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Find Your Airbnb InvestmentInvesting in Airbnb properties in Portsmouth, Rhode Island, presents a promising opportunity, largely driven by the town's charming coastal appeal and robust tourism. Portsmouth benefits from its proximity to Newport, attracting visitors seeking a quieter, scenic alternative while still having access to the region's attractions. The current market conditions reflect a steady demand for short-term rentals, especially during peak seasons like summer and fall, when tourists flock to experience New England's coastal beauty and historical sites. Property values in Portsmouth have seen consistent growth, making real estate an attractive long-term asset, which further enhances the investment potential of Airbnb properties. The town's local regulations are generally supportive of short-term rentals, contributing to a favorable environment for investors.
Based on available market data and rental performance metrics, Airbnb hosts in Portsmouth, Rhode Island typically earn between $1,200 to $3,500 per month, with significant seasonal fluctuations driven by the area's coastal tourism patterns. During peak summer months from June through August, properties can generate $2,800 to $4,200 monthly, while off-season winter months often see revenues drop to $800 to $1,800 per month. Properties with water views, proximity to beaches like Sandy Point Beach, or those near Newport attractions command premium rates averaging $150-250 per night during peak season compared to $80-140 for inland properties. Key factors influencing earnings include property size and amenities, with entire homes outperforming private rooms by approximately 40-60%, seasonal demand fluctuations tied to sailing events and summer tourism, occupancy rates that typically range from 45-65% annually but can reach 75-85% during summer months, and competition from traditional vacation rentals and hotels in nearby Newport. Properties offering unique amenities such as waterfront access, historic charm, or proximity to local attractions like Green Animals Topiary Garden tend to achieve higher average daily rates and occupancy levels, while hosts who actively manage their listings with professional photography and responsive communication typically see 15-25% higher revenues than passive operators.
Airbnb investments in Portsmouth, Rhode Island typically generate ROI between 8-12% annually, with waterfront and historic properties near Newport achieving the higher end of this range due to strong summer tourism demand. The average payback period for initial investment ranges from 7-10 years, depending on property acquisition costs which average $450,000-$650,000 for suitable rental properties in desirable areas like Green Animals Topiary Garden vicinity or properties with water views. Seasonal occupancy rates peak at 75-85% during summer months (June-September) but drop to 25-35% in winter, creating an annual average occupancy of approximately 55-65%. Daily rates typically range from $150-$300 depending on property size and amenities, with premium waterfront properties commanding $400+ during peak season. Compared to traditional long-term rentals yielding 6-8% ROI in Portsmouth's market, Airbnb properties generally outperform by 2-4 percentage points annually, though they require significantly more active management and carry higher operational costs including cleaning fees, utilities, and maintenance that can consume 30-40% of gross rental income versus 15-20% for long-term rentals.
Portsmouth, Rhode Island Airbnb properties typically maintain an average annual occupancy rate of approximately 65-70%, with significant seasonal variations that peak during summer months from June through August when occupancy rates can reach 85-90% due to the area's coastal attractions and proximity to Newport. Spring and fall shoulder seasons see moderate occupancy around 55-65%, while winter months drop to 35-45% as tourism declines. Peak season generally runs from Memorial Day through Labor Day, with July being the strongest month, followed by a secondary peak during fall foliage season in October. Portsmouth's occupancy rates tend to outperform the Rhode Island state average of approximately 60% annually, benefiting from its location between Providence and Newport, though they remain slightly below national Airbnb averages of 70-75%. The market experiences strong weekend demand year-round due to its proximity to major metropolitan areas like Boston and New York, with weekday occupancy being more seasonal and dependent on summer vacation patterns and local events in the greater Newport area.
The most lucrative Airbnb neighborhoods in Portsmouth, Rhode Island center around Green Animals Topiary Garden area, which attracts families and garden enthusiasts year-round with strong pricing power due to its unique attraction and limited nearby accommodations. The Melville area offers excellent investment potential with its proximity to Fort Adams State Park and easy access to Newport's mansions, drawing history buffs and tourists willing to pay premium rates for convenient location. Sandy Point Beach vicinity provides seasonal rental opportunities with high summer demand from beachgoers and water sports enthusiasts, commanding top dollar during peak months. The Portsmouth Abbey School area attracts visiting families, prospective students, and alumni throughout the academic year, providing steady occupancy with moderate pricing. Green End Avenue corridor benefits from its central location between Newport and Middletown attractions while offering more affordable property acquisition costs, making it ideal for investors seeking strong ROI. The Lawton Valley area provides a quieter alternative for guests seeking rural charm while remaining close to major attractions, appealing to couples and small families looking for peaceful retreats at competitive rates.
