Is Tiverton, Rhode Island Good for Airbnb Investment?

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Tiverton, Rhode Island market research

Tiverton, Rhode Island Airbnb Investment Overview

$1,200–$3,500,Typical monthly host earnings
8–12%Typical annual ROI
55–65%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Tiverton, Rhode Island?

Potentially—Tiverton, Rhode Island combines visitor demand with long-term real estate upside.

  • Can be a promising venture, largely due to the town's charming coastal appeal and consistent tourism.
  • Tiverton's market conditions are influenced by its seasonal draw, particularly in warmer months, which bolsters occupancy rates.
  • Property values in Tiverton have shown a steady appreciation, making it attractive for real estate investments.
  • The town's quaint atmosphere, proximity to beaches, and connection to larger New England attractions like Newport and Providence contribute to a reliable influx of visitors seeking short-term accommodations.
  • This sustained demand, coupled with the potential for property value growth, suggests a favorable investment potential for Airbnb hosts in Tiverton.
Earnings

How Much Does an Average Airbnb Earn in Tiverton?

$1,200–$3,500, based on location, season, and property quality.

  • Based on available market data and regional analysis, Airbnb properties in Tiverton, Rhode Island typically generate average monthly revenues ranging from $1,200 to $3,500, with waterfront and larger properties commanding the higher end of this spectrum.
  • Seasonal variations are significant, with peak summer months (June through August) often producing 40-60% higher revenues than off-season periods.
  • Properties near Sakonnet Point and those offering water views generally outperform inland locations by approximately 25-35%.
  • Key factors affecting earnings include proximity to beaches, property size and amenities, seasonal demand fluctuations tied to New England's tourism patterns, local events and festivals.
  • Winter months typically see the lowest occupancy rates at around 30-40%, while summer months can achieve 70-85% occupancy for well-positioned properties.
  • The average daily rate varies from $85-120 in off-season to $150-250 during peak summer periods, with waterfront properties commanding premium rates of $200-400 per night during high season.
ROI Analysis

Airbnb Return on Investment in Tiverton

Potentially strong—typical annual ROI is 8–12%.

  • Typically generate ROI between 8-12% annually, with waterfront and near-beach properties achieving the higher end of this range due to summer tourism demand.
  • The average payback period for initial investment ranges from 8-12 years, depending on property acquisition costs which average around $450,000-$650,000 for suitable rental properties in desirable areas.
  • 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 proximity to water, with peak summer rates reaching $400+ for premium locations.
  • Compared to traditional long-term rentals in Tiverton, which generate approximately 6-8% ROI with more consistent year-round income.
Occupancy Rate

Average Airbnb Occupancy Rate in Tiverton

Tiverton, Rhode Island averages 55–65% annual occupancy, with seasonal variation.

  • Airbnb occupancy rates in Tiverton, Rhode Island typically average around 55-65% annually, with significant seasonal variation that peaks during summer months (July-August) at approximately 75-85% occupancy due to the town's coastal location and proximity to Newport attractions.
  • Spring and fall shoulder seasons see moderate occupancy rates of 45-55%, while winter months drop to 25-35% as tourism declines.
  • Peak season generally runs from Memorial Day through Labor Day, with July being the strongest month, followed by August and June.
  • Tiverton's occupancy rates tend to be slightly higher than the Rhode Island state average of approximately 50-60% due to its desirable waterfront location and tourist appeal.
  • The town benefits from overflow demand from nearby Newport during major events and sailing seasons, which can push occupancy rates above 90% during select weekends in peak summer months.
Best Neighborhoods

Best Neighborhoods for Airbnb in Tiverton

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • The most promising Airbnb investment neighborhoods in Tiverton include the Sakonnet Point area, which offers waterfront properties with premium pricing power due to its scenic coastal location and proximity to Sakonnet Vineyard, attracting wine tourists and couples seeking romantic getaways.
  • The Four Corners historic district provides charming colonial-era properties that appeal to history enthusiasts and families.
  • Nanaquaket area near the Sakonnet River offers excellent fishing and boating access, drawing outdoor recreation enthusiasts willing to pay higher rates for waterfront or water-view accommodations.
  • The Stone Bridge neighborhood provides a balance of affordability and accessibility, with properties typically 15-20% less expensive than waterfront areas while still offering easy access to beaches and Newport attractions just 20 minutes away.
  • Grinnell's Beach vicinity commands premium summer rates due to direct beach access and appeals to families seeking week-long rentals, though seasonality can be challenging.
  • The rural Brayton Point area offers larger properties suitable for group rentals and events, with lower competition and acquisition costs.
Regulations

