Last updated:
February 26, 2025
3
minute read

Airbnb Investor Insights: This Weeks Regulation Updates

Feb 20-26 2025: Short Term Rental Regulations Update

Key Insights

This week highlighted a diverse range of approaches to STR regulations across the U.S., reflecting both tightened controls and efforts to preserve economic benefits.

Quincy, Washington, and Owensboro, Kentucky, rolled out stringent measures—Quincy with a new permitting system capping STRs at 1% of housing stock and Owensboro with a 4% transient room tax—aiming to manage growth and generate revenue. Meanwhile, Saranac Lake, New York, cautiously reopened the door to STRs after a long moratorium, approving a limited number of permits to balance tourism with residential concerns.

In contrast, places like Conway, New Hampshire, and Fayetteville, Arkansas, are pushing back against overly restrictive proposals—Conway by rethinking limits to avoid lawsuits and Fayetteville by advocating for local regulatory power against a state-level threat—showing a trend of communities seeking to adapt STR rules to local needs without choking their potential to drive tourism and economic activity.

Major Impact Areas:

Quincy, Washington

Date of Announcement: February 21, 2025
Impact Level: MAJOR
Regulation Category: Licensing and Zoning
Summary: Quincy implemented a new ordinance requiring short-term rental permits with fees of $383 initially and $109 annually, enforcing zoning compliance, parking, and a cap at 1% of housing stock, effective immediately.
Source: Fees set for Quincy short-term rental permits

Owensboro, Kentucky

Date of Announcement: February 22, 2025
Impact Level: MAJOR
Regulation Category: Tax
Summary: Owensboro introduced a 4% transient room tax on short-term rental revenue effective immediately, requiring homeowners to collect and submit it monthly unless handled by platforms. Owensboro short-term rental owners must register by March 1, 2025.
Source: Tax imposed on short term rental venues in Owensboro

Moderate Impact Areas:

Fort Worth, Texas

Date of Announcement: Verdict anticipated by end of March 2025
Impact Level: MODERATE
Regulation Category: Zoning
Summary: Fort Worth awaits a court decision on its 2023 ban of short-term rentals in residential areas, challenged by 114 operators claiming it’s unconstitutional, with a verdict expected by late March 2025 that could alter or uphold current zoning restrictions.
Source: Fort Worth braces for verdict on short-term rental lawsuit as new judge takes case

Saranac Lake, New York

Date of Announcement: February 22, 2025
Impact Level: MODERATE
Regulation Category: Licensing and Zoning
Summary: Saranac Lake’s village development board approved three new short-term rental permits after a 1.5-year moratorium, balancing tourism growth with neighborhood density concerns, with up to 10 permits allowed in 2025.
Source: First new Saranac Lake STR permits approved

Minor Impact Areas:

Winters, California

Date of Announcement: February 18, 2025
Impact Level: MINOR
Regulation Category: Licensing
Summary: The Winters Planning Commission approved a Use Permit for an Airbnb on Chapman Street, addressing parking and noise concerns, while also updating Accessory Dwelling Unit regulations in line with California state law changes.
Source: Commissioners approve Airbnb application

Fayetteville, Arkansas

Date of Announcement: February 18, 2025
Impact Level: MINOR
Regulation Category: Licensing and Zoning
Summary: Fayetteville’s City Council unanimously supported a resolution urging Arkansas lawmakers to allow local control over short-term rental regulations, countering a state bill that could eliminate municipal authority in favor of property rights.
Source: Fayetteville council backs resolution asking for latitude on short-term rental regulation

Conway, New Hampshire

Date of Announcement: February 24, 2025
Impact Level: MINOR
Regulation Category: Zoning
Summary: Conway’s Planning Board is rethinking proposed restrictions on short-term rentals that would limit them to owner-occupied properties in residential zones, opting to maintain current allowances to avoid legal challenges while forming a subcommittee for further review.
Source: Conway planners seek to walk back proposed STR regs

Carson City, Nevada

Date of Announcement: February 21, 2025
Impact Level: MINOR
Regulation Category: Zoning and Licensing
Summary: Carson City supervisors are set to discuss regulating short-term rentals to address zoning, licensing, and community impacts, aiming to balance economic benefits with housing and neighborhood concerns, though no regulations have been implemented yet.
Source: Supervisors to discuss regulating short-term rentals like AirBNB, VRBO in today's work session

Grand County, Colorado

Date of Announcement: February 20, 2025
Impact Level: MINOR
Regulation Category: Licensing and Zoning
Summary: A short-term rental owner has sued Grand County commissioners over their regulatory authority, with the case scheduled for an initial court hearing in April 2025, potentially affecting future licensing and zoning rules.
Source: Short-term rental owner sues Grand County commissioners

Alexandria, Virginia

Date of Announcement: February 20, 2025
Impact Level: MINOR
Regulation Category: Licensing and Occupancy
Summary: Alexandria proposed new short-term rental regulations requiring permits and limiting occupancy to 10 people, addressing safety and “party house” concerns, with a City Council review scheduled for February 22, 2025.
Source: Notes: Alexandria reveals proposed regulations for Airbnb and other short-term rentals

Indian Rocks Beach, Florida

Date of Announcement: February 23, 2025
Impact Level: MINOR
Regulation Category: Occupancy
Summary: Indian Rocks Beach postponed a vote on increasing short-term rental occupancy from 10 to 12 guests, opting for a public workshop to address resident concerns, with further action pending post-March 11, 2025.
Source: Indian Rocks Beach commission postpones vote on short-term rentals

State of Arkansas, United States

Date of Announcement: February 24, 2025
Impact Level: MINOR
Regulation Category: Licensing and Zoning
Summary: An Arkansas House committee passed a bill to strip cities of short-term rental regulatory power, raising concerns about local control and housing impacts, with the proposal awaiting full House consideration.
Source: Arkansas cities could eventually lose the ability to regulate short-term rentals like Airbnbs

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