Is Craftsbury, Vermont Good for Airbnb Investment?

To start an Airbnb in Craftsbury, Vermont, begin by researching local zoning laws and regulations through the Craftsbury Town Office, as Vermont requires short-term rental operators to register with the state and collect 9% rooms and meals tax plus 1% local option tax. Contact the Vermont Department of Taxes to obtain a Business Account Number and Meals and Rooms Tax license, then check with Craftsbury's planning commission about any specific ordinances regarding short-term rentals in residential areas. Find a suitable property by working with local real estate agents familiar with Craftsbury's rural market, focusing on properties near outdoor attractions like Craftsbury Outdoor Center or Lake Elligo, with prices typically ranging from $200,000-$500,000 for suitable homes. Obtain necessary permits including a Certificate of Compliance from the Vermont Fire Safety Division if the property has more than 4 guest rooms, and ensure compliance with Americans with Disabilities Act requirements. Furnish the property with rustic Vermont-style décor, essential amenities, high-speed internet, and outdoor gear storage given Craftsbury's reputation for skiing and cycling. Create your Airbnb listing with professional photos highlighting the rural Vermont setting, proximity to Craftsbury Common and outdoor activities, pricing competitively at $150-$300 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company like Vermont Vacation Rentals if you're not local, while maintaining detailed records for tax purposes and ensuring compliance with ongoing state reporting requirements.

To identify profitable short-term rental properties in Craftsbury, Vermont, focus on locations within 10-15 minutes of Craftsbury Outdoor Center and Sterling College, as these drive year-round visitor traffic for cross-country skiing, mountain biking, and educational events. Target 3-4 bedroom properties built after 1980 with modern amenities, full kitchens, reliable internet, and outdoor spaces that can accommodate 6-8 guests, as families and small groups dominate this market. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Stowe and Burke Mountain areas, aiming for $150-250 per night depending on season and amenities. Research competition by monitoring active listings on Airbnb and VRBO within a 20-mile radius, noting occupancy patterns and guest reviews to identify service gaps. Utilize tools like STR Helper for market analysis, partner with local property managers like Green Mountain Vacation Rentals who understand Vermont regulations, and leverage data from the Northeast Kingdom Chamber of Commerce to understand seasonal tourism patterns, particularly around foliage season (September-October) and winter sports (December-March) when demand peaks significantly.

To obtain an Airbnb/STR permit in Craftsbury, Vermont, contact the Craftsbury Town Clerk's office at the Town Office on Wylie Hill Road or call 802-586-2823 to begin the application process. You'll need to submit a completed short-term rental registration form, proof of property ownership or lease agreement, a site plan showing the property layout, proof of liability insurance (typically $1 million minimum), a septic system compliance certificate if applicable, and contact information for a local property manager if you're not residing on-site. The application fee is estimated at $100-200 annually, with additional fees possible for inspections. Required documents also include a floor plan indicating maximum occupancy, parking arrangements documentation, and compliance with Vermont's statewide STR tax registration through the Department of Taxes. Craftsbury requires STR properties to maintain adequate parking (typically 2 spaces minimum), comply with noise ordinances, post emergency contact information prominently, and ensure septic systems can handle increased usage. The approval timeline is typically 4-6 weeks after submitting a complete application, though initial applications may take longer if inspections are required. You must also register with Vermont's Department of Taxes for rooms and meals tax collection, obtain a business license if operating commercially, and ensure compliance with local zoning regulations which may restrict STRs in certain residential areas.

Short-term rentals (STRs) are generally legal in Craftsbury, Vermont, but operate under state regulations and local zoning requirements. Vermont passed Act 79 in 2019 requiring STR operators to register with the state, collect rooms and meals tax, and comply with health and safety standards. Craftsbury, a small rural town in Orleans County, does not appear to have specific municipal STR ordinances as of 2023, meaning properties must comply with existing zoning laws that typically allow residential use in designated areas. The town's zoning regulations may restrict STRs in certain districts or require conditional use permits for commercial activities in residential zones. Recent changes include Vermont's statewide registry system implemented in 2020 and increased enforcement of tax collection requirements. Property owners must obtain a business license, register with the Vermont Department of Taxes, and ensure compliance with fire safety codes and septic system regulations, particularly important in Craftsbury's rural setting where many properties rely on private septic systems.

The best areas for Airbnb investment in Craftsbury, Vermont are the Craftsbury Common historic village center, which attracts visitors year-round with its pristine New England architecture and serves as a hub for the Sterling College community bringing consistent academic-related travel. The Craftsbury Outdoor Center area near Little Hosmer Pond is highly desirable due to its world-class Nordic skiing facilities that host national and international competitions, drawing athletes and spectators during winter months, plus summer activities like sculling and mountain biking. Properties near Lake Elligo offer waterfront appeal for summer tourists seeking swimming, fishing, and boating activities. The Route 14 corridor provides convenient access while maintaining rural charm, attracting leaf-peepers during fall foliage season and serving visitors to nearby Burke Mountain and Jay Peak ski resorts. Areas close to the Craftsbury General Store and Sterling College campus benefit from foot traffic and events, while properties with mountain views toward the Worcester Range command premium rates from guests seeking authentic Vermont experiences and outdoor recreation access.

