Is Mount Hope, Rhode Island Good for Airbnb Investment?

To start an Airbnb in Mount Hope, Rhode Island, begin by researching local zoning laws through the Bristol County planning department and Rhode Island Department of Business Regulation, as short-term rentals may require special permits or face restrictions in residential areas. Contact the Rhode Island Division of Taxation to understand occupancy tax requirements (typically 1-7% depending on location) and register for a business license through the Secretary of State's office. Find a suitable property by working with local real estate agents familiar with Mount Hope's market, focusing on areas near Colt State Park or waterfront locations that attract tourists, with properties typically ranging from $300,000-$800,000 depending on size and proximity to water. Obtain necessary permits including a fire safety inspection from the local fire marshal, ensure compliance with Americans with Disabilities Act requirements if applicable, and secure proper insurance coverage that includes short-term rental protection. Furnish the property with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local amenities information, budgeting approximately $15,000-$25,000 for a complete setup. Create your Airbnb listing with professional photos highlighting Mount Hope's scenic beauty and proximity to Newport (15 minutes) and Providence (45 minutes), setting competitive rates around $150-$300 per night based on seasonality and property size. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining the property regularly, and considering hiring local property management companies like RedAwning or Vacasa if you live far from the area, while keeping detailed records for tax purposes and monitoring local regulation changes through the Rhode Island Short-Term Rental Association.

To identify profitable short-term rental properties in Mount Hope, Rhode Island, focus on waterfront or water-view locations within walking distance of Colt State Park and Bristol Harbor, as these areas attract tourists seeking scenic coastal experiences. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, parking, outdoor spaces, and updated kitchens/bathrooms, as Mount Hope's proximity to Newport and Providence makes it appealing for weekend getaways and family vacations. Analyze pricing by researching comparable Airbnb listings in nearby Bristol, Warren, and Barrington, aiming for properties that can command $150-300 per night during peak summer months while maintaining 60-70% occupancy rates. Conduct competition research using AirDNA and Mashvisor to assess the current supply of STRs within a 3-mile radius, noting that Mount Hope has limited inventory compared to Newport, creating opportunity for well-positioned properties. Utilize tools like Zillow, Realtor.com, and local MLS data through Rhode Island Statewide MLS, while connecting with Bristol County real estate agents familiar with waterfront properties and checking Town of Bristol zoning regulations and STR licensing requirements to ensure compliance before purchasing.

To obtain an Airbnb/STR permit in Mount Hope, Rhode Island, you must first contact the Bristol Town Hall since Mount Hope falls under Bristol's jurisdiction, located at 10 Court Street, Bristol, RI 02809. Submit an application to the Building/Zoning Department including a completed short-term rental registration form, proof of property ownership or lease agreement, certificate of liability insurance (minimum $1 million coverage), floor plan of the rental unit, contact information for a local representative available 24/7, and a $150 application fee. The town requires compliance with zoning regulations (typically allowing STRs in residential zones with restrictions), fire safety inspections, maximum occupancy limits based on square footage, adequate parking provisions, and noise ordinance compliance. You must also register with the Rhode Island Division of Taxation for state lodging taxes and obtain a business license if operating commercially. The approval process typically takes 30-45 days after submission of complete documentation, and permits must be renewed annually for approximately $75. Properties must maintain guest registries, display permit numbers in listings, and ensure 24-hour local contact availability for any issues that arise during guest stays.

Short-term rentals (STRs) in Mount Hope, Rhode Island operate under Rhode Island's statewide regulations established in 2019, which require STR operators to register with the state, collect occupancy taxes, and comply with safety standards including smoke and carbon monoxide detectors. Mount Hope, as an unincorporated village within Bristol, falls under Bristol's local ordinances which generally permit STRs in residential zones but may require special use permits or conditional use permits depending on the property type and duration of rentals. The town typically restricts STRs to owner-occupied properties or limits the number of rental days per year, and properties must meet health and safety codes while maintaining adequate parking and waste management. Recent changes include stricter enforcement of noise ordinances and occupancy limits, with some areas near the waterfront having additional restrictions due to environmental concerns. Operators must also comply with Rhode Island's lodging tax requirements and may face penalties for unregistered operations, with Bristol conducting periodic reviews of STR regulations to balance tourism revenue with neighborhood preservation.

