Is Fall River, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Fall River, Massachusetts, begin by researching local zoning laws through the Fall River Planning Department, as the city 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 Fall River City Hall at 1 Government Center to apply for a business certificate ($50-75) and verify if your property zone allows short-term rentals, then obtain necessary permits including a Certificate of Occupancy if required and ensure compliance with Massachusetts state tax requirements by registering with the Department of Revenue for room occupancy excise tax (5.7%). Find a suitable property in Fall River's desirable areas like the Highlands or near Battleship Cove, considering proximity to attractions like the Fall River Heritage State Park and downtown restaurants, then furnish the space with quality basics including comfortable bedding, WiFi, kitchen essentials, and safety equipment like smoke detectors and carbon monoxide alarms as required by Massachusetts law. Create your Airbnb listing with professional photos highlighting Fall River's industrial heritage and waterfront location, set competitive pricing based on local market rates ($75-150/night depending on property size and location), and implement a management system using tools like automated messaging, keyless entry, and either self-manage or hire local property management companies like South Coast Property Services. Maintain compliance by collecting and remitting the 5.7% Massachusetts room occupancy tax plus any local taxes, keep detailed records, and ensure your property meets all safety codes and insurance requirements through your homeowner's policy or specialized short-term rental coverage.

To identify profitable short-term rental properties in Fall River, Massachusetts, focus on locations within walking distance of Battleship Cove, the Fall River Heritage State Park, and downtown areas near restaurants and attractions, while avoiding industrial zones along the Taunton River. Target 2-4 bedroom properties built after 1950 with parking, updated kitchens and bathrooms, and outdoor spaces, as these perform better than mill conversions without amenities. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties, aiming for $80-150 per night depending on size and location, while analyzing seasonal demand patterns driven by summer tourism and weekend visitors to local attractions. Research competition by monitoring active Airbnb and VRBO listings within a 2-mile radius, identifying gaps in amenities or pricing, and studying occupancy rates of properties near Battleship Cove and the Narrows Center for the Arts. Utilize tools like Rabbu and STR Helper for Fall River market data, connect with local real estate agents familiar with investment properties, monitor Fall River's zoning regulations and STR licensing requirements, and leverage the city's proximity to Providence (20 minutes) and Boston (1 hour) to capture overflow demand from those higher-priced markets while offering more affordable accommodation options.

To obtain an Airbnb/STR permit in Fall River, Massachusetts, you must first contact the Fall River Building Department at City Hall located at 1 Government Center to apply for a short-term rental license, which typically requires submitting a completed application form, proof of property ownership or lease agreement, certificate of occupancy, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), fire safety inspection certificate from the Fall River Fire Department, and a site plan showing parking availability. The application fee is approximately $150-200 with annual renewal fees of $100-125, and you must also pay for required inspections which cost around $75-100 each. Fall River requires all STR properties to maintain at least one off-street parking space per rental unit, install smoke and carbon monoxide detectors in all sleeping areas, provide emergency contact information to neighbors within 150 feet, limit occupancy to 2 people per bedroom plus 2 additional guests, and maintain quiet hours from 10 PM to 8 AM. The approval process typically takes 4-6 weeks after submitting all required documentation and passing inspections, and you must renew your permit annually by December 31st. Additionally, you'll need to register with the Massachusetts Department of Revenue for state tax collection purposes and comply with local zoning requirements, which may restrict STRs in certain residential districts.

Short-term rentals (STRs) are legal in Fall River, Massachusetts, but operate under the state's comprehensive STR regulations that took effect in 2019. Fall River follows Massachusetts General Law Chapter 64G, which requires STR operators to register with both the state and local municipality, obtain proper permits, collect and remit state and local taxes, and maintain liability insurance. The city requires STR operators to obtain a business license and comply with zoning regulations, with most residential areas allowing STRs as accessory uses. Properties must meet health and safety standards, including smoke and carbon monoxide detectors, and operators must provide emergency contact information to neighbors and the city. Fall River imposes occupancy limits based on property size and requires compliance with noise ordinances and parking requirements. The city has the authority to revoke permits for violations and can impose fines for non-compliance. Recent enforcement efforts have focused on ensuring proper registration and tax collection, with the city working closely with platforms like Airbnb and VRBO to identify unregistered operators.

