Is Cambridge, Vermont Good for Airbnb Investment?

To start an Airbnb in Cambridge, Vermont, begin by researching local zoning laws and regulations through the Cambridge Town Office, as Vermont requires short-term rental operators to register with the state and obtain a business license, while some municipalities have additional restrictions on rental duration and occupancy limits. Contact the Vermont Department of Taxes to register for rooms and meals tax collection, which is required for all short-term rentals, and check with Cambridge's planning and zoning department about any specific permit requirements or conditional use permits needed for your property type. Find a suitable property by searching local real estate listings, considering proximity to popular attractions like Smugglers' Notch Resort and Stowe Mountain Resort, ensuring the property meets Vermont's life safety codes including smoke and carbon monoxide detectors, and adequate egress windows. Furnish the space with quality, durable furniture focusing on comfort and functionality, include essential amenities like linens, towels, kitchen supplies, WiFi, and heating suitable for Vermont's climate, and consider adding local touches that reflect Vermont's character. Create your Airbnb listing with professional photography highlighting the property's best features and proximity to outdoor activities, set competitive pricing based on comparable properties in the Lamoille County area, and write detailed descriptions emphasizing nearby attractions like Cold Hollow Cider Mill and Lake Champlain access. Manage your property by establishing efficient check-in/check-out procedures, maintaining consistent communication with guests, keeping the property clean and well-maintained year-round despite harsh Vermont winters, and staying compliant with ongoing tax obligations and any evolving local regulations that Cambridge may implement.

To identify profitable short-term rental properties in Cambridge, Vermont, focus on locations within 2-3 miles of Smugglers' Notch Resort and Stowe Mountain Resort, as these drive year-round tourism with skiing in winter and hiking/mountain biking in summer. Target properties with 3-4 bedrooms, hot tubs, fireplaces, mountain views, and ski equipment storage, as these features command premium rates of $200-400 per night during peak seasons. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that Cambridge averages 60-70% occupancy rates with seasonal variations peaking December-March and July-August. Research competition by monitoring existing STR listings within 5-mile radius, identifying gaps in luxury amenities or unique property types like converted barns or lakefront cabins. Utilize Vermont's Act 250 database to verify development permissions, check local zoning through Lamoille County records, and leverage STR-specific tools like Rabbu and AllTheRooms for market analysis, while partnering with local property management companies like Green Mountain Vacation Rentals who understand Cambridge's seasonal rental patterns and can provide insights on properties generating $40,000-80,000 annually depending on size and location proximity to ski areas.

To obtain an Airbnb/STR permit in Cambridge, Vermont, contact the Cambridge Town Clerk's office at 1912 VT Route 15, Cambridge, VT 05444 or call (802) 644-2251 to begin the application process. Required documents typically include a completed short-term rental registration form, proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $300,000), fire safety inspection certificate from the local fire department, and septic system compliance certificate if applicable. The application fee is approximately $150-200 annually, with additional inspection fees of $75-100. Submit your application to the Town Clerk's office along with all required documentation and fees, then schedule required inspections with the fire department and health officer within 30 days. The approval timeline is typically 4-6 weeks from submission of complete application, though this may extend to 8 weeks during peak season. Cambridge-specific requirements include maintaining a guest registry, posting emergency contact information and house rules prominently, ensuring adequate parking for guests without impacting neighbors, and complying with the town's noise ordinance which prohibits excessive noise after 10 PM. Once approved, you must renew your permit annually and report quarterly occupancy data to the town clerk's office.

Short-term rentals (STRs) are legal in Cambridge, Vermont, but operate under state and local regulations that have evolved significantly since 2018-2020. Vermont state law requires STR operators to register with the Department of Taxes, collect rooms and meals tax, and comply with health and safety standards, while Cambridge as a small rural town in Lamoille County generally follows state guidelines without extensive additional municipal restrictions. The state implemented comprehensive STR regulations around 2018-2019 requiring registration, taxation, and safety compliance, with recent updates in 2021-2022 strengthening enforcement mechanisms and requiring platforms like Airbnb and VRBO to collect taxes directly. Cambridge does not appear to have prohibited areas for STRs, though operators must comply with zoning requirements and may need permits for commercial use in residential zones. Recent legal changes include enhanced state oversight, mandatory insurance requirements, and stricter penalties for non-compliance, while the town maintains relatively permissive policies compared to larger Vermont municipalities like Burlington or Stowe that have implemented caps or moratoriums on new STR permits.

