Airbnb City Guide: The Best Places To Invest in Providence, Rhode Island

Airbnb Rules and Regulations in Providence, Rhode Island

As of 2024, Providence has implemented comprehensive regulations for short-term rentals. Hosts are required to obtain a short-term rental permit from the city and pay an annual fee of $200 per unit. Additionally, all short-term rental properties must comply with the city's zoning laws, building codes, and health and safety standards. Providence limits short-term rentals to owner-occupied primary residences, with a maximum of two units per property. Hosts must also provide proof of liability insurance and ensure that their rentals do not disrupt the surrounding neighborhood.

To protect the city's housing stock, Providence has capped the number of short-term rental permits available in certain neighborhoods. Hosts are responsible for collecting and remitting the city's 13% transient guest tax and the 1% state hotel tax. Failure to comply with these regulations may result in fines or the revocation of the short-term rental permit. While navigating these rules may seem daunting, the city has created a streamlined online portal to assist hosts in understanding and adhering to the requirements.

Providence Airbnb Market Data:

• Average Revenue – $42K per year
• Average Daily Rate – $201.8 per night
• Average Occupancy Rate – 57%
• Average RevPAR – $116.7
• Average Home Prices – $382,032

1. Top Place to Invest in Providence, Rhode Island - Blackstone

Nestled in the heart of Providence, Blackstone is a historic neighborhood that has been attracting savvy Airbnb investors with its unique blend of charm, convenience, and potential for growth. This vibrant community perfectly balances residential tranquility and proximity to the city's bustling downtown area.

Blackstone Airbnb Market Data:

• Average Revenue – $51.8K per year
• Average Daily Rate – $225.2 per night
• Average Occupancy Rate – 63%
• Average RevPAR – $142.5

Convenience - 8/10

Blackstone's central location is one of its greatest assets. The neighborhood is well-connected to major highways, making it easy for visitors to explore Providence and beyond. With a variety of local shops, restaurants, and grocery stores within walking distance, guests can enjoy the convenience of having everything they need right at their doorstep. This array of shops also presents the opportunity for local partnerships, providing discounts or promotions for your rental guests.

Tourist Attractions - 7/10

While Blackstone may not be a major tourist destination, its proximity to popular attractions such as the Rhode Island School of Design Museum and the Providence Performing Arts Center makes it an appealing visitor base. The nearby Blackstone Boulevard Park offers a scenic escape from the city with its beautiful walking paths and green spaces.

Things to Do - 7/10

Blackstone offers a diverse range of activities for visitors to enjoy. The neighborhood's historic architecture and tree-lined streets provide a picturesque backdrop for leisurely strolls. Foodies will appreciate the area's eclectic mix of local eateries, from cozy cafes to upscale restaurants. The nearby Wayland Square shopping district is perfect for a day of retail therapy.

Average Home Prices - 7/10

As of 2024, the median home value in Blackstone stands at $550,000, according to Zillow data. This represents a modest 2% appreciation rate over the past year, indicating a stable market for investors. While prices are higher than the national average, they remain competitive compared to other neighborhoods in Providence.

Proximity to Work-Related Travel - 8/10

Blackstone's strategic location makes it an ideal base for business travelers and professionals attending events in the area. The nearby Rhode Island Convention Center and Providence Place Mall provide ample opportunities for work-related stays. The neighborhood's proximity to major hospitals, such as Rhode Island Hospital and Miriam Hospital, is also a significant draw for medical professionals.

X-Factor - 8/10

Its unique combination of historic charm and modern amenities sets Blackstone apart. The neighborhood's stunning Victorian-era homes and tree-lined streets create a captivating atmosphere that appeals to visitors seeking an authentic Providence experience. At the same time, Blackstone's growing reputation as a hip, up-and-coming area with a thriving food and arts scene adds an extra layer of allure for trend-savvy travelers.

2. Top Place to Invest in Providence, Rhode Island - Downtown

Downtown Providence, a vibrant and bustling area in the heart of the city, has become increasingly attractive to those aspiring to start an Airbnb rental. This dynamic neighborhood offers a perfect blend of urban convenience, cultural attractions, and a thriving business district, making it an ideal location for savvy investors looking to capitalize on the growing demand for unique, centrally-located accommodations.

Downtown Airbnb Market Data:

• Average Revenue – $47.5K per year
• Average Daily Rate – $250.4 per night
• Average Occupancy Rate – 52%
• Average RevPAR – $130.6

Convenience - 9/10

Downtown Providence boasts an unbeatable level of convenience, with a wide array of amenities and services within easy reach. From grocery stores and pharmacies to top-notch restaurants and trendy cafes, guests can find everything they need just steps from their doorstep. The area's walkability and excellent public transportation options make it a breeze for visitors to explore the city without the need for a car.

Tourist Attractions - 8/10

One of Downtown Providence's greatest strengths is its abundance of tourist attractions. The neighborhood is home to a number of iconic landmarks, such as the historic Providence City Hall, the stunning Providence Public Library, and the lively Kennedy Plaza. Visitors can also enjoy world-class performances at the Providence Performing Arts Center or immerse themselves in the city's rich history at the Rhode Island State House.

