Is Galilee, Rhode Island Good for Airbnb Investment?

To start an Airbnb in Galilee, Rhode Island, begin by researching local regulations through the Town of Narragansett's zoning department, as Galilee falls under Narragansett jurisdiction, where short-term rentals typically require a special use permit and must comply with residential zoning restrictions that often limit rentals to owner-occupied properties or specific zones. Obtain necessary permits including a business license from Narragansett Town Hall, a special use permit for short-term rentals (approximately $200-400), and ensure compliance with Rhode Island's lodging tax registration requirements through the Division of Taxation. Find a suitable property within 0.5 miles of Galilee's waterfront area, focusing on single-family homes or condos priced between $400,000-800,000, ensuring the property meets fire safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with coastal-themed décor, essential amenities like WiFi, air conditioning, and kitchen appliances, plus outdoor furniture to capitalize on the seaside location, budgeting approximately $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and local rental platforms, highlighting proximity to Galilee's fishing village, Block Island ferry terminal, and nearby beaches, setting competitive rates of $150-350 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with coastal property challenges, implementing a 24-hour guest communication system, and maintaining compliance with Narragansett's noise ordinances and parking restrictions while collecting and remitting the state's 7% lodging tax plus local taxes.

To identify profitable short-term rental properties in Galilee, Rhode Island, focus on waterfront or water-view properties within walking distance of the State Pier and fishing charter operations, as proximity to Galilee's working waterfront and ferry access to Block Island drives demand. Target 2-4 bedroom single-family homes or condos built after 1980 with parking, outdoor space, and modern amenities like updated kitchens and WiFi, as families and fishing enthusiasts prefer comfortable accommodations. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Narragansett and Point Judith, aiming for properties under $400,000 that can command $150-300 nightly rates during peak summer months. Research competition by monitoring active STR listings on Airbnb and VRBO within a 2-mile radius, noting occupancy patterns and guest reviews to identify service gaps. Utilize tools like Rabbu for Rhode Island-specific STR regulations, contact the Town of Narragansett for zoning compliance, leverage local real estate agents familiar with the Galilee market, and monitor seasonal trends through Google Trends and local tourism data from the Rhode Island Tourism Division to optimize acquisition timing and pricing strategies.

To obtain an Airbnb/STR permit in Galilee, Rhode Island, you must apply through the Narragansett Town Hall since Galilee is part of Narragansett, located at 25 Fifth Avenue, Narragansett, RI 02882. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), contact information for a local representative within 30 minutes of the property, and a $200-300 application fee. The process involves submitting your application to the Planning Department, scheduling a property inspection with the Building Official, attending a public hearing if required, and receiving approval from the Town Council. The timeline is approximately 60-90 days from submission to approval. Specific Galilee/Narragansett requirements include maintaining a guest registry, posting maximum occupancy limits, providing adequate parking (typically 2 spaces per unit), ensuring compliance with septic system capacity, adhering to noise ordinances particularly during summer months, and registering with the Rhode Island Division of Taxation for state lodging taxes. Properties must also comply with coastal zone management regulations due to Galilee's waterfront location, and some areas may have seasonal restrictions during peak fishing season operations at the Port of Galilee.

Short-term rentals (STRs) in Galilee, Rhode Island operate under Narragansett's municipal regulations, which generally allow STRs with proper licensing and registration requirements. The town requires STR operators to obtain a business license, comply with zoning restrictions, and adhere to occupancy limits and parking requirements. Properties must meet health and safety standards, and operators typically need to collect and remit local taxes. Galilee, being a coastal fishing village within Narragansett, may have additional considerations due to its location in a historic waterfront area, though STRs are not completely prohibited. Recent years have seen increased scrutiny and potential tightening of regulations as coastal Rhode Island communities balance tourism revenue with residential character preservation. Operators must also comply with state-level requirements including registration with Rhode Island's Division of Taxation and adherence to the state's 1% local tax on hotel/motel accommodations that extends to short-term rentals.

The Galilee area of Rhode Island, located in Narragansett, offers excellent Airbnb investment opportunities primarily centered around the Port of Galilee waterfront district and the adjacent neighborhoods near Great Island Road and Ocean Road. The Port of Galilee itself is the crown jewel, attracting tourists year-round for its working fishing village atmosphere, fresh seafood restaurants like Aunt Carrie's (established 1920), deep-sea fishing charters, and ferry access to Block Island during peak season (May-October). The Salty Brine State Beach area, just minutes away, draws summer visitors seeking pristine coastline and family-friendly amenities, while the nearby Scarborough State Beach extends the tourist season. Properties within walking distance of the Block Island Ferry terminal see particularly high demand during summer months, as travelers prefer convenient accommodations before early morning departures. The Great Island Common area offers a more residential feel while maintaining proximity to attractions, appealing to families and groups seeking quieter stays. Business travelers occasionally visit for meetings with local fishing industry companies and marine research facilities, though leisure tourism dominates the market, with peak seasons running Memorial Day through Labor Day and secondary demand during fall foliage season and winter storm-watching periods.

