Is Woods Hole, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Woods Hole, Massachusetts, begin by researching local regulations through the Falmouth Town Clerk's office since Woods Hole is part of Falmouth, which requires short-term rental operators to obtain a business certificate ($50 annually) and comply with zoning bylaws that may restrict rentals in certain residential areas. Contact the Falmouth Health Department for required inspections and permits, including a rental housing permit ($100-200) and potential septic system inspection if applicable. Find a suitable property by working with local real estate agents familiar with Woods Hole's unique oceanside market, where properties typically range from $800,000-$2,000,000, or consider renting a property with landlord permission for subleasing. Furnish the space with coastal-themed, durable furniture suitable for the marine environment, including weatherproof outdoor furniture, and ensure high-speed internet since many guests are researchers or students visiting the Marine Biological Laboratory. Register for Massachusetts state taxes and obtain a sales tax permit through MassTaxConnect, as you'll need to collect 14.45% in state and local taxes. List your property on Airbnb and other platforms, highlighting proximity to the Woods Hole Oceanographic Institution, ferry access to Martha's Vineyard and Nantucket, and local beaches. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with coastal property challenges like salt air corrosion, and consider hiring a property management company experienced with Woods Hole's seasonal tourism patterns and scientific community visitors.

To identify profitable short-term rental properties in Woods Hole, Massachusetts, focus on locations within walking distance of the Woods Hole Oceanographic Institution, ferry terminals to Martha's Vineyard and Nantucket, and Nobska Beach, as these areas command premium rates of $300-500 per night during peak summer season. Target properties with 2-4 bedrooms, waterfront or water views, parking spaces, and outdoor amenities like decks or patios, as these features can increase nightly rates by 20-40% compared to inland properties. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that Woods Hole sees 70-80% occupancy rates from May through September with average daily rates dropping to $150-250 in shoulder seasons. Research competition by monitoring listings from established operators like Vacasa and RedAwning, while identifying gaps in luxury or pet-friendly accommodations that could command higher rates. Utilize Cape Cod-specific resources like the Cape Cod Chamber of Commerce market reports, Zillow's rental yield calculator for the Falmouth area, and local property management companies like Cape Cod Oceanview Realty for market insights, while ensuring compliance with Falmouth's short-term rental regulations which require registration and limit occupancy to maintain neighborhood character in this scientific research community.

To obtain an Airbnb/STR permit in Woods Hole, Massachusetts, you must apply through the Town of Falmouth's Building Department since Woods Hole is part of Falmouth, submitting a Short-Term Rental Registration application along with required documents including proof of property ownership or lease agreement, floor plan showing maximum occupancy, certificate of insurance with minimum $1 million liability coverage, septic system inspection certificate (if applicable), and contact information for a local property manager if you're an absentee owner. The application fee is approximately $200-300 annually, with additional inspection fees of around $150. Required documents also include a site plan, parking plan showing adequate off-street parking, and compliance with zoning requirements specific to your property's district. The timeline typically takes 4-6 weeks for processing after submitting a complete application, though initial inspections may extend this period. Woods Hole-specific requirements include adherence to the Cape Cod Commission's development regulations, compliance with seasonal occupancy limits in certain areas, mandatory registration with the state through MassTaxConnect for room occupancy excise tax, and potential additional restrictions due to the area's proximity to marine research facilities and ferry terminals. You must also comply with Falmouth's noise ordinances, maintain guest registries, and ensure properties meet all fire safety and building code requirements before receiving final approval.

Short-term rentals (STRs) in Woods Hole, Massachusetts are subject to Falmouth's municipal regulations since Woods Hole is an unincorporated village within Falmouth. As of 2023, Falmouth allows STRs but requires hosts to obtain a short-term rental permit, register with the town, pay local taxes including a 6% room occupancy tax, and comply with health and safety requirements including smoke and carbon monoxide detectors. Properties must be owner-occupied or have an owner residing within 25 miles, rentals are limited to a maximum of 14 consecutive days, and there are restrictions on the total number of rental days per year (typically around 180 days). The town has implemented noise ordinances and parking requirements, and STRs are prohibited in certain residential zones or require special permits. Falmouth has been actively updating its STR regulations since 2020 to balance tourism revenue with neighborhood character preservation, with recent changes including stricter enforcement mechanisms and increased fines for violations, though the specific regulations can vary and property owners should verify current requirements with Falmouth's planning department before operating an STR in Woods Hole.

The best areas for Airbnb investment in Woods Hole, Massachusetts are the Village Center near the Woods Hole Oceanographic Institution (WHOI) and ferry terminals, which attracts year-round business travelers, researchers, and tourists heading to Martha's Vineyard and Nantucket. The Quissett Harbor area offers waterfront appeal for summer vacationers and sailing enthusiasts, while properties near the Woods Hole Science Aquarium and Marine Biological Laboratory benefit from educational tourism and conference attendees. The residential streets between Millfield Street and Church Street provide quieter accommodations still within walking distance of restaurants and attractions, appealing to families and couples seeking a more local experience. Areas near Nobska Light and Nobska Point command premium rates due to scenic ocean views and proximity to the historic lighthouse, particularly during peak summer months when Cape Cod tourism peaks from June through September.

