Executive Summary
Dearborn, Michigan, has enacted the harshest restriction this week, banning short-term rentals entirely in residential zones and single-family homes starting January 1, 2026, effectively eliminating most STR opportunities in the city. Londonderry, Vermont, caps non-primary residence rentals at just 50 nights annually with a one-year waiting period for new registrations. Kennesaw, Georgia, restricts rentals to single-family zones only, requires 250-foot buffers between properties, and caps licenses at 150 total. Tax pressures are mounting as Ocean City, New Jersey, adds a 3% booking fee on third-party platforms, while Westerly, Rhode Island, hiked registration fees from $50 to $500 annually. Meanwhile, Ocean City, Maryland, residents are voting on whether to overturn council-imposed 5-night minimum stays that escalate to 31 days by 2027, and Kentucky's Court of Appeals ruling could force stricter tax compliance statewide through legal challenges against Airbnb.
New Regulations
Londonderry, Vermont
Published: July 20, 2025
Regulation Category: Licensing, Occupancy, Zoning
Summary: Londonderry, Vermont has implemented strict short-term rental regulations, including a 50-night annual cap for non-primary residences, a one-year waiting period for new registrations, and mandatory quiet hours and trash removal to address tourism-related issues. Existing STR owners are grandfathered, but new ownership changes trigger these rules, potentially impacting investment returns due to limited rental periods and increased compliance costs.
Source: Short-term rental regulations now in place in Londonderry
Kennesaw, Georgia
Published: July 22, 2025
Regulation Category: Licensing, Zoning
Summary: Kennesaw, GA has passed a new ordinance limiting short-term rentals to single-family residential zones, with a 250-foot buffer between rentals, a cap of 150 licenses, and a $250 application fee, effective this fall. These restrictions could significantly limit investment opportunities by reducing available rental locations and increasing compliance costs.
Source: Kennesaw Approves Short-Term Rental Ordinance
Dearborn, Michigan
Published: July 15, 2025
Regulation Category: Zoning, Licensing
Summary: Dearborn, MI has banned short-term rentals in residential zones and single-family homes, effective January 1, 2026, restricting them to downtown districts with mandatory registration and licensing. This significant restriction eliminates STR opportunities in most of the city, potentially forcing investors to seek alternative markets or face reduced income.
Source: Dearborn Council Bans Short-Term Rentals in Residential Areas, Single-Family Homes
Ocean City, New Jersey
Published: July 18, 2025
Regulation Category: Tax
Summary: Ocean City, NJ has introduced a 3% tax on short-term rentals booked through platforms like Airbnb, effective in 90 days, to address increased resource use from shorter stays. This tax could reduce profitability for investors, as it may deter budget-conscious travelers and increase pricing pressure in a competitive market.
Source: Ocean City Council passes 3% tax on rentals booked on third-party services like Airbnb
Kentucky (Statewide)
Published: July 17, 2025
Regulation Category: Tax
Summary: The Kentucky Court of Appeals upheld a ruling allowing a lawsuit to proceed against Airbnb, seeking to enforce transient room tax collection in jurisdictions that assess it, potentially increasing tax compliance costs for hosts. Investors should anticipate higher operational expenses and possible legal challenges as cities push for consistent tax payments from short-term rental platforms.
Source: Kentucky Court of Appeals Rules Against Airbnb
Westerly, Rhode Island
Published: July 14, 2025
Regulation Category: Licensing, Tax
Summary: Westerly, RI has raised its annual short-term rental registration fee from $50 to $500 to fund a new tracking system, with potential further restrictions like limiting STRs to specific areas and requiring fire marshal approval. Investors should prepare for higher operational costs and monitor proposed caps on STR numbers, which could limit market growth.
Source: Westerly takes closer look at short-term rentals
Developing Regulations
Athens, Greece
Published: July 20, 2025
Regulation Category: Licensing
Summary: Greece has extended the deadline for mandatory short-term rental registration to July 21, 2025, requiring all Airbnb-style property managers to comply, with potential new restrictions on permits in Athens to address housing shortages. Investors should monitor these developments, as stricter regulations could limit new rental opportunities and increase operational costs in high-demand areas.
Source: Airbnb Registration Extended to July 21
Ocean City, Maryland
Published: July 21, 2025
Regulation Category: Occupancy, Zoning
Summary: Ocean City, MD residents will vote on July 22, 2025, to potentially overturn a City Council ordinance imposing a 5-night minimum stay for short-term rentals in R1 and MH districts, increasing to 31 days by 2027, which could severely limit STR profitability. Investors should closely watch the referendum outcome, as it may significantly restrict rental flexibility and impact tourism-driven revenue.
Source: Will Ocean City voters overturn council approved short term rental ban?