Is Taunton, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Taunton, Massachusetts, begin by researching local zoning laws and regulations through the Taunton Planning Department.

Launch checklist

• Contact the Taunton Building Department to secure necessary permits including a Certificate of Occupancy for rental use, fire safety inspections.
• Find a suitable property in residential zones that allow short term rentals, focusing on areas near downtown Taunton, Taunton Green, or near major highways for accessibility, with properties typically ranging from $200,000 to $400,000 for single family homes.
• Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, and safety equipment like smoke detectors and carbon monoxide alarms as required by Massachusetts law.
• Create your listing on Airbnb and other platforms like VRBO, highlighting proximity to attractions such as the Taunton Green, local restaurants, and easy access to Boston (45 minutes) and Providence (30 minutes).
• For ongoing management, establish cleaning protocols between guests, maintain responsive communication, handle bookings and pricing (expect average nightly rates of $80 to 150 depending on property size and season), collect and remit the Massachusetts 5.7% lodging tax plus local taxes.

To identify profitable short term rental properties in Taunton, Massachusetts, focus on locations within 2 to 3 miles of downtown Taunton's historic district, near Taunton Green and Main Street, or properties with easy access to Route 24 and Route 44 for commuter convenience to Boston and Providence.

What to prioritize

• Target 2 to 4 bedroom single family homes or condos built after 1950 with modern amenities, parking, and outdoor space, as these appeal to business travelers visiting local companies like Bristol Myers Squibb and families exploring the region's historical sites.
• Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for nightly rates between $80 to 150 depending on size and amenities, with occupancy targets of 60 to 70% annually.
• Research competition by analyzing existing Airbnb and VRBO listings within a 5 mile radius, identifying gaps in amenities or pricing, and monitor seasonal demand patterns tied to summer tourism and fall foliage periods.
• Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through partnerships with Taunton area real estate agents, while consulting the City of Taunton's zoning regulations and short term rental ordinances to ensure compliance.

To obtain an Airbnb/STR permit in Taunton, Massachusetts, you must first contact the Taunton Building Department at City Hall located at 141 Oak Street to inquire about short term rental licensing requirements, as the city implemented regulations around 2019 to 2020.

Documents and approvals

• You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, floor plans showing maximum occupancy, proof of liability insurance (typically $1 million minimum).
• The application fee is estimated at $200 to 400 annually, with additional inspection fees of approximately $100 to 150.
• You must also register with the Massachusetts Department of Revenue for state tax collection purposes and obtain a business certificate from the City Clerk if operating under a business name.
• Taunton requires STR properties to maintain minimum safety standards including smoke and carbon monoxide detectors, emergency contact information posted prominently, and compliance with zoning regulations that may restrict STRs in certain residential districts.
• The approval timeline typically takes 4 to 8 weeks depending on inspection scheduling and document completeness, and you may need to attend a Planning Board meeting if your property requires special permits based on zoning classification.

Short term rentals (STRs) in Taunton, Massachusetts operate under state regulations as the city has not enacted specific local ordinances governing STRs as of 2023.

Core operating requirements

• Under Massachusetts state law, STRs are generally legal but must comply with state tax requirements including collecting and remitting state and local taxes.
• Property owners must register with the Massachusetts Department of Revenue and obtain proper tax identification numbers.
• The state requires STR operators to carry liability insurance and maintain safety standards including smoke and carbon monoxide detectors.
• Taunton follows standard zoning laws which may restrict STRs in certain residential areas depending on the property's zoning classification, and operators must ensure compliance with local health and safety codes.
• Recent changes at the state level in 2019 established the regulatory framework that Taunton currently operates under, requiring registration and tax compliance but allowing municipalities to impose additional restrictions, which Taunton has not yet implemented.
• Property owners should verify current zoning compliance and may face restrictions in multi family buildings or areas with homeowners association rules that prohibit short term rentals.

The best areas for Airbnb investment in Taunton, Massachusetts include the Historic Downtown District near Taunton Green, which attracts visitors interested in the city's colonial history and proximity to antique shops and local restaurants.

Areas to research

• The area around Taunton State Hospital grounds offers potential due to ongoing redevelopment projects and its central location with easy highway access.
• The neighborhoods near Massasoit State Park and Watson Pond State Park are attractive for outdoor enthusiasts and families seeking recreational activities.
• The East Taunton area along Route 44 provides good investment opportunities due to its proximity to major employers like Bristol Myers Squibb and easy access to Route 24 for business travelers commuting to Boston or Providence.
• The Whittenton District offers charm with its mill history and walkable streets, appealing to visitors interested in industrial heritage tourism.
• Areas near the Taunton River provide scenic waterfront appeal for guests seeking peaceful retreats while maintaining accessibility to urban amenities and major transportation corridors.

