Independent short-term vacation rentals are under attack in all states. This post focuses on New Hampshire, that state that I operate my vacation rental.
The State of Short-Term Rental Regulations in New Hampshire: A Balancing Act
New Hampshire, a state known for its picturesque landscapes, charming towns, and vibrant tourist destinations, has seen a significant rise in the popularity of short-term rentals (STRs) like those listed on platforms such as Airbnb and Vrbo. These rentals have become an increasingly common choice for visitors seeking more personalized and flexible accommodations. However, as the popularity of short-term rentals grows, so too does the interest for regulations that balance the interests of homeowners, visitors, local communities, and municipalities. In New Hampshire, the regulation of STRs has become a complex issue that is still evolving.
Growth of Short-Term Rentals in New Hampshire
New Hampshire’s tourism industry is vital to its economy, with millions of visitors flocking to the state every year. From the stunning White Mountains and scenic lakes to the small towns and large cities like Manchester and Portsmouth, it’s no surprise that short-term rentals have surged in popularity. For many homeowners, listing a spare room, vacation home, or entire property on platforms like Airbnb has proven to be a lucrative way to earn extra income.
However, with this growth has come increased concerns about the impact on housing availability, local businesses, and neighborhood character. As a result, local governments have begun looking more closely at how short-term rentals should be regulated in order to strike a balance between fostering a thriving tourism industry and protecting the interests of residents.
The Patchwork of Local Regulations
One of the biggest challenges in regulating short-term rentals in New Hampshire is the lack of a unified, state-wide regulatory framework. Instead, local municipalities have the authority to create their own rules governing short-term rentals, leading to a patchwork of different regulations across the state.
Some communities, particularly those that are popular tourist destinations, have adopted stricter regulations to manage the influx of short-term rental properties. For example, towns like Conway, Lincoln, and Hampton have passed ordinances that require property owners to obtain permits, register their rentals, or adhere to certain safety standards. These regulations are often designed to address concerns about noise, overcrowding, and the loss of long-term rental housing for local residents.
On the other hand, some municipalities have not yet introduced regulations, leaving short-term rentals largely unregulated in those areas. This lack of consistency can create confusion for property owners and visitors alike, as different towns and cities may have very different rules regarding what is allowed.
Recent Efforts to Create Statewide Standards
Recognizing the growing complexity of the situation, some policymakers in New Hampshire have explored the possibility of creating state-wide regulations for short-term rentals. In 2023, a bill was introduced in the New Hampshire legislature that sought to establish uniform regulations for short-term rentals. The bill aimed to address concerns such as health and safety standards, insurance requirements, and tax collection, while also giving municipalities the flexibility to impose additional rules based on local needs.
However, the bill faced opposition from various stakeholders. Some local governments and advocacy groups argued that municipalities should retain control over how they manage short-term rentals, pointing out that a one-size-fits-all approach would not work in a state with such a diverse range of communities. Others were concerned about the potential financial burden that new regulations might place on property owners and small businesses.
As of 2025, the bill has not passed, and the issue remains unresolved. This leaves New Hampshire in a situation where individual municipalities are still largely responsible for regulating short-term rentals, with no clear direction from the state as a whole.
Key Issues in the Debate Over Short-Term Rental Regulation
There are several key issues that continue to shape the debate around short-term rental regulations in New Hampshire:
Housing Affordability: One of the most significant concerns related to short-term rentals is their impact on the local housing market. Critics argue that when properties are used primarily as short-term rentals, they reduce the availability of long-term rental units for residents, driving up rental prices. This is particularly problematic in popular tourist areas where housing stock is limited. It is my opinion that many properties offered as short-term rentals would never be long-term rentals based on size and real estate values; the numbers don’t work to make that a viable option for property owners.
Taxation and Revenue: Short-term rentals have also become a focus for state and local governments looking to capture additional revenue. Currently, property owners are required to collect and remit state lodging taxes on short-term rental income, but there are concerns that not all hosts comply with these requirements. Some local governments have pushed for stronger enforcement of tax collection and for more transparency in the booking process. However, all rentals rented through Airbnb are automatically charged the lodging tax that is then submitted to the State by Airbnb.
Neighborhood Impact: Many residents in areas with high concentrations of short-term rentals worry about the impact on their neighborhoods. Concerns include noise, parking issues, and a loss of community cohesion. Regulations that address these concerns, such as caps on the number of rentals per neighborhood or stricter noise ordinances, are being explored by some municipalities.
Safety and Standards: Ensuring the safety and well-being of guests is another important consideration. Critics of the current state of regulation argue that without clear safety standards, guests may be at risk in improperly maintained or inadequately equipped rentals. Some municipalities have begun requiring inspections or safety certifications to address these concerns.
Looking Ahead: The Future of Short-Term Rental Regulations in New Hampshire
As New Hampshire continues to grapple with the regulation of short-term rentals, it is clear that a balanced approach is needed—one that takes into account the needs of property owners, tourists, and local communities. While some municipalities may continue to implement more stringent rules, others may opt for lighter regulations that encourage growth in the tourism sector.
The question remains: Will New Hampshire move toward a state-wide framework for short-term rentals, or will municipalities retain full control over how these rentals are managed? As the debate continues, property owners and renters will need to stay informed about local regulations and adapt to any changes that come their way. For now, the landscape of short-term rental regulation in New Hampshire remains in flux, with no clear consensus on the way forward.
New Hampshire’s ability to find the right balance between encouraging tourism, protecting the interests of local communities, protecting land use and property rights, and long-term rental house will be a critical factor in shaping the future of short-term rentals in the state.
Â
Resources
Comments