Is Woods Hole, Massachusetts Good for Airbnb Investment?

Potentially—Woods Hole, Massachusetts combines visitor demand with long-term real estate upside.

• Presents a unique investment opportunity, largely influenced by its seasonal tourism and specialized visitor demographic.
• Woods Hole is a scientific hub, home to the Woods Hole Oceanographic Institution and Marine Biological Laboratory, attracting researchers, students, and conference attendees.
• Property values in this desirable coastal area are generally high, reflecting its prime location and limited inventory.
• Current market conditions often see a surge in demand during the summer months and academic terms, leading to strong occupancy rates and premium pricing during these periods.
• However, off-season demand can be considerably lower.
• The investment potential hinges on effectively catering to both seasonal tourists seeking coastal getaways and the year-round scientific community.

$150–400 based on location, season, and property quality.

• Based on available vacation rental data for Woods Hole, Massachusetts, Airbnb hosts typically earn between $150-400 per night during peak summer months (June through August).
• The substantial seasonal variation is driven by Woods Hole's proximity to Martha's Vineyard ferry terminals, the Woods Hole Oceanographic Institution's summer research programs.
• Key factors affecting earnings include property size and amenities (with 2-3 bedroom homes near the water performing best), parking availability (crucial given limited street parking), and booking lead times.
• Revenue estimates are based on analysis of comparable Cape Cod vacation rental markets and local tourism patterns.

Potentially strong—typical annual ROI is 8–15%.

• Typically generate ROI between 8-15% annually, with higher-end properties near the Marine Biological Laboratory and ferry terminals achieving returns closer to 12-18% during peak summer months.
• The average payback period ranges from 7-10 years, significantly influenced by the seasonal nature of this Cape Cod market where 60-70% of rental income occurs between May and September.
• Properties within walking distance of Woods Hole Oceanographic Institution and ferry services to Martha's Vineyard command premium rates of $200-400 per night during summer.
• When compared to traditional long-term rentals in Woods Hole, which typically yield 4-6% annually with average monthly rents of $2,500-4,000 for comparable properties.
• The market benefits from consistent demand from researchers, tourists accessing the islands, and summer visitors, but investors must account for higher operating costs, seasonal fluctuations.

Woods Hole, Massachusetts averages 75–85% annual occupancy, with seasonal variation.

• Woods Hole, Massachusetts experiences significant seasonal fluctuations in Airbnb occupancy rates, with peak season occurring from June through September when rates typically reach 75-85% due to the area's proximity to Martha's Vineyard and Nantucket ferry terminals, the Woods Hole Oceanographic Institution's summer programs, and general Cape Cod tourism.
• During the shoulder seasons of April-May and October, occupancy rates drop to approximately 45-60%, while winter months see the lowest occupancy at around 25-35% as the area becomes primarily a local residential community with limited tourist activity.
• The annual average occupancy rate for Woods Hole Airbnbs is estimated at 55-65%, which is slightly higher than the Massachusetts state average of 50-60% but comparable to the national Airbnb average of 48-65%.

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

• Woods Hole offers several prime neighborhoods for Airbnb investment, with the Village Center being the most lucrative due to its immediate proximity to the Woods Hole Oceanographic Institution.
• The Quissett Harbor area provides excellent investment potential with its upscale waterfront properties attracting high-end guests seeking luxury accommodations near private beaches and yacht clubs.
• The Nobska Point neighborhood offers strong returns due to its iconic lighthouse views and elevated position overlooking Vineyard Sound.
• The Woods Hole Road corridor presents good value with more affordable property acquisition costs while maintaining easy access to downtown attractions and the MBL campus.
• The Gardiner Road area attracts families and groups with larger properties near Stony Beach, offering competitive pricing power during summer months when beach access becomes premium.
• The Millfield Street neighborhood provides steady occupancy rates due to its quiet residential character while remaining walkable to major attractions.
• Finally, the Water Street waterfront district commands premium rates for its harbor views and proximity to working fishing boats and research vessels.

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

• Woods Hole, Massachusetts operates under Falmouth's short-term rental regulations, which require property owners to obtain an annual rental registration permit through the town's licensing department.
• Properties are limited to a maximum occupancy of two persons per bedroom plus two additional guests, with a total cap that cannot exceed local fire safety codes.
• Owner-occupancy is not mandated for short-term rentals, but properties must be the owner's primary or secondary residence and cannot be purely investment properties purchased solely for rental purposes.
• The registration process requires submission of floor plans, proof of insurance, contact information for a local representative available 24/7, and compliance with health and safety inspections including smoke and carbon monoxide detectors.
• Recent changes implemented around 2019-2021 include stricter noise ordinances with specific quiet hours, mandatory posting of house rules regarding parking and occupancy limits.
• All short-term rentals must also comply with state tax collection requirements and maintain detailed guest registries.

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

• Short-term rentals in Woods Hole, Massachusetts are subject to several fees and taxes including the state lodging tax of 5.7%.
• Property owners must obtain a short-term rental permit from the Town of Falmouth costing approximately $300-500 annually, plus a one-time registration fee of around $150-250.
• The Massachusetts Department of Revenue requires registration for tax collection purposes with no additional fee but mandatory compliance.
• Fire department inspections may cost $100-200 annually, and some properties require septic system inspections costing $200-400 every few years.
• Board of Health permits for rentals may cost $75-150 annually, and properties with more than three bedrooms often require additional safety inspections costing $150-300.
• Owners must also pay standard property taxes which average 0.6-0.8% of assessed value annually in the Woods Hole area, and may face increased assessments due to rental income potential.