Short-term rental rules · Cape Cod (Barnstable), Massachusetts
Short-term rentals in Cape Cod (Barnstable), explained properly.
The Town of Barnstable — Cape Cod's largest town, including Hyannis, Centerville, Osterville and Cotuit — allows short-term rentals but requires every rental property (long-term and seasonal as well as short-term) to register with the Board of Health under town Code Chapter 170, renewed each December 31 for $250 per unit, and requires operators to register with the Massachusetts Department of Revenue. Barnstable has no separate STR ordinance or cap and has not added a community impact fee. Guests pay 14.45% in combined taxes: a 5.7% state excise, a 6% town excise and a 2.75% Cape Cod and Islands Water Protection Fund excise. State law also requires $1 million in liability insurance per rental unless the booking platform provides equal or greater coverage. Other Cape towns set their own rules.
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What you need to know before you buy or list
| Question | Answer |
|---|---|
| Annual Board of Health registration | Any dwelling rented or offered for rent (short-term, seasonal or long-term) must register with the Board of Health under town Code Chapter 170 (Rental Properties). The fee is $250 per certificate, plus $250 for each additional unit owned by the same owner at the same address (raised December 11, 2025). Certificates renew each December 31. Units are subject to reasonable inspection; the Board of Health sets the number of bedrooms and occupants allowed; parking is limited to 25% of the front yard and 20 feet of frontage; and fines run $100 per violation (non-criminal ticket), up to $300 for owners with two documented violations in 12 months, with each day a separate offense [1] [2] [3] |
| Massachusetts DOR registration | Every operator, including those who rent only through a platform, must register with the Massachusetts Department of Revenue through MassTaxConnect; state rules apply to contracts entered into on or after January 1, 2019, with taxes effective July 1, 2019. No tax is due if the property is rented 14 days or less in a calendar year [1] [4] |
| 14.45% combined excise | A 5.7% state excise (5% statutory rate plus 0.7% surtax), a 6% Town of Barnstable excise and a 2.75% Cape Cod and Islands Water Protection Fund excise, totaling 14.45%, all paid to the Massachusetts DOR. State law lets towns add a community impact fee of up to 3% on STRs; the town's published total does not include one [1] [4] |
| $1 million liability insurance | Massachusetts requires at least $1 million in liability insurance for each short-term rental, unless the rental is offered through a hosting platform that maintains equal or greater coverage [5] [6] |
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We re-checked the town STR information page and FAQ, town Code Chapter 170, the December 11, 2025 Town Council agenda, the May 2025 housing committee report, Massachusetts DOR room occupancy guidance and M.G.L. c. 175, s. 4F. We found no adopted STR-specific ordinance or community impact fee in Barnstable. Watch Town Council agendas for STR regulations recommended by the housing committee, and Chapter 170 for further fee changes. We could not load DOR's local-option adoption report to confirm the community impact fee status directly.
The town's Committee to Assess and Recommend Strategies for Housing Creation recommended that the Town Council create a regulatory structure for short-term rentals, including registration, fees and operational standards. As of October 2026 the Town Council has not acted on it and no ordinance has been adopted; a 2020 STR ordinance proposal was withdrawn.
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.