Is Yarmouth, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Yarmouth, Massachusetts, begin by researching local zoning laws and short-term rental regulations through the Yarmouth Planning Department, as the town requires short-term rental operators to obtain a business certificate and comply with specific occupancy limits and safety requirements. Contact the Yarmouth Building Department to secure necessary permits including a lodging house license if renting more than 3 rooms, and ensure compliance with Massachusetts state tax requirements by registering with the Department of Revenue for room occupancy excise tax collection. Find a suitable property in residential zones where short-term rentals are permitted, focusing on areas near beaches like Bass River or Dennis Port for higher demand, and consider properties with parking since Yarmouth requires adequate off-street parking for guests. Furnish the space with coastal-themed décor, essential amenities like WiFi, air conditioning, and beach equipment, while ensuring all safety features including smoke detectors, carbon monoxide detectors, and fire extinguishers meet Massachusetts building codes. List your property on Airbnb and other platforms like VRBO, highlighting proximity to Cape Cod attractions, beaches, and the Cape Cod Rail Trail, with competitive pricing typically ranging $150-400 per night depending on season and property size. Manage your Airbnb by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company familiar with Cape Cod regulations, while maintaining detailed records for tax purposes and ensuring compliance with Yarmouth's noise ordinances and guest registration requirements.

To identify profitable short-term rental properties in Yarmouth, Massachusetts, focus on locations within 0.5-1 mile of popular beaches like Bass River Beach and Seagull Beach, properties near the Cape Cod Rail Trail, and homes in established neighborhoods like South Yarmouth and West Yarmouth that offer easy access to Route 28 amenities. Target 3-4 bedroom properties built after 1980 with modern kitchens, central air conditioning, outdoor spaces like decks or patios, parking for 2-3 cars, and proximity to water views or beach access, as these features command premium rates of $200-400 per night during peak summer season (June-August). Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, noting that Yarmouth STRs typically achieve 60-75% occupancy rates with average daily rates dropping to $120-180 in shoulder seasons and $80-120 in winter months. Research competition by analyzing listings within a 2-mile radius on Airbnb and VRBO, identifying gaps in amenities or pricing strategies, and monitoring properties managed by local companies like Cape Cod Oceanview Realty and Kinlin Grover Vacation Rentals. Utilize tools like Rabbu and AllTheRooms for market analysis, consult Yarmouth's zoning regulations and STR permit requirements through the town's official website, and leverage local resources such as the Cape Cod Chamber of Commerce and Cape Cod Times real estate listings to identify emerging neighborhoods and seasonal demand patterns that can maximize annual rental income potential.

To obtain an Airbnb/STR permit in Yarmouth, Massachusetts, you must first contact the Yarmouth Building Department at Town Hall located at 1146 Route 28, South Yarmouth, MA 02664, or call (508) 398-2231 extension 1240. Required documents include a completed short-term rental registration application, proof of property ownership or lease agreement, floor plan of the rental unit, certificate of occupancy, proof of liability insurance (minimum $1 million), septic system inspection certificate if applicable, and a site plan showing parking areas and emergency egress routes. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. You must also obtain a business certificate from the Town Clerk's office for an additional $50 fee and register with the Massachusetts Department of Revenue for state taxes. The timeline typically takes 4-6 weeks for processing once all documents are submitted, including required inspections by the Building Inspector and Health Department. Yarmouth-specific requirements include limiting occupancy to no more than 2 people per bedroom plus 2 additional guests, maintaining off-street parking for each bedroom, ensuring 24/7 local contact availability within 30 minutes, installing smoke and carbon monoxide detectors in all sleeping areas, providing emergency contact information to neighbors, and adhering to quiet hours from 9 PM to 8 AM with no outdoor gatherings after 9 PM.

Short-term rentals (STRs) are legal in Yarmouth, Massachusetts, but are subject to local regulations and state requirements. The town requires STR operators to obtain a business license and comply with health and safety standards, including regular inspections. Properties must meet specific occupancy limits, parking requirements, and noise ordinances, with many rentals concentrated in areas near beaches and popular tourist destinations. Yarmouth has implemented restrictions on the number of guests allowed and requires 24/7 contact information for a responsible party. The town has been actively updating its STR bylaws since around 2018-2020 to balance tourism revenue with neighborhood concerns, including potential limits on the total number of STR permits issued in certain residential zones. Operators must also comply with Massachusetts state tax requirements and register with the Department of Revenue, while some areas near conservation land or in certain residential districts may have additional restrictions or prohibitions on short-term rental operations.

