Key Insights
Fort Worth, Texas, just cemented its ban on STRs in residential neighborhoods, forcing investors to stick to commercial zones or look elsewhere. South Lake Tahoe, California, saw its controversial Measure T overturned, reopening residential areas to vacation rental permits—a potential windfall for investors eyeing the market. Meanwhile, in Lexington, Kentucky, a new state bill could strip cities of their ability to regulate STR density, making it easier to operate but adding uncertainty as local officials push back. Provincetown, Massachusetts, is capping STR licenses at 1,000, tightening competition, while Montreal’s proposed 92-day cap could slash profits for seasonal operators.
Investors should watch for restrictive caps and evolving zoning rules before committing to a market. Here's the full report:
Major Impact Areas:
Fort Worth, Texas, USA
Date of Announcement: March 12, 2025
Impact Level: MAJOR
Regulation Category: Zoning
Summary: A court upheld Fort Worth’s ban on STRs in residential areas, confining them to non-residential zones with mandatory registration and taxes, severely limiting investment options in residential neighborhoods. STR operators plan to appeal, citing constitutional issues, while the ruling may influence similar disputes in Dallas and Grapevine.
Source: Judge rules City of Fort Worth can keep banning short-term rentals from residential neighborhoods
South Lake Tahoe, California, USA
Date of Announcement: March 13, 2025
Impact Level: MAJOR
Regulation Category: Zoning
Summary: The El Dorado County Superior Court invalidated Measure T, which restricted vacation home rentals (VHRs) in residential areas, allowing property owners to now apply for VHR permits in those zones. This decision may lead to legal actions against the city for lost rental income, significantly impacting the regulatory landscape for short-term rentals.
Source: California court overturns Measure T in South Lake Tahoe
Lexington, Kentucky, USA
Date of Announcement: March 14, 2025
Impact Level: MAJOR
Regulation Category: Zoning, Licensing
Summary: A Kentucky House bill was passed that prevents cities like Lexington from regulating STR density, allowing permit denials only for safety concerns, potentially easing restrictions and benefiting investors if it passes the Senate. Critics argue it erodes local control, while supporters claim it balances regulation with property rights.
Source: Bill restricting Lexington’s rules on short-term rentals passes Kentucky House
Humboldt County, California, USA
Date of Announcement: March 17, 2025
Impact Level: MAJOR
Regulation Category: Zoning, Occupancy
Summary: Humboldt County’s new STR ordinance mandates farm stays on agricultural parcels and enforces a 600-foot spacing between rentals, significantly limiting where and how many STRs can operate, particularly in rural areas. The farm stay waiver threshold dropped from 5 to 2.5 acres, reducing eligibility for smaller properties and potentially lowering their value for STR investors.
Source: Humboldt County Supes Make Short Term Rental Ordinance Less Permissive
Moderate Impact Areas:
Montreal, Quebec, Canada
Date of Announcement: March 17, 2025
Impact Level: MODERATE
Regulation Category: Occupancy, Licensing
Summary: Montreal’s proposed bylaw limits STRs to 92 days per year (June to September) and requires permits to be displayed and renewed annually, severely restricting rental periods and increasing compliance burdens for investors. Airbnb warns this could lead to a $400 million economic loss and 4,400 job cuts, suggesting an alternative window of December to March to mitigate impacts.
Source: Airbnb urges city to hold off on banning some short-term rentals
Las Cruces, New Mexico, USA
Date of Announcement: March 12, 2025
Impact Level: MODERATE
Regulation Category: Tax
Summary: Las Cruces requires short-term rental owners to pay a 5% lodgers tax, which supports city promotional activities, adding to operational costs for investors. Owners must register online, pay a $50 fee, and submit monthly reports by the 25th, even if no rental activity occurs, increasing administrative burdens.