Portsmouth, Rhode Island requires short-term rental operators to obtain a business license and register with the town, with properties limited to a maximum occupancy of two people per bedroom plus two additional guests, not exceeding 10 people total. Owner-occupancy is not mandated for short-term rentals, allowing for non-resident ownership, though properties must comply with residential zoning requirements and cannot operate in areas zoned exclusively for single-family use without proper permits. The registration process involves submitting an application to the Building and Zoning Department, providing proof of liability insurance coverage of at least $1 million, passing safety inspections including smoke and carbon monoxide detectors, and paying annual fees of approximately $200-300. Properties must maintain off-street parking for each bedroom being rented, display the registration number in all advertisements, and collect and remit local hotel tax of 5% plus state sales tax. Recent changes implemented in 2022-2023 include stricter noise ordinances with quiet hours from 9 PM to 8 AM, mandatory 24-hour local contact information for guests, and enhanced penalties for violations including potential license revocation after three substantiated complaints within a 12-month period.
Short-term rentals in Portsmouth, Rhode Island are subject to several fees and taxes including the state lodging tax of 5% on gross receipts, plus an additional 1% state tourism tax, for a combined 6% state tax rate. The city of Portsmouth requires short-term rental operators to obtain a business license costing approximately $50-75 annually, and properties must register with the state tax division which typically involves a one-time registration fee of around $25-50. Property owners must also pay standard property taxes which average 1.2-1.4% of assessed value annually in Portsmouth, and may be subject to additional local occupancy taxes of 1-3% depending on specific municipal ordinances enacted since 2020. Fire safety inspections are required annually at a cost of approximately $100-150, and operators must maintain liability insurance with minimum coverage typically costing $300-800 annually depending on property size and rental frequency.
Investing in Airbnb properties in Portsmouth, Rhode Island, presents a promising opportunity, largely driven by the town's charming coastal appeal and robust tourism. Portsmouth benefits from its proximity to Newport, attracting visitors seeking a quieter, scenic alternative while still having access to the region's attractions. The current market conditions reflect a steady demand for short-term rentals, especially during peak seasons like summer and fall, when tourists flock to experience New England's coastal beauty and historical sites. Property values in Portsmouth have seen consistent growth, making real estate an attractive long-term asset, which further enhances the investment potential of Airbnb properties. The town's local regulations are generally supportive of short-term rentals, contributing to a favorable environment for investors.
Based on available market data and rental performance metrics, Airbnb hosts in Portsmouth, Rhode Island typically earn between $1,200 to $3,500 per month, with significant seasonal fluctuations driven by the area's coastal tourism patterns. During peak summer months from June through August, properties can generate $2,800 to $4,200 monthly, while off-season winter months often see revenues drop to $800 to $1,800 per month. Properties with water views, proximity to beaches like Sandy Point Beach, or those near Newport attractions command premium rates averaging $150-250 per night during peak season compared to $80-140 for inland properties. Key factors influencing earnings include property size and amenities, with entire homes outperforming private rooms by approximately 40-60%, seasonal demand fluctuations tied to sailing events and summer tourism, occupancy rates that typically range from 45-65% annually but can reach 75-85% during summer months, and competition from traditional vacation rentals and hotels in nearby Newport. Properties offering unique amenities such as waterfront access, historic charm, or proximity to local attractions like Green Animals Topiary Garden tend to achieve higher average daily rates and occupancy levels, while hosts who actively manage their listings with professional photography and responsive communication typically see 15-25% higher revenues than passive operators.