In Galilee, Rhode Island, Airbnb properties are subject to Rhode Island's state hotel tax of 5% on gross receipts from room rentals, which applies to all short-term rentals under 30 days. The town of Narragansett, where Galilee is located, imposes an additional local occupancy tax of 1% on short-term rental accommodations. These taxes are typically collected by the host at the time of booking and must be remitted to the Rhode Island Division of Taxation monthly if collections exceed $100, or quarterly for smaller amounts, using form T-204A for hotel tax returns. Hosts must register for a Rhode Island tax permit and file returns even if no tax is owed during a reporting period. The state hotel tax applies to the total rental charge including cleaning fees but excludes separately stated sales tax, while exemptions are limited to rentals exceeding 30 consecutive days and certain nonprofit or government-related stays. Airbnb may collect and remit these taxes on behalf of hosts in Rhode Island as part of their tax collection service, but hosts remain ultimately responsible for compliance and should verify that taxes are being properly collected and remitted.

Starting an Airbnb in Galilee, Rhode Island requires significant upfront investment, with property purchase being the largest expense at approximately $450,000 for a median-priced coastal property suitable for vacation rentals in this fishing village area. Furnishing costs typically range from $15,000-25,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, and décor that appeals to tourists visiting this popular summer destination. Initial setup expenses add another $3,000-5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees in Rhode Island include business registration ($50), potential local lodging permits ($200-500), and tax registration, totaling approximately $1,000. Insurance costs run $2,000-3,500 annually for short-term rental coverage, while utilities (electricity, water, internet, cable) average $300-400 monthly. First six months of operating costs include utilities ($2,100), cleaning services between guests ($150 per turnover, estimated at $1,800), maintenance and supplies ($1,200), platform fees to Airbnb and VRBO (3% of bookings, estimated at $2,000), and marketing expenses ($500), totaling approximately $7,600. The complete startup investment for a Galilee Airbnb operation ranges from $479,100 to $487,600, though this can vary significantly based on property condition, furnishing choices, and seasonal booking performance in this coastal Rhode Island market.

Airbnb properties in Galilee, Rhode Island demonstrate strong seasonal profitability due to the area's proximity to popular beaches like Scarborough State Beach and the Block Island ferry terminal. Properties typically generate $15,000-$35,000 annually with 2-3 bedroom homes averaging $180-$280 per night during peak summer months (June-September) and $80-$120 during off-season. Operating expenses including cleaning fees ($75-$100 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($2,000-$3,500 annually), and maintenance ($2,000-$4,000 annually) typically consume 40-55% of gross revenue. Successful properties maintain 65-75% occupancy rates during summer and 25-35% off-season, resulting in net profit margins of 25-35% for well-managed properties. Key success factors include waterfront or water-view locations, modern amenities, professional photography, responsive hosting, and strategic pricing that capitalizes on weekend premiums and special events like the Blessing of the Fleet. Properties within walking distance of Galilee's fishing village and restaurants command 20-30% higher rates, with some luxury waterfront rentals achieving $400+ per night during peak weekends, though higher property costs and taxes in these prime locations can compress margins to 20-25%.

Airbnb investments in Galilee, Rhode Island typically generate annual ROI of 12-18% due to the area's proximity to popular beaches like Scarborough State Beach and seasonal tourism demand from May through September. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak summer months and $75-120 during shoulder seasons. Most investors achieve profitability within 18-24 months, particularly for properties within walking distance of the waterfront or offering water views. The market benefits from consistent demand from Boston and New York metropolitan area visitors, with occupancy rates typically reaching 70-85% during summer months and 35-50% year-round. Properties requiring moderate renovations to meet vacation rental standards usually see break-even points around 20-28 months, while turnkey properties often reach profitability within 12-18 months, assuming 20-25% down payments and current mortgage rates.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities including in Galilee, Rhode Island. Local real estate agents like those at Lila Delman Real Estate and Residential Properties Ltd have experience with waterfront and vacation rental properties in the Galilee area. National services include Mashvisor, which provides Airbnb investment analysis tools, and AirDNA for market data and revenue projections. BiggerPockets connects investors with local Rhode Island real estate professionals familiar with vacation rental markets. Awning offers turnkey Airbnb investment services and property management. Local property management companies like Ocean State Property Management and Coastal Rhode Island Rentals can assist with identifying investment opportunities and managing short-term rentals. RedAwning and Vacasa also provide investment advisory services for vacation rental properties in coastal Rhode Island markets like Galilee.