The best areas for Airbnb investment in Mount Hope, Rhode Island are concentrated around the waterfront districts near Mount Hope Bay and the Narragansett Bay shoreline, particularly properties with water views or walking distance to marinas and boat launches which attract summer tourists and sailing enthusiasts from May through October. The historic residential neighborhoods near Mount Hope Farm and surrounding rural areas offer appeal to visitors seeking authentic New England experiences and proximity to Newport's attractions just across the Mount Hope Bridge. Properties near Route 114 corridor provide convenient access for business travelers visiting nearby defense contractors and maritime industries in Portsmouth and Newport, while areas close to Mount Hope Bay's recreational fishing spots and the scenic coastal roads attract weekend visitors from Boston and Providence metropolitan areas year-round. The neighborhoods with easy access to both the rural charm of Bristol County and quick connectivity to Newport's tourism infrastructure via the Mount Hope Bridge represent the strongest investment potential, as they capture both leisure tourists exploring Rhode Island's coastal attractions and visitors attending events at nearby venues in Newport and Bristol.

Mount Hope, Rhode Island Airbnb hosts are subject to Rhode Island's 7% state sales tax on lodging accommodations, which applies to all short-term rental stays under 30 days. Additionally, hosts must collect the state's 5% hotel tax, bringing the total occupancy tax to 12% on gross rental receipts. These taxes are collected directly from guests at the time of booking or check-in and must be remitted to the Rhode Island Division of Taxation on a monthly basis if monthly gross receipts exceed $100, or quarterly if below that threshold. Hosts must register for a sales tax permit through the Rhode Island Division of Taxation and file returns using Form T-204A, with payments due by the 20th of the month following the reporting period. There are no specific municipal lodging taxes in Mount Hope, but hosts should verify current local ordinances as these can change. Exemptions include stays of 30 days or longer, which are considered long-term rentals and not subject to occupancy taxes, and rentals to guests who qualify for sales tax exemptions such as certain government employees on official business.

The total cost to start an Airbnb in Mount Hope, Rhode Island is approximately $485,000-$565,000. Property purchase costs around $400,000-$450,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor. Initial setup including professional photography, listing creation, and basic renovations costs $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees total $500-$1,500. Insurance for short-term rental coverage adds $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, property management software, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees, property taxes (approximately $4,000-$6,000 annually), and a 10-15% contingency fund for unexpected expenses, bringing the comprehensive startup investment to the upper end of the estimated range.

Airbnb properties in Mount Hope, Rhode Island typically generate annual revenues of $15,000-$35,000 for seasonal rentals and $25,000-$45,000 for year-round properties, with average daily rates ranging from $85-$150 depending on proximity to Narragansett Bay waterfront. Operating expenses generally consume 40-60% of gross revenue, including property management fees (15-25%), cleaning costs ($50-$75 per turnover), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance reserves (5-10% of revenue). Profit margins typically range from 15-35% for well-managed properties, with waterfront homes near Mount Hope Bay achieving the highest returns due to summer demand from Boston and New York visitors. Success factors include professional photography showcasing water views, competitive pricing during peak summer months (June-September), responsive guest communication, and partnerships with local activity providers like sailing charters and fishing guides. Properties within walking distance of Mount Hope Farm or offering boat access command premium rates, with some hosts reporting occupancy rates of 70-85% during peak season, though winter occupancy often drops to 20-30% for seasonal properties, making year-round rental strategies crucial for consistent profitability in this Rhode Island coastal market.

Based on Mount Hope, Rhode Island market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location proximity to waterfront areas. Properties within walking distance of Mount Hope Bay or near Roger Williams University campus in nearby Bristol tend to achieve higher returns of 10-14% annually due to consistent demand from visiting families, university visitors, and summer tourists. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically achieved by month 14-20. Seasonal variations show peak performance May through October with occupancy rates of 70-85%, while winter months drop to 35-45% occupancy. Average daily rates range from $120-180 during peak season and $80-120 in off-season, with annual gross rental yields of 12-18% before expenses. Properties requiring significant renovation may extend profitability timelines to 30-36 months, while turnkey properties near popular attractions like Colt State Park or Mount Hope Farm can achieve positive cash flow within 8-12 months of operation.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for Mount Hope, Rhode Island. Local real estate agents specializing in short-term rental investments include Coldwell Banker Residential Brokerage, RE/MAX Newport County, and Lila Delman Real Estate, with agents like Sarah Mitchell and David Santos focusing on investment properties in the Mount Hope area since 2019. National services include Awning (formerly RedAwning) which has facilitated over $2 billion in short-term rental investments, Roofstock which expanded into the Rhode Island market in 2020, and AirDNA providing market analytics for the Bristol County region. Local property management companies supporting Airbnb investors include Coastal Rhode Island Rentals, Ocean State Property Solutions, and Mount Hope Bay Vacation Rentals, while national platforms like Vacasa, RedAwning, and AvantStay have been operating in the Rhode Island market since 2018-2021. Additional services include BiggerPockets for investor networking, Mashvisor for property analysis, and local mortgage brokers like First Citizens Bank and BankNewport offering specialized investment property financing for short-term rental purchases in the Mount Hope area.