Is Albion, New York Good for Airbnb Investment?

To start an Airbnb in Albion, New York, begin by researching local zoning laws and regulations through the Orleans County Planning Department and Albion Village Hall, as short-term rentals may require special permits or fall under specific zoning restrictions. Contact the Albion Building Department to obtain necessary permits, which typically include a certificate of occupancy for rental use and potentially a business license from Orleans County. Find a suitable property by working with local real estate agents familiar with Albion's market, focusing on areas near Lake Ontario or historic downtown that attract tourists, with average property prices ranging from $80,000-$150,000 for suitable homes. Furnish the property with essential amenities including Wi-Fi, cable TV, full kitchen appliances, quality bedding, and local touches highlighting Albion's proximity to Lake Ontario and the Erie Canal, budgeting approximately $8,000-$15,000 for complete furnishing. Create your Airbnb listing with professional photos showcasing the property's proximity to Lakeside Beach State Park and historic sites, setting competitive rates around $75-$120 per night based on seasonal demand. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies in nearby Rochester if you're not local, while maintaining compliance with New York State tax requirements including collecting occupancy taxes and registering with the Department of Taxation and Finance.

To identify profitable short-term rental properties in Albion, New York, focus on properties within walking distance of the historic downtown area along Main Street and near the Erie Canal, as these locations attract tourists interested in canal history and outdoor recreation. Target 2-4 bedroom single-family homes or historic properties built between 1880-1920 with original architectural details, full kitchens, parking, and outdoor spaces like porches or yards that appeal to families and groups exploring the region. Analyze pricing by researching comparable Airbnb listings within a 10-mile radius including Medina and Brockport, aiming for nightly rates between $80-150 depending on property size and amenities, while calculating potential annual revenue against acquisition costs and renovation expenses. Study competition by examining existing STR listings on Airbnb, VRBO, and Booking.com within Orleans County, noting occupancy patterns, guest reviews, and seasonal demand fluctuations tied to summer canal tourism and fall foliage periods. Utilize tools like AirDNA for market analytics, Mashvisor for investment analysis, the Orleans County real estate listings, and connect with local real estate agents familiar with the Albion market, while also consulting the Village of Albion planning department regarding short-term rental regulations and zoning requirements.

To obtain an Airbnb/STR permit in Albion, New York, contact the Village of Albion Building Department at Village Hall located at 35 East Park Street, as Orleans County requires short-term rental operators to register with local municipalities. Submit a completed short-term rental application form along with proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (minimum $1 million coverage), floor plan showing maximum occupancy, contact information for a local representative available 24/7, and a $150 application fee plus $75 annual renewal fee. Required documents also include a fire safety inspection certificate from the local fire department, proof of smoke and carbon monoxide detectors in all sleeping areas, and compliance with zoning regulations (STRs typically allowed in residential zones with restrictions). The application process takes approximately 4-6 weeks for review and approval, during which time the building inspector will conduct a property inspection to ensure compliance with safety codes, parking requirements (minimum 2 spaces), and occupancy limits (typically 2 people per bedroom plus 2 additional). Albion-specific requirements include maintaining a guest registry, posting emergency contact information prominently, ensuring quiet hours from 10 PM to 7 AM, and adhering to the village's 3% occupancy tax on all bookings, which must be collected and remitted quarterly to the Village Clerk's office.

Short-term rentals (STRs) in Albion, New York are generally legal but subject to local zoning regulations and state oversight. As a small village in Orleans County, Albion follows New York State's regulations which require STR hosts to register with the state, collect occupancy taxes, and comply with safety standards including smoke and carbon monoxide detectors. The village likely restricts STRs to certain zoning districts and may require special use permits or conditional use permits in residential areas. Properties must meet building and fire codes, and hosts are typically limited in the number of guests and may face restrictions on parking and noise. Recent changes include New York State's enhanced registration requirements implemented around 2021-2022 and stricter enforcement of tax collection. Local restrictions may prohibit STRs in certain residential neighborhoods or require minimum distances between rental properties, though specific prohibited areas would be detailed in Albion's zoning code and municipal regulations.

The most promising Airbnb investment areas in Albion, New York include the historic downtown district near the Erie Canal, which attracts tourists interested in canal history and the annual Canal Days festival, plus business travelers visiting local manufacturing facilities like Eastman Kodak's operations. The residential neighborhoods near Bullard Park offer family-friendly accommodations for visitors attending youth sports tournaments and accessing the recreational facilities. Areas close to Orleans County offices and courthouse provide opportunities for business travelers, legal professionals, and government visitors requiring short-term stays. The neighborhoods near Route 98 and Route 31 intersection benefit from accessibility for travelers exploring the Finger Lakes region, with Albion serving as a convenient stopover between Rochester and Buffalo. Properties near the Albion Central School District can attract families relocating or visiting for school-related activities, while areas close to local healthcare facilities like Medina Memorial Hospital serve medical tourists and visiting family members.