In Taunton, Massachusetts, Airbnb operators are subject to both state and local lodging taxes.

Taxes and filing responsibilities

• The Massachusetts state room occupancy excise tax is 5.7% on rentals under 90 consecutive days, collected by the host and remitted monthly to the Department of Revenue if gross receipts exceed $15,000 annually.
• Taunton imposes an additional local room occupancy tax of 6%, bringing the total tax rate to approximately 11.7% on short term rental stays.
• Hosts must register with both state and local tax authorities, collect taxes from guests at the time of booking, and file returns monthly or quarterly depending on volume.
• The state tax applies to the total rent charged, while the local tax typically applies to the same base.
• Exemptions generally include stays of 90 days or longer, rentals to permanent residents, and accommodations provided for less than 14 days per year by occasional hosts.
• Airbnb may collect and remit these taxes automatically for hosts in some cases, but hosts remain ultimately responsible for compliance and should verify collection through their hosting platform or handle remittance directly to the Massachusetts Department of Revenue and Taunton's tax collector.

The total cost to start an Airbnb in Taunton, Massachusetts is approximately $385,000 to $425,000. This includes property purchase at the median home price of $350,000 (based on 2023 to 2024 market data), furnishing costs of $15,000 to $20,000 for a complete 2 to 3 bedroom setup including furniture, appliances, linens, and decor, initial setup costs of $3,000 to $5,000 covering professional photography, listing creation, and basic renovations.

Airbnb properties in Taunton, Massachusetts typically generate annual revenues between $15,000 to $35,000 for entire homes and $8,000 to $18,000 for private rooms, with average daily rates ranging from $75 to $120 depending on property size and amenities.

Profitability indicators

• Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($30 to 50 per turnover), property management (10 to 20% of revenue), utilities ($150 to 300 monthly), insurance ($800 to 1,500 annually).
• Net profit margins typically range from 15 to 35% for well managed properties, with higher end homes near Taunton Green or close to commuter rail stations achieving better performance due to business traveler demand and proximity to Boston (45 minute train ride).
• Success factors include strategic pricing during peak seasons (summer months and fall foliage), maintaining 4.8+ star ratings, offering amenities like parking and WiFi.
• Properties within walking distance of downtown Taunton or featuring unique characteristics like historic charm tend to achieve 65 to 75% occupancy rates compared to 45 to 55% for standard suburban listings.

Airbnb investments in Taunton, Massachusetts typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% based on current market conditions.

Return planning figures

• Properties in downtown Taunton near the commuter rail station and historic districts command higher nightly rates of $85 to 120, while suburban locations average $65 to 95 per night.
• Initial investment costs average $250,000 to 350,000 for suitable properties, with renovation expenses of $15,000 to 25,000 to meet Airbnb standards.
• Monthly gross revenues typically range from $1,800 to 3,200 depending on property size and location, with occupancy rates averaging 65 to 75% annually.
• After accounting for expenses including utilities, cleaning, maintenance, insurance, and local taxes, net annual returns generally fall between $8,000 to 18,000.
• Most investors achieve profitability within 18 to 24 months, with break even occurring faster for properties requiring minimal renovations.
• The proximity to Boston (40 miles) and Providence (25 miles) drives consistent demand from business travelers and tourists, particularly during summer months and fall foliage season when rates can increase 20 to 30%.

STRSearch is a leading national platform that helps investors identify profitable short term rental properties in Taunton, Massachusetts, offering market analysis and property recommendations.

Companies and resources

• Local real estate agents specializing in investment properties include Century 21 Tassinari & Associates, Coldwell Banker Realty, and RE/MAX Executive Realty, who have expertise in the Taunton market and understand Airbnb regulations.
• National services like Awning, RedAwning, and Mashvisor provide comprehensive market data, rental projections, and property analysis for Taunton's short term rental market.
• AirDNA offers detailed market insights and revenue estimates for the area, while companies like Vacasa and AvantStay help with property management once investments are acquired.
• Local property management companies such as South Shore Property Management and Bristol County Property Services can assist with ongoing operations.
• Investment focused platforms like BiggerPockets connect investors with local professionals, and companies like Roofstock and Arrived Homes occasionally feature turnkey rental properties in the Massachusetts market that could be suitable for Airbnb conversion.