The most promising Airbnb investment areas in Cambridge, Vermont include the historic village center near the Cambridge Village Store and Town Common, which attracts visitors seeking authentic New England charm and serves as a base for exploring Stowe and Mount Mansfield State Forest just 15 minutes away. The Jeffersonville area along Route 15 offers excellent potential due to its proximity to Smugglers' Notch Resort (10 minutes) and serves year-round tourism with skiing in winter and hiking/mountain biking in summer. Properties near Lake Champlain's eastern shore in Cambridge provide waterfront recreation opportunities and attract summer vacationers interested in boating, fishing, and swimming. The Pleasant Valley Road corridor benefits from its central location between Stowe's tourist attractions and Burlington's business district (30 minutes), making it ideal for both leisure and business travelers. Areas near the Lamoille Valley Rail Trail attract outdoor enthusiasts year-round for biking, snowmobiling, and cross-country skiing, while properties within 5 miles of Cold Hollow Cider Mill capitalize on agritourism and fall foliage season visitors seeking quintessential Vermont experiences.

In Cambridge, Vermont, Airbnb hosts are subject to Vermont's statewide rooms and meals tax of 9% on gross rental receipts, which applies to all short-term rentals under 30 days. Additionally, hosts must collect the local option tax if Cambridge has enacted one, which can range from 1-3% depending on municipal decisions made around 2018-2020. The Vermont Department of Taxes requires hosts to register for a Business Account and Meals and Rooms Tax license, with taxes collected from guests and remitted monthly if receipts exceed $500 per month, or quarterly for smaller operations. Airbnb may collect and remit these taxes automatically for hosts through their platform agreement with Vermont established in 2017, but hosts remain ultimately responsible for compliance. Exemptions include rentals to permanent residents (30+ days), certain agricultural exemptions, and rentals by organizations exempt under Vermont statute, while hosts must maintain detailed records of all transactions and guest stays for audit purposes.

Starting an Airbnb in Cambridge, Vermont requires approximately $380,000-$420,000 in total initial investment. Property purchase costs around $325,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic renovations total approximately $3,000-$5,000. Permits and fees in Vermont include short-term rental registration ($200), business license ($50), and potential local permits ($300-$500). Insurance for short-term rentals costs roughly $1,500-$2,500 annually, with an upfront payment of $750-$1,250. Utilities setup and deposits for electricity, water, internet, and heating average $500-$800 initially. First six months operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance ($800), platform fees to Airbnb and VRBO ($2,400 assuming 20% occupancy), marketing ($600), and miscellaneous expenses ($1,000) total approximately $6,800. Property taxes and ongoing insurance should also be factored at roughly $4,000-$6,000 for the first six months.

Airbnb properties in Cambridge, Vermont typically generate annual revenues between $15,000-$35,000 for whole-home listings, with average daily rates ranging from $120-$180 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Profit margins typically range from 15-25% for well-managed properties, with seasonal variations showing peak performance during fall foliage season (September-October) and winter ski months when properties near Stowe Mountain Resort command premium rates. Success factors include proximity to outdoor recreation areas, professional photography, consistent 4.8+ star ratings, and strategic pricing that adjusts for local events and seasonal demand. Properties within 20 minutes of Stowe or featuring unique amenities like hot tubs or mountain views often achieve occupancy rates of 60-75% annually, while basic properties average 45-55% occupancy. The market has shown resilience post-2020 with increased demand for rural retreats, though rising property taxes and stricter local regulations in some Vermont municipalities have compressed margins by approximately 5-8% since 2022.

Airbnb investments in Cambridge, Vermont can expect annual ROI of 8-12% based on the area's proximity to Stowe ski resort and seasonal tourism patterns. Cash-on-cash returns typically range from 6-10% annually, with properties averaging $150-250 per night during peak ski season (December-March) and $100-180 during summer months. A typical investment property costing $400,000-600,000 can generate $35,000-55,000 in annual gross rental income, with net returns of $20,000-35,000 after expenses including property management (20-25%), cleaning fees, utilities, and maintenance. Timeframe to profitability is generally 12-18 months for established properties, though newer investors may require 18-24 months to optimize occupancy rates above 60%. Properties within 15 minutes of Stowe Mountain Resort command premium rates and achieve 65-75% occupancy during peak seasons, while those further away see 45-60% annual occupancy rates with correspondingly lower returns in the 6-8% range.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Cambridge, Vermont. Local real estate agents like Coldwell Banker Hickok & Boardman Realty and Keller Williams Vermont serve the Cambridge area and can assist with Airbnb investment properties, with agents like Sarah Mitchell at Century 21 and David Thompson at RE/MAX North Professionals having experience in vacation rental investments. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data and revenue projections, and Awning for turnkey Airbnb investment opportunities. RedAwning offers property management and investment services, while local property management companies like Green Mountain Property Management and Vermont Vacation Rentals can handle day-to-day operations. Additional national platforms include Roofstock, which occasionally features short-term rental properties, and BiggerPockets for networking with other investors. Local mortgage brokers like Union Bank and Merchants Bank can provide financing options specifically for investment properties in the Cambridge, Vermont market.