Is New Bedford, Massachusetts Good for Airbnb Investment?

To start an Airbnb in New Bedford, Massachusetts, begin by researching local zoning laws and regulations through the New Bedford Planning Department, as the city requires short-term rental operators to obtain a business license and comply with fire safety codes including smoke detectors, carbon monoxide detectors, and emergency egress requirements. Contact the New Bedford Health Department for any health permits and the Building Department for occupancy permits, ensuring your property meets all safety standards including annual inspections. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near the historic downtown, waterfront, or Whaling National Historical Park for maximum appeal. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks highlighting New Bedford's whaling history and Portuguese heritage. Create your Airbnb listing with professional photos showcasing unique features, competitive pricing based on local market rates (typically $80-150 per night depending on size and location), and detailed descriptions emphasizing proximity to attractions like the New Bedford Whaling Museum. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain property insurance that covers short-term rentals, keep detailed records for tax purposes, and consider hiring local cleaning services or property management companies if needed, while staying current with any changes to New Bedford's short-term rental ordinances which may evolve as the market grows.

To identify profitable short-term rental properties in New Bedford, Massachusetts, focus on waterfront locations near the historic downtown district, particularly properties within walking distance of the New Bedford Whaling Museum, Zeiterion Theatre, and the working waterfront, as these areas attract both leisure tourists and business travelers visiting the fishing industry hub. Target 2-4 bedroom properties built after 1950 with parking, modern amenities, water views, and easy highway access to Cape Cod (30 minutes) and Providence (45 minutes), as New Bedford serves as an affordable alternative to expensive Cape destinations. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $100-200 per night depending on size and location, with higher rates during summer months and Moby Dick Marathon weekend. Research competition by analyzing existing STRs on Airbnb and VRBO within a 2-mile radius of downtown, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through New Bedford real estate agents, while consulting the city's zoning regulations and STR licensing requirements, and consider properties near UMass Dartmouth for additional academic year bookings, targeting acquisition prices under $300,000 to maintain healthy profit margins in this emerging but growing STR market.

To obtain an Airbnb/STR permit in New Bedford, Massachusetts, you must first contact the New Bedford Building Department at City Hall located at 133 William Street to begin the application process, as the city requires short-term rental operators to obtain a lodging house license under Chapter 7 of the city ordinances. You'll need to submit a completed application form along with required documents including proof of property ownership or lease agreement, floor plans of the rental unit, certificate of occupancy, proof of liability insurance (minimum $1 million coverage), fire safety inspection certificate from the New Bedford Fire Department, and a site plan showing parking availability. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. The timeline typically takes 4-6 weeks from submission to approval, provided all inspections pass and documentation is complete. New Bedford-specific requirements include maintaining adequate off-street parking (minimum one space per unit), ensuring compliance with zoning regulations (STRs may be restricted in certain residential districts), installing smoke and carbon monoxide detectors in all sleeping areas, providing emergency contact information to neighbors within 150 feet of the property, and maintaining a guest registry. You must also register with the Massachusetts Department of Revenue for state tax collection purposes and may need to appear before the License Commission for final approval depending on the property type and location within the city.

Short-term rentals (STRs) are legal in New Bedford, Massachusetts, but operate under specific regulations established by the city. New Bedford requires STR operators to obtain a business license and comply with zoning restrictions that limit short-term rentals primarily to certain residential districts while prohibiting them in some historic areas and specific neighborhoods. The city implemented registration requirements around 2019-2020, mandating that operators register their properties, maintain liability insurance, and follow occupancy limits typically capped at 2 guests per bedroom plus 2 additional guests. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators are required to provide local contact information for noise complaints and emergencies. Recent changes have included stricter enforcement of the registration process and enhanced penalties for non-compliance, with the city conducting periodic reviews of STR operations to ensure they don't negatively impact residential neighborhoods. New Bedford's approach balances tourism revenue with neighborhood preservation, particularly given the city's historic waterfront areas and residential character.

