For STR DSCR investors evaluating Cape Cod, the math centers on three numbers: median home value of $695K, average nightly rate of $425, and occupancy of 40%. These combine into annual revenue projections of roughly $62K per typical property.
Cape Cod, MA is a low short-term rental DSCR market. Property type: Beach. Median home value approximately $695K. Average nightly rate: $425.
Occupancy rate in Cape Cod averages approximately 40%, which combined with the nightly rate produces gross annual revenue per property of approximately $62K.
Cape Cod seasonal beach STR. Strong summer-only economics. STR regulatory environment in Cape Cod: moderate.
Cape Cod seasonality and tourism patterns
Operating a Cape Cod STR involves managing through specific seasonal cycles. Cash flow planning must account for the gap between peak and slower periods.
Cape Cod STR economics
Running the numbers for a Cape Cod STR acquisition: gross revenue around $62K annually based on 425 per night and 40% 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.
Cape Cod specific FAQ
Cape Cod sees varied seasonal patterns. Lenders use annual averaged occupancy in underwriting.
Property type performance varies in Cape Cod. Analyze comparable data via AirDNA.
Cape Cod has moderate STR regulations.
Cape Cod averages approximately 40% occupancy. Premium properties outperform; standard properties cluster near average.
Cape Cod averages approximately $425 per night. Premium units command 1.5-2.5x average.
Full-service STR management in Cape Cod runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A Cape Cod STR at the median home value of $695K typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $278K+.
Bottom line for Cape Cod STR investors
The investor profile that succeeds in Cape Cod STR combines local market knowledge or quality co-host management, realistic revenue projections using AirDNA data, and operational discipline. Get those right and Cape Cod STR produces strong risk-adjusted returns.
STR regulations vary by city and change frequently. Verify current local rules before acquisition.