Short-term rental rules · Newport, Rhode Island
Short-term rentals in Newport, explained properly.
Newport allows short-term rentals (30 days or less) in residential zones only as an owner-occupied home occupation: up to two guest bedrooms and four guests, with the owner present and living there. Non-owner-occupied transient guest facilities are allowed by right in the General Business zone and by special use permit in Waterfront Business. Every rental must register with the city by June 1 each year ($1,000 per location, $500 for an owner-occupied rental) and with the Rhode Island Department of Business Regulation. Since January 2026, stays of 30 days or less carry 14% in state and local lodging taxes.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Residential zones: primary residence only | In residential zones, short-term rental is allowed only as a home occupation: up to two guest bedrooms and four guests, in an owner-occupied home that is the owner's principal residence, with the owner present during the stay and holding at least a 50% individual ownership interest; one per lot [1] [2] [3] |
| Allowed in business and waterfront zones | Transient guest facilities (stays of 30 days or less) are allowed by right in General Business and by special use permit in Waterfront Business; Limited Business doesn't list them (guest houses there need a special use permit). Vacation guest facilities are allowed by right in General Business and Commercial-Industrial [4] [5] [6] [1] |
| Annual city registration, up to $1,000 reported | Every transient guest facility must register with the city's short-term rental supervisor before renting, by June 1, renewing each May: $1,000 per location per year, or $500 for an owner-occupied home-occupation rental [7] [2] [8] [9] |
| State DBR registration | Any short-term rental listed on a hosting platform doing business in Rhode Island must register with the Department of Business Regulation (R.I. Gen. Laws § 42-63.1-14) [10] |
| State and local lodging taxes: 14% | Since January 1, 2026, stays of 30 days or less are taxed at 14%: 7% sales tax + 2% local hotel tax (up from 1%) + either the 5% statewide hotel tax (room rentals) or the new 5% whole home short-term rental tax (entire homes). Platforms collect on bookings they handle; owners renting directly must register with the Division of Taxation and file monthly [11] [12] [13] |
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We checked RI DBR short-term rental page (updated August 3, 2026), RI Division of Taxation notices on the January 2026 lodging-tax changes, and news on Newport council action. newportri.gov and the Newport Code (Municode) could not be read, so zoning, owner-occupancy, fee and penalty details still rest on secondary sources. Council held a workshop in March 2026 on tightening guest-house (non-owner-occupied) rules; watch for the resulting zoning amendment. Middletown and Jamestown are separate towns.
Proposed zoning amendments for guest houses (non-owner-occupied STRs) would require special use permits for some guest-house uses, on-site managers for new guest houses, and full on-site parking (removing parking credits). Local reporting says the City Council passed them on first reading 4-3 on March 4, 2026, then on March 11 continued the final vote and asked for a public workshop. We found no final adoption as of October 2026; the city's website was unavailable when we checked, so confirm on its agenda pages.
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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.