Martha's Vineyard is a low DSCR friendliness short-term rental market within the Beach / luxury category. Property type and tourism patterns drive STR economics here in particular ways that distinguish Martha's Vineyard from peer destinations.
Martha's Vineyard, MA is a low short-term rental DSCR market. Property type: Beach / luxury. Median home value approximately $1.3M. Average nightly rate: $685.
Occupancy rate in Martha's Vineyard averages approximately 40%, which combined with the nightly rate produces gross annual revenue per property of approximately $100K.
Martha's Vineyard premium seasonal STR. STR regulatory environment in Martha's Vineyard: moderate.
Martha's Vineyard seasonality and tourism patterns
Tourism patterns in Martha's Vineyard produce specific seasonal patterns. Lenders annualize these patterns when computing DSCR coverage.
Martha's Vineyard STR economics
Martha's Vineyard STR cash flow math: $100K gross revenue minus operating costs of approximately $40K (cleaning, supplies, management, marketing, utilities) leaves roughly $60K for debt service and net cash flow.
Martha's Vineyard specific FAQ
Martha's Vineyard sees varied seasonal patterns. Lenders use annual averaged occupancy in underwriting.
Property type performance varies in Martha's Vineyard. Analyze comparable data via AirDNA.
Martha's Vineyard has moderate STR regulations.
Martha's Vineyard averages approximately 40% occupancy. Premium properties outperform; standard properties cluster near average.
Martha's Vineyard averages approximately $685 per night. Premium units command 1.5-2.5x average.
Full-service STR management in Martha's Vineyard runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A Martha's Vineyard STR at the median home value of $1.3M typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $488K+.
Bottom line for Martha's Vineyard STR investors
STR investing in Martha's Vineyard 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.