The best areas for Airbnb investment in Fall River, Massachusetts include the Historic Highlands district near Highland Avenue, which attracts tourists visiting the Lizzie Borden House and other Victorian-era attractions, and the South End waterfront area along the Taunton River, popular for its scenic views and proximity to Battleship Cove, home to the world's largest collection of historic naval ships. The downtown area around North Main Street offers potential for business travelers visiting local companies like Citizens Bank operations and healthcare facilities, while also serving tourists exploring the Fall River Historical Society and Heritage State Park. The Flint Village neighborhood provides good value with lower property costs while still offering easy access to major attractions, and the area near Kennedy Park attracts families and outdoor enthusiasts visiting for recreational activities and events at the park's facilities.

In Fall River, Massachusetts, Airbnb hosts 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 by the state and remitted monthly by hosts or platforms like Airbnb when they collect on behalf of hosts. Fall River imposes an additional local room occupancy tax of 6%, bringing the total tax rate to 11.7% for short-term rentals. Hosts must register with both the Massachusetts Department of Revenue and the City of Fall River, obtaining the necessary permits and tax identification numbers. Tax collection typically occurs at the time of booking, and remittance is required monthly to the state by the 20th of the following month, while local taxes are remitted to Fall River's tax collector on a similar schedule. Rentals of 90 days or longer are generally exempt from these occupancy taxes, and some properties may qualify for exemptions if they meet specific criteria such as being used for certain medical or emergency purposes, though standard vacation and short-term rentals do not qualify for exemptions.

The total cost to start an Airbnb in Fall River, Massachusetts is approximately $285,000-$315,000. Property purchase costs around $250,000 based on Fall River's median home price as of 2023. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,000. Permits and fees in Massachusetts include short-term rental registration ($200), business license ($50), and potential local permits ($300-$500). Insurance for short-term rentals costs $1,200-$2,000 annually, with most hosts paying around $1,500. Monthly utilities including electricity, gas, water, internet, and cable average $200-$300 per month. First six months of operating costs including utilities ($1,500), cleaning supplies and services ($600), maintenance reserves ($1,000), marketing ($300), and platform fees on estimated bookings ($800) total approximately $4,200. Additional considerations include potential property management software subscriptions ($50/month) and emergency repair funds, bringing the comprehensive startup investment to the stated range.

Airbnb properties in Fall River, Massachusetts typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and location proximity to downtown or waterfront areas. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$300 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Properties near Heritage State Park and the Battleship Cove area command premium rates and achieve 60-75% occupancy rates, resulting in net profit margins of 25-35%, while properties in residential neighborhoods typically see 45-60% occupancy with 15-25% profit margins. Success factors include professional photography, responsive communication, competitive pricing during peak summer months when tourism increases, and targeting business travelers visiting nearby New Bedford or Providence who prefer Fall River's lower accommodation costs. A typical three-bedroom property purchased for $180,000 and generating $28,000 annually in gross revenue can yield approximately $7,000-$10,000 in net profit after all expenses, representing a 4-6% return on investment before considering property appreciation.

Airbnb investments in Fall River, Massachusetts typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in downtown Fall River near the waterfront and historic district command higher nightly rates of $80-120, while suburban locations average $60-90 per night with occupancy rates of 65-75% annually. Initial investment for a typical 2-3 bedroom property ranges from $180,000-280,000, with renovation costs of $15,000-35,000 to meet Airbnb standards. Monthly operating expenses including utilities, cleaning, maintenance, insurance, and platform fees typically run $800-1,200 per property. Most investors achieve profitability within 18-24 months, with gross annual revenues of $18,000-32,000 per property depending on location, amenities, and management efficiency. The proximity to Boston (60 miles), New Bedford, and Cape Cod attractions supports steady demand, particularly during summer months when occupancy can reach 85-90% and nightly rates increase by 20-30%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Fall River, Massachusetts. Local real estate agents like those at Coldwell Banker Residential Brokerage, RE/MAX Right Choice, and Century 21 Cityside have experience with investment properties in the Fall River market and understand the local rental dynamics. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data analysis, and Awning for turnkey Airbnb investment properties. BiggerPockets connects investors with local professionals and market insights, while Roofstock focuses on investment properties though primarily single-family rentals that can be converted to short-term rentals. Local property management companies like Coastal Property Management and South Coast Property Services can assist with ongoing Airbnb operations. Additionally, platforms like Vacasa and RedAwning offer property management services for short-term rentals, and local mortgage brokers specializing in investment properties such as those at Rockland Trust and Bristol County Savings Bank can provide financing expertise for Airbnb investments in the Fall River area.