Source: Las Cruces short-term rental properties subject to lodgers tax
Chelan, Washington, USA
Date of Announcement: March 18, 2025
Impact Level: MODERATE
Regulation Category: Zoning, Licensing
Summary: Chelan’s new ordinance permits agriculturally-based STRs in the Special Use District on lots of at least 5 acres with 51% agricultural use, creating opportunities for investors with large, farming-focused properties. It replaces previous homestay rules, reflecting community support after extensive public input from April to November 2024.
Source: Chelan city council approves agriculture-based short-term rental code
Minor Impact Areas:
Fayetteville, Arkansas, USA
Date of Announcement: March 16, 2025
Impact Level: MINOR
Regulation Category: Licensing
Summary: Fayetteville has begun enforcing its short-term rental ordinance after identifying over 150 unlicensed properties through an audit, emphasizing the need for compliance with local licensing requirements. This enforcement action aims to ensure all short-term rentals operate legally within the city.
Source: Fayetteville enforces short-term rental ordinance
Developing Regulations:
Kamloops, British Columbia, Canada
Date of Announcement: March 13, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing
Summary: Kamloops city council is considering licensing short-term rentals, requiring business licenses for rentals under 90 days, which could increase regulatory compliance costs for investors. This potential change aims to clarify legal operations but may align with provincial restrictions, impacting the availability of short-term rental properties.
Source: While provincial restrictions are ahead, Kamloops bylaws 'simply don't allow' short-term rentals
State of Maine, USA
Date of Announcement: March 12, 2025
Impact Level: DEVELOPING
Regulation Category: Tax
Summary: Maine lawmakers are proposing taxes on short-term rentals, including a 2% local sales tax and a 3% state sales tax, to fund housing and education, potentially raising operating costs for investors. These proposals, still under consideration, could affect profitability if implemented, depending on local voter approval and legislative outcomes.
Source: Lawmakers re-up push for short-term rental taxes to fund housing, education
Petersburg, Virginia, USA
Date of Announcement: March 14, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing, Tax
Summary: Petersburg is proposing new regulations that would require short-term rental operators to register with the city, adhere to safety standards, and potentially pay taxes, aiming to address safety concerns and generate revenue. A public meeting is scheduled for March 17 to discuss these changes, with existing operators given a grace period for compliance.
Source: Petersburg considers new short-term rental regulations for safety, tax revenue
Canton, Ohio, USA
Date of Announcement: March 16, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning
Summary: Michael E. Cheek is challenging Canton's zoning laws that prevent him from using his single-family home as an Airbnb, arguing the enforcement is discriminatory and violates constitutional rights. This case, the first of its kind in Canton, could lead to changes in zoning regulations if successful.
Source: Airbnb zoning restrictions in Canton challenged in Stark County court
Myerstown, Pennsylvania, USA
Date of Announcement: March 17, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing
Summary: The Myerstown Borough Council is addressing resident complaints about a specific short-term rental, focusing on noise, illegal activities, and parking issues, which could influence the license renewal process. The council is working to improve complaint handling and communication, potentially leading to stricter enforcement or regulatory changes.
Source: Myerstown Borough Council fields short-term rental concerns
Provincetown, Massachusetts, USA
Date of Announcement: March 12, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing, Zoning
Summary: The Provincetown town meeting will consider capping short-term rental certificates at 1,000, potentially limiting the number of properties available for short-term rentals and affecting investor opportunities. Additionally, the town is addressing building material regulations for fire safety, which could increase property maintenance costs for rental owners.
Source: Restrooms and Rental Cap Are on the Provincetown Warrant
Myrtle Beach, South Carolina, USA
Date of Announcement: March 11, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning
Summary: A lawsuit challenges Myrtle Beach’s ban on short-term rental conversions, claiming it violates federal fair housing laws and has cost investors millions in lost profits, significantly impacting the rental market. The federal court’s decision could overturn the ban, affecting future investment opportunities and setting a precedent for similar regulations elsewhere.
Source: Lawsuit over Myrtle Beach short-term rental conversion ban heads to federal court