Is Salisbury, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Salisbury, Massachusetts, begin by researching local zoning laws and regulations through the Salisbury Planning Department, as the town requires short-term rental operators to obtain a business license and comply with health and safety codes including smoke detectors, carbon monoxide detectors, and fire extinguishers in each unit. Contact the Salisbury Board of Health at (978) 465-3451 to obtain necessary health permits and ensure your property meets septic and water quality standards, particularly important given Salisbury's coastal location and environmental regulations. Find a suitable property by working with local real estate agents familiar with Salisbury's market, focusing on areas near Salisbury Beach or downtown that attract tourists, with average property prices ranging from $400,000-$800,000 depending on proximity to the ocean. Furnish your property with coastal-themed decor, essential amenities like WiFi, air conditioning, and beach equipment such as chairs and umbrellas, budgeting approximately $15,000-$25,000 for a complete furnishing package. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting ocean views or proximity to Salisbury Beach State Reservation, setting competitive rates between $150-$300 per night depending on season and location. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company like Vacasa or RedAwning if you live far from Salisbury, while maintaining compliance with Massachusetts state tax requirements including collecting 5.7% state excise tax and 6.25% sales tax on short-term rentals.

To identify profitable short-term rental properties in Salisbury, Massachusetts, focus on locations within 0.5-1 mile of Salisbury Beach State Reservation and the oceanfront, as proximity to the beach drives 70-80% of rental demand from May through September. Target 2-4 bedroom single-family homes or condos built after 1980 with parking for 2+ vehicles, outdoor space, and modern amenities like central air and updated kitchens, as these command $200-400 nightly rates versus $100-150 for basic properties. Analyze comparable properties on Airbnb and VRBO within Salisbury and neighboring Newburyport and Hampton Beach to establish competitive pricing, noting that beachfront properties average $300-500/night while inland properties fetch $150-250/night during peak season. Research local competition by monitoring occupancy rates and reviews for similar properties, focusing on the 150-200 active STRs in the area, and identify gaps in amenities or property types that are underserved. Utilize tools like AirDNA for market analytics, Mashvisor for investment analysis, and the Town of Salisbury's online permitting system to verify STR regulations and licensing requirements, while leveraging MLS data through local realtors familiar with the Seacoast market to identify properties under $600,000 that can generate 15-25% annual returns.

To obtain an Airbnb/STR permit in Salisbury, Massachusetts, you must first contact the Salisbury Building Department at Town Hall located at 5 Beach Road to initiate the application process, as the town requires short-term rental operators to obtain a lodging house license under state regulations. 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 Salisbury Fire Department, and a septic system inspection if applicable. The application fee is typically around $200-300 annually, with additional inspection fees of approximately $100-150 for fire and building inspections. The timeline for approval generally takes 4-6 weeks from submission of a complete application, provided all inspections pass and documentation is in order. Salisbury-specific requirements include maintaining guest registries, ensuring adequate parking spaces (typically one space per bedroom), compliance with local zoning bylaws, adherence to noise ordinances, and potential restrictions on the number of guests and rental duration depending on the property's zoning district. You must also register with the Massachusetts Department of Revenue for tax collection purposes and may need to obtain additional permits if serving food or operating in certain residential zones.

Short-term rentals (STRs) are legal in Salisbury, Massachusetts, but operate under state regulations and local oversight. The town follows Massachusetts state law which requires STR operators to register with the state, collect and remit taxes, maintain liability insurance, and comply with health and safety standards. Salisbury, as a coastal community popular with tourists, generally permits STRs in residential areas but may have specific zoning restrictions or density limitations in certain neighborhoods. Property owners must obtain proper permits and may face restrictions on the number of guests, parking requirements, and noise ordinances. Recent changes around 2018-2019 at the state level established the registration and taxation framework that Salisbury now operates under. The town likely requires compliance with local fire safety codes and may have seasonal considerations given its beach location, though specific prohibited areas would typically be outlined in local zoning bylaws that may restrict STRs in certain residential districts or require special permits for commercial-scale operations.

The best areas for Airbnb investment in Salisbury, Massachusetts are the beachfront neighborhoods along Salisbury Beach State Reservation, particularly the Ocean Front and Beach Road corridors, which attract summer tourists from April through October seeking coastal vacation rentals with easy beach access. The historic downtown area near Main Street offers potential for business travelers visiting local companies like Seabrook Station nuclear facility workers and contractors, providing year-round occupancy. The neighborhoods near the New Hampshire border, especially around Route 1 and Interstate 95, are attractive for investors due to their proximity to tax-free shopping in New Hampshire and easy access to both Boston (45 minutes south) and Portsmouth, New Hampshire attractions. The Rings Island and Black Rocks areas provide premium waterfront locations that command higher nightly rates during peak summer months, particularly appealing to families and groups seeking private beach access and water activities, while the Route 110 corridor offers more affordable investment opportunities with steady demand from visitors to nearby Amesbury's historic mills and seasonal workers at area businesses.