Things to Do - 9/10

Downtown Providence offers an endless array of activities and experiences for visitors to enjoy. Art enthusiasts can explore the galleries and exhibits at the Rhode Island School of Design Museum, while foodies can indulge in the neighborhood's diverse culinary scene, ranging from farm-to-table restaurants to international cuisine. Shoppers will delight in the area's unique boutiques and flagship stores, while outdoor enthusiasts can take a stroll along the picturesque Riverwalk or enjoy a picnic in Burnside Park.

Average Home Prices - 6/10

As of 2024, the median home value in Downtown Providence stands at $450,000, according to Zillow data. This represents a modest 1.5% appreciation rate over the past year, indicating a stable market for investors. While prices are higher than the national average, they remain competitive compared to other major cities in the Northeast. It's important to note that the majority of properties in Downtown Providence are condominiums and apartments, which may have higher HOA fees and maintenance costs.

Proximity to Work-Related Travel - 9/10

Downtown Providence is the city's central business district, making it an ideal location for corporate rentals. The neighborhood is home to numerous corporate offices, financial institutions, and government agencies, as well as the Rhode Island Convention Center, which hosts a variety of conferences and events throughout the year. The nearby Providence Train Station provides easy access to other major cities in the region, such as Boston and New York.

X-Factor - 8/10

What sets Downtown Providence apart is its unique blend of historic charm and modern sophistication. The neighborhood's stunning architecture, ranging from grand Victorian-era buildings to sleek contemporary high-rises, creates a captivating visitor backdrop. The area's vibrant arts and culture scene and its thriving nightlife and entertainment options make it a destination that appeals to a wide range of travelers, from young professionals to families and retirees.

3. Top Place to Invest in Providence, Rhode Island - Elmhurst

Elmhurst, a charming and tranquil neighborhood in Providence, has emerged as a top contender for Airbnb investors seeking a profitable venture. This hidden gem offers a perfect blend of residential comfort and proximity to the city's main attractions, making it an attractive option for both short-term rental hosts and guests alike.

Elmhurst Airbnb Market Data:

• Average Revenue – $36.4K per year
• Average Daily Rate – $188 per night
• Average Occupancy Rate – 53%
• Average RevPAR – $100.7

Convenience - 7/10

Elmhurst's location, just a short drive from downtown Providence, ensures easy access to the city's amenities without the hustle and bustle of urban living. The neighborhood is well-connected by public transportation, with bus routes running through the area. Guests can also find a variety of local shops, restaurants, and grocery stores within walking distance.

Tourist Attractions - 6/10

While Elmhurst may not boast many tourist attractions, its proximity to popular destinations such as the Roger Williams Park Zoo and the Providence Museum of Natural History makes it an appealing base for visitors exploring the city. The nearby Neutaconkanut Hill Park offers a scenic escape from the urban landscape, with hiking trails and stunning views of the city.

Things to Do - 6/10

Elmhurst's residential setting provides a peaceful atmosphere for guests looking to unwind after a day of exploring Providence. The neighborhood's tree-lined streets and well-maintained parks offer ample opportunities for leisurely strolls and outdoor activities. Foodies can enjoy a diverse selection of local eateries, from cozy cafes to authentic ethnic restaurants.

Average Home Prices - 7/10

As of 2024, the median home value in Elmhurst stands at $350,000, according to Zillow data. This represents a modest 2.5% appreciation rate over the past year, indicating a stable and growing market for investors. Compared to other areas in Providence, the neighborhood's affordable prices make it an attractive option for those looking to enter the short-term rental market.

Proximity to Work-Related Travel - 7/10

Elmhurst's strategic location places it within a short drive of major employers, hospitals, and universities in Providence. The neighborhood's proximity to Interstate 95 and Route 10 makes it a convenient choice for business travelers and professionals attending conferences or events in the city.

X-Factor - 7/10

What sets Elmhurst apart is its strong sense of community and neighborhood charm. The area's well-maintained homes, friendly residents, and low crime rates create a welcoming atmosphere that appeals to both long-term residents and short-term guests. The neighborhood's growing popularity among young families and professionals adds to its desirability as a short-term rental investment opportunity.

4. Top Place to Invest in Providence, Rhode Island - Charles

Nestled in the heart of Providence's historic East Side, the Charles neighborhood has become increasingly attractive to Airbnb and short-term rental investors. This picturesque area offers a unique blend of architectural charm, cultural attractions, and proximity to the city's vibrant downtown, making it an ideal location for savvy investors looking to capitalize on the growing demand for distinctive, centrally-located accommodations.

Charles Airbnb Market Data:

• Average Revenue – $39.3K per year
• Average Daily Rate – $188.9 per night
• Average Occupancy Rate – 57%
• Average RevPAR – $113.7

Convenience - 8/10

The Charles neighborhood boasts an exceptional level of convenience, with a wide range of amenities and services within easy reach. Guests can find an eclectic mix of local shops, trendy cafes, and renowned restaurants just steps from their doorstep. The area's walkability and access to public transportation make it effortless for visitors to explore the city without the need for a car.

