Is Point Judith, Rhode Island Good for Airbnb Investment?

To start an Airbnb in Point Judith, Rhode Island, begin by researching local zoning laws through the Narragansett Town Hall since Point Judith falls under Narragansett jurisdiction, where short-term rentals typically require special use permits and must comply with residential zoning restrictions. Obtain necessary permits including a business license from the town clerk, a special use permit for short-term rentals (approximately $200-400), and ensure compliance with Rhode Island's lodging tax requirements by registering with the Division of Taxation. Find a suitable property within 1-2 miles of Point Judith's waterfront areas, focusing on single-family homes or condos that allow rentals, with typical purchase prices ranging $400,000-800,000 for properties near the beaches. Furnish the space with coastal-themed decor, essential amenities like WiFi, air conditioning, and beach equipment such as chairs and umbrellas, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb and VRBO with professional photography highlighting ocean views and proximity to Point Judith Lighthouse and fishing charters, setting competitive rates of $150-350 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services (typically $75-125 per turnover), maintenance contractors familiar with coastal property challenges, and consider hiring a local property management company like those serving the South County area if you're not local, which typically charge 15-25% of rental income for full-service management including guest communication, cleaning coordination, and maintenance oversight.

To identify profitable short-term rental properties in Point Judith, Rhode Island, focus on oceanfront or water-view locations within walking distance of Point Judith Lighthouse, Galilee fishing village, and ferry terminals to Block Island, as these areas command premium rates year-round. Target 3-4 bedroom single-family homes or condos built after 1980 with modern amenities, outdoor spaces, parking, and beach access, as properties near Scarborough State Beach and Narragansett Town Beach consistently outperform inland options. Analyze comparable STR pricing using AirDNA and Mashvisor, noting that Point Judith properties typically earn $150-400 per night during peak summer months (June-September) and $80-150 during shoulder seasons, with annual revenues ranging from $35,000-85,000 for well-positioned properties. Research competition by monitoring active Airbnb and VRBO listings within a 2-mile radius, paying attention to occupancy rates, guest reviews, and seasonal pricing strategies employed by successful hosts like those managing properties near Camp Cronin and Jerusalem. Utilize tools such as Rabbu, STR Helper, and local MLS data through Residential Properties Ltd or Lila Delman Real Estate, while consulting with Narragansett's planning department regarding zoning restrictions and STR licensing requirements that became more stringent in 2022.

To obtain an Airbnb/STR permit in Point Judith, Rhode Island, you must apply through the Town of Narragansett's Planning Department since Point Judith is located within Narragansett. Start by contacting the Narragansett Planning Department at Town Hall (25 Fifth Avenue, Narragansett, RI 02882) to obtain the Short-Term Rental Registration application form. Required documents typically include a completed application form, proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager if you're not local, parking plan showing adequate off-street parking, and septic system certification if applicable. You'll need to pay an application fee of approximately $200-300 plus an annual registration fee of around $150-250. The review process typically takes 4-6 weeks, during which the property may be inspected for safety compliance including smoke detectors, carbon monoxide detectors, and proper egress. Specific Point Judith requirements include adherence to coastal zone management regulations due to its waterfront location, compliance with maximum occupancy limits (typically 2 people per bedroom plus 2 additional), maintaining a guest registry, providing trash collection arrangements, and ensuring the property meets all fire safety codes. Once approved, you must display the permit number in all advertising and renew annually by December 31st.

Short-term rentals (STRs) in Point Judith, Rhode Island are generally legal but subject to local regulations under the Town of Narragansett's jurisdiction. The town requires STR operators to obtain a business license and comply with zoning restrictions, with most residential areas allowing STRs but with occupancy limits typically capped at 10-12 people depending on the property size. Properties must meet health and safety standards, provide adequate parking, and maintain noise ordinances to minimize impacts on neighbors. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced registration requirements, with the town implementing a more robust permitting process that includes inspections and annual renewals. Point Judith, being a popular coastal destination with many vacation homes, has seen increased scrutiny of STR operations, particularly during peak summer months, with the town balancing tourism revenue against residential neighborhood character preservation.

The best areas for Airbnb investment in Point Judith, Rhode Island are the Galilee/Point Judith Harbor district, which attracts visitors year-round due to its working fishing village atmosphere, ferry terminal to Block Island, and proximity to the Port Judith Lighthouse, making it ideal for tourists seeking authentic coastal experiences. The nearby Narragansett Pier area, just north of Point Judith, offers strong rental potential due to its historic casino ruins, beautiful beaches, and seasonal events that draw summer visitors from Boston and New York metropolitan areas. The residential neighborhoods along Ocean Road provide excellent investment opportunities as they offer beach access while maintaining a quieter atmosphere preferred by families and couples, with properties here commanding premium rates during peak summer months from June through September. The Scarborough Beach vicinity is particularly attractive for investors as it combines beach proximity with easy access to restaurants and local attractions, appealing to both leisure travelers and those attending events at nearby venues, with occupancy rates typically remaining strong from late spring through early fall due to Rhode Island's extended tourist season.

