Is New Bern, North Carolina Good for Airbnb Investment?

To start an Airbnb in New Bern, North Carolina, begin by researching local zoning laws and regulations through the City of New Bern Planning Department, as the city requires short-term rental properties to comply with residential zoning restrictions and may require a business license through the City Clerk's office. Obtain necessary permits including a North Carolina sales tax license from the NC Department of Revenue since you'll need to collect and remit state and local occupancy taxes (currently around 13% combined for Craven County). Find a suitable property in residential zones that allow short-term rentals, focusing on areas near downtown New Bern's historic district or waterfront locations which are popular with tourists visiting Tryon Palace and the Neuse River. Purchase appropriate furnishings including quality mattresses, linens, kitchen essentials, and coastal-themed decor that appeals to visitors exploring the area's colonial history and outdoor activities. Create your listing on Airbnb with professional photos highlighting proximity to attractions like Union Point Park and the North Carolina History Center, setting competitive rates based on local market research (typically $80-150 per night depending on size and location). Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, providing local recommendations for restaurants like The Chelsea and Captain Ratty's, and ensuring compliance with ongoing tax obligations and any evolving city regulations regarding short-term rentals.

To identify profitable short-term rental properties in New Bern, North Carolina, focus on locations within walking distance of the historic downtown district, near Tryon Palace, or with waterfront access along the Neuse and Trent rivers, as these areas attract the highest tourist traffic. Target properties built after 1990 with 2-4 bedrooms, modern amenities, parking, and outdoor spaces like decks or patios, while historic homes from the 1800s-early 1900s in the historic district can command premium rates despite higher maintenance costs. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for nightly rates between $120-250 depending on size and location, with occupancy rates typically ranging 60-75% annually in this market. Research competition by studying existing Airbnb and VRBO listings within a 2-mile radius, noting their amenities, pricing strategies, and guest reviews to identify gaps in the market. Utilize tools like STR Helper for New Bern-specific data, Rabbu for market analysis, the Craven County tax assessor's website for property values, and connect with local property management companies like Coastal Carolina Vacation Rentals who understand New Bern's seasonal tourism patterns, particularly the spring and fall peaks when visitors come for the historic tours, festivals, and mild weather.

To obtain an Airbnb/STR permit in New Bern, North Carolina, you must first contact the New Bern Planning and Inspections Department at City Hall located at 300 Pollock Street to determine if your property is in a zoning district that allows short-term rentals, as they are typically restricted to certain commercial and mixed-use zones. Submit a Conditional Use Permit application along with a site plan, property survey, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, and proof of property ownership or authorization from the owner. Required documents include a completed application form, $350 application fee, notarized affidavit of compliance with safety regulations, certificate of liability insurance naming the City as additional insured, contact information for a local property manager if you're not local, and a waste management plan. You'll also need to schedule inspections with the Fire Department for smoke detectors and fire safety compliance ($75 fee) and Building Inspections for occupancy limits and building code compliance ($100 fee). The application process typically takes 60-90 days including a public hearing before the Planning and Zoning Commission, and if approved, you must obtain a business license from the City Clerk's office ($50 annually) and register with the North Carolina Department of Revenue for tax collection purposes. New Bern requires STR operators to maintain a guest registry, limit occupancy to 2 people per bedroom plus 2 additional guests, provide 24/7 local contact information to neighbors, maintain quiet hours from 10 PM to 8 AM, and ensure adequate parking with at least one space per bedroom.

Short-term rentals (STRs) are legal in New Bern, North Carolina, but operate under specific regulations established by the city. New Bern requires STR operators to obtain a business license and comply with zoning restrictions that generally allow STRs in residential areas with certain limitations on the number of guests and parking requirements. The city has implemented noise ordinances and occupancy limits to address neighborhood concerns, typically restricting rentals to no more than 8-10 guests depending on the property size. STRs are generally prohibited in areas zoned exclusively for single-family residential use without proper permits, and operators must maintain liability insurance and provide emergency contact information to the city. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced complaint procedures for neighbors, though New Bern has been more accommodating to STRs compared to some other North Carolina municipalities like Asheville or the Outer Banks communities that have implemented more restrictive measures.

