STR Definition

A “short-term rental” (STR) is defined by Vermont Statute under Act 10 (2018) as “a furnished house, condominium, or other dwelling room or self-contained dwelling unit rented to the transient, traveling, or vacationing public for a period of fewer than 30 consecutive days and for more than 14 days per calendar year.”

Other points of distinction:

• Short-term renting is a residential activity. While the act of renting in Vermont considers the property as a “public building”, it does not make the home a commercial property.

• A short-term rental cannot offer food service without a license from the Vermont Department of Health.

• No more than 2 short-term rental units may operate on one property without being licensed as a Lodging Establishment by the Vermont Department of Health.

• A “short-term rental” is often called a ‘vacation rental’ and can be advertised through popular online platforms like Airbnb and VRBO, other online or local travel agencies, or directly advertised by the owner or property management company.

• A “short-term rental” is not a hotel, motel, inn, or bed & breakfast.

• A “short-term rental” may not always meet the definition of a residential rental dwelling unit.

• A “short-term rental” may or may not offer cooking facilities.

• A “short-term rental” may or may not be a weatherized dwelling unit.

Demographics & Activity

• STR Ownership in Vermont

  • 80% of owners operate 1 or 2 STR listings

  • 50% of owners are full-time Vermont residents

  • 55% of owners are over the age of 55 and are in or nearing retirement

  • 63% of owners are women

  • 25% of owners also own/manage separate annual rental properties

  • 55% of Airbnb hosts say hosting has helped them afford their homes

• STR Use in Vermont

  • 90% are used by the owner each year

  • 80% are used as monthly furnished rentals, supplying “medium-term” rentals for temporary workers, traveling professionals, and transitioning families

  • An alternative to hotels and inns, STRs offer what consumers demand: privacy, pet-friendly, family-friendly, contactless hospitality, longer stays, larger gatherings, unique experiences

Economic Impacts

• Meals & Rooms Tax

  • In 2022, ~$51 Million of the MRT revenue came from STR reservations, and ~$54 Million in 2023 

• Local Option Tax

  • In 2022, Stowe STRs contributed ~$500,000 to the town’s budget in LOT revenue and Wilmington STRs added ~$200,000 to the town’s budget through the LOT 

• Employment & Jobs

  • >100 locally-owned vacation rental management businesses are employing Vermont residents in addition to publicly-owned management companies, like Vacasa and Evolve, that also employ ~200 Vermont residents

• Visitor Spending

  • STR guests spend an average of $1,500 at local businesses during a 3-day stay.  Over 450,000 visitors stay in Vermont STRs for an average of 4 days every year.

  • STR guests contribute ~$650 Million in annual visitor spending per year.

  • 92% of Airbnb hosts say they recommend restaurants and cafes to guests.

  • 56% of Airbnb hosts say they recommend cultural activities such as museums, festivals, and historical sites to guests.

  • On average, Airbnb guests say 41% of their spending occurs in the neighborhood where they stay.

• Second Homeowner Spending

  • Second homeowners represent more than 40% of Vermont’s overall tourism purchases according to the 2017 Benchmark Report from the Vermont Department of Tourism & Marketing.

Housing Market Impacts

The Vermont Housing Finance Agency uses data from AirDNA to estimate the number of short-term rentals in every Vermont town.

• STRs make up 3% of Vermont’s housing stock

• 17% of Vermont’s housing stock are “second homes”

There are 3 types of STRs as they relate to the housing stock:

• 1 — STRs not available for long-term rental housing

  • seasonal camps, vacation homes with part-time owner-occupancy, rooms without cooking facilities, yurts, “glamping” tents, etc.  

• 2 — STRs constructed exclusively for short-term rental use

  • new construction, renovated buildings/spaces, etc.

• 3 — STRs that used to be available as long-term housing

  • whole apartments and homes in which the landlord has pivoted from long-term rentals to short-term rentals for personal reasons

Influential Factors

• 2022-2023 STR Impact Studies conducted in Maine, New Hampshire, and Canada all found that STR activity has an insignificant effect on rent and home prices.

• Vermont League of Cities & Towns published Vermont's Housing Crisis: 2022 Municipal Action Paper.

  • In-fill development, vacancy taxes, and Act 250 reform remain the top recommendations for improving housing affordability in Vermont.