Block Island Housing Initiative (BIHI) is excited to announce the launch of a new program, Year-Round Community Rentals, designed to strengthen our community by increasing the availability of year-round rental housing.
Through this initiative, BIHI will make up the difference at 80% of the documented average net income from the past two years of seasonal rental (payment is capped at $9,000 per person housed) in a unit that transitions from a short-term rental to a year-round rental. The program is used in eleven other isolated seasonal communities, housing several hundred people over the past five years, and our goal is to do the same here on Block Island!
In addition to this new incentive, there are many other financial benefits to homeowners:
- Property owners are no longer responsible for the collection of renter-paid taxes on short-term rentals:
- Tenant taxes totaled 13% – 7%: RI Sales Tax, 2% RI Hotel Tax, and new 5% RI Short-Term Rental Tax (new in 2026).
- Property owners are no longer required to pay the 1% Block Island Housing Board tax on short-term rentals.
- Property owners will not be required to pay the new “Tax on Residential Real Properties Assessed Over $1 Million That Are Not Owner Occupied” levied by the State of RI ($2.50 per $500 (or fractional part thereof) of the assessed value in excess of $1,000,000. The tax will go into effect July 1, 2026).
- Save on Marketing Costs
- Save on Utility Costs
- Save on Additional Homeowner’s Insurance Costs
- Save on Maintenance Costs
- Save on Property Management Costs or Efforts
- Save on Cleaning Costs or Efforts
- Most of all, help by providing Block Island year-round community members a stable home.
This program is part of BIHI’s ongoing effort to ensure that those who live and work on Block Island have access to stable housing, making it possible for our community to thrive year-round. By offering an added incentive, BIHI hopes to encourage property owners to join the movement toward sustaining a vibrant, resilient island community.
“This program allows us to put resources directly into the hands of property owners who are willing to be part of the solution,” said BIHI President Robin Lewis Vila. “Every converted rental means more stability for our neighbors, our workforce, and the future of Block Island.”
Property owners interested in learning more about the Year-Round Community Rentals program are encouraged to contact BIHI directly at blockislandhousinginitiative@gmail.com.
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