Is Plymouth, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Plymouth, Massachusetts, begin by researching local zoning laws and regulations through the Plymouth Planning Department, as the city requires short-term rental operators to obtain a business license and comply with specific zoning restrictions that vary by district. Contact the Plymouth Building Department to secure necessary permits including a Certificate of Occupancy for short-term rentals and ensure your property meets fire safety codes, which may require smoke detectors, carbon monoxide detectors, and fire extinguishers in compliance with Massachusetts state law. Find a suitable property by searching areas like Plymouth Beach, downtown historic district, or near Plymouth Rock and Mayflower II attractions, considering proximity to tourist destinations and parking availability. Furnish the space with quality furniture, linens, kitchen essentials, and amenities like WiFi, focusing on a coastal New England aesthetic that appeals to tourists visiting this historic area. Create your Airbnb listing with professional photos highlighting unique features and proximity to Plymouth's attractions, setting competitive rates based on seasonal demand (higher during summer months and Thanksgiving period). For ongoing management, establish check-in procedures, maintain cleaning schedules between guests, respond promptly to inquiries, and consider hiring local cleaning services or property management companies familiar with Plymouth's tourism patterns. Register with the Massachusetts Department of Revenue for tax collection purposes and maintain records for the state's 5.7% lodging tax plus any local taxes, while ensuring compliance with Plymouth's noise ordinances and parking regulations to maintain good neighbor relations.

To identify profitable short-term rental properties in Plymouth, Massachusetts, focus on locations within 1-2 miles of Plymouth Rock, Mayflower II, and the historic waterfront district, as these areas command premium rates year-round due to tourist demand. Target 2-4 bedroom properties built after 1950 with modern amenities, parking, and ideally water views or historic charm, as these features can justify rates of $150-300+ per night during peak summer and fall foliage seasons. Analyze comparable STR properties using AirDNA and Mashvisor to identify gaps in the market, particularly focusing on properties that can capture both summer beach visitors and year-round history tourists, with optimal pricing strategies showing seasonal adjustments from $120-180 in winter to $200-350 during July-August and September-October peak periods. Research competition by monitoring existing Airbnb and VRBO listings within a 3-mile radius, noting occupancy patterns and guest reviews to identify underserved niches like pet-friendly or family-oriented properties. Utilize tools like Rabbu, STR Helper, and local Plymouth tourism data from Destination Plymouth to understand seasonal demand patterns, while ensuring compliance with Plymouth's short-term rental regulations and obtaining necessary permits through the town's licensing department.

To obtain an Airbnb/STR permit in Plymouth, Massachusetts, you must first contact the Plymouth Building Department at 11 Lincoln Street or call (508) 747-1620 ext. 10261 to begin the application process. Required documents typically include a completed short-term rental registration form, proof of property ownership or lease agreement, floor plan of the rental unit, certificate of occupancy, proof of liability insurance (minimum $1 million coverage), contact information for a local representative if you're an absentee owner, and a site plan showing parking availability. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. You must also register with the Massachusetts Department of Revenue for state taxes and obtain a business certificate from the Plymouth Town Clerk if operating as a business. The timeline typically takes 4-6 weeks for processing once all documents are submitted, including a mandatory inspection by the Building Department. Plymouth-specific requirements include maintaining adequate off-street parking (typically 2 spaces), ensuring the property meets all fire safety codes including smoke and carbon monoxide detectors, providing a local contact person available 24/7 for emergencies, limiting occupancy based on bedroom count and square footage, and adhering to noise ordinances and neighborhood compatibility standards. The permit must be renewed annually, and you're required to maintain guest registries and remit local room occupancy taxes of 6% plus state taxes of 5.7%.

Short-term rentals (STRs) are legal in Plymouth, Massachusetts, but operate under specific regulations established by the town. Plymouth requires STR operators to obtain a business license and comply with local zoning ordinances, with properties typically allowed in residential areas but subject to occupancy limits and safety requirements including smoke detectors, carbon monoxide detectors, and proper egress. The town prohibits STRs in certain historic districts and areas with deed restrictions, and operators must maintain liability insurance, provide emergency contact information, and ensure compliance with state tax collection requirements. Recent changes around 2019-2021 included stricter enforcement of existing regulations and enhanced registration requirements, with the town conducting periodic reviews of STR impacts on housing availability and neighborhood character. Properties must meet building and health codes, and there are restrictions on the number of guests and parking requirements, while violations can result in fines and license revocation.

