Executive Summary
Lafayette, Louisiana faces a federal lawsuit that could overturn its residential zone STR ban covering 75% of the city—a potential goldmine if investors win, but continued risk if restrictions hold. Maui County's Bill 9 threatens to phase out 6,000 apartment-zoned STRs while costing the county $60 million in tax revenue, creating uncertainty for current and prospective investors in Hawaii's lucrative market. West Fargo, North Dakota passed first reading on restricting STRs to primary residences only, which would eliminate most investment properties and cost the city up to $80,000 annually in tax revenue. Steamboat Springs, Colorado is eyeing a hefty $3,100 annual vacancy tax on STRs empty for 183+ days, potentially crushing profit margins for seasonal rental strategies. Meanwhile, Nantucket offers temporary relief as the town won't enforce a court ruling blocking non-owner-occupied STRs while appeals are pending, giving investors breathing room in this high-value market.
New Regulations
Nantucket, Massachusetts
Published: June 13, 2025
Regulation Category: Zoning Summary: Following a Land Court ruling that Nantucket's zoning bylaw prohibits short-term rentals of primary dwellings, the town will not enforce STR laws broadly while an appeal is pending, providing temporary relief for STR investors. The town is exploring zoning bylaw amendments and mediation to address the ruling's implications, which could affect future STR operations in residential areas.
Source: Town: No active STR enforcement while appeal is pending
Lafayette, Louisiana
Published: June 16, 2025
Regulation Category: Zoning
Summary: A federal lawsuit challenges Lafayette's ordinance banning short-term rentals in residential zones, which cover 75% of the city, arguing it violates property rights and could severely limit STR investment opportunities. The outcome could overturn the ban, potentially restoring STR operations in residential areas or affirming restrictions, significantly impacting investors' income potential.
Source: Lafayette residents sue LCG over 'unconstitutional' short-term rental restrictions
Developing Regulations
Maui County, Hawaii
Published: June 11, 2025
Regulation Category: Zoning Summary: Maui County's Bill 9 proposes phasing out approximately 6,000 short-term rentals in apartment-zoned districts to address housing shortages, potentially reducing STR investment opportunities significantly. Opposition from real estate groups highlights economic concerns, including a projected $60 million tax revenue loss and doubts about units converting to long-term rentals, with further discussions pending.
Source: Groups weigh in on proposed short-term rental ban in Maui's apartment districts
Northampton County, Virginia
Published: June 11, 2025
Regulation Category: Zoning, Registration, Enforcement
Summary: Northampton County is drafting new short-term rental (STR) regulations, incorporating existing zoning provisions and reviewing ordinances from other counties, with a focus on where STRs are permitted, registration requirements, and enforcement mechanisms. The draft, expected to be finalized in two to three months, must navigate Virginia's legal constraints, particularly around owner-occupied STRs and agri-tourism distinctions, impacting potential investment restrictions.
Source: County Attorney to compile proposed STR regs to send to Planning Commission
Queenstown and Christchurch, New Zealand
Published: June 16, 2025
Regulation Category: Registration
Summary: New Zealand is considering a national short-term accommodation register to regulate Airbnb, inspired by Spain's digital register, which could standardize rules across regions like Queenstown and Christchurch and impact STR compliance costs. Local councils currently enforce their own rules, but a lack of cohesive regulation creates uncertainty for investors planning STR operations.
Source: What New Zealand can learn from Spain's war on Airbnb
West Fargo, North Dakota
Published: June 12, 2025
Regulation Category: Zoning
Summary: A proposed West Fargo ordinance would restrict short-term rentals to primary residences, potentially eliminating most STR operations and threatening investors' businesses, with an estimated $70,000-$80,000 annual tax revenue loss. The first reading passed 3-2, with a second reading set for June 16, 2025, amid concerns over neighborhood commercialization and potential legal challenges.
Source: Property owners say short-term rental rule could put them out of business in West Fargo
Steamboat Springs, Colorado
Published: June 2025
Regulation Category: Tax
Summary: Steamboat Springs is considering a $3,100 annual vacancy tax on short-term rentals vacant for 183 days or more, potentially increasing costs for STR investors and affecting profitability. The proposal, supported by 60% of voters in a poll, may go to a November 2025 vote, with discussions about using STR sales taxes to offset the tax or exploring property tax alternatives.
Source: Short-term rental owners voice opposition to Steamboat Springs' vacancy tax proposal