Narragansett, Rhode Island

Short-term rentals are permitted in Narragansett, and a permit is required. Under the interim regime in effect now, every rental dwelling unit, including short-term rentals under 30 days, must register annually with the Town of Narragansett Building Inspector. The fee is $120 per unit, registration is due by August 31 and is valid from September 1 through August 31. No unit may be occupied by tenants until it is registered. A failure to register carries a $250 fee, and a late registration carries a $300 fee. In May 2024 the Town Council adopted Chapter 1123, a stricter short-term rental ordinance. It requires a separate STR permit ($375 for residents, $750 for non-residents, plus a $200 application fee), a 7-consecutive-night minimum stay, and caps on permits at 1,100 for 2024, 1,000 for 2025 and 900 for 2026. It limits rentals to residential dwelling units, requires building and fire inspections, bans large events such as weddings and bachelor parties, and requires a local representative for complaints. In October 2024 a Rhode Island Superior Court granted a preliminary injunction blocking enforcement, and the town has defaulted to the $120 general registration while litigation continues. Investors should watch that case, since the ordinance could return. Narragansett does not require owner occupancy or a primary residence. Effective January 1, 2026, the combined lodging tax on short-term rentals is 14%, made up of 7% state sales tax, 5% state hotel tax and 2% local hotel tax, with a 5% whole-home STR tax added. Enforcement is rated moderate. HOA covenants and Rhode Island coastal rules (CRMC) may add limits on oceanfront properties.