Airbnb properties in Point Judith, Rhode Island are subject to multiple lodging taxes including the Rhode Island state hotel tax of 5% on gross receipts, the state sales tax of 7% on short-term rentals, and local occupancy taxes imposed by Narragansett (the town where Point Judith is located) at approximately 3-4% of gross rental receipts. These taxes are typically collected by hosts from guests at the time of booking or check-in, though Airbnb may collect and remit state taxes directly in Rhode Island as part of their voluntary collection agreements implemented around 2019-2020. Hosts must register with the Rhode Island Division of Taxation and remit taxes monthly or quarterly depending on volume, with local taxes remitted to Narragansett's tax collector office. Properties rented for 28 days or longer may be exempt from certain occupancy taxes, and some jurisdictions provide exemptions for rentals under a certain dollar threshold per year, though most short-term Airbnb rentals would not qualify for these exemptions given typical nightly rates in the Point Judith coastal area.

Starting an Airbnb in Point Judith, Rhode Island requires significant upfront investment with property purchase being the largest expense at approximately $650,000 for a median-priced coastal property suitable for vacation rentals. Furnishing costs typically range $15,000-25,000 for a complete setup including beds, linens, kitchen essentials, and coastal-themed decor. Initial setup expenses include professional photography ($500), listing optimization ($300), and basic supplies ($800). Permits and fees total around $2,500 including Rhode Island lodging license ($100), Point Judith business permit ($200), fire safety inspection ($150), and potential homeowner association approvals ($300). Insurance costs approximately $3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits average $1,200 including electricity, water, internet, and cable connections. First six months operating costs include utilities ($1,800), cleaning services ($3,600), maintenance reserves ($2,000), property management software ($300), and marketing ($600). The total estimated startup cost ranges between $680,000-690,000, with the property purchase representing roughly 95% of the initial investment, making Point Judith's prime coastal location both an attractive but capital-intensive Airbnb market.

Airbnb properties in Point Judith, Rhode Island demonstrate strong seasonal profitability with average nightly rates ranging from $150-400 during peak summer months (June-September) and dropping to $80-150 in off-season periods. A typical 3-bedroom beach house generates approximately $45,000-65,000 in annual gross revenue, with operating expenses including cleaning fees ($75-100 per turnover), property management (15-25% of revenue), utilities ($200-350 monthly), insurance ($2,500-4,000 annually), and maintenance costs averaging $3,000-5,000 yearly. Net profit margins typically range from 25-40% for well-managed properties, with successful hosts achieving occupancy rates of 65-80% during summer and 30-45% off-season. Success factors include proximity to beaches like East Beach and Scarborough State Beach, professional photography showcasing ocean views, responsive guest communication, and strategic pricing that capitalizes on weekend premiums and holiday demand. Properties within walking distance of fishing charters and local restaurants like Aunt Carrie's command higher rates, while those offering amenities like outdoor showers, beach equipment, and parking see increased bookings and positive reviews that drive repeat business.

Airbnb investments in Point Judith, Rhode Island typically generate annual ROI of 12-18% due to the area's strong summer tourism demand and proximity to popular beaches like Scarborough State Beach. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-300 per night during peak season (June-September) and $75-150 during shoulder seasons. Most investors achieve profitability within 18-24 months, with oceanview or beach-adjacent properties commanding premium rates up to $400+ per night during July and August. The market benefits from consistent demand from Boston and New York metropolitan areas, with occupancy rates typically reaching 70-85% during summer months and 40-55% year-round. Properties requiring initial renovations of $20,000-40,000 often see payback periods of 2-3 years, while turnkey properties may achieve positive cash flow within 6-12 months of operation.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities including in Point Judith, Rhode Island. Local real estate agents like those at Lila Delman Real Estate and Residential Properties Ltd have experience with vacation rental properties in the Point Judith and Narragansett area. National services include Mashvisor, which provides Airbnb investment analysis tools, and BiggerPockets, which offers investment property resources and networking. AirDNA provides short-term rental market data and analytics for the Rhode Island coastal market. Local property management companies like Ocean State Property Management and Narragansett Bay Property Services can assist with identifying investment properties and managing them as Airbnb rentals. RedAwning and Vacasa also operate in the Rhode Island market, offering both property management and investment guidance services. Real estate investment firms like Roofstock and Fundrise have expanded into short-term rental markets, though their Rhode Island presence may be limited. Local mortgage brokers and real estate attorneys familiar with vacation rental regulations in Rhode Island, such as those at Partridge Snow & Hahn LLP, can provide essential services for Airbnb property acquisitions in the Point Judith area.