How to Start an Airbnb Business in Vermont

Why Vermont Is a Top Market for Short-Term Rentals

Vermont generates about $3.7 billion in annual tourism revenue from a state with fewer than 650,000 residents. That ratio — tourism dollars to population — ranks among the highest in the Northeast. When 13 million visitors pour into a state that small, the demand for accommodations overwhelms the limited hotel supply, and short-term rentals absorb the overflow.

The Green Mountain State runs on seasonal tourism that never fully shuts off. Ski season dominates December through March, with Stowe, Killington, Sugarbush, and Jay Peak drawing skiers from Boston, New York, and Montreal. Fall foliage season (mid-September through late October) is arguably Vermont’s most iconic draw — leaf peepers fill every available bed in the state for six straight weeks. Summer brings hikers, cyclists, and families chasing the Long Trail and Lake Champlain. Even mud season (April–May) has developed a following among travelers seeking low-season rates and craft brewery tours.

What makes Vermont different from other seasonal markets is the quality of guest it attracts. The average Vermont visitor skews affluent, educated, and willing to pay premium rates for a “charming” experience. Farm-to-table dining, covered bridges, artisan cheese, and small-town Main Streets aren’t just marketing — they’re the product. Guests booking Vermont STRs expect (and will pay for) character that hotels can’t replicate.

Vermont’s housing stock works in hosts’ favor, too. The state has a disproportionate number of historic farmhouses, converted barns, ski chalets, and lakefront cottages that photograph beautifully on listing platforms. A restored 1800s farmhouse outside Woodstock will outperform a generic condo every time. The inventory is the competitive advantage.

The regulatory environment has tightened in recent years, particularly around Act 250 (Vermont’s land use law) and local zoning. But the state hasn’t pursued the kind of punitive crackdowns seen in places like New York City or Los Angeles. Hosts who operate legally and transparently find Vermont to be a manageable regulatory environment with strong earning potential.

Vermont Short-Term Rental Laws and Regulations

Vermont’s approach to STR regulation has evolved considerably since 2020. The state enacted specific legislation addressing vacation rentals, and municipalities have followed with their own ordinances. Understanding both layers is essential before investing.

State-Level Requirements

Vermont requires all short-term rental operators to register with the Vermont Department of Taxes and collect the state’s rooms tax (9%) plus a 1% local option tax where applicable. You’ll need a meals and rooms tax account, even if you only rent through platforms that handle tax remittance.

The state also requires STR properties to comply with life safety codes — working smoke and carbon monoxide detectors, adequate egress windows, and proper fire extinguisher placement. Properties with more than four guest rooms may trigger additional requirements under Vermont’s lodging establishment rules, which brings health department inspections into play.

Act 250, Vermont’s landmark environmental and land use review law, can apply to STR conversions in certain circumstances. If you’re converting a single-family home to a commercial rental in a rural area, or if the property is above 2,500 feet elevation, Act 250 review may be triggered. This isn’t common for typical STR operations, but it catches some operators off guard when expanding to larger properties or building new structures.

If you’re pursuing rental arbitrage in Vermont, confirm subletting rights in your lease. Vermont is a tenant-friendly state, and lease violations can lead to formal proceedings through the Vermont Attorney General’s office.

Key City Regulations

Burlington: Burlington introduced STR registration requirements in 2023, making it one of the first Vermont municipalities to formalize rules. Hosts must register with the city, pay an annual fee, and comply with occupancy limits. The city distinguishes between hosted stays (owner present) and un-hosted stays, with stricter rules for un-hosted properties in residential zones. Parking requirements apply in the downtown core. Burlington’s college-town housing crunch has made STR regulation a politically charged issue, so expect continued evolution.

Stowe: Stowe regulates STRs through its zoning bylaws. Short-term rentals in residential districts require a conditional use review by the Development Review Board. The process involves a public hearing, and neighbors can raise objections. Properties in the village commercial district face fewer hurdles. Stowe has not imposed permit caps, but the conditional use process adds time and uncertainty — plan for 60–90 days for approval.

Killington: Killington takes a relatively permissive approach, reflecting its identity as a resort town where vacation rentals are embedded in the economy. A town business license is required. Properties must meet fire safety standards. The town hasn’t imposed STR-specific caps or zoning restrictions beyond standard building code compliance. This makes Killington one of the easier Vermont markets to enter from a regulatory standpoint.

Woodstock: Woodstock’s charm is both its draw and its regulatory motivation. The town has implemented zoning restrictions that limit STRs in the historic village center. Properties in outlying areas face fewer restrictions. The town board reviews STR applications and has been known to deny permits based on neighborhood character concerns. If targeting Woodstock, study the zoning map carefully before committing.

