Is Hyannis, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Hyannis, Massachusetts, begin by researching local regulations through the Town of Barnstable's planning department, as Hyannis falls under Barnstable jurisdiction, which requires short-term rental operators to obtain a business certificate and comply with zoning bylaws that may restrict rentals in certain residential areas. Apply for necessary permits including a business certificate from Barnstable Town Clerk ($50-75), a short-term rental permit if required, and ensure compliance with Massachusetts state lodging tax requirements (5.7% state tax plus 4% local option tax). Find a suitable property by searching areas like downtown Hyannis, near the harbor, or residential neighborhoods, considering proximity to beaches, ferry terminals, and Main Street attractions, with typical purchase prices ranging $400,000-800,000 for suitable properties. Furnish the space with coastal-themed decor, essential amenities like WiFi, air conditioning, linens, kitchen supplies, and safety equipment including smoke detectors and fire extinguishers as required by Massachusetts fire codes. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting Cape Cod charm, beach access, and local attractions like the John F. Kennedy Hyannis Museum and Kalmus Beach. Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services (typically $75-150 per turnover), implementing keyless entry systems, maintaining responsive guest communication, and partnering with local property management companies like Cape Cod Vacation Rentals or CapeCod.com if needed for full-service management at 15-25% commission rates.

To identify profitable short-term rental properties in Hyannis, Massachusetts, focus on locations within 0.5-1 mile of Hyannis Harbor, Main Street, and ferry terminals to Martha's Vineyard and Nantucket, as these areas command premium rates of $200-400 per night during peak summer season (June-September). Target 2-4 bedroom properties built after 1980 with parking, outdoor space, and water views or walking distance to beaches like Kalmus Beach, as these features can increase occupancy rates to 70-85% annually. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, noting that Hyannis properties typically earn $40,000-80,000 annually with proper management. Research competition through Airbnb, VRBO, and local rental companies like Cape Cod Oceanview and Sandpiper Rentals to identify market gaps and optimal pricing strategies. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and consult with local real estate agents familiar with Barnstable's STR regulations, which require registration and compliance with occupancy limits, while monitoring seasonal demand patterns that peak during summer months and Cape Cod Baseball League season.

To obtain an Airbnb/STR permit in Hyannis, Massachusetts, you must apply through the Town of Barnstable's Building Department since Hyannis is part of Barnstable. Submit your application to the Building Department at 200 Main Street, Hyannis, MA 02601, or online through the town's permitting portal. Required documents include a completed short-term rental registration form, proof of property ownership or lease agreement, floor plan showing maximum occupancy, septic system compliance certificate (if applicable), parking plan showing required spaces, contact information for a local representative available 24/7, and proof of liability insurance with minimum $300,000 coverage. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. The timeline typically takes 4-6 weeks for processing and approval, including a mandatory inspection by the Building Department and Health Department. Specific Hyannis requirements include maximum occupancy limits based on septic capacity and bedrooms, mandatory smoke and carbon monoxide detectors, adequate parking (typically 1-2 spaces per unit), compliance with zoning regulations (some areas prohibit STRs), registration renewal every year by December 31st, and maintaining a guest registry. Properties must also comply with the Massachusetts State Sanitary Code and local noise ordinances, with quiet hours typically enforced from 9 PM to 8 AM.

Short-term rentals (STRs) are legal in Hyannis, Massachusetts, but operate under strict regulations implemented by the Town of Barnstable, which governs Hyannis. As of 2021, the town requires STR operators to obtain a business license and comply with specific zoning restrictions that limit rentals to no more than 14 consecutive days and prohibit rentals for less than 7 days during peak summer months (June-September). STRs are generally prohibited in certain residential districts and must meet health, safety, and parking requirements, with properties limited to a maximum occupancy based on bedroom count plus two additional guests. The town has implemented a registration system requiring annual renewal, liability insurance, and adherence to noise ordinances, with violations subject to fines up to $300 per day. Recent changes in 2020-2022 included stricter enforcement mechanisms and enhanced neighbor notification requirements, reflecting the community's effort to balance tourism revenue with residential quality of life concerns, particularly given Hyannis's role as a major Cape Cod destination and gateway to Martha's Vineyard and Nantucket.

The best areas for Airbnb investment in Hyannis, Massachusetts include the Historic Downtown District near Main Street, which attracts tourists year-round with its walkable access to restaurants, shops, and the John F. Kennedy Hyannis Museum, plus business travelers visiting the Cape Cod Chamber of Commerce headquarters. The Hyannis Harbor and Ocean Street waterfront area offers premium rental potential due to proximity to ferry terminals serving Martha's Vineyard and Nantucket (Steamship Authority and Hy-Line Cruises operate major routes), whale watching tours, and scenic harbor views that command higher nightly rates during peak summer months. The West End residential neighborhood near Kalmus Beach provides family-friendly vacation rental opportunities with beach access and proximity to the Cape Cod Melody Tent, which hosts major concerts and events from May through September. The Centerville border area offers a quieter upscale option attracting visitors seeking proximity to both Hyannis attractions and Centerville's historic sites, while the South Street corridor benefits from easy access to Cape Cod Hospital, making it attractive for medical tourism and visiting families, plus it's convenient to the Cape Cod Mall for shopping-focused travelers.