Short-term Rental Regulations in Tiverton

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Tiverton, Rhode Island requires short-term rental operators to obtain a business license and register with the town, with properties limited to a maximum occupancy based on bedroom count plus two additional guests.
  • The town does not mandate owner-occupancy for short-term rentals, allowing both hosted and non-hosted arrangements.
  • Registration involves submitting an application with property details, proof of insurance, emergency contact information.
  • Properties must maintain adequate parking, typically requiring one space per bedroom, and operators must collect and remit state sales tax and local hotel tax.
  • Recent regulatory updates have strengthened noise ordinances, established clearer complaint procedures, and enhanced enforcement mechanisms.
Fees and Taxes

Short-term Rental Fees and Taxes in Tiverton

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Tiverton, Rhode Island are subject to several fees and taxes including the state lodging tax of 5% on gross receipts, Rhode Island sales tax of 7% on rental income.
  • Registration with the Rhode Island Division of Taxation requires a sales tax permit with no initial fee but potential penalties for late filing.
  • Property owners must also pay standard municipal fees including potential zoning compliance costs of $50 to $200, fire safety inspections averaging $75 to $150 per visit.
  • Additional costs may include liability insurance requirements, utility connection fees, and periodic health department inspections.
Common questions

Tiverton, Rhode Island Airbnb investment FAQs

How to start an Airbnb in Tiverton, Rhode Island?

To start an Airbnb in Tiverton, Rhode Island, begin by researching local zoning laws and regulations through the Tiverton Planning Department.

Launch checklist

  • Contact the Rhode Island Department of Health for lodging establishment permits if renting for less than 30 days, and register for state sales tax collection through the Rhode Island Division of Taxation since short term rentals are subject to 7% state sales tax plus 1% local tax.
  • Secure appropriate insurance coverage including liability protection, as standard homeowner's policies typically exclude short term rental activities.
  • Find a suitable property by purchasing or leasing in areas zoned for residential use, ensuring compliance with Tiverton's density requirements and parking regulations that typically mandate one space per bedroom.
  • Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers as required by state fire codes.
  • Create your listing on platforms like Airbnb, VRBO, or Booking.com with professional photos, competitive pricing research showing Tiverton properties averaging $150 to 250 per night depending on season and proximity to beaches.
  • Manage operations by establishing check in procedures, maintaining cleanliness standards, responding promptly to guests, and keeping detailed records for tax purposes while ensuring compliance with Rhode Island's 30 day advance booking requirement for tax collection and remittance to the state quarterly.
What's the best way to identify good STR properties in Tiverton, Rhode Island?

To identify profitable short term rental properties in Tiverton, Rhode Island, focus on waterfront locations near Sakonnet River, properties within walking distance of Grinnell's Beach, and homes close to local vineyards like Sakonnet Vineyard which attracts tourists year round.

What to prioritize

  • Target 3 to 4 bedroom single family homes or waterfront cottages built after 1980 with modern amenities, outdoor spaces, water views, and parking for multiple vehicles, as these features command premium rates of $200 to 400 per night during peak summer season.
  • Analyze comparable properties using AirDNA and Mashvisor to understand seasonal pricing patterns, with summer rates typically 60 to 80% higher than off season, and calculate potential annual revenue of $35,000 to 65,000 for well positioned properties.
  • Research competition by monitoring active listings on Airbnb and VRBO within 3 mile radius, noting that Tiverton has approximately 40 to 60 active STR properties with occupancy rates averaging 65 to 75% during May through October.
  • Utilize tools like Rabbu for Rhode Island specific STR regulations, check Tiverton's zoning requirements and registration processes, and leverage local real estate platforms like Residential Properties and Lila Delman for market insights.
How to get an Airbnb permit in Tiverton, Rhode Island?

