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

Licensing and Zoning

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

Tax

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

Zoning

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

Licensing and Zoning

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

Licensing

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

Licensing and Zoning

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

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