Airbnb investments in Portsmouth, Rhode Island typically generate ROI between 8-12% annually, with waterfront and historic properties near Newport achieving the higher end of this range due to strong summer tourism demand. The average payback period for initial investment ranges from 7-10 years, depending on property acquisition costs which average $450,000-$650,000 for suitable rental properties in desirable areas like Green Animals Topiary Garden vicinity or properties with water views. Seasonal occupancy rates peak at 75-85% during summer months (June-September) but drop to 25-35% in winter, creating an annual average occupancy of approximately 55-65%. Daily rates typically range from $150-$300 depending on property size and amenities, with premium waterfront properties commanding $400+ during peak season. Compared to traditional long-term rentals yielding 6-8% ROI in Portsmouth's market, Airbnb properties generally outperform by 2-4 percentage points annually, though they require significantly more active management and carry higher operational costs including cleaning fees, utilities, and maintenance that can consume 30-40% of gross rental income versus 15-20% for long-term rentals.
Portsmouth, Rhode Island Airbnb properties typically maintain an average annual occupancy rate of approximately 65-70%, with significant seasonal variations that peak during summer months from June through August when occupancy rates can reach 85-90% due to the area's coastal attractions and proximity to Newport. Spring and fall shoulder seasons see moderate occupancy around 55-65%, while winter months drop to 35-45% as tourism declines. Peak season generally runs from Memorial Day through Labor Day, with July being the strongest month, followed by a secondary peak during fall foliage season in October. Portsmouth's occupancy rates tend to outperform the Rhode Island state average of approximately 60% annually, benefiting from its location between Providence and Newport, though they remain slightly below national Airbnb averages of 70-75%. The market experiences strong weekend demand year-round due to its proximity to major metropolitan areas like Boston and New York, with weekday occupancy being more seasonal and dependent on summer vacation patterns and local events in the greater Newport area.
The most lucrative Airbnb neighborhoods in Portsmouth, Rhode Island center around Green Animals Topiary Garden area, which attracts families and garden enthusiasts year-round with strong pricing power due to its unique attraction and limited nearby accommodations. The Melville area offers excellent investment potential with its proximity to Fort Adams State Park and easy access to Newport's mansions, drawing history buffs and tourists willing to pay premium rates for convenient location. Sandy Point Beach vicinity provides seasonal rental opportunities with high summer demand from beachgoers and water sports enthusiasts, commanding top dollar during peak months. The Portsmouth Abbey School area attracts visiting families, prospective students, and alumni throughout the academic year, providing steady occupancy with moderate pricing. Green End Avenue corridor benefits from its central location between Newport and Middletown attractions while offering more affordable property acquisition costs, making it ideal for investors seeking strong ROI. The Lawton Valley area provides a quieter alternative for guests seeking rural charm while remaining close to major attractions, appealing to couples and small families looking for peaceful retreats at competitive rates.
Portsmouth, Rhode Island requires short-term rental operators to obtain a business license and register with the town, with properties limited to a maximum occupancy of two people per bedroom plus two additional guests, not exceeding 10 people total. Owner-occupancy is not mandated for short-term rentals, allowing for non-resident ownership, though properties must comply with residential zoning requirements and cannot operate in areas zoned exclusively for single-family use without proper permits. The registration process involves submitting an application to the Building and Zoning Department, providing proof of liability insurance coverage of at least $1 million, passing safety inspections including smoke and carbon monoxide detectors, and paying annual fees of approximately $200-300. Properties must maintain off-street parking for each bedroom being rented, display the registration number in all advertisements, and collect and remit local hotel tax of 5% plus state sales tax. Recent changes implemented in 2022-2023 include stricter noise ordinances with quiet hours from 9 PM to 8 AM, mandatory 24-hour local contact information for guests, and enhanced penalties for violations including potential license revocation after three substantiated complaints within a 12-month period.
Short-term rentals in Portsmouth, Rhode Island are subject to several fees and taxes including the state lodging tax of 5% on gross receipts, plus an additional 1% state tourism tax, for a combined 6% state tax rate. The city of Portsmouth requires short-term rental operators to obtain a business license costing approximately $50-75 annually, and properties must register with the state tax division which typically involves a one-time registration fee of around $25-50. Property owners must also pay standard property taxes which average 1.2-1.4% of assessed value annually in Portsmouth, and may be subject to additional local occupancy taxes of 1-3% depending on specific municipal ordinances enacted since 2020. Fire safety inspections are required annually at a cost of approximately $100-150, and operators must maintain liability insurance with minimum coverage typically costing $300-800 annually depending on property size and rental frequency.
* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.