Airbnb properties in Hyannis, Massachusetts are subject to multiple lodging taxes including the Massachusetts state lodging excise tax of 5.7% on rentals under 90 days, Barnstable County's 2.75% county excise tax, and the Town of Barnstable's local room occupancy tax of 6%, resulting in a combined rate of approximately 14.45% on short-term rental stays. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2017-2018, and the platform remits payments monthly to the Massachusetts Department of Revenue and local authorities. Property owners must register with the Massachusetts DOR and obtain a room occupancy excise tax account, file monthly returns even when Airbnb collects taxes, and maintain detailed records of all rental transactions. Exemptions generally apply to rentals of 90 days or longer, stays by permanent residents, and certain government or charitable organization bookings, though hosts remain responsible for ensuring compliance and may need to collect taxes directly if Airbnb's system doesn't cover all applicable local taxes or if they use other booking platforms.

Starting an Airbnb in Hyannis, Massachusetts requires approximately $650,000-$750,000 in total initial investment. Property purchase costs average $550,000-$650,000 based on median home prices in the Cape Cod area as of 2023-2024. Furnishing a 2-3 bedroom property runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees include short-term rental registration ($300), business license ($50), and potential zoning compliance costs ($500-$2,000). Insurance specifically for short-term rentals costs $2,000-$3,500 annually. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly. First six months operating costs encompass utilities ($1,800-$2,400), cleaning services ($150 per turnover assuming 50% occupancy equals $1,800-$2,700), maintenance and supplies ($1,500), marketing and platform fees (3% of gross revenue approximately $2,000-$3,000), and property management if outsourced ($3,000-$4,500). Additional considerations include potential HOA fees ($200-$500 monthly) and emergency repair fund ($2,000-$3,000).

Airbnb properties in Hyannis, Massachusetts demonstrate strong seasonal profitability with average annual revenues ranging from $35,000-$65,000 for typical 2-3 bedroom properties, driven by the Cape Cod summer tourism season from May through September when nightly rates peak at $200-$400. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($200-$300 monthly), insurance ($2,000-$3,500 annually), and maintenance costs averaging $3,000-$5,000 yearly. Properties within walking distance of Main Street or near Kalmus Beach command premium rates and achieve 70-85% occupancy during peak season, with successful hosts like those operating renovated Cape Cod cottages near the harbor reporting net profit margins of 25-35% annually. Key success factors include professional photography showcasing the coastal location, responsive guest communication, partnerships with local cleaning services, and strategic pricing that captures the $250-$350 sweet spot during July-August while offering competitive $100-$150 rates during shoulder seasons to maintain year-round bookings, with the most profitable properties being those purchased before 2020 for under $400,000 that now generate sufficient cash flow to cover mortgage payments while building equity in a market where similar properties now sell for $500,000-$700,000.

Airbnb investments in Hyannis, Massachusetts typically generate annual ROI of 12-18% due to the town's prime Cape Cod location and strong summer tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties near Hyannis Harbor and Main Street commanding premium rates of $200-400 per night during peak season (June-September) and $80-150 during off-season months. Most investors achieve profitability within 18-24 months, assuming a 20-25% down payment on properties averaging $450,000-650,000. The market benefits from consistent demand from tourists visiting Martha's Vineyard and Nantucket ferry terminals, Cape Cod Central Railroad attractions, and local beaches, with occupancy rates typically reaching 70-85% during summer months and 35-50% year-round. Properties within walking distance of downtown Hyannis or waterfront locations tend to outperform suburban rentals by 15-25% in total returns, while three-bedroom homes with parking generate the strongest cash flow compared to smaller units or condominiums.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Hyannis, Massachusetts. Local real estate agents specializing in investment properties include Cape Cod & Islands Association of Realtors members like Kinlin Grover Real Estate, Robert Paul Properties, and Coldwell Banker Realty Cape Cod, with agents experienced in vacation rental markets since the early 2000s. National services include BiggerPockets for investor networking, Mashvisor for property analysis, and AirDNA for market data, while Vacasa and RedAwning offer property management services for investors. Local property management companies like Cape Cod Oceanview Realty and Sandpiper Realty have been serving the vacation rental market since the 1990s, and specialized investment firms like Roofstock and Awning focus specifically on short-term rental acquisitions. Additional local services include Cape Associates Real Estate and Century 21 Regan Realty, both with agents who understand the seasonal rental dynamics of the Cape Cod market and can identify properties with strong Airbnb potential in Hyannis's tourist-heavy areas near the harbor and ferry terminals.