Airbnb properties in Craftsbury, Vermont are subject to Vermont's statewide 9% rooms and meals tax, which applies to all short-term rental accommodations under 30 days and is collected by the host and remitted monthly to the Vermont Department of Taxes if gross receipts exceed $500 annually. Additionally, Orleans County (where Craftsbury is located) may impose a local option tax of up to 3% on lodging, though this varies by municipality and would be collected alongside the state tax. Hosts must register with the Vermont Department of Taxes, collect taxes from guests at the time of booking or check-in, and file monthly returns by the 25th of the following month using Form RT-381, with payments due at the same time. Exemptions include stays of 30 days or longer, accommodations provided to permanent residents, and rentals where the gross annual receipts are under $500, though hosts should verify current local ordinances as Craftsbury may have adopted additional local lodging taxes or regulations since 2023.

To start an Airbnb in Craftsbury, Vermont, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at $250,000-$275,000 for a median 2-3 bedroom home suitable for short-term rental in this rural Northeast Kingdom area. Furnishing costs typically run $15,000-$20,000 for quality furniture, bedding, kitchen essentials, and decor to create an appealing guest experience. Initial setup including professional photography, listing creation, welcome materials, and basic amenities costs approximately $2,000-$3,000. Vermont requires short-term rental registration and local permits totaling $500-$800, while some municipalities may require additional zoning approvals. Insurance specifically covering short-term rentals adds $1,500-$2,500 annually, with higher premiums due to increased liability exposure. Utilities including electricity, heating oil/propane, water, internet, and cable average $300-$400 monthly in Vermont's climate. First six months operating costs encompass utilities ($1,800-$2,400), cleaning supplies and services ($1,200-$1,800), maintenance reserves ($1,000), marketing and platform fees ($800-$1,200), and miscellaneous expenses ($500-$800), totaling approximately $5,300-$7,200. Property taxes, typically $3,000-$5,000 annually for properties in this price range, should also be factored into ongoing operational planning.

Airbnb properties in Craftsbury, Vermont typically generate annual revenues between $15,000-$35,000 for seasonal rentals, with year-round properties potentially earning $25,000-$50,000 annually based on 2023-2024 market data. Operating expenses generally range from 40-60% of gross revenue, including property management fees (15-25%), cleaning costs ($75-150 per turnover), utilities ($200-400 monthly), insurance ($1,200-2,500 annually), and maintenance ($2,000-5,000 yearly). Profit margins typically fall between 20-35% for well-managed properties, with higher-end ski chalets near Burke Mountain or properties with unique amenities like hot tubs achieving margins closer to 40%. Success factors include proximity to outdoor recreation areas like Lake Elmore and Kingdom Trails, seasonal pricing optimization with peak rates of $200-350/night during fall foliage and winter ski season versus $100-180/night in summer, and maintaining high guest ratings above 4.7 stars. Properties within 15 minutes of Burke Mountain Resort or featuring authentic Vermont charm with modern amenities consistently outperform the market, with some luxury cabins reporting occupancy rates of 65-75% and generating $40,000-$60,000 annually, while basic properties may struggle with 35-45% occupancy and lower per-night rates of $80-120.

Airbnb investments in Craftsbury, Vermont typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by seasonal demand from outdoor enthusiasts visiting the Craftsbury Outdoor Center and surrounding recreational areas. Properties in this rural Northeast Kingdom location generally achieve profitability within 18-24 months, with peak earning potential during summer months (June-September) when visitors come for cycling, running camps, and outdoor activities, and winter periods (December-March) for cross-country skiing and winter sports. Average nightly rates range from $120-180 depending on property size and amenities, with occupancy rates typically reaching 60-75% during peak seasons and 25-40% in shoulder months, resulting in annual gross revenues of $15,000-35,000 for typical 2-3 bedroom properties, though investors should factor in Vermont's 9% rooms and meals tax, property management costs of 20-25%, and seasonal utility expenses that can impact net returns.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties across markets including Craftsbury, Vermont. For local expertise, Coldwell Banker Hickok & Boardman Realty and Pall Spera Company Realtors have agents familiar with the Northeast Kingdom vacation rental market. Century 21 Jack Associates and RE/MAX North Professionals serve the Craftsbury area and can assist with investment property searches. National services include Awning (formerly RedAwning) which provides Airbnb investment analysis, Mashvisor for rental property analytics, and BiggerPockets for investor networking and deal sourcing. AirDNA offers market data and revenue projections for Vermont vacation rentals. Local property management companies like Green Mountain Vacation Rentals and Stowe Country Homes can provide insights into profitable areas. Real estate agents specializing in investment properties include those at Keller Williams Vermont and Berkshire Hathaway HomeServices Vermont Properties who understand the seasonal rental dynamics of Vermont's rural markets.