🎯 STRisker: Bulletin - Newport, RI
Newport Considers STR Crackdown in Business Zones: Council weighs new zoning rules to protect housing and history


Newport Considers STR Crackdown in Business Zone
Newport City Council is once again revisiting its short-term rental policies, this time focusing on the city’s General Business and Waterfront Business districts.
At its February 25 meeting, the council will hear recommendations from the Planning Board that could make it harder for property owners to convert commercial buildings into guest houses.
Currently, guest houses are allowed “by right” in these districts. It means property owners face little oversight before opening their doors to visitors. The proposed change would require a Special Use permit, adding review by the Zoning Board and giving the city more control.



The move follows Newport’s 2022 ban on STRs in all residential zones, a decision driven by concerns that conversions were worsening the city’s housing crisis. With limited space for new housing and a growing number of second homes, officials argue STRs are squeezing out long-term residents.
Among the recommendations:
📎 Require Special Use permits for new guest houses.
📍 Prohibit ground-floor commercial spaces from being converted.
👨 Mandate year-round property managers living on-site.
đźš— Enforce stricter parking requirements.
Planning staff also recommend prohibiting ground-floor commercial spaces from being used as guest houses, citing the need to preserve Newport’s historic character. “Preventing ground-level commercial uses from becoming Guest Houses preserves this historic and cultural character,” staff wrote, pointing to the city’s tradition of bustling main streets and waterfronts.
The debate reflects Newport’s ongoing struggle to balance tourism with housing needs. While guest houses support the local economy, officials worry unchecked conversions could hollow out commercial districts and worsen affordability. The council’s decision later this month will determine whether Newport tightens its grip on STRs or continues allowing them to flourish in its business zones.


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