The U.S. short-term rental market is undergoing yet another year of growth in 2024. Whether you want to expand business operations, boost revenues, or increase your side income, there hasn’t been a better time to invest in vacation rentals.
Research shows that total vacation rental revenues will reach 19.77bn USD in 2024, making the U.S. the industry's number one revenue generator.
While this is an attractive proposition for investors, it’s important to understand each state's short-term rental laws and regulations.
To help you, we've gathered key data from AirDNA—a leading source for vacation rental analytics. In this guide, we'll provide essential insights on occupancy rates, average revenues, and daily rates across eight promising states.
We also break down the relevant laws, licensing requirements, and local restrictions for short-term rentals in each state to help you evaluate and expand your vacation rental portfolio into new US territories.
Short-term rental (STR) laws exist to protect property owners and their guests while preserving the interests of the local area. Federal and local governments usually dictate short-term rental laws and ensure they align with the local community's interests.
There is little doubt that having guests stay in short-term accommodation for less than 30 days has implications for neighborhoods and local areas. To help prevent and minimize negative impacts, STR laws help keep guests safe while both protecting the community and maintaining the interests of the vacation rental market in each state.
STR laws cover licensing and registration, zoning, operations, tax, and occupancy restrictions, and those STR managers who aren’t compliant—especially within stricter zones—can end up with fines or even lose their business permits altogether.
💡Pro tip: Concerned about noise and disturbances causing you issues with state laws and regulations? Use Minut to automate noise monitoring and reduce the risk of parties, exessive noises and over-occupancy. So you can be confident in your property's compliance no matter where you are.
Learn more: See how HUSWELL used Minut to reduce the risk of costly, unwanted, and unauthorized parties across their property management portfolio.
This guide is not a substitute for professional legal advice. Short-term rental laws change regularly, so please use this as a quick introduction to the legal information you may need to consider.
If you’re considering setting up vacation rentals in Alaska, you’ll need to carry out your due diligence across local requirements, as there’s no specific statewide definition for STR in Alaska. This means each city and borough sets its own criteria for STR laws.
However, some local definitions, such as Juneau, consider STRs to be residential properties rented for less than 90 days. Juneau also offers an online registration system, making it easier for operators to comply with local regulations.
Across Alaska, it’s also imperative to do the following:
As regulations and definitions differ, so do licensing requirements. Fairbanks is an example of a city where the main licensing requirement is to obtain a business license from the local government and the Alaska State business license.
Meanwhile, in the city of Palmer, STR operators must complete a specific application process that contains their State of Alaska business license number, the property’s location, and its capacity.
Recently, Anchorage passed a new STR law that requires Airbnb and other STR operators to license rental spaces and pay an annual fee of $200-$400 per unit.
Effective September 15th, 2024, the Anchorage Assembly confirmed its goal is to “safeguard the renter, the property, and neighborhood value.”
While they ask property owners to insure their properties for at least $500,000 and respond to issues within one hour, the overall intention is to address noise problems and occupancy limits to ensure safety for all.
Florida is a popular tourist destination and welcomes vacation rentals. The state's STR laws cover various aspects, including licensing, taxes, and zoning.
In 2024, the Florida Senate introduced SB280, a law stating that a maximum of two people per bedroom can stay overnight in a vacation rental, with an additional two people allowed in common areas. However, if each person has at least 50 square feet of space, more than two people can occupy a bedroom.
Local governments can charge a ‘reasonable fee’ for vacation rental owners to register their property. On top of this, owners must register with the Florida Department of Business and Professional Regulation if they rent out a full unit more than three times a calendar year for stays under 30 days.
All short-term rental owners must first get a license from the Florida Department of Business and Professional Regulation to operate, along with written approval from the Homeowners Association (HOA).
Business owners must also ensure the HOA holds a business tax receipt (BTR) number. Some cities like Miami Beach have restricted the areas where you can run short-term rental properties.
Short-term rental laws vary in their restriction levels across the range of cities in Florida. In Pompano Beach, for instance, any residence rented for any duration over 6 months or less is classified as a short-term rental. Owners in the area must get a permit via the City of Pompano Beach. However, this contrasts with the strict approach from Clearwater Beach, which prohibits STRs in areas for residential use—short-term rental owners can’t lease or rent properties for less than 31 days or a calendar month.
Georgia’s popularity has risen in recent years, and it has been dubbed the LA alternative for the film industry. With plenty of industry professionals looking for short-term accommodation, it’s unsurprising that property managers are looking to invest in cities like Atlanta.
Short-term rentals are subject to state taxes and fees, however, the landscape is complex and trickier to understand, with no statewide definition of a short-term rental for the Peach State.
In general, though, operators must pay lodging and sales taxes, and most local governments require operators to register with the Georgia Department of Revenue. The state sales tax is 4%, and there’s a hotel-motel fee of $5 per night.
With such a varied landscape in Georgia, hosts must stay vigilant to each city and region's different laws and regulations. One commonality across the State is that most cities and counties need hosts to hold a license.
