Newport Short-Term Rental Regulations

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Permit & Licensing

Certificate of Transient Guest House Facility

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Certificate of Transient Guest House Facility

This permit type does not require primary residence. Zoning restriction: Non-owner-occupied (investment) short-term rentals are permitted by right in the General Business, Commercial-Industrial, and Waterfront Business zones, where the requirement for the owner or manager to reside on premise does not apply. They are prohibited in Residential Zones and in the Limited Business Zone unless the Zoning Board of Review grants a Special Use Permit (which requires an onsite manager). The non-home-occupation registration fee of $1,000/year per unit applies.

Application Process

Register first with the State of Rhode Island Department of Business Regulation, then with the City of Newport via the online GovOS portal (newportri.munirevs.com), providing the state registration number/expiration date, a floor plan, and a dimensional parking plan (plus an annual parking lease agreement if applicable). A non-refundable $15 filing fee is charged upon submission of the initial application; the $500 (home occupation) or $1,000 per unit (non-home occupation) fee is charged only after the Zoning, Building, Collections, and Fire departments approve the application (which may include a property use and/or fire safety inspection). Applications must be completed online no later than May 31 each year; certificates run June 1 to May 31 and must be renewed annually.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 14% of gross rental income.

Collection: Operators/hosting platforms must obtain a sales tax permit and collect and remit RI sales tax, the applicable hotel tax (statewide hotel tax for room rentals or the whole home short-term rental tax for entire-dwelling rentals), and the local hotel tax. Uniquely for Newport, hotel tax filers located in the city remit the local hotel tax collected directly to the City of Newport rather than to the state.

Filing: Monthly, due on or before the 20th day of the month following the reporting period

Rental Limits

Newport does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

Owner-occupied (by-right) short-term rentals in residential zones are limited to renting up to 2 guest bedrooms to no more than 4 persons total; only one such use is permitted per lot.

Zoning & Restrictions

Short-term rentals (Transient Guest Facilities) are prohibited in Newport's Residential Zones (R3-R160) unless the home is owner-occupied, in which case the owner may by right rent up to 2 guest bedrooms to no more than 4 people total while residing on-site for the duration of the rental (only one such use per lot). In the Limited Business Zone, short-term rentals are prohibited unless the Zoning Board of Review grants a Special Use Permit, which also requires an onsite manager. Short-term rentals are permitted by right in the General Business, Commercial-Industrial, and Waterfront Business zones, where the onsite owner/manager residency requirement does not apply. An off-street parking requirement of one space per bedroom generally applies to STR-eligible properties.

Insurance & Safety

Insurance

Newport does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• All Transient Guest Facility applications must be reviewed by the Fire Marshal's Office for compliance with fire safety standards prior to certificate issuance
• Properties rented to more than 5 individuals on a short-term basis may be required to install fire protection systems
• Properties hosting between 6 and 16 guests are classified as a Lodging and Rooming establishment under the RI State Fire Code and require a fire alarm system and sprinklers, among other protection features

Penalties for Non-Compliance

• Fined up to the maximum fine allowed under the Newport Municipal Court for failing to register, with each day of noncompliance treated as a separate offense
• Registration certificate may be revoked for failing to keep hotel/room tax payments current on a monthly basis

Compliance Checklist

Follow these steps to legally operate a short-term rental in Newport:

1. Determine your permit type. Newport has 2 permit types. Identify which applies to your property (Certificate of Transient Guest House Facility, Certificate of Transient Guest House Facility).
2. Meet safety requirements. All Transient Guest Facility applications must be reviewed by the Fire Marshal's Office for compliance with fire safety standards prior to certificate issuance. Properties rented to more than 5 individuals on a short-term basis may be required to install fire protection systems. Properties hosting between 6 and 16 guests are classified as a Lodging and Rooming establishment under the RI State Fire Code and require a fire alarm system and sprinklers, among other protection features.
3. Apply for your STR permit. Submit application. Fees vary by type: Certificate of Transient Guest House Facility $500; Certificate of Transient Guest House Facility $1,000. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with Rhode Island Division of Taxation (state sales tax, statewide hotel tax, and whole home short-term rental tax); City of Newport Collector of Taxes (direct recipient of the local hotel tax collected on Newport rentals, and verifier of tax-current status for city STR registration).
5. Collect and remit taxes. 14% on all bookings.
6. Renew annually. Renewal fees vary by permit type ($500 / $1,000). See permit types above.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Newport?

Yes. Newport requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.

How much does a short-term rental permit cost in Newport?

Permit costs in Newport range from $500 to $1,000 depending on the permit type.

Does Newport require a short-term rental to be your primary residence?

It depends on the permit type. At least one Newport permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.

How many days a year can you short-term rent in Newport?

Newport does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Newport?

Short-term rental stays in Newport are subject to a combined 14% in lodging taxes. This combines 7% Rhode Island State Sales Tax + 5% Rhode Island Whole Home Short-Term Rental Tax + 2% Rhode Island Local Hotel Tax. The host is responsible for collecting and remitting them.