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To start an Airbnb in Portsmouth, Rhode Island, begin by researching local zoning laws and regulations through the Portsmouth Planning Department, as the town requires short-term rental operators to obtain a business license and comply with specific occupancy limits and safety requirements. Contact the Rhode Island Department of Health for any applicable health permits and ensure compliance with state lodging regulations, while also checking with your homeowner's insurance provider about coverage for short-term rentals. Find a suitable property by considering proximity to attractions like Green Animals Topiary Garden and Newport's mansions, ensuring the property meets Portsmouth's residential zoning requirements for short-term rentals. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers as required by Rhode Island fire safety codes. Create your listing on platforms like Airbnb and VRBO with professional photos highlighting nearby attractions such as Portsmouth Abbey and Sakonnet Vineyards, setting competitive rates based on seasonal demand from Newport tourists. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and keeping detailed records for tax purposes, while staying updated on any changes to Portsmouth's short-term rental ordinances and ensuring you collect and remit Rhode Island's 7% lodging tax plus any local occupancy taxes that may apply.
To identify profitable short-term rental properties in Portsmouth, Rhode Island, focus on waterfront locations within walking distance of beaches like Sandy Point Beach or properties with water views, as these command premium rates year-round. Target 3-4 bedroom single-family homes or condos built after 1980 with modern amenities, parking, and outdoor spaces, as Portsmouth attracts families and groups visiting nearby Newport attractions. Analyze pricing by researching comparable Airbnb listings in the $200-400 nightly range during peak summer months (June-September) and $100-200 during shoulder seasons, using tools like AirDNA, Mashvisor, and STR Helper to assess occupancy rates and revenue potential. Study competition by examining properties within 2-mile radius, particularly those near Green Animals Topiary Garden and Greenvale Vineyards, noting their amenities, pricing strategies, and guest reviews. Utilize Portsmouth's tourism data from the Rhode Island Tourism Division, monitor local Facebook groups and NextDoor for market insights, and consider properties near the Mount Hope Bridge corridor for easy Newport access, while ensuring compliance with Portsmouth's zoning regulations and any HOA restrictions that may limit short-term rentals.
To obtain an Airbnb/STR permit in Portsmouth, Rhode Island, you must first contact the Portsmouth Building Department at 2200 East Main Road to determine if your property is in a zone that allows short-term rentals, as Portsmouth has specific zoning restrictions for STRs. You'll need to submit an application for a Special Use Permit through the Planning Board, which typically requires a completed application form, property survey, floor plans showing the rental unit layout, proof of property ownership, certificate of occupancy, fire safety inspection certificate from the Portsmouth Fire Department, and septic system inspection if applicable. The application fee is approximately $500-750, and you may need additional fees for inspections ranging from $100-200 each. The process typically takes 60-90 days as it requires Planning Board review and public hearing notification to abutting property owners within 200 feet of your property. Portsmouth requires STR operators to maintain liability insurance of at least $1 million, provide on-site parking for guests, ensure the property meets all building and fire codes, and comply with noise ordinances and occupancy limits based on septic capacity. You must also register with the Rhode Island Division of Taxation for lodging tax collection and may need a business license from the town clerk's office, with annual renewal required for most permits.
Short-term rentals (STRs) are legal in Portsmouth, Rhode Island, but operate under specific regulations established by the town. Portsmouth requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential districts while prohibiting them in some areas near the waterfront and historic districts. The town implemented stricter regulations around 2019-2020 that include occupancy limits, parking requirements, noise restrictions, and mandatory registration with the town clerk's office. Property owners must also comply with state tax requirements and health department regulations. Recent changes have focused on balancing tourism revenue with neighborhood character preservation, including enhanced enforcement mechanisms and penalties for non-compliance. The regulations distinguish between owner-occupied and non-owner-occupied properties, with different requirements for each category, and the town periodically reviews these ordinances to address community concerns about housing availability and neighborhood impacts.
