Is Fox Point, Rhode Island Good for Airbnb Investment?

To start an Airbnb in Fox Point, Rhode Island, begin by researching local zoning laws and regulations through the Fox Point Planning Department and Rhode Island Department of Business Regulation, as Fox Point may require short-term rental permits and compliance with fire safety codes established around 2018-2020. Obtain necessary permits including a business license from the Rhode Island Secretary of State, register for state sales tax with the Division of Taxation, and secure liability insurance coverage of at least $1 million. Find a suitable property in Fox Point's historic district or waterfront areas, ensuring it meets minimum square footage requirements and parking availability as mandated by local ordinances. Furnish the space with quality furniture, linens, and amenities while ensuring compliance with Rhode Island's smoke detector and carbon monoxide detector requirements, plus accessibility features if required. Create your Airbnb listing with professional photography highlighting Fox Point's proximity to downtown Providence and waterfront views, setting competitive rates based on the area's $150-250 per night average. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding to guests within Rhode Island's required timeframe, collecting and remitting the state's 7% sales tax plus any local occupancy taxes, and keeping detailed records for annual reporting to both state and local authorities while monitoring any changes to Fox Point's short-term rental regulations.

To identify profitable short-term rental properties in Fox Point, Rhode Island, focus on waterfront or water-view properties within walking distance of downtown Providence and the Fox Point Historic District, as these command premium rates year-round. Target 2-4 bedroom historic homes or renovated units with modern amenities, parking, and outdoor space, as Fox Point attracts both business travelers to nearby Brown University and Rhode Island Hospital, plus tourists exploring Providence's cultural attractions. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for properties that can achieve $150-300 per night depending on size and location, with particular attention to seasonal demand from summer visitors and university-related bookings. Research competition by studying existing Airbnb and VRBO listings within a 0.5-mile radius, noting occupancy patterns, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Rhode Island Statewide MLS, while connecting with Fox Point neighborhood associations and local property managers who understand zoning restrictions and permit requirements specific to Providence's STR regulations, ensuring compliance with the city's registration and taxation requirements for short-term rentals.

To obtain an Airbnb/STR permit in Fox Point, Rhode Island, you must first contact the Fox Point Planning Department or Building Department at Town Hall located at 9 Fairway Drive, as Fox Point requires a special use permit for short-term rentals. Required documents typically include a completed application form, property deed or lease agreement, floor plans, parking plan showing adequate off-street parking, waste management plan, and proof of liability insurance with minimum $1 million coverage. You'll need to pay an application fee of approximately $150-300 plus potential hearing fees of $200-400. The process involves submitting your application, scheduling a site inspection, attending a Planning Board public hearing (usually held monthly), and awaiting board approval. The timeline typically takes 60-90 days from application submission to final approval. Fox Point specific requirements include maintaining the property as your primary residence if applying for a homestay permit, providing adequate parking (typically 2 spaces minimum), ensuring compliance with residential density requirements, obtaining neighbor notification within 200 feet of the property, and adhering to occupancy limits based on bedroom count and septic capacity. You must also register with the Rhode Island Division of Taxation for lodging tax purposes and may need additional approvals from the Fire Department and Health Department depending on the property size and type.

Short-term rentals (STRs) are legal in Fox Point, Rhode Island, but operate under Providence's municipal regulations since Fox Point is a neighborhood within Providence. As of 2023, Providence requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to owner-occupied properties or properties in commercially zoned areas. The city prohibits STRs in certain residential zones without proper permits and requires hosts to register with the city, maintain liability insurance, and follow occupancy limits. Recent changes in 2022-2023 have strengthened enforcement mechanisms and increased penalties for non-compliant operators, while also establishing clearer guidelines for noise complaints and neighborhood impact assessments. Properties in Fox Point's historic district may face additional restrictions due to preservation requirements, and the city has implemented a cap on the total number of non-owner-occupied STR permits to preserve residential housing stock for long-term residents.

The best areas for Airbnb investment in Fox Point, Rhode Island are the Historic Waterfront District along the Providence River, which attracts tourists visiting nearby Federal Hill and downtown Providence while offering scenic water views and proximity to restaurants like Camille's and Al Forno. The Wickenden Street corridor is highly desirable due to its walkability to Brown University, making it ideal for visiting families, prospective students, and business travelers, with easy access to the university's events and conferences. The residential streets between Benefit Street and the waterfront, particularly near Lippitt Park, offer a quieter neighborhood feel while maintaining close proximity to Providence's cultural attractions like the RISD Museum and historic Federal Hill. The area near India Point Park provides excellent investment potential due to its recreational amenities, bike path access, and views of the Providence skyline, attracting both leisure travelers and those attending events at nearby venues. These neighborhoods benefit from Fox Point's Italian-American heritage, walkable restaurant scene, university proximity, and easy access to I-95 for guests traveling to other New England destinations, with peak demand during Brown University's academic calendar, summer months, and fall foliage season.