The best Airbnb investment areas in New Bedford, Massachusetts include the Historic Downtown/Waterfront District, particularly near Union Street and the harbor area, which attracts tourists visiting the New Bedford Whaling Museum, the nation's largest whaling museum, and offers proximity to ferry services to Martha's Vineyard and Nantucket. The South End Cultural District is highly attractive due to its concentration of art galleries, the Zeiterion Theatre, and annual events like the New Bedford Folk Festival and Moby Dick Marathon, drawing cultural tourists year-round. The North End near Buttonwood Park offers good value with Victorian-era homes that appeal to families visiting the zoo and attending summer concerts, while still being close to downtown attractions. Properties near the UMass Dartmouth campus area capture student family visits and university-related business travel, especially during graduation periods and academic conferences. The Acushnet Avenue corridor provides affordable investment opportunities with easy highway access, appealing to business travelers visiting the region's manufacturing facilities and healthcare workers at St. Luke's Hospital, while the Fairhaven border area offers water views and proximity to both New Bedford attractions and Cape Cod destinations, making it ideal for extended-stay tourists exploring the broader region.

In New Bedford, Massachusetts, Airbnb hosts are subject to multiple lodging taxes including the state excise tax of 5.7% on short-term rentals under 90 days, plus the state's 6.25% sales tax, and a local room occupancy tax of 6% imposed by the city, resulting in a combined tax rate of approximately 17.95%. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with the Massachusetts Department of Revenue and obtain any required local permits from New Bedford's licensing department. The state requires hosts to register for tax collection purposes and file returns even when Airbnb collects taxes, while the city may require separate business licenses or permits for short-term rental operations. Exemptions may apply for stays exceeding 90 consecutive days, which would be subject only to regular sales tax, and certain properties used for permanent residency purposes, though hosts should consult with local tax authorities to confirm specific exemption criteria and ensure compliance with both state and local regulations.

The total cost to start an Airbnb in New Bedford, Massachusetts is approximately $285,000-$315,000. Property purchase costs around $250,000 based on the median home price in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, furniture, appliances, 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 including business registration, short-term rental permits, and city licensing run $500-$800. Insurance for short-term rentals costs $1,200-$1,800 annually, with $600-$900 needed upfront for six months. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly, requiring $1,200-$1,800 for the first six months. Operating costs for the initial six months including cleaning services, supplies, maintenance, platform fees, and marketing total $3,000-$4,500. Additional working capital of $2,000-$3,000 should be reserved for unexpected expenses and vacancy periods during the startup phase.

Airbnb properties in New Bedford, Massachusetts typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$150 depending on proximity to the waterfront and downtown historic district. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs. Properties near the Whaling National Historical Park and downtown area achieve higher occupancy rates of 60-75% compared to 40-55% for suburban locations. A typical 2-bedroom Victorian home purchased for $250,000 in 2019 and converted to short-term rental generated approximately $28,000 in annual revenue with $16,000 in expenses, yielding a 4.8% net return on investment. Success factors include professional photography showcasing New Bedford's maritime heritage, competitive pricing 10-15% below Boston rates while emphasizing the city's cultural attractions, and maintaining super-host status through consistent 4.8+ star ratings. Properties that incorporate local themes like whaling history or Portuguese cultural elements tend to command premium rates, while those offering parking in the downtown area see 20-30% higher booking rates due to limited street parking availability.

Based on New Bedford, Massachusetts 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 within the city. Properties near the historic whaling district and waterfront areas command higher nightly rates of $80-150, while residential neighborhoods average $60-100 per night with 65-75% occupancy rates throughout the year. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with seasonal variations showing stronger performance during summer months when tourism peaks. The market benefits from proximity to Cape Cod attractions, the New Bedford Whaling Museum, and ferry services to Martha's Vineyard, supporting consistent demand from both leisure and business travelers seeking more affordable alternatives to premium coastal destinations.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including New Bedford, Massachusetts. Local real estate agents specializing in investment properties in the New Bedford area include Kinlin Grover Real Estate, Century 21 Tassinari & Associates, and RE/MAX Right Choice, with agents like those at Coldwell Banker Residential Brokerage who understand the coastal rental market dynamics. National services that assist with Airbnb investment property acquisition include BiggerPockets for networking and deal analysis, Mashvisor for rental property analytics and market data, AirDNA for short-term rental market insights and revenue projections, and Awning for turnkey Airbnb investment opportunities. Additional local services include New Bedford-based property management companies like Coastal Property Management and South Coast Property Services that can help investors evaluate potential rental properties, while national platforms like Roofstock and HomeUnion also facilitate investment property purchases in secondary markets like New Bedford. Real estate investment groups such as the South Coast Real Estate Investors Association provide networking opportunities and local market knowledge for those seeking profitable vacation rental properties in this historic whaling city and surrounding Buzzards Bay area.