Nantucket sits in the beach / luxury STR category — a market profile with specific seasonal patterns, guest expectations, and regulatory considerations. The moderate STR regulatory environment shapes which acquisitions are workable.
Nantucket, MA is a low short-term rental DSCR market. Property type: Beach / luxury. Median home value approximately $2.5M. Average nightly rate: $1K.
Occupancy rate in Nantucket averages approximately 42%, which combined with the nightly rate produces gross annual revenue per property of approximately $197K.
Nantucket ultra-luxury seasonal STR. STR regulatory environment in Nantucket: moderate.
Nantucket seasonality and tourism patterns
Tourist demand in Nantucket tends toward tourism segments specific to the destination.
Nantucket STR economics
Running the numbers for a Nantucket STR acquisition: gross revenue around $197K annually based on 1285 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.
Nantucket specific FAQ
Nantucket sees varied seasonal patterns. Lenders use annual averaged occupancy in underwriting.
Property type performance varies in Nantucket. Analyze comparable data via AirDNA.
Nantucket has moderate STR regulations.
Nantucket averages approximately 42% occupancy. Premium properties outperform; standard properties cluster near average.
Nantucket averages approximately $1K per night. Premium units command 1.5-2.5x average.
Full-service STR management in Nantucket runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A Nantucket STR at the median home value of $2.5M typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $908K+.
Bottom line for Nantucket STR investors
Nantucket STR works for investors comfortable with the beach / luxury operating profile and moderate regulatory environment. Match the property to the market and the math typically works. Mismatch and the property struggles regardless of underwriting.
STR regulations vary by city and change frequently. Verify current local rules before acquisition.