Is Somersworth, New Hampshire Good for Airbnb Investment?

To start an Airbnb in Somersworth, New Hampshire, begin by researching local zoning laws and regulations through the Somersworth Planning Department, as the city requires short-term rental operators to obtain a business license and comply with fire safety codes established around 2019-2020. Contact the Somersworth Fire Department for required safety inspections and ensure your property meets all building codes, then register your business with the New Hampshire Secretary of State and obtain necessary tax identification numbers. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near downtown Somersworth or within proximity to Portsmouth and Dover for higher demand. Furnish the space with quality essentials including comfortable bedding, kitchen supplies, Wi-Fi, and safety equipment like smoke detectors and fire extinguishers as mandated by local fire codes. Create compelling listings on Airbnb, VRBO, and other platforms with professional photos highlighting proximity to the Salmon Falls River, local attractions, and easy access to the Seacoast region. Implement a management system using tools like automated messaging, keyless entry systems, and coordinate with local cleaning services in the Somersworth area, while maintaining compliance with New Hampshire's 8.5% rooms and meals tax and any additional local occupancy taxes that may apply to short-term rentals in Strafford County.

To identify profitable short-term rental properties in Somersworth, New Hampshire, focus on locations within walking distance of downtown Main Street, near the Salmon Falls River waterfront, or close to major employers like Lonza Biologics and Safran. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, parking, and outdoor spaces that appeal to business travelers and tourists visiting nearby Portsmouth or the Seacoast region. Analyze pricing by researching comparable Airbnb listings in Somersworth, Dover, and Rochester, aiming for properties that can generate $100-150 per night with 60-70% occupancy rates to achieve 12-15% annual returns. Study competition using AirDNA and Mashvisor to identify gaps in the market, particularly focusing on pet-friendly properties or those accommodating longer business stays given the industrial presence. Utilize local resources including the Somersworth Economic Development Corporation for market insights, Strafford County property records for acquisition costs, and partner with local property management companies familiar with New Hampshire's STR regulations and seasonal tourism patterns that peak during summer months and fall foliage season.

To obtain an Airbnb/STR permit in Somersworth, New Hampshire, you must first contact the Somersworth Planning Department at City Hall located at 157 Main Street to inquire about short-term rental regulations, as the city implemented STR ordinances around 2019-2020. You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, floor plans showing maximum occupancy, proof of liability insurance (typically $1 million minimum), fire safety inspection certificate from the Somersworth Fire Department, and a site plan showing parking availability. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150. You must also obtain a business license from the City Clerk's office (additional $25-50 fee) and register with the New Hampshire Department of Revenue for rooms and meals tax collection. The property must meet specific Somersworth requirements including adequate off-street parking (typically 1 space per bedroom), compliance with residential zoning districts (STRs may be prohibited in certain zones), maximum occupancy limits based on square footage and bedrooms, and 24/7 local contact person availability. The approval process typically takes 30-60 days after submitting a complete application, and you must schedule inspections with both building and fire departments before final permit issuance.

Short-term rentals (STRs) are legal in Somersworth, New Hampshire, as the city has not enacted specific prohibitions against them as of 2024. However, STR operators must comply with general zoning regulations and may need to obtain business licenses or permits depending on the scale of operation. The city follows New Hampshire state law, which generally allows STRs but permits municipalities to regulate them through zoning ordinances. Somersworth's zoning code typically allows residential rentals in most residential districts, though operators should verify compliance with occupancy limits, parking requirements, and noise ordinances. There are no specific prohibited areas for STRs within city limits, but properties must meet standard health and safety codes. Recent years have seen increased attention to STR regulation across New Hampshire municipalities, though Somersworth has maintained a relatively permissive approach compared to larger cities like Portsmouth or Manchester, focusing primarily on ensuring STRs don't disrupt neighborhood character rather than implementing outright bans or severe restrictions.

