Falmouth, MA Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

54 / 100

Falmouth presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.

Falmouth Short-Term Rental Market Overview

Falmouth, MA sits on Cape Cod and benefits from intense summer vacation demand that drives average annual revenue to $79,649 per listing — despite a relatively small pool of just 73 active Airbnb listings. With an average daily rate of $433 and home values averaging $1,402,818, the market rewards investors who can secure the right property, though the revenue-to-price ratio demands careful deal sourcing. Listing growth of 84% year-over-year signals rising investor interest, making timing and property selection increasingly important.

Key Market Statistics

According to Rabbu market data, the Falmouth short-term rental market shows:

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 73
Average Daily Rate (ADR) vs. $582 state avg. $433
Average Occupancy Rate vs. 44% state avg. 21%
RevPAN ADR * Occupancy Rate $88
Average Monthly Revenue Historical 12-month average $6,637
Average Annual Revenue Historical 12-month average $79,649

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Falmouth

Falmouth appeals to investors seeking high seasonal ADR in a supply-constrained Cape Cod beach market, where selective deal sourcing can offset elevated home prices.

Key investment factors

  • Cape Cod's coastal tourism drives exceptional summer nightly rates, with ADR reaching $433 on average
  • Only 73 active listings create a relatively low-competition environment compared to larger vacation markets
  • 4-bedroom properties deliver $140 RevPAN — nearly double the next closest size — suggesting a sweet spot for returns
  • Above-average market growth trend indicates strengthening demand fundamentals
  • Beach access, backyard space, and outdoor amenities are clear guest priorities that can differentiate a listing

Expert Market Assessment

"Falmouth earns a "Competitive Opportunity" designation with an ROI score of 54 out of 100, reflecting solid demand fundamentals tempered by high entry costs and growing competition. The market's extreme seasonality is the defining characteristic — August revenue of $21,870 dwarfs the January figure of $1,122, creating a roughly 20:1 peak-to-trough ratio that investors must plan around. Four-bedroom properties stand out as the strongest performers on both a RevPAN and annual revenue basis, pulling in an estimated $104,216 per year. With supply expanding rapidly and occupancy sitting at 21% market-wide (well below the 44% Massachusetts average), success here hinges on owning a well-appointed property that captures maximum share during the compressed summer window."

— Rabbu Market Analysis Team

Understanding Falmouth's ROI Score: 54/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

Factor Falmouth Performance Weight
Revenue-to-Price Ratio Average 40%
Occupancy Stability Average 30%
Market Growth Trend Above average 15%
Supply/Demand Balance Below average 15%

What This Means for Investors

Falmouth's ROI score of 54 out of 100 places it in the "Competitive Opportunity" band — a market with genuine demand but where higher property prices and tightening supply/demand dynamics (rated below average) mean not every deal pencils out. Revenue-to-price ratio and occupancy stability both score at average levels, while the above-average market growth trend is an encouraging signal that demand fundamentals are strengthening. Investors should pair these metrics with thorough local regulatory research and target high-performing property configurations — particularly 4-bedroom homes — to maximize their odds of a positive return.

Short-Term Rental Regulations in Falmouth

Understanding local STR regulations is essential before investing in Falmouth. Here's the current regulatory landscape:

Permit Requirements

The Town of Falmouth, Massachusetts may require short-term rental operators to obtain a local permit or register their property before listing on platforms like Airbnb. Investors should verify current requirements directly with Falmouth's town clerk or planning department, as Cape Cod communities have been actively updating STR regulations.

Key Restrictions

Common restrictions in Massachusetts coastal towns can include occupancy limits tied to bedroom count, minimum-stay requirements during certain seasons, and noise or parking rules designed to preserve neighborhood character. HOA covenants or condo association bylaws may add further limitations, and some municipalities impose caps on the total number of permits issued, so checking local ordinances before purchasing is essential.

Tax Obligations

Massachusetts imposes a state room occupancy excise tax on short-term rentals, and municipalities like Falmouth may add a local option tax and a community impact fee on top of that. Platforms such as Airbnb often collect and remit these taxes automatically, but hosts should confirm compliance with both state and town tax obligations.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Falmouth can provide current regulatory guidance.

