Developing Co-living in Portsmouth: A Developer's Guide

✓ Rules updated February 17, 2026

What is Co-living?

Co-living combines private micro-units with shared common spaces, targeting young professionals who want community and affordability in Portsmouth's tight housing market.

🏠

Single Units

100+ sq ft private rooms

👥

Double Units

120+ sq ft shared rooms

🍳

Common Kitchen

Shared cooking facilities

🎮

Recreation

Community gathering spaces

                Key constraint: Co-living is only allowed in the MRO (Mixed Residential Office) district and requires a Conditional Use Permit from the Planning Board.
            

💡 Why developers pursue co-living

Higher density than traditional apartments
Premium rents for private rooms with shared amenities
Appeals to young professionals and graduate students
Lower parking requirements in some locations

⚠️ The requirement that kills most projects

Co-living requires full-time on-site management — one manager per 40 residents, 24/7. This operational requirement significantly increases ongoing costs and complexity compared to traditional rental properties.

Is Co-living Right for My Property?

Answer these key questions to determine if your project is feasible.

Is your property in the MRO (Mixed Residential Office) zoning district?

Can you accommodate full-time on-site management?

Do you have space for required common areas?

Are you planning 80 or fewer residents per building?

Why this matters

These four factors determine project feasibility more than market conditions. Getting zoning wrong kills the project before it starts.

Costs & Returns

Co-living projects have unique cost structures due to management requirements and shared facilities.

💰 Development Cost Factors

Common area buildout: $1,200 base + 20 sq ft per unit
Manager housing: dedicated on-site unit required
Commercial-grade kitchen and laundry facilities
Conditional Use Permit: $2,000-5,000 in fees and consultants

🏦 Operating Cost Considerations

Full-time management: $50,000-80,000 annually per 40 residents
Higher utilities due to shared common areas
Annual city inspections and compliance costs
Increased insurance for shared facility operations

📈 Revenue Potential

Premium rents: 15-25% above comparable studio apartments
Higher occupancy rates due to community appeal
Potential for shorter lease terms (minimum 30 days)
Ancillary revenue from services and amenities

                Key insight: Co-living works financially when you can command premium rents that offset the higher management and operational costs. Market research is essential.
            

The Rules

Portsmouth Zoning Ordinance Section 10.815 sets specific requirements for co-living facilities.

Zoning

MRO District Only

Mixed Residential Office zones with Conditional Use Permit

Unit Size

100 sq ft min (single)
120 sq ft min (double)

No cooking facilities allowed in units

Occupancy

80 max/building
40 max/floor

Maximum 2 occupants per unit

Common Areas

1,200 sq ft + 20/unit

Kitchen, dining, laundry, recreation, wellness

Management

Full-time on-site

One manager per 40 residents, 24/7 presence

Parking

0 spaces if within 600 ft of public garage
1 per 4 units otherwise

Significant reduction from standard requirements

Ownership

Single entity required

Cannot subdivide or sell individual units

Tenancy

30-day minimum

Annual inspection and compliance required

                New development: HB 631, effective July 1, 2026, may allow multi-family housing by right in commercial zones. This could expand co-living opportunities beyond MRO districts.
            

How to Apply

Co-living requires two separate approvals: a Conditional Use Permit and an operating permit.

Step 1

Pre-application Meeting

Meet with Planning staff to review your proposal. Bring site plans and project concept.

2-4 weeks before application

Step 2

Submit CUP Application

File Conditional Use Permit application with Planning Board. Include architectural plans, management plan, and traffic study.

45 days to hearing

Step 3

Public Hearing

Present to Planning Board. Neighbors can comment. Board votes on approval with conditions.

Evening meeting

Step 4

Building Permits

Apply for construction permits once CUP is approved. Standard building review process.

2-6 weeks

Step 5

Operating Permit

Before opening, obtain operating permit from City Clerk. Requires final inspection and management plan verification.

Before occupancy

                Timeline tip: Allow 6-9 months from application to occupancy. The CUP process is the longest step, and seasonal application volumes can cause delays.
            

Contacts & Resources

Key contacts and official resources for co-living development in Portsmouth.

🗺️

Zoning Map (MapGeo)

Check if your property is in MRO district

→

📋

Planning & Sustainability Department

CUP applications and zoning questions - 603-610-7216

→

🏛️

Planning Board

Meeting schedules and CUP hearing process

→

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City Clerk

Operating permits and compliance - 603-610-7200

→

📖

Zoning Ordinance Section 10.815

Complete co-living regulations (PDF)

→

💻

Online Permit Portal (ViewPoint)

Online applications and permit tracking

→

📚 Source Information

This guide is based on Portsmouth Zoning Ordinance Section 10.815 (Co-living), as amended through February 17, 2026. Rules are subject to change — always verify current requirements with city staff before making investment decisions.