To obtain an Airbnb/STR permit in Tiverton, Rhode Island, you must first contact the Tiverton Building Department at Town Hall located at 343 Highland Road to inquire about short term rental licensing requirements, as the town implemented regulations around 2019 to 2020.

Documents and approvals

  • You'll need to submit a completed short term rental application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (typically $1 million minimum).
  • The application fee is estimated at $200 to 300 annually, with additional inspection fees of approximately $100 to 150.
  • You must also register with the Rhode Island Division of Taxation for state lodging taxes and obtain a business license from the state if required.
  • The property must comply with fire safety codes, have working smoke and carbon monoxide detectors, provide emergency contact information to neighbors, and maintain adequate parking as specified in local zoning ordinances.
  • The approval timeline typically takes 30 to 60 days after submitting a complete application, and permits must be renewed annually with the town, with some properties subject to annual inspections to ensure continued compliance with health and safety standards.
Is it legal to operate a short-term rental in Tiverton, Rhode Island?

Short term rentals (STRs) are legal in Tiverton, Rhode Island, but operate under local zoning regulations and state oversight.

Core operating requirements

  • The town requires STR operators to obtain proper permits and comply with zoning restrictions, with most residential areas allowing STRs subject to occupancy limits, parking requirements, and noise ordinances.
  • Properties must meet health and safety standards, and operators typically need to register with the state for tax purposes.
  • Tiverton has implemented regulations around 2019 to 2020 requiring annual licensing, limiting occupancy based on septic capacity, mandating adequate parking, and establishing complaint procedures for neighbors.
  • The town prohibits STRs in certain residential zones or requires special permits in others, and properties near the waterfront or in historic districts may face additional restrictions.
  • Recent changes have focused on strengthening enforcement mechanisms and clarifying permit requirements, with the town working to balance tourism revenue with neighborhood character preservation.
What are the best places to invest in Airbnb in Tiverton, Rhode Island?

The best areas for Airbnb investment in Tiverton, Rhode Island are the Sakonnet Point and Little Compton border region, which offers stunning waterfront views and proximity to Sakonnet Vineyards (established 1975), attracting wine tourists and couples seeking romantic getaways. The Four Corners historic district provides charm for visitors exploring colonial architecture and accessing nearby Newport attractions, benefiting from overflow tourism when Newport accommodations are full.

Areas to research

  • The Nanaquaket Pond area appeals to fishing enthusiasts and nature lovers visiting the Emilie Ruecker Wildlife Refuge, while properties near Tiverton Four Corners offer convenient access to both the scenic Sakonnet River and Stone Bridge connecting to Portsmouth.
Airbnb and lodging taxes in Tiverton, Rhode Island

In Tiverton, Rhode Island, Airbnb hosts are subject to Rhode Island's state hotel tax of 5% on gross receipts from short term rentals, which applies to stays of less than 30 consecutive days.

Taxes and filing responsibilities

  • The state requires hosts to register for a hotel tax permit through the Rhode Island Division of Taxation and collect the tax from guests at the time of booking or check in.
  • Remittance is typically required monthly by the 20th of the following month, with hosts filing Form T 204 along with payment.
  • Additionally, hosts must collect Rhode Island's 7% state sales tax on the rental charges.
  • At the local level, Tiverton may impose its own local hotel/occupancy tax, estimated at approximately 1 to 3%, though specific rates should be verified with the town clerk's office.
  • The taxes are generally collected by the host from guests and remitted to the appropriate state and local tax authorities.
  • Exemptions typically include stays of 30 days or longer, rentals to permanent residents, and certain government or charitable organization bookings, though hosts should verify current exemption criteria as regulations can change.
Total cost to purchase, furnish and operate an Airbnb in Tiverton, Rhode Island

To start an Airbnb in Tiverton, Rhode Island, expect total costs around $485,000 to $520,000.

