For STR DSCR investors evaluating Block Island, the math centers on three numbers: median home value of $945K, average nightly rate of $485, and occupancy of 42%. These combine into annual revenue projections of roughly $74K per typical property.
Block Island, RI is a low short-term rental DSCR market. Property type: Beach. Median home value approximately $945K. Average nightly rate: $485.
Occupancy rate in Block Island averages approximately 42%, which combined with the nightly rate produces gross annual revenue per property of approximately $74K.
Block Island Rhode Island seasonal STR. STR regulatory environment in Block Island: moderate.
Block Island seasonality and tourism patterns
Operating a Block Island STR involves managing through specific seasonal cycles. Cash flow planning must account for the gap between peak and slower periods.
Block Island STR economics
Running the numbers for a Block Island STR acquisition: gross revenue around $74K annually based on 485 per night and 42% occupancy. After operating costs and debt service, net cash flow depends on financing terms. Capital required at acquisition: down payment plus furniture and setup (typically $15K-50K) plus reserves.
Block Island specific FAQ
Block Island sees varied seasonal patterns. Lenders use annual averaged occupancy in underwriting.
Property type performance varies in Block Island. Analyze comparable data via AirDNA.
Block Island has moderate STR regulations.
Block Island averages approximately 42% occupancy. Premium properties outperform; standard properties cluster near average.
Block Island averages approximately $485 per night. Premium units command 1.5-2.5x average.
Full-service STR management in Block Island runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A Block Island STR at the median home value of $945K typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $366K+.
Bottom line for Block Island STR investors
STR investing in Block Island demands more operational attention than long-term-rental DSCR. The trade-off: 1.5-2.5x gross revenue compared to traditional rental, but 30-50% of gross consumed by operations. Net economics typically beat long-term-rental on the same property for operators who execute on the operational side.
STR regulations vary by city and change frequently. Verify current local rules before acquisition.