving profit margins exceeding 50% through efficient operations and premium positioning.

Airbnb investments in Exeter, New Hampshire typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the town's proximity to the University of New Hampshire and seasonal tourism from nearby seacoast attractions. Properties within walking distance of downtown Exeter or near the Exeter River command premium rates of $120-180 per night during peak summer months and UNH events, while off-season rates average $80-120 nightly. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with average occupancy rates of 65-75% annually. The market benefits from consistent demand from university visitors, business travelers to local companies like Timberland and Sig Sauer, and tourists exploring the historic downtown and nearby Hampton Beach area, though investors should expect seasonal fluctuations with stronger performance from May through October and during university calendar events.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Exeter, New Hampshire. Local real estate agents specializing in investment properties include Keller Williams Coastal & Lakes Realty agents who focus on vacation rental investments, and Coldwell Banker Residential Brokerage professionals experienced in Seacoast area investment properties. RE/MAX Shoreline agents also serve the Exeter market with expertise in identifying properties suitable for short-term rentals. National services include Mashvisor for property analysis and market research, BiggerPockets for investor networking and deal sourcing, and Awning for end-to-end Airbnb investment services including property management. AirDNA provides market data and revenue projections specific to the Exeter area, while Roofstock offers a platform for purchasing turnkey rental properties. Local property management companies like Vacasa and RedAwning can assist with identifying and managing profitable short-term rental properties in the region. Additionally, local mortgage brokers specializing in investment properties and accountants familiar with short-term rental taxation can provide essential support services for Airbnb investors in the Exeter market.