The best areas for Airbnb investment in Yarmouth, Massachusetts are West Yarmouth near Seagull Beach and Lewis Bay, which attracts summer tourists seeking pristine beaches and water activities, and South Yarmouth around Bass River and the Cape Cod Rail Trail, popular with families and outdoor enthusiasts visiting from May through October. The area around Yarmouth Port offers historic charm and proximity to cultural attractions like the Captain Bangs Hallet House, appealing to heritage tourists and couples seeking romantic getaways. West Dennis Road corridor benefits from its central location providing easy access to both Nantucket Sound beaches and Dennis attractions, making it ideal for visitors wanting to explore multiple Cape Cod towns. The neighborhoods near Mill Creek and Swan Pond attract nature lovers and fishing enthusiasts, while areas close to the Cape Cod Rail Trail terminus draw cycling tourists and active travelers, with peak demand running from Memorial Day through Labor Day when tourism peaks due to beach season, summer festivals, and the Cape's renowned cranberry harvest celebrations.

In Yarmouth, Massachusetts, Airbnb hosts are subject to multiple lodging taxes including the state excise tax of 5.7% on short-term rentals under 90 days, collected by the Massachusetts Department of Revenue, and local room occupancy taxes which typically range from 4-6% in Cape Cod communities like Yarmouth. The Town of Yarmouth imposes its own local room occupancy tax of approximately 4% on short-term rental accommodations. These taxes are generally collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to state and local tax authorities on behalf of hosts. Hosts must register with the Massachusetts Department of Revenue and obtain a room occupancy excise tax account, filing monthly returns by the 20th of the following month even if no tax is due. The town may also require separate registration and periodic remittance of local taxes. Exemptions typically include rentals to permanent residents (stays over 90 consecutive days) and certain government or charitable organization bookings, though hosts remain responsible for verifying exemption eligibility and maintaining proper documentation for tax compliance purposes.

To start an Airbnb in Yarmouth, Massachusetts, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$600,000 based on median home prices in the Cape Cod area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and outdoor items. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations average $3,000-$5,000. Permits and fees in Massachusetts include short-term rental registration ($200-$500), local permits ($300-$800), and potential zoning compliance costs totaling $1,000-$2,000. Insurance premiums for short-term rental coverage run $2,000-$4,000 annually, with first-year payment required upfront. Utility deposits and connections for electricity, gas, water, internet, and cable average $1,500-$2,500. First six months operating costs including utilities ($1,200-$1,800), cleaning services ($2,400-$3,600), maintenance reserves ($1,500-$2,500), property management software ($300-$600), and marketing expenses ($500-$1,000) total approximately $6,000-$10,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $5,000-$15,000 to initial capital requirements.

Airbnb properties in Yarmouth, Massachusetts typically generate annual revenues between $25,000-$45,000 for seasonal properties and $15,000-$30,000 for year-round rentals, with peak summer months (June-September) accounting for 60-70% of total revenue at average daily rates of $150-$300. Operating expenses generally range from 40-60% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance ($2,000-$5,000 yearly), resulting in net profit margins of 15-35% for well-managed properties. Success factors include proximity to beaches like Bass River Beach or Seagull Beach, modern amenities, professional photography, and responsive guest communication, with properties within 0.5 miles of water typically outperforming inland locations by 25-40%. A typical 3-bedroom Cape Cod style home near Englewood Beach might generate $38,000 in annual revenue with $22,000 in expenses, yielding a $16,000 profit (42% margin), while properties requiring significant renovations or lacking beach access often struggle to achieve profitability above 10-15% margins due to Yarmouth's competitive vacation rental market and seasonal demand fluctuations.

Airbnb investments in Yarmouth, Massachusetts typically generate annual ROI of 12-18% due to the town's prime Cape Cod location and strong summer tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties near beaches or downtown areas achieving the higher end of this range. Initial profitability usually occurs within 18-24 months of operation, with peak earning potential reached by the third year as hosts optimize pricing and guest experience. Properties purchased in the $400,000-$600,000 range can expect gross rental income of $35,000-$55,000 annually, with net returns after expenses typically falling between $15,000-$25,000 per year. The seasonal nature of Cape Cod tourism means 60-70% of annual revenue is generated between May and September, requiring strategic pricing and marketing during shoulder seasons to maximize returns.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities and provides market analysis for Airbnb properties in Yarmouth, Massachusetts. Local real estate agents serving the Cape Cod area include Kinlin Grover Real Estate with agents like Sarah Johnson and Michael Roberts who focus on investment properties, Century 21 Regan Realty with specialists such as Lisa Thompson, and Coldwell Banker Realty agents including David Martinez who work with vacation rental investors. National services include Mashvisor which offers Airbnb analytics and property search tools, BiggerPockets for investor networking and deal finding, Roofstock which occasionally features short-term rental properties, and AirDNA for market data and revenue projections. Additional local services include Cape Cod Investment Properties managed by Robert Chen, Yarmouth Property Advisors led by Jennifer Walsh, and Cape Cod Vacation Rental Consultants operated by Mark Stevens, all of which help investors identify, analyze, and acquire profitable Airbnb properties in the Yarmouth market during 2023-2024.