Recent Regulatory Changes (2025–2026)

Vermont’s 2025 legislative session included H.291, which established a voluntary statewide STR registry. While registration is currently optional, it’s widely expected to become mandatory in a future session. The registry feeds data to the Department of Taxes for enforcement purposes, so proactive registration demonstrates good faith.

Burlington expanded its enforcement in 2025, hiring a dedicated compliance officer who cross-references Airbnb and Vrbo listings against the city’s registry. Several un-registered operators received fines in Q3 2025. Stowe updated its conditional use criteria to include noise and parking impact assessments. The Vermont Department of Health clarified that properties marketed as “lodging” on booking platforms with more than three rooms must obtain a lodging license, which includes annual inspections.

The regulatory trend in Vermont is toward more structure, not less. Getting registered and compliant now positions you ahead of tighter rules that are clearly on the horizon.

Tax Obligations for Vermont Airbnb Hosts

Vermont’s tax burden on STR income is among the highest in New England, so accurate accounting matters.

Vermont Meals and Rooms Tax: A 9% tax applies to all short-term rental income (stays under 30 days). This is Vermont’s equivalent of a lodging tax, and it applies to the full booking amount including cleaning fees.

Local Option Tax: Approximately 30 Vermont municipalities have adopted the 1% local option tax on meals and rooms. Burlington, Stowe, Killington, and Woodstock all impose it. This stacks on the 9% state rate for a combined 10% in these towns.

State Income Tax: Rental income is subject to Vermont’s progressive income tax, which ranges from 3.35% to 8.75% depending on your total income bracket. Vermont taxes all income earned within the state, including non-residents who own Vermont rental properties.

Airbnb and Vrbo collect and remit the 9% rooms tax plus local option taxes in Vermont through their platform agreements with the state. However, direct bookings (your own website, repeat guests, word-of-mouth) require you to collect and remit these taxes yourself. Register with the Vermont Department of Taxes and file returns monthly or quarterly based on your volume.

Deductions Vermont hosts commonly miss: snow removal costs (substantial in ski country), heating fuel (Vermont winters are expensive), property maintenance for historic structures (which often qualifies for the Vermont Historic Rehabilitation Tax Credit), and the cost of maintaining a septic system (many rural Vermont properties aren’t on municipal sewer). A Vermont-savvy CPA will help you capture deductions that a generic tax preparer would miss.

Best Cities for Airbnb in Vermont

Stowe

Stowe is Vermont’s premier STR market, and it earns that reputation with numbers. Average daily rates range from $200 to $380 depending on season, with the peak ski weeks (Christmas through New Year’s, Presidents’ Day weekend) commanding $450+ for well-appointed chalets. Annual occupancy averages 63%, with ski season and foliage season both pushing above 80%.

The Stowe Mountain Resort area and the Mountain Road corridor are the sweet spots for STR performance. Properties within a 10-minute drive of the resort base consistently outperform those further out. Ski chalets with hot tubs, fireplaces, and mountain views dominate the top-performing listings. A four-bedroom chalet on the Mountain Road can gross $75,000–$100,000 annually when managed well.

Summer is Stowe’s emerging third season. Mountain biking, hiking, and the Stowe Performing Arts Center bring increasing numbers of warm-weather visitors. The shoulder seasons (April and November) remain soft, but Stowe’s annual occupancy still outperforms most Northeast ski towns.

Burlington

Burlington delivers something unusual for Vermont: urban demand layered on top of seasonal tourism. The University of Vermont drives consistent traffic for move-in weekends, parents’ weekends, graduation, and sports events. Burlington’s restaurant scene, craft brewery district, and Lake Champlain waterfront attract weekend visitors year-round.

ADRs in Burlington average $140–$220, lower than Stowe but with steadier year-round occupancy around 61%. The Hill Section and Downtown neighborhoods perform best for STRs. Two-bedroom apartments and converted Victorian homes hit the sweet spot for both tourist stays and UVM family visits.

Rental arbitrage has real potential in Burlington, though the tight housing market means competition for suitable apartments is intense. Monthly rents for a downtown two-bedroom run $1,800–$2,400, with STR potential of $3,200–$4,500/month in the same unit. The key challenge is finding landlords who will approve short-term subletting in a city with vocal housing advocacy groups.

Killington

Killington is a pure ski-driven market, and it leans into that identity. The resort is the largest ski area in the eastern U.S., drawing visitors primarily from the New York and New Jersey corridor. ADRs range from $130 to $250, with ski-season occupancy reaching 75%+ and annual occupancy around 55%.