For those looking to invest in Atlanta, it’s slightly more complex as the city has its own short-term rental ordinance. This ordinance asks all hosts to hold a short-term rental license and use it to provide evidence of their commitment to STR activity to the Department of City Planning.
Kentucky boasts plenty of character and is known for horseracing, delicious bourbon, and bluegrass music.
With so much to offer, the STR market has boomed in recent years, and the growth has prompted more stringent laws to improve relationships between STR operators and local communities.
Several counties and cities across Kentucky require hosts to obtain permits or licenses at fees ranging from $25 to $500.
Specific permits are the Zoning Compliance Permit, Business License, and Special Fees License, which costs $200 for the first residential unit and $100 for every additional license.
STR restrictions vary across Kentucky, so operators should check they’re across all regulations in cities they want to operate in.
For example, Louisville passed Airbnb laws in 2019 that includes registering an STR with the Louisville Metro Code of Ordinances, and they’re only in permitted city zones. Any violations can face penalties of $125 for a first offence, rising to as high as $1000 in fines should violations continue to go unaddressed.
Maine offers stunning natural beauty and plenty of opportunities for outdoor activities. While vacation rentals are viable, there’s a minimum 7-day stay period.
County and city governments are responsible for setting rules in Maine, although this is set to change following a review of STR’s impact on local neighborhoods.
The Maine STR Commission initiated a rulemaking proposal in 2024 for STR operators to file formal notices that their STR complies with these emerging new standards.
Due to the decentralized nature of short-term rental laws in Maine, ordinances and rules apply at a local level.
For instance, in Kennebunkport, no short-term property owner should advertise, rent, or operate without an STR license. It’s always wise to review all aspects of STR licensing and permits for each area to ensure compliance with tax obligations, zoning ordinances, and noise and nuisance policies.
As highlighted, each area of Maine operates with its own STR laws. However, one example of a restriction is STR owners in Portland, who must register all residential units with the City of Portland on an annual basis.
North Carolina is a popular destination for STR owners with its bustling cities and coastal scenery. However, with the increased popularity of vacation rentals, lawmakers are changing regulations through the North Carolina Vacation Rental Act (VRA). Founded under Chapter 42A of the NC General Statutes, the act requires homeowners and renters to sign a written agreement.
The more touristic counties and cities of the Tar Heel State have their own ordinances to regulate STR activity. For instance, Raleigh proposed a new ordinance in 2021 requiring each rental operator to hold a zoning permit from the City of Raleigh, display permit numbers on all STR ads, and maintain a list of all STR lodgers for at least three years.
The ordinance also bans special events and gatherings, and imposes limitations on multifamily buildings to 25% of residential units.
An example of local restrictions is Chapel Hill—its STR operators must apply for zoning compliance permits. The town has limits on the number of dedicated STRs that don’t include a primary resident. To benefit the local area and reduce disruption to local neighborhoods, local rules also restrict vacation rentals to high-density and commercial areas.
Many local ordinances in Ohio govern short-term rental laws. With vacation rentals gaining popularity in recent years, new regulatory changes are altering the landscape. STR operators need to navigate various registrations and permits, such as background checks and aligning with rules, to ensure they’re compliant.
Local zoning and landlord-tenant laws form a crucial aspect of hosting vacation rentals in the state.
For instance, in Columbus City, all STR hosts must comply with RC 2933.52. This states that so long as hosts declare use of such indoor or outdoor equipment–and the guest approves–then all is well. If they don’t consent to the use of monitoring then the host must deactivate the devices with immediate effect.
💡As more states require STRs to declare monitoring devices, privacy-safe equipment like Minut becomes a no-brainer. Minut monitors excessive noise, occupancy, cigarette smoke, and temperature and humidity without recording anything. So guests can rest easily knowing their privacy is protected.
Washington State’s economy is heating up, yet many municipalities require STR hosts to carry liability insurance or a permit to operate.
All STR owners In Washington State have to register their property as a business by getting hold of a Unified Business Identifier (UBI) number from the Washington State Department of Revenue. Plus, STR owners may also need to g
As an example of recent local restrictions, the City of Vancouver, WA, recently voted on new ordinances to limit the total number of STRs to 870 units, which is only 1% of the City’s housing stock.
This also means STR operations have to obtain a City of Vancouver business license for $50 and an STR permit for $250.
Short-term rental laws are constantly changing in response to increasing demand for vacation rentals.
Local authorities and states have a tricky job balancing economic benefits to an area while minimizing disruption to local neighborhoods. As a property manager or operator, it’s vital to stay on top of the latest local bills and regulations to ensure compliance.
If you’re concerned about the impact of your STR on the local community, it’s time to consider a device like Minut. Minut is the #1 monitoring solution for vacation rental properties, picking up on noise, occupancy, cigarette smoke, and temperature. Our platform sends automated alerts to your device, so you can ensure your rental is causing minimal disruption, no matter where you are.
Ready to discover why over 50,000 property managers rely on Minut to monitor their STRs? Book a demo to find out more.