In Albion, New York, Airbnb hosts are subject to New York State sales tax of 8% on lodging rentals, which applies to stays of less than 90 consecutive days, and this tax must be collected from guests and remitted quarterly to the New York State Department of Taxation and Finance through their online system or by mail using Form ST-809. Orleans County, where Albion is located, imposes an additional 3% occupancy tax on short-term rentals, bringing the total tax rate to approximately 11%, and this county tax is collected by the Orleans County Treasurer's office with monthly remittance required for properties generating over $300 in monthly rental income. Hosts must register for sales tax permits with New York State before collecting taxes, and the county occupancy tax requires separate registration with the county clerk's office. Exemptions include rentals to permanent residents (90+ days), rentals to government employees on official business, and certain charitable organizations, though documentation must be maintained to support exempt transactions. Collection occurs at the time of booking or check-in, and failure to properly collect and remit these taxes can result in penalties of up to 25% of the unpaid tax amount plus interest charges.

To start an Airbnb in Albion, New York, expect total costs of approximately $180,000-$220,000. Property purchase represents the largest expense at $120,000-$150,000 based on median home prices in this rural Orleans County town. Furnishing costs will run $8,000-$12,000 for quality furniture, bedding, kitchenware, and décor to create an appealing rental space. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$4,000. Permits and fees total $500-$1,500 covering business licenses, short-term rental permits, and potential zoning approvals. Insurance including liability and property coverage specifically for short-term rentals costs $1,200-$2,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable run $500-$800. First six months operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance reserves ($1,000), marketing ($600), and platform fees average $4,600. Additional considerations include potential HOA restrictions, local tax implications, and seasonal demand fluctuations typical in upstate New York markets.

Airbnb properties in Albion, New York typically generate modest returns due to the town's rural location and limited tourist traffic, with average nightly rates ranging from $75-120 for entire homes and occupancy rates around 40-50% annually. A typical 3-bedroom property might generate $18,000-25,000 in gross revenue annually, but after expenses including property taxes ($3,000-5,000), utilities ($2,400), cleaning fees ($3,600), insurance ($1,200), maintenance ($2,000), and Airbnb fees (3%), net profit margins generally fall between 15-25%, yielding $3,000-6,000 annually. Success factors in this market include proximity to Albion's historic downtown, competitive pricing below $100/night, and targeting business travelers or visitors to nearby attractions like the Erie Canal. Properties within walking distance of Main Street or featuring unique amenities like hot tubs or fire pits tend to achieve 10-15% higher occupancy rates. The market faces challenges from limited demand drivers compared to major tourist destinations, making it more suitable for property owners seeking supplemental income rather than primary revenue streams, with break-even typically occurring when occupancy exceeds 35% at average rates of $90/night.

Airbnb investments in Albion, New York typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's proximity to Rochester and seasonal tourism patterns around nearby Brockport and the Erie Canal corridor. Properties in this small Orleans County community, with average acquisition costs of $80,000-$120,000, can achieve gross rental yields of 12-18% annually through strategic pricing during peak summer months and college events at nearby SUNY Brockport. Investors can expect to reach profitability within 18-24 months, with net monthly cash flows of $200-$400 per property after expenses, while cap rates typically range from 7-9% due to lower property taxes and maintenance costs compared to urban markets, though occupancy rates may fluctuate seasonally between 45-65% depending on marketing effectiveness and property condition.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Albion, New York, providing comprehensive market analysis and property recommendations. Local real estate agents in the Albion area who specialize in investment properties include Realty USA agents and Howard Hanna Real Estate Services, both of which have experience with vacation rental investments in Western New York. National services like AirDNA offer market data and analytics for the Albion market, while Mashvisor provides investment property analysis tools that cover the region. RE/MAX agents in nearby Rochester and Buffalo often work with investors seeking Airbnb properties in smaller markets like Albion. BiggerPockets connects investors with local professionals familiar with the Orleans County market, and Awning provides turnkey Airbnb investment services that extend to upstate New York markets. Local property management companies such as Vacasa and RedAwning can assist with both property acquisition advice and subsequent management of short-term rentals in the Albion area, while national platforms like Roofstock occasionally feature investment properties in smaller New York markets including the greater Rochester region where Albion is located.