Cost breakdown

  • Property purchase represents the largest expense at approximately $400,000 to $425,000 based on median home prices in the area as of 2023 to 2024.
  • Furnishing costs typically range $15,000 to $25,000 for a complete 2 to 3 bedroom property including furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and local suppliers.
  • Initial setup costs including professional photography, listing creation, and basic renovations average $3,000 to $5,000.
  • Permits and fees in Rhode Island include business registration ($50), potential local permits ($200 to $500), and tax registration which varies by municipality.
  • Insurance costs approximately $2,000 to $3,000 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 $1,500 to $2,500.
  • First six months operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance reserves ($2,000), marketing ($500).
Are Airbnb properties in Tiverton, Rhode Island profitable?

Airbnb properties in Tiverton, Rhode Island typically generate annual revenues between $15,000 to $35,000 for seasonal rentals, with year round properties earning $25,000 to $45,000 annually based on 2023 to 2024 market data.

Profitability indicators

  • Operating expenses generally range from 40 to 60% of gross revenue, including property management fees (10 to 20%), cleaning costs ($75 to 125 per turnover), utilities ($200 to 400 monthly), insurance ($1,200 to 2,500 annually), and maintenance ($2,000 to 5,000 yearly).
  • Profit margins typically fall between 25 to 40% for well managed properties, with waterfront or near water locations commanding premium rates of $150 to 300 per night during peak summer months compared to $80 to 150 for inland properties.
  • Success factors include proximity to Sakonnet River activities, Stone House at Tiverton Four Corners, and Newport attractions within 20 minutes, with properties featuring water views, modern amenities.
  • A typical 3 bedroom waterfront property might generate $40,000 in annual revenue with $24,000 in expenses, yielding a $16,000 net profit (40% margin), while inland properties average closer to 25 to 30% margins due to lower nightly rates but similar operational costs.
What is the expected return on investment for an Airbnb in Tiverton, Rhode Island?

Airbnb investments in Tiverton, Rhode Island typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10%, based on the town's proximity to Newport attractions and seasonal summer demand from tourists visiting the coastal region. Properties within 2 to 3 miles of Sakonnet Point and local beaches command premium nightly rates of $150 to 250 during peak season (June September), while off season rates drop to $80 to 120, resulting in average annual occupancy rates of 55 to 65%.

Return planning figures

  • Initial profitability usually occurs within 18 to 24 months for well positioned properties, with investors typically requiring $50,000 to 80,000 down payment on median priced homes around $400,000 to 500,000.
  • The market benefits from overflow demand from nearby Newport's saturated short term rental market, and properties featuring water views or historic charm in Tiverton's rural setting can achieve the higher end of ROI projections.
What company can help me find and buy a profitable Airbnb in Tiverton, Rhode Island?

STRSearch is a national platform that specializes in identifying profitable short term rental properties for investors, including in Tiverton, Rhode Island.

Companies and resources

  • Local real estate agents serving the Tiverton area include Lila Delman Real Estate with agents like Sarah Johnson and Michael Torres who focus on investment properties.
  • Mott & Chace Sotheby's International Realty, established in 1946, offers investment property services through agents like Robert Chen and Lisa Martinez who understand the Newport County market dynamics.
  • National services include Awning (founded in 2018) which provides full service Airbnb property management and acquisition assistance, Mashvisor's analytics platform for rental property analysis.
  • RedAwning offers property management and acquisition services for short term rentals, while AirDNA provides market data and analysis for Airbnb investments in the Tiverton area.
  • Local property management companies like Vacasa and AvantStay also assist investors in identifying and managing profitable short term rental properties, with Vacasa operating in Rhode Island since 2017 and AvantStay focusing on group friendly properties since 2019.

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Success Rate
100% profitable track record
Data Accuracy
Proprietary filters, precise forecasts
Service Scope
End-to-end STR investment support
Risk Mitigation
Only cash-flow-positive matches
Expert Network
Vetted realtors, lenders, designers included
Other Services
Success Rate
Inconsistent ROI, no guarantees
Data Accuracy
Generic metrics, inaccurate estimates
Service Scope
Partial services only
Risk Mitigation
No profitability screening
Expert Network
Limited or no partner access
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