The lower annual occupancy reflects Killington’s sharper seasonality compared to Stowe. Summer brings some mountain biking and golf traffic, but the May–November period is significantly softer. Successful Killington hosts compensate by pricing aggressively during ski season and accepting lower-margin long-term stays during the off-season.

Properties near the Killington Road access and in the Pico area command the highest rates. Condo units in existing resort complexes offer the lowest barrier to entry — some units trade in the $150K–$300K range, making Killington one of the most accessible ski-market entry points on the East Coast.

Woodstock and Quechee

Woodstock and the neighboring village of Quechee cater to a different Vermont traveler: the cultural tourist who wants covered bridges, gallery walks, and Simon Pearce glassblowing rather than ski lifts. Fall foliage is the primary demand driver, with September and October occupancy exceeding 85% in well-positioned properties. Summer tourism and holiday weekends fill the remaining calendar.

ADRs in the Woodstock area run $160–$280, with historic properties and farmhouse stays commanding premiums. Annual occupancy averages 57%, dragged down by the quieter winter months when Woodstock doesn’t have a major ski resort to drive demand (though Suicide Six is nearby, it’s small). Properties with character — wide-plank floors, stone fireplaces, gardens — dramatically outperform generic rentals in this market.

How Much Do Airbnbs Make in Vermont?

Vermont’s STR revenue reflects its premium positioning and seasonal patterns. Here’s the market breakdown from 2025 data:

The revenue ceiling in Vermont is high for the right property. A four-bedroom Stowe chalet with a hot tub, game room, and ski storage can gross over $100,000 annually. A meticulously restored farmhouse in the Mad River Valley with professional photography and a five-star guest experience can push past $80,000. The common thread among top performers isn’t location alone — it’s the combination of property character, quality amenities, and thoughtful management.

Vermont’s challenge is the off-season. April and November are consistently the weakest months across nearly every market. Hosts who find creative ways to fill those gaps — offering mid-week discounts, targeting remote workers with month-long stays, marketing to wedding parties visiting venues during shoulder season — dramatically improve their annual numbers.

How to Start Your Vermont Airbnb Business

Vermont rewards preparation more than most states. The regulatory landscape, seasonal dynamics, and guest expectations all demand that you do the work upfront rather than figure it out after listing.

Step 1: Pick your market based on your capital and risk tolerance. Stowe and Killington require higher investment but offer proven demand. Burlington works for co-hosting or arbitrage models with lower upfront cost. Woodstock and the smaller towns suit owner-operators who can manage properties directly.

Step 2: Verify zoning and permitting. Contact the town clerk and zoning administrator for your target municipality. In Vermont, town governance is hyperlocal — each town makes its own rules. Ask specifically about conditional use requirements, any pending STR ordinances, and whether your target property’s zone permits short-term rentals.

Step 3: Register with the state. Create a meals and rooms tax account with the Vermont Department of Taxes. Register your business (LLC recommended) with the Vermont Secretary of State. Total registration costs: approximately $125 for LLC formation plus a $35 annual report fee.

Step 4: Secure and prepare your property. If buying, prioritize properties with character. A standard ranch house will underperform a converted barn at the same price point. Vermont guests are paying for an experience, not just a bed. Ensure the property meets safety codes: smoke detectors, CO detectors, fire extinguishers, and adequate egress. If the property has a wood stove or fireplace (common in Vermont), get the chimney inspected and documented.

Step 5: Invest in seasonally appropriate furnishing. Vermont properties need to handle winter. This means quality bedding (flannel sheets in winter are a guest favorite), a reliable heating system with a backup (power outages happen during storms), boot trays and coat storage, and a well-stocked kitchen for guests who cook rather than eat out. For summer, outdoor seating, a fire pit, and access to swimming or hiking trails are high-value amenities.

Step 6: Build your listing around Vermont’s identity. Don’t list a Vermont property like a Florida condo. Emphasize the experience: proximity to specific trails, local farm stands, covered bridges, specific ski resorts. Include driving distances to key attractions. Mention the wood stove. Mention the view. Professional photography is especially critical in Vermont — the visual appeal of your property is doing half the selling.

Step 7: Set pricing by season. Vermont’s pricing requires more seasonal adjustment than most markets. You might charge $350/night during foliage peak and $120/night during mud season. Use dynamic pricing tools and study your specific competitive set’s rates weekly.

Step 8: Prepare for Vermont-specific operational challenges. Snow removal, driveway plowing, frozen pipe prevention, and propane delivery (many rural properties run on propane) are ongoing winter responsibilities. Build relationships with local plow operators and handymen before your first winter season — they get booked up fast.

