For STR DSCR investors evaluating Newport, the math centers on three numbers: median home value of $745K, average nightly rate of $365, and occupancy of 55%. These combine into annual revenue projections of roughly $73K per typical property.
Newport, RI is a low short-term rental DSCR market. Property type: Beach / historic. Median home value approximately $745K. Average nightly rate: $365.
Occupancy rate in Newport averages approximately 55%, which combined with the nightly rate produces gross annual revenue per property of approximately $73K.
Newport Rhode Island historic mansion seaside STR. STR regulatory environment in Newport: moderate.
Newport seasonality and tourism patterns
Operating a Newport STR involves managing through specific seasonal cycles. Cash flow planning must account for the gap between peak and slower periods.
Newport STR economics
Running the numbers for a Newport STR acquisition: gross revenue around $73K annually based on 365 per night and 55% 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.
Newport specific FAQ
Newport sees varied seasonal patterns. Lenders use annual averaged occupancy in underwriting.
Property type performance varies in Newport. Analyze comparable data via AirDNA.
Newport has moderate STR regulations.
Newport averages approximately 55% occupancy. Premium properties outperform; standard properties cluster near average.
Newport averages approximately $365 per night. Premium units command 1.5-2.5x average.
Full-service STR management in Newport runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A Newport STR at the median home value of $745K typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $296K+.
Bottom line for Newport STR investors
STR investing in Newport 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.