In Salisbury, 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 by the state and remitted monthly by hosts or platforms like Airbnb when they collect on behalf of hosts. Additionally, Salisbury imposes a local room occupancy tax of 6% on short-term rentals, which must be collected from guests and remitted quarterly to the town by the 20th day following each quarter. Hosts must register with both the Massachusetts Department of Revenue and the Town of Salisbury before operating, obtaining the necessary tax identification numbers. The state tax applies to the total rent charged, while the local tax typically applies to the same base amount. Exemptions may include rentals to permanent residents (90+ consecutive days), certain government employees on official business, and in some cases religious or charitable organizations, though hosts should verify current exemption criteria with local authorities. Both taxes are typically collected at the time of booking when platforms like Airbnb handle collection, or directly by hosts when they manage their own bookings, with failure to collect and remit resulting in penalties and interest charges.

Starting an Airbnb in Salisbury, Massachusetts requires approximately $650,000-750,000 in total initial investment. Property purchase costs around $550,000-650,000 based on median home prices in the area as of 2023-2024. 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 run $3,000-5,000. Permits and fees vary but expect $500-1,500 for business licenses, short-term rental permits, and local registration requirements. Insurance costs approximately $2,000-3,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, gas, water, internet, and cable total around $1,000-2,000. First six months of operating costs including utilities ($300-500/month), cleaning services ($100-150 per turnover), supplies and maintenance ($200-400/month), platform fees (3% of bookings), and property management if outsourced (10-20% of revenue) can range from $8,000-15,000 depending on occupancy rates and seasonal demand in this coastal Massachusetts market.

Airbnb properties in Salisbury, Massachusetts show moderate profitability potential with average daily rates ranging from $150-250 during peak summer months and $80-120 in off-season periods, generating annual revenues of approximately $25,000-45,000 for well-managed properties. Operating expenses typically consume 40-60% of gross revenue, including cleaning fees ($50-75 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs ($2,000-4,000 yearly). Properties within walking distance of Salisbury Beach State Reservation achieve occupancy rates of 65-80% during May-September, with profit margins of 25-35% after expenses. Success factors include proximity to the beach (properties within 0.5 miles command 30-40% premium rates), professional photography, responsive guest communication, and amenities like parking, WiFi, and beach equipment. A typical 3-bedroom beach cottage purchased for $400,000 in 2020 and generating $35,000 annual Airbnb revenue with $22,000 in expenses would yield approximately $13,000 net profit (37% margin), though seasonal demand concentration requires careful cash flow management during winter months when occupancy drops to 20-30%.

Airbnb investments in Salisbury, Massachusetts typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the town's proximity to Salisbury Beach and seasonal tourism demand from May through September. Properties within walking distance of the beach command premium rates of $150-250 per night during peak summer months, while off-season rates drop to $80-120 per night, resulting in average annual revenues of $25,000-40,000 for well-positioned 2-3 bedroom properties. Initial investment costs average $350,000-500,000 for suitable properties, with additional setup costs of $15,000-25,000 for furnishing and renovations, and investors typically reach profitability within 18-24 months when accounting for mortgage payments, property taxes averaging $8,000-12,000 annually, maintenance costs, and Airbnb fees. The market benefits from consistent demand from Boston-area visitors seeking coastal getaways, with occupancy rates of 70-85% during summer months and 35-50% during winter, though success heavily depends on property location relative to beach access and local attractions like the Salisbury Beach State Reservation.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment opportunities in Salisbury, Massachusetts and surrounding areas. Local real estate agents like Coldwell Banker Realty and RE/MAX Shoreline serve the Salisbury market with expertise in vacation rental properties, while Keller Williams Realty has agents familiar with Airbnb investment strategies in the region. National services include Awning, which provides end-to-end Airbnb investment services including property identification and management, and Mashvisor, an analytics platform that helps investors evaluate rental property potential in Massachusetts markets. RedAwning offers property sourcing and management services for short-term rentals, while AirDNA provides market data and investment analysis specific to the Salisbury area. Local property management companies like Vacasa and Evolve have expanded into the Massachusetts coastal market to help investors maximize their Airbnb returns. Additionally, BiggerPockets connects investors with local experts, and companies like Roofstock and Arrived Homes have begun offering turnkey short-term rental investment opportunities in New England markets including the North Shore region where Salisbury is located.