Falmouth Short-Term Rental Rules

Updated April 2026 ยท Cape Cod & Islands, Massachusetts

This page summarizes what a property owner needs to know to legally operate a short-term rental (Airbnb, VRBO, or direct bookings under 32 days) in Falmouth, MA. It's an editorial summary, not legal advice โ€” confirm specifics with town hall or a local attorney before listing a property.

Registration & Permits

This town follows Massachusetts state STR registration (DOR Room Occupancy Excise) and may require additional local registration with the Health or Building Department. Confirm directly with town hall before listing a property.

Taxes & Fees

5.7% MA state room occupancy + local option tax (typically 6%) + 2.75% Cape & Islands Water Protection Fund. Total is usually ~14.45% collected from the guest.

Occupancy & Density Caps

Occupancy is typically limited by Title 5 septic capacity (2 persons per bedroom + 2 additional is the common rule of thumb). Many Cape towns also impose minimum parking requirements.

Enforcement

Enforcement varies by season. Most Cape towns audit listing platforms during peak summer and issue fines to unregistered operators. Year-round towns enforce more consistently.

Buying a Falmouth STR investment?

CapeIntel analyzes every active Falmouth listing for projected STR revenue, cash-on-cash return, flood risk, and walking distances. See what's on the market and which properties pencil.