The best Airbnb investment areas in Portsmouth, Rhode Island include the Historic Downtown district near the waterfront, which attracts tourists visiting the town's colonial architecture and maritime heritage, particularly during summer months when visitors explore nearby Newport attractions. The Green Animals Topiary Garden vicinity offers strong potential due to its proximity to this unique attraction that draws families and garden enthusiasts year-round. Areas near Portsmouth Abbey School provide opportunities for visiting families, prospective students, and school-related events throughout the academic calendar. The Melville area, with its rural charm and proximity to vineyards like Newport Vineyards, appeals to couples seeking romantic getaways and wine tourism experiences. Properties near Mount Hope Bay waterfront command premium rates due to scenic views and water activities, attracting both leisure travelers and those attending sailing events. The Route 114 corridor offers good accessibility for business travelers commuting to nearby defense contractors like Raytheon in Portsmouth, while still providing easy access to Newport's tourist attractions just 15 minutes away.
In Portsmouth, Rhode Island, Airbnb hosts are subject to the state's 7% lodging tax on short-term rentals under 30 days, which applies to the total rental amount including cleaning fees. The Rhode Island Division of Taxation requires hosts to register for a lodging tax permit and collect the tax directly from guests, with monthly remittance due by the 20th of the following month through the state's online portal. Additionally, hosts must collect the state's 7% sales tax on the rental amount. Portsmouth does not impose a separate local occupancy tax, but hosts must comply with local zoning and licensing requirements. The state provides an exemption for rentals of 30 days or longer, and certain properties used for medical treatment may qualify for exemptions. Airbnb can collect and remit these taxes on behalf of hosts in Rhode Island through their automated tax collection service, though hosts remain ultimately responsible for compliance and should verify that taxes are being properly collected and remitted.
The total cost to start an Airbnb in Portsmouth, Rhode Island is approximately $485,000-$565,000. Property purchase represents the largest expense at $400,000-$475,000 based on median home prices in Portsmouth. Furnishing costs range from $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor to make the property guest-ready. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and potential zoning approvals cost $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, supplies, maintenance, property management software, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $5,000-$10,000 to initial costs.
Airbnb properties in Portsmouth, Rhode Island typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with oceanfront or waterfront listings commanding premium rates of $200-$400 per night during peak summer months (June-September) and $100-$180 during off-season periods. Operating expenses generally range from 40-60% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($2,000-$4,000 annually), insurance ($1,500-$3,000), maintenance ($3,000-$6,000), and local taxes, resulting in net profit margins of 25-45% for successful operators. Properties near popular attractions like Fort Adams State Park or with water views consistently outperform inland locations, with occupancy rates averaging 65-75% during peak season and 35-45% off-season. Success factors include professional photography, responsive guest communication, strategic pricing adjustments based on local events like the Newport Folk Festival, and maintaining high cleanliness standards, with top-performing hosts in the area reporting annual net profits of $15,000-$25,000 on properties valued between $400,000-$800,000, though newer regulations and increased competition since 2020 have compressed margins by approximately 10-15% compared to pre-pandemic levels.
Based on Portsmouth, 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 Newport attractions. Waterfront or historic district properties in Portsmouth can achieve higher returns of 12-15% annually due to premium nightly rates of $150-300 during peak summer months (June-September), while inland properties average $80-150 nightly. Initial profitability usually occurs within 18-24 months for well-positioned properties, with full investment recovery typically achieved in 7-10 years. Properties near Portsmouth Abbey, Green Animals Topiary Garden, or with water views command the highest occupancy rates of 65-75% annually, while standard residential properties average 50-60% occupancy. Seasonal fluctuations significantly impact returns, with summer months generating 60-70% of annual revenue, making cash flow management crucial during off-peak periods from November through March when occupancy drops to 20-30%.
STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Portsmouth, Rhode Island. Local real estate agents like Lila Delman Real Estate, Residential Properties Ltd., and Gustave White Sotheby's International Realty have extensive knowledge of Portsmouth's waterfront and historic properties that perform well as vacation rentals. National services include AirDNA for market analysis, Mashvisor for investment property analytics, and BiggerPockets for connecting with local investors and agents. Portsmouth-specific agents such as those at Century 21 Topsail Realty and RE/MAX Newport County understand the seasonal rental patterns around areas like Green Animals Topiary Garden and Portsmouth Abbey. Additional services include RedAwning for property management consultation, AvantStay for luxury property acquisition guidance, and local property management companies like Island Property Management and Coastal Property Services that can provide insights on which neighborhoods generate the highest occupancy rates and nightly rates for Airbnb investments in this coastal Rhode Island market.
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