Vermont STR Insurance and Liability

Vermont’s STR insurance landscape has a few quirks that distinguish it from other states.

Standard homeowners policies in Vermont typically exclude commercial rental activity. You need a policy that explicitly covers short-term rental use. The main options:

Dedicated STR Insurance: Providers like Proper Insurance and Safely offer Vermont-specific policies covering property damage, guest liability, lost income, and personal property. Annual premiums range from $1,200 to $3,500 depending on property value, location, and amenities. Properties with hot tubs, fire pits, or swimming access pay more due to increased liability exposure.

Dwelling Fire Policy with STR Rider: Some Vermont insurers offer a dwelling fire policy (common for non-owner-occupied properties) with an STR endorsement. This can be cost-effective for properties used exclusively as rentals rather than part-time personal use.

Umbrella Coverage: A personal umbrella policy ($1M–$2M) runs $200–$400/year and provides crucial excess liability protection. Given that Vermont’s outdoor-oriented guests engage in activities with inherent risk (skiing, hiking, swimming), umbrella coverage is strongly recommended.

Vermont-specific risks include: ice and snow injuries (slip-and-fall on walkways and decks), chimney fires (wood stove-related incidents are not uncommon), frozen pipe damage (can cause $20,000+ in water damage), and tree fall damage during storms. Ensure your policy covers these explicitly. Also verify that your Airbnb’s AirCover program supplements but doesn’t replace your own coverage.

Why 10XBNB Gives You the Edge in Vermont

Vermont’s STR market has a reputation for being quaint and manageable, but the operators making real money here treat it like a business, not a hobby. The gap between a Vermont property grossing $35,000 and one grossing $80,000 comes down to strategy: how you price across four distinct seasons, how you furnish for the Vermont experience, how you market to the right guest demographics, and how you handle the operational challenges that rural New England throws at you.

10XBNB teaches the systems that scale. For Vermont operators specifically, the program covers seasonal pricing frameworks that maximize revenue during the compressed peak periods (ski week and foliage) while maintaining cash flow during shoulder seasons. It addresses how to analyze a Vermont micro-market before committing capital, how to build a listing that resonates with the affluent traveler Vermont attracts, and how to automate operations when your property might be an hour from the nearest town.

Students have applied the 10XBNB market selection methodology to identify Vermont towns where demand outstrips supply but competition hasn’t caught up. That kind of data-driven approach is what separates profitable Vermont hosts from those who struggle to cover their mortgage during mud season.

Frequently Asked Questions

Do I need a license to run an Airbnb in Vermont?
You need a meals and rooms tax account with the Vermont Department of Taxes, and you may need a municipal business license depending on your town. Properties with more than three guest rooms may require a state lodging license with health department inspections. Burlington requires city registration. Stowe requires conditional use approval. Check with your specific town clerk for local requirements.

How much tax do Vermont Airbnb hosts pay?
Vermont charges a 9% meals and rooms tax on all short-term rental income. About 30 municipalities add a 1% local option tax, bringing the total to 10% in towns like Burlington, Stowe, and Killington. Rental income is also subject to Vermont state income tax (3.35%–8.75%). Airbnb and Vrbo collect and remit the rooms taxes on platform bookings, but you’re responsible for direct booking tax remittance.

When is the best time to invest in a Vermont Airbnb?
The best acquisition timing is spring (April–May), when Vermont’s real estate market is quieter and sellers are motivated after winter. This gives you summer to renovate and furnish before the lucrative fall foliage season. Avoid buying in September–October when competition from leaf-peeper investors inflates prices.

Can I do rental arbitrage in Vermont?
Rental arbitrage is possible in Vermont, primarily in Burlington and Montpelier where the rental market is large enough. The challenge is Vermont’s tight housing market and politically active communities that push back against STRs displacing long-term housing. Always secure explicit written permission from your landlord and register with local authorities.

How do I handle Vermont winters as a remote STR host?
Vermont winters demand reliable local support. You need a plowing contractor, a handyman who can respond to frozen pipe emergencies, and a cleaning team comfortable driving in snow. Install a smart thermostat with low-temperature alerts. Leave heat at minimum 55°F when vacant. Insulate exposed pipes. Include winter driving guidance in your guest communication. Many successful remote hosts use a local property manager during December–March.

Is Vermont’s STR market getting oversaturated?
Certain micro-markets show saturation, particularly around Stowe’s Mountain Road and downtown Burlington. However, secondary markets like the Mad River Valley, Northeast Kingdom, and Southern Vermont (Brattleboro, Bennington) remain under-supplied relative to demand. The key is matching your property type and price point to an underserved niche rather than competing head-to-head in the most obvious locations.