The best Airbnb investment areas in Plymouth, Massachusetts include the Historic Waterfront District near Plymouth Rock and Mayflower II, which attracts millions of tourists annually visiting America's hometown and benefits from year-round historical tourism, Thanksgiving events, and summer festivals. The Plymouth Beach area offers strong seasonal rental potential from May through September with families seeking oceanfront accommodations and proximity to Plymouth Beach State Park. Downtown Plymouth's Main Street corridor provides excellent walkability to restaurants, shops, and historical attractions while capturing both leisure tourists and business travelers visiting local companies like Boston Scientific's nearby facilities. The Spooner Street Historic District appeals to history enthusiasts seeking authentic colonial-era experiences near historic homes and museums. North Plymouth near the Pinehills development attracts visitors to this upscale planned community with golf courses and shopping, while also serving business travelers to the South Shore's corporate centers. The area near Plymouth State University (now Plymouth State) captures visiting families and academic-related travel, though seasonal patterns align with the academic calendar.

In Plymouth, Massachusetts, Airbnb hosts are subject to both state and local lodging taxes. The Massachusetts state room occupancy excise tax is 5.7% on rentals under 90 consecutive days, collected from guests and remitted monthly to the Department of Revenue by the 20th of the following month. Plymouth imposes an additional local room occupancy tax of 6%, bringing the total tax rate to 11.7% for short-term rentals. The local tax is also collected from guests and remitted quarterly to the Plymouth Tax Collector's office. Hosts must register with both state and local authorities, obtain tax identification numbers, and file returns even if no rentals occurred during the reporting period. Properties rented for 90 or more consecutive days to the same occupant are exempt from these taxes, as are rentals where the host lives on-site and rents no more than three rooms. Airbnb may collect and remit these taxes on behalf of hosts in certain circumstances, but hosts remain ultimately responsible for compliance and should verify collection with their tax obligations.

Starting an Airbnb in Plymouth, Massachusetts requires approximately $520,000-$580,000 in total initial investment. Property purchase costs around $450,000 based on median home prices in Plymouth as of 2023. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup expenses including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees include a short-term rental license ($200-$500), business registration ($50-$100), and potential zoning compliance costs ($500-$1,500). Insurance premiums for short-term rental coverage average $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, gas, water, internet, and cable cost approximately $1,000-$2,000. First six months operating costs including utilities ($1,200), cleaning services ($2,400), property management software ($300), maintenance reserves ($2,000), marketing ($500), and miscellaneous expenses ($1,000) total around $7,400. Additional considerations include potential HOA fees, property taxes, and emergency repair funds that could add $5,000-$10,000 to initial costs.

Airbnb properties in Plymouth, Massachusetts typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $120-$180 during peak summer months and $80-$120 in off-season periods. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($200-$300 monthly), insurance ($1,500-$2,500 annually), and maintenance costs averaging $3,000-$5,000 yearly. Properties near Plymouth Rock, Mayflower II, and waterfront locations achieve the highest occupancy rates of 65-75% annually, while inland properties typically see 45-60% occupancy. Net profit margins for successful Plymouth Airbnb operators range from 15-25% after all expenses, with properties like restored colonial homes near historic downtown commanding premium rates and achieving $35,000+ annual profits on $150,000+ revenue. Success factors include proximity to Plymouth's historic attractions, professional photography showcasing colonial architecture, responsive guest communication, and seasonal pricing strategies that capitalize on summer tourism peaks and fall foliage seasons, with properties offering parking, modern amenities, and historical charm consistently outperforming basic accommodations by 20-30% in both occupancy and average daily rates.

Airbnb investments in Plymouth, Massachusetts typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the market. Properties near Plymouth Rock, Mayflower II, and waterfront areas command premium rates of $150-250 per night during peak summer months (May-October) and $80-120 during off-season, with average occupancy rates of 65-75% annually. A typical investment property purchased for $400,000-600,000 with 25% down can expect gross rental income of $35,000-55,000 annually, with net profits after expenses (cleaning, maintenance, insurance, taxes) of $18,000-32,000, resulting in timeframe to profitability of 12-18 months for cash flow positive returns. The market benefits from year-round tourism due to historical attractions, proximity to Boston (45 minutes), and seasonal beach tourism, with properties typically achieving full ROI recovery within 8-12 years based on current Plymouth market conditions and comparable short-term rental performance data from 2022-2024.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Plymouth, Massachusetts. Local real estate agents who focus on Airbnb investment properties in the Plymouth area include Kinlin Grover Real Estate, Century 21 Tassinari & Associates, and RE/MAX Platinum Realty, with agents like Sarah Mitchell at Coldwell Banker Realty and Tom Sullivan at William Raveis Real Estate who have experience with vacation rental investments since 2019. National services that help investors find profitable Airbnb properties include Mashvisor (launched in 2014), AirDNA which provides market analytics, BiggerPockets for networking and deal finding, Roofstock for turnkey rental properties, and Awning which offers full-service Airbnb management and acquisition assistance. Local property management companies that also help with acquisitions include Plymouth Rock Property Management and Cape Cod Vacation Rentals, while investment-focused firms like Boston Pads and New England Investment Properties have expanded their services to include short-term rental property identification in the Plymouth market since approximately 2020.