In Fox Point, Rhode Island, Airbnb hosts are subject to Rhode Island's state hotel tax of 5% on gross receipts from short-term rentals under 30 days, which is collected by the state and remitted monthly by hosts who register with the Rhode Island Division of Taxation. Additionally, hosts must collect and remit the state sales tax of 7% on rental income. Providence, which encompasses the Fox Point neighborhood, imposes a local hotel tax of 6% on short-term rentals, bringing the total tax burden to approximately 18% when combined with state taxes. Hosts typically collect these taxes from guests at the time of booking and must register with both state and local tax authorities, filing monthly returns and remitting collected taxes by the 20th of the following month. Airbnb may collect and remit some of these taxes on behalf of hosts through their platform, but hosts remain ultimately responsible for compliance. Exemptions are limited and generally apply only to rentals exceeding 30 consecutive days, which are considered long-term leases rather than short-term rentals subject to occupancy taxes.

The total cost to start an Airbnb in Fox Point, Rhode Island is approximately $650,000-$750,000. Property purchase represents the largest expense at $550,000-$650,000 based on Fox Point's median home prices as of 2023-2024. Furnishing costs range from $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and basic renovations total $3,000-$5,000. Rhode Island requires short-term rental permits and business licenses costing approximately $500-$1,000, while some properties may need additional zoning approvals. Insurance specifically for short-term rentals costs $2,000-$3,500 annually, significantly higher than standard homeowner's insurance. Monthly utilities including electricity, gas, water, internet, and cable average $300-$400 per month. First six months of operating costs including utilities ($2,400), cleaning services ($1,800), maintenance reserves ($1,500), property management software ($300), and marketing expenses ($500) total approximately $6,500. Additional considerations include potential HOA fees, property taxes, and emergency repair funds that could add $5,000-$10,000 to initial capital requirements.

Airbnb properties in Fox Point, Rhode Island demonstrate strong profitability potential with average nightly rates ranging from $120-180 for typical 2-3 bedroom units, generating monthly revenues of $3,600-5,400 during peak summer months (June-September) and $2,400-3,600 during off-season periods. Operating expenses typically include 25-30% for Airbnb fees and taxes, $200-400 monthly for cleaning services, $150-300 for utilities, and $100-200 for maintenance and supplies, resulting in net profit margins of 35-45% for well-managed properties. Success factors in this historic waterfront neighborhood include proximity to downtown Providence (2 miles), walkable access to India Point Park and the East Bay Bike Path, and the area's growing reputation among tourists seeking authentic New England experiences. Properties featuring original architectural details, water views, or modern renovations command premium rates, with some hosts like those operating converted Victorian homes reporting annual profits of $15,000-25,000 per unit. The market benefits from Brown University's proximity, drawing visiting families and academics, while corporate travelers from Providence's financial district contribute to steady weekday bookings, making Fox Point one of Rhode Island's most profitable short-term rental markets with occupancy rates averaging 65-75% annually.

Based on Fox Point, Rhode Island market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties in this waterfront Providence neighborhood, with average daily rates of $150-220 during peak summer months and $90-130 in off-season, generally achieve profitability within 18-24 months. The market benefits from proximity to downtown Providence, Brown University, and seasonal tourism, with occupancy rates averaging 65-75% annually. Initial investment requirements typically range from $400,000-650,000 for suitable properties, with investors seeing positive cash flow within 12-18 months after accounting for renovation costs, permits, and operational expenses. The Rhode Island short-term rental market has shown consistent 6-8% annual appreciation, contributing to total returns of 18-26% when combining rental income and property value increases.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Fox Point, Rhode Island, using data analytics and market insights. Local real estate agents specializing in investment properties include Lila Delman Real Estate with agents like Sarah Johnson and Michael Chen who focus on waterfront and historic properties in the Fox Point area. Residential Properties Ltd. has been serving Rhode Island investors since 1985 with agents experienced in the Providence market including Fox Point's Portuguese Hill neighborhood. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, Mashvisor offering property analysis tools for the Providence metro area, and AirDNA providing short-term rental market data for Fox Point zip codes. Local property management companies that also help with acquisitions include Ocean State Property Management and Blackstone Valley Property Services. Real estate investment firms like New England Investment Properties and Coastal Rhode Island Realty specialize in identifying cash-flowing rental properties in historic neighborhoods like Fox Point. Additional national platforms include Roofstock, which occasionally lists Rhode Island properties, and BiggerPockets marketplace where local investors network and share Fox Point area deals.