Key Insights:
South Haven, MI, and Buffalo, NY, just enacted sweeping new ordinances that will reshape STR operations—Buffalo is forcing non-owner-occupied rentals out of residential zones, while South Haven’s $1,000 penalty structure, new parking rules, and licensing requirements will hit profit margins hard. Meanwhile, Riverside County, California, has slammed the brakes on new permits with a surprise 45-day moratorium in two fast-growing desert markets, signaling that enforcement is no longer just talk. On the flip side, Utah passed investor-friendly reforms reducing parking mandates and easing restrictions, but the absence of tenant protections may stir future backlash. And in New Milford, Connecticut, new safety-focused guidelines are fairly benign—but still require formal registration and compliance for promotion. For those scanning new markets, keep an eye on Muskoka Lakes, Ontario, where occupancy caps and license delays are still on the table, and the U.S. Virgin Islands, where a proposed 20% Airbnb tax could decimate ROI overnight.
Major Impact Areas:
Buffalo, New York
Date of Announcement: March 24, 2025
Impact Level: MAJOR
Regulation Category: Zoning, permitting
Summary: Buffalo’s new regulations will restrict short-term rentals in residential areas, redirecting them to commercial zones, while allowing owner-occupied buildings with three or more units to offer additional STRs, expanding opportunities for some investors. These changes, following a prior moratorium, aim to reduce neighborhood conflicts and could reshape where and how STRs operate in the city.
Source: Short-term rental rule changes for Buffalo coming
South Haven, Michigan
Date of Announcement: March 17, 2025
Impact Level: MAJOR
Regulation Category: Licensing, occupancy, parking
Summary: South Haven’s City Council passed a revised short-term rental ordinance, introducing a new licensing system, occupancy and parking rules, and penalties up to $1,000, significantly altering operational requirements for STR owners. The removal of occupancy caps for existing rentals offers some relief, but investors must adapt to stricter oversight and compliance demands.
Source: Finally, STR ordinance approved by City Council
Riverside County, California
Date of Announcement: March 118 2025
Impact Level: MAJOR
Regulation Category: Moratorium, enforcement
Summary: Riverside County implemented a 45-day moratorium on new short-term rentals in Thousand Palms and B Bar H Ranch, halting new STR permits to address community concerns over noise and a dramatic rise in rentals from 300 in 2016 to 1,300 by 2024. Enhanced enforcement measures, including violation notices, signal a tougher stance that could affect investors’ ability to expand operations in these areas.
Source: County approves interim STR moratorium for desert communities
Moderate Impact Areas:
Utah, USA
Date of Announcement: March 23, 2025
Impact Level: Moderate
Regulation Category: Zoning, tax, affordability measures
Summary: Utah lawmakers passed bills easing short-term rental regulations and reducing parking requirements, potentially benefiting STR investors by lowering operational barriers as part of broader housing affordability efforts. However, the lack of tenant protections or limits on investor purchases leaves some market dynamics unchanged, impacting long-term investment strategies.
Source: Utah housing: Here's what lawmakers did and didn't do to address affordability
New Milford, Connecticut, USA
Date of Announcement: February 24, 2025 (effective April 1, 2025)
Impact Level: MODERATE
Regulation Category: Guidelines, registration
Summary: New Milford approved guidelines requiring short-term rental owners to register properties and provide safety booklets to renters, with compliant listings promoted on the town’s website starting April 1, 2025. These measures aim to enhance renter safety and neighborhood quality, offering investors a clear compliance path with moderate operational adjustments.
Source: New Milford OKs guidelines for Airbnb, Vrbo and other short-term rentals: 'Very safe atmosphere'
Developing Regulations:
Black Hills Region (Deadwood and Lead), South Dakota
Date of Announcement: March 21, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning, licensing
Summary: The Black Hills region is addressing housing shortages driven by short-term rental growth, with Deadwood and Lead using zoning and licensing, including buffer zones and permits, to manage impacts on resident housing. Ongoing regulatory discussions suggest potential future restrictions that could affect STR investors’ expansion plans.
Source: Short-term rentals highlight balancing act of Black Hills housing
Nacogdoches, Texas
Date of Announcement: March 18, 2025
Impact Level: DEVELOPING
Regulation Category: General regulations (unspecified)
Summary: Nacogdoches is exploring new regulations for short-term rentals due to their rising popularity, which could impact property owners looking to capitalize on this trend. Specific details of the potential rules remain unclear, leaving investors awaiting further clarification.
Source: City of Nacogdoches considers application of short-term rental regulations after rise in popularity
Muskoka Lakes, Ontario, Canada
Date of Announcement: March 2025 (proposed updates), potential approval in April 2025
Impact Level: DEVELOPING
Regulation Category: Licensing, occupancy
Summary: Muskoka Lakes proposed amendments to its short-term rental licensing by-law, delaying summer restrictions to May 1, 2026, and allowing operators to operate without licenses in 2025 if applications are submitted by December 31. Potential occupancy increases based on septic capacity could benefit investors, though final approval remains pending, creating uncertainty.
Source: Updates To Short Term Rental Accommodation Licensing By-Law In Muskoka Lakes
Saranac Lake, New York,
Date of Announcement: March 24, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning, permitting
Summary: Saranac Lake officials are reviewing short-term rental regulations, considering removing permit caps and adding exemptions for owner-occupied properties, which could ease restrictions for some investors. Discussions on density and zoning changes suggest potential future limits, leaving the long-term regulatory framework uncertain.
Source: Saranac Lake officials hold work session to review short term rental regulations
U.S. Virgin Islands
Date of Announcement: March 23, 2025
Impact Level: DEVELOPING
Regulation Category: Tax
Summary: Governor Bryan proposed a 20% tax on Airbnb rentals to discourage short-term listings and increase housing for residents, which could significantly raise costs for STR investors if implemented. The plan also aims to boost hotel use, with additional proposed taxes on shared economy services signaling a potential shift in the rental market landscape.
Source: Bryan Proposes 20 Percent Airbnb Tax to Tackle USVI Housing Shortage and Boost Hotel Occupancy