The most promising Airbnb investment areas in New Bern, North Carolina include the Historic Downtown District, particularly properties near Tryon Palace and the waterfront along the Trent and Neuse Rivers, which attract tourists year-round for historical tours, the annual Mumfest celebration, and scenic river activities. The Ghent Historic District offers excellent potential due to its proximity to downtown attractions while providing quieter residential charm that appeals to families and couples seeking authentic historic experiences. Properties near the New Bern Riverfront Convention Center and downtown business district capture both leisure tourists and business travelers attending conferences and corporate events. The areas around Union Point Park and the Neuse River waterfront are highly desirable for their recreational boating access, fishing opportunities, and scenic views that command premium rates, especially during summer months and fishing tournaments. Neighborhoods within walking distance of Tryon Palace, such as those along Pollock Street and Middle Street, benefit from consistent foot traffic from history enthusiasts and school groups, while properties near the New Bern Country Club area attract golf tourists and upscale travelers seeking luxury accommodations with easy access to both recreational amenities and historic attractions.

In New Bern, North Carolina, Airbnb properties are subject to both state and local lodging taxes that hosts must collect and remit. The North Carolina state sales tax of 4.75% applies to all short-term rental accommodations, along with the state's 6% occupancy tax on gross receipts from lodging rentals of less than 90 days. Craven County, where New Bern is located, imposes an additional 6% county occupancy tax on short-term rentals, bringing the total occupancy tax to approximately 12% plus the state sales tax. Hosts must register with the North Carolina Department of Revenue to obtain a Certificate of Registration and collect these taxes from guests at the time of booking or check-in. Monthly remittance is required by the 20th of the following month, with quarterly filing permitted for smaller operators collecting less than $100 in taxes monthly. The City of New Bern may also require a business license for short-term rental operations, and properties must comply with local zoning ordinances. Exemptions are limited and typically apply only to rentals exceeding 90 consecutive days or properties rented to the same guest for extended periods, though verification of exempt status is required through proper documentation.

To start an Airbnb in New Bern, North Carolina, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees vary but expect $300-$800 for business licenses, short-term rental permits, and city registration requirements. Insurance costs approximately $1,200-$2,000 annually for landlord and short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, internet, and cable total around $500-$800 initially. First six months operating costs including utilities ($150-$250/month), cleaning services ($75-$125 per turnover), maintenance reserves ($200-$400/month), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total approximately $3,500-$6,000, assuming 60-70% occupancy rates typical for New Bern's tourism market.

Airbnb properties in New Bern, North Carolina typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $80-$150 depending on property size and location proximity to the Neuse River waterfront and historic downtown district. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Tryon Palace and the riverfront command premium rates and achieve 65-75% occupancy during peak summer months, while suburban locations typically see 45-55% annual occupancy. Successful operators in the market report net profit margins of 25-35% after expenses, with properties like restored historic homes near Middle Street generating $28,000 annually on $18,000 in total expenses. Key success factors include professional photography highlighting New Bern's colonial charm, competitive pricing during Bear City Festival and Mumfest events, and maintaining high cleanliness standards to compete with the area's established bed-and-breakfast market, though seasonal fluctuations require careful cash flow management during slower winter months when occupancy can drop to 20-30%.

Airbnb investments in New Bern, North Carolina typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the city's growing tourism market driven by its historic downtown district and proximity to the Neuse River. Properties in desirable areas like the historic district or waterfront locations can achieve occupancy rates of 60-75% annually with average daily rates of $85-120, leading to gross rental yields of 10-14%. Initial profitability usually occurs within 12-18 months for well-positioned properties, with full ROI recovery expected in 8-10 years. The market benefits from New Bern's appeal as a weekend getaway destination for visitors from Raleigh, Charlotte, and Virginia Beach, with seasonal peaks during spring and fall months when tourism activity increases by 40-50% compared to winter months.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in New Bern, North Carolina, using data analytics to evaluate potential returns. Local real estate agents specializing in investment properties include Keller Williams Realty agents like Sarah Mitchell and Century 21 Sweyer & Associates representatives who focus on vacation rental investments in the historic downtown and waterfront areas. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, Roofstock which offers turnkey rental properties, and BiggerPockets marketplace connecting investors with local professionals. Regional companies like Coastal Carolina Real Estate Investment Group and New Bern Property Investors LLC specialize in identifying properties near attractions like Tryon Palace and the Neuse River waterfront. Additional services include AirDNA for market analysis, Mashvisor for property analytics, and local property management companies like Trent River Properties and Coastal Vacation Rentals that help investors maximize their Airbnb returns through professional management and optimization services.