Tourist Attractions - 7/10

While the Charles neighborhood itself may not be a primary tourist destination, its proximity to popular attractions such as the RISD Museum, the Providence Athenaeum, and the historic Benefit Street makes it an appealing base for visitors. The nearby Prospect Terrace Park offers breathtaking views of the city skyline, while the Blackstone Boulevard Park provides a scenic escape for outdoor enthusiasts.

Things to Do - 8/10

The Charles neighborhood offers a diverse array of activities and experiences for visitors to enjoy. Art lovers can explore the numerous galleries and studios scattered throughout the area, while history buffs can embark on a self-guided tour of the neighborhood's stunning 18th and 19th-century architecture. Foodies will delight in the area's thriving culinary scene, which features an array of international cuisines and farm-to-table restaurants.

Average Home Prices - 7/10

As of 2024, the median home value in the Charles neighborhood stands at $650,000, according to Zillow data. This represents a modest 2% appreciation rate over the past year, indicating a stable market for investors. While prices are higher than the city average, the neighborhood's unique character and desirable location justify the premium. It's important to note that the majority of properties in the Charles neighborhood are historic homes and multi-family dwellings, which may require additional maintenance and renovation costs.

Proximity to Work-Related Travel - 8/10

The Charles neighborhood's strategic location makes it an ideal choice for work-related travel. The area is just a short drive or bus ride from the city's central business district, which is home to numerous corporate offices, financial institutions, and government agencies. The nearby Brown University and Rhode Island School of Design also attract a steady stream of visiting professors, researchers, and conference attendees.

X-Factor - 9/10

What sets the Charles neighborhood apart is its unparalleled combination of historic charm, cultural vibrancy, and community spirit. The area's stunning architecture, ranging from grand Colonial mansions to quaint Victorian cottages, creates a captivating backdrop for visitors. The neighborhood's thriving arts scene and proximity to world-class educational institutions attract a diverse and intellectually curious crowd, making it a sought-after destination for travelers seeking an authentic and enriching experience.

5. Top Place to Invest in Providence, Rhode Island - Federal Hill

Federal Hill, a vibrant and historic neighborhood in the heart of Providence, has emerged as a top destination for those looking to launch a short-term rental business. This iconic area, known for its rich Italian heritage and thriving culinary scene, offers a perfect blend of old-world charm and modern amenities, making it an attractive option for both hosts and guests seeking an authentic and immersive experience.

Federal Hill Airbnb Market Data:

• Average Revenue – $37.2K per year
• Average Daily Rate – $164.2 per night
• Average Occupancy Rate – 62%
• Average RevPAR – $103.5

Convenience - 8/10

Federal Hill's central location and well-connected public transportation system make it incredibly convenient for visitors to explore the city. The neighborhood is just a short walk or bus ride from downtown Providence, providing easy access to the city's major attractions, shopping districts, and business centers. Guests can also find a wide range of essential amenities, such as grocery stores, pharmacies, and banks, within the neighborhood itself.

Tourist Attractions - 9/10

One of Federal Hill's greatest strengths is its abundance of tourist attractions. The neighborhood is home to the iconic La Pigna (The Pine Cone), a symbol of the area's Italian heritage, and the historic St. John's Church, which dates back to the late 19th century. Visitors can also explore the numerous art galleries, boutiques, and specialty shops that line the streets of Federal Hill, immersing themselves in the neighborhood's unique culture and character.

Things to Do - 9/10

Federal Hill offers an endless array of activities and experiences for visitors to enjoy. The neighborhood is renowned for its incredible dining scene, with countless Italian restaurants, cafes, and bakeries serving up authentic cuisine and delectable treats. Food enthusiasts can embark on a culinary journey through the area's famous "Restaurant Row," sampling everything from handmade pasta to artisanal gelato. The neighborhood also hosts several annual festivals and events, such as the Federal Hill Stroll and the Columbus Day Parade, which draw thousands of visitors each year.

Average Home Prices - 7/10

As of 2024, the median home value in Federal Hill stands at $450,000, according to Zillow data. This represents a modest 2.5% appreciation rate over the past year, indicating a stable and growing market for investors. While prices are higher than the city average, the neighborhood's unique character, desirable location, and strong rental demand justify the investment. It's important to note that many properties in Federal Hill are historic multi-family homes, which may require additional maintenance and renovation costs.

Proximity to Work-Related Travel - 8/10

Federal Hill's proximity to downtown Providence makes it ideal for work-related travel. The neighborhood is just a short commute from the city's major employers, including hospitals, universities, and corporate offices. The nearby Rhode Island Convention Center also attracts a steady stream of business travelers and conference attendees, providing a consistent source of potential guests for short-term rental properties.

X-Factor - 9/10

Its unparalleled combination of cultural richness, architectural beauty, and community spirit sets Federal Hill apart. The neighborhood's narrow, cobblestone streets and historic buildings create a captivating atmosphere that transports visitors to another era. The area's strong Italian heritage, evident in its numerous festivals, markets, and family-owned businesses, adds a unique and authentic flavor to the experience. Federal Hill's tight-knit community and welcoming vibe make it a sought-after destination for travelers seeking a genuine connection to the local culture and way of life.