Short-Term Rental Financing for Falmouth

Financing an Airbnb investment in Falmouth requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Falmouth Lender →

Future Outlook & Long-Term Forecast

"Falmouth's pronounced summer seasonality — with July and August alone generating roughly half of annual revenue — is unlikely to shift meaningfully over the next 12–18 months, so investors should plan cash flow around a compressed peak season. Above-average market growth trends suggest ADR could edge up another 2–4% during peak months as Cape Cod demand remains robust, though rapid supply growth (84% YoY) may temper occupancy gains. We estimate average occupancy will hover in the 20–25% range market-wide, with stronger performers pulling well above that during the June–September window. Shoulder-season marketing and off-peak pricing strategies will be key differentiators for properties aiming to outperform the average."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Falmouth, MA

What is the average Airbnb occupancy rate in Falmouth?
The average occupancy rate for Airbnb listings in Falmouth is currently 21%, which is below the Massachusetts state average of 44%. This lower figure reflects the market's strong seasonality — Cape Cod rentals see heavy bookings during summer months but much lighter demand in the off-season. Properties with 1-bedroom layouts and studios tend to achieve slightly higher occupancy (27–28%), while larger 5-bedroom homes average around 11%. Investors should factor this seasonal pattern into cash-flow planning.
How much do Airbnb hosts make in Falmouth?
Based on trailing 12-month booking data, the average Airbnb host in Falmouth earns approximately $79,649 per year, or about $6,637 per month. Revenue varies significantly by property size: 4-bedroom listings lead at roughly $104,216 annually, while studios average around $45,261. The bulk of this income is concentrated in June through August, with August alone averaging $21,870 in revenue per listing.
Is Falmouth a good market for Airbnb investment?
Falmouth carries an ROI score of 54 out of 100, categorized as a "Competitive Opportunity." The market benefits from strong Cape Cod tourism demand and above-average growth trends, but elevated home values (averaging $1,402,818) and a below-average supply/demand balance mean investors need to be selective about deal sourcing. Properties that are well-positioned with outdoor amenities, beach proximity, and 3–4 bedrooms tend to perform best. The compressed summer season means cash-flow planning for the off-season is critical.
What is the average daily rate (ADR) for Airbnb in Falmouth?
The average daily rate in Falmouth is $433, which is below the Massachusetts state average of $582. ADR scales meaningfully with property size: studios and 1-bedrooms average $168–$176 per night, while 4-bedroom properties command $571 per night. Three-bedroom listings average $442. These rates are driven heavily by summer demand on Cape Cod, so peak-season nightly rates can be substantially higher than the annual average.
Are short-term rentals legal in Falmouth?
Short-term rentals are generally permitted in Falmouth, MA, though operators should expect to comply with local registration or permitting requirements. Massachusetts has a statewide framework for STR taxation, and individual Cape Cod towns like Falmouth may have their own zoning rules, permit caps, or operational restrictions. We recommend checking directly with the Town of Falmouth and reviewing any applicable HOA or condo association rules before purchasing an investment property.
When is peak season for Airbnb in Falmouth?
Peak season in Falmouth runs from June through August, with July and August being the standout months. August leads with average revenue of $21,870 per listing, followed closely by July at $20,250. June ($9,752) and September ($7,902) form strong shoulder months. The off-season from November through March sees revenue drop to $1,047–$2,050 per month, underscoring the highly seasonal nature of this Cape Cod market.
How many Airbnbs are there in Falmouth?
There are currently 73 active Airbnb listings in Falmouth as of April 2026. The supply has grown significantly, with 84% year-over-year growth in active listings. Three-bedroom properties are the most common (18 listings), followed by 4-bedrooms (15) and 1-bedrooms (13). Despite the growth, the total listing count remains modest compared to many vacation markets, which can work in favor of well-positioned properties during peak demand periods.
How is Airbnb revenue calculated in Falmouth?
The annual and monthly revenue figures shown for Falmouth are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up to a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks (like the $21,870 August average) and slower months (like the $1,047 February average). Individual results can vary based on property quality, pricing strategy, location within Falmouth, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

  • Regularly updated active Airbnb and STR listing counts, segmented by market and property size
  • Average daily rate, occupancy, and RevPAN metrics benchmarked against state averages
  • Monthly and annual revenue estimates based on trailing 12-month historical booking performance
  • Property value data sourced from the Zillow Home Value Index (ZHVI) for acquisition cost context
  • Amenity prevalence data across active listings to identify guest expectations and competitive differentiators

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages and may not capture very recent market shifts or regulatory changes. Local STR regulations in Falmouth and Massachusetts are subject to change; investors should verify current rules before purchasing.

Next Steps

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