The best areas for Airbnb investment in Somersworth, New Hampshire include the Historic Downtown District near High Street and Market Street, which attracts visitors interested in the city's mill history and walkable amenities, plus business travelers visiting local companies like Safran Aerospace Composites (2018-present). The Salmon Falls River corridor offers scenic waterfront appeal for tourists seeking outdoor recreation and photography opportunities. The Route 108/High Street commercial zone provides convenient access for business travelers visiting the Pease International Tradeport (15 minutes away) and Portsmouth Naval Shipyard contractors. The residential neighborhoods near Somersworth High School and around Willand Pond attract families visiting the area for youth sports tournaments and outdoor activities. The area near the New Hampshire Route 16 corridor benefits from easy highway access, making it attractive for visitors traveling between the White Mountains and seacoast regions, while also serving business travelers heading to Dover, Rochester, or Portsmouth for corporate meetings at companies like Liberty Mutual, Wentworth-Douglass Hospital, and various defense contractors.

In Somersworth, New Hampshire, Airbnb hosts are subject to the state's Rooms and Meals Tax of 8.5% on rental income, which applies to all short-term rentals under 185 days and is collected by the New Hampshire Department of Revenue Administration with quarterly remittance required by the 25th of January, April, July, and October. The city of Somersworth does not impose additional local lodging taxes beyond the state requirement. Hosts must register with the state, collect the tax from guests, and file Form R&M-1 quarterly even if no tax is owed, with payments due electronically through the state's online portal. Exemptions include rentals to permanent residents (185+ days), certain medical-related stays, and rentals by organizations exempt under RSA 72:23, though most typical Airbnb operations do not qualify for exemptions. The tax is calculated on gross rental receipts including cleaning fees but excluding separately stated security deposits that are refundable.

To start an Airbnb in Somersworth, New Hampshire, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at approximately $250,000 based on median home prices in the area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and potential zoning approvals required by Somersworth city regulations. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable total around $500-$800. First six months operating costs including utilities ($150-$200 monthly), cleaning services ($75-$100 per turnover), maintenance supplies ($100 monthly), Airbnb platform fees (3% host fee), marketing, and miscellaneous expenses average $2,500-$4,000. Additional considerations include potential HOA fees if applicable and emergency repair funds, making the comprehensive startup investment range from $285,000 to $320,000 depending on property condition and furnishing choices.

Airbnb properties in Somersworth, New Hampshire typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management costs (15-25% if outsourced), utilities ($150-300 monthly), insurance premiums ($800-1,500 annually), and maintenance expenses averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving higher margins through strategic pricing during peak seasons like summer months and fall foliage season when demand increases 25-40%. Properties within 30 minutes of Portsmouth or near recreational areas like Salmon Falls River perform better, with some hosts reporting $25,000+ annual profits on properties purchased for $200,000-300,000. Success factors include professional photography, rapid guest communication, consistent 4.8+ star ratings, and targeting business travelers from nearby Dover and Rochester markets, though competition has intensified since 2020 with a 35% increase in local Airbnb listings reducing average occupancy rates from 65% to approximately 55% by 2023.

Based on Somersworth, New Hampshire 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 within the city. Properties near downtown Somersworth or within proximity to the Salmon Falls River tend to perform at the higher end of this range, while suburban locations may see returns closer to 6-8%. The timeframe to profitability is generally 18-24 months, accounting for initial setup costs, furnishing, and market establishment. Seasonal variations significantly impact performance, with summer months (June-September) generating 40-50% higher occupancy rates compared to winter months. Average daily rates in Somersworth range from $85-125 for typical 2-3 bedroom properties, with occupancy rates averaging 65-75% annually. Properties requiring minimal renovation and positioned near Route 16 or downtown amenities typically achieve break-even within 12-18 months, while those requiring significant improvements may extend profitability timelines to 24-30 months.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities and provides data-driven insights for Airbnb investors looking in Somersworth, New Hampshire. Local real estate agents like Keller Williams Coastal Realty and Coldwell Banker Residential Brokerage have agents experienced in investment properties in the Seacoast region including Somersworth. National services include Mashvisor, which offers rental property analysis tools, and AirDNA for market data and revenue projections. RedAwning and Awning provide property management and investment advisory services for short-term rentals. Local property management companies like Seacoast Property Management and Granite State Property Management offer services for investors. Real estate investment firms such as Roofstock and Fundrise, while primarily focused on traditional rentals, also provide market insights applicable to short-term rental investments. BiggerPockets serves as a comprehensive resource platform connecting investors with local professionals, and HostGPO offers purchasing power and operational support for Airbnb property owners in the New Hampshire market.