Airbnb properties in Woods Hole, Massachusetts are subject to multiple lodging taxes including the Massachusetts state room occupancy excise tax of 5.7%, Barnstable County's 2.75% county excise tax, and the Town of Falmouth's local room occupancy tax of 6%, resulting in a combined rate of approximately 14.45% on short-term rental stays. These taxes apply to rentals of 90 consecutive days or less and are typically collected by platforms like Airbnb directly from guests at the time of booking, with the platform remitting payments to the Massachusetts Department of Revenue on a monthly basis by the 20th of the following month. Host operators must register with the state and obtain a room occupancy excise tax number, file monthly returns even if no tax is due, and maintain detailed records of all transactions. Exemptions include stays longer than 90 consecutive days, rentals to permanent residents lasting more than 30 days, and accommodations provided to certain government employees on official business, while properties renting for less than 14 days per year may qualify for reduced reporting requirements under certain circumstances.

Starting an Airbnb in Woods Hole, Massachusetts requires approximately $850,000-$950,000 in total initial investment. Property purchase costs around $750,000-$850,000 based on median home prices in this desirable Cape Cod location near the Marine Biological Laboratory and ferry terminals. Furnishing costs typically range $25,000-$35,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and coastal-themed decor appropriate for the area. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies cost approximately $2,000-$3,000. Permits and fees in Massachusetts include short-term rental registration ($200-$500), local business licenses ($100-$300), and potential zoning compliance costs ($500-$1,500). Insurance premiums for short-term rental coverage average $2,000-$3,500 annually, with first-year payment required upfront. Utility deposits and initial connections for electricity, gas, water, internet, and cable total around $1,000-$2,000. First six months of operating costs including utilities ($3,000), cleaning services ($4,800), property management software ($300), maintenance reserves ($2,000), marketing ($1,000), and miscellaneous supplies ($1,500) add approximately $12,600 to startup expenses.

Airbnb properties in Woods Hole, Massachusetts typically generate annual revenues between $25,000-$45,000 for seasonal rentals, with peak summer months (June-August) commanding $200-$400 per night due to the area's proximity to Martha's Vineyard ferry terminal and Woods Hole Oceanographic Institution. Operating expenses generally range from $12,000-$20,000 annually, including property taxes ($3,000-$6,000), utilities ($2,400-$3,600), cleaning fees ($150-$200 per turnover), maintenance ($2,000-$4,000), and Airbnb service fees (3% host fee plus 14-16% guest fee). Profit margins typically range from 35-55%, with waterfront properties and those within walking distance to the ferry achieving higher occupancy rates of 70-85% during peak season compared to 45-60% for inland properties. Success factors include strategic pricing during Woods Hole Film Festival in July, targeting marine science conference attendees year-round, offering ferry parking solutions, and maintaining coastal-themed decor that appeals to the scientific and tourist demographics. Properties converted from traditional summer rentals to short-term rentals have seen revenue increases of 40-60% compared to seasonal leasing, though this comes with increased management complexity and local regulatory considerations regarding short-term rental permits in Falmouth.

Airbnb investments in Woods Hole, Massachusetts typically generate annual ROI of 12-18% due to the area's strong seasonal tourism driven by the Woods Hole Oceanographic Institution, Marine Biological Laboratory, and ferry access to Martha's Vineyard and Nantucket. Cash-on-cash returns generally range from 8-14% annually, with properties within walking distance of the ferry terminal and research facilities commanding premium rates of $200-400 per night during peak summer months (June-September) and $100-180 during shoulder seasons. Most investors achieve profitability within 18-24 months, with properties requiring initial investments of $400,000-800,000 for suitable vacation rentals. The market benefits from year-round demand from visiting researchers, conference attendees, and seasonal tourists, though winter occupancy drops to 30-40% compared to 80-95% summer occupancy rates. Properties with 2-4 bedrooms, parking, and proximity to Woods Hole's scientific institutions typically outperform the market average, with some investors reporting ROI as high as 22% when factoring in property appreciation of 4-6% annually in this desirable Cape Cod location.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking to enter the Airbnb market in Woods Hole, Massachusetts. Local real estate agents who focus on investment properties in the Cape Cod area include Kinlin Grover Real Estate, Robert Paul Properties, and Coldwell Banker Realty Cape Cod, with agents like Sarah Mitchell and David Thompson who have experience with vacation rental investments since 2018. National services that assist Airbnb investors include AirDNA for market analysis, Mashvisor for property analytics, BiggerPockets for investor networking, and Awning for short-term rental investment guidance. Regional companies such as Cape Cod Vacation Rentals and RedAwning provide property management and investment consulting services, while Vacasa and AvantStay offer full-service management for investors purchasing properties in the Woods Hole market. Local property management companies like Cape Cod Oceanview and Nauset Vacation Rentals also provide investment advisory services to help investors identify profitable properties in this coastal Massachusetts market that has seen consistent growth in vacation rental demand since 2019.