Is Farmington, New York Good for Airbnb Investment?

To start an Airbnb in Farmington, New York, begin by researching local zoning laws and regulations through the Town of Farmington Planning Department, as short-term rentals may require special permits or be restricted in certain residential zones. Contact the Ontario County Building Department to obtain necessary permits, which typically include a Certificate of Occupancy for short-term rental use and potentially a home occupation permit if operating from your primary residence. Find a suitable property by working with local real estate agents familiar with Farmington's neighborhoods like Beaver Creek or areas near Finger Lakes Community College, ensuring the property meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality furniture from regional suppliers like Ashley HomeStore in Rochester or online retailers, focusing on durable, comfortable pieces that photograph well, and ensure you have essential amenities like high-speed internet, linens, and kitchen supplies. Create your Airbnb listing with professional photos highlighting Farmington's proximity to Finger Lakes wineries and outdoor activities, setting competitive rates based on similar properties in the area (typically $80-150 per night for a 2-bedroom unit as of 2023). For ongoing management, establish relationships with local cleaning services, maintenance contractors, and consider using property management software like Hostfully or hiring a local property management company such as those serving the Rochester/Finger Lakes region to handle bookings, guest communication, and property maintenance while ensuring compliance with New York State tax requirements including collecting occupancy taxes.

To identify profitable STR properties in Farmington, New York, focus on locations within 2-3 miles of Finger Lakes attractions, particularly near Canandaigua Lake, with easy access to Routes 332 and 96 for tourist convenience. Target 3-4 bedroom properties built after 1990 with modern amenities, outdoor spaces, lake views or proximity, updated kitchens, and reliable internet, as these command $150-300 per night depending on season and location. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that summer months (June-September) typically see 40-60% higher rates than off-season, with average occupancy rates around 65-75% for well-positioned properties. Research competition by examining existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or pricing strategies, and noting that properties near Seager Marine, Kershaw Park, or historic downtown Canandaigua perform strongest. Utilize STR-specific tools like Rabbu, AllTheRooms, and local MLS data through Rochester Regional MLS, while connecting with Farmington town planning department for zoning compliance and monitoring seasonal tourism patterns through Finger Lakes Tourism Alliance data to optimize acquisition timing and pricing strategies.

To obtain an Airbnb/STR permit in Farmington, New York, you must first contact the Farmington Town Clerk's office at 1000 County Road 8, Farmington, NY 14425 or call (585) 398-3114 to request a short-term rental application form. Submit the completed application along with required documents including proof of property ownership or lease agreement, certificate of occupancy, property insurance documentation showing minimum $1 million liability coverage, floor plan of the rental unit, and contact information for a local property manager if you live more than 50 miles away. Pay the application fee of approximately $150-200 and annual renewal fee of $100-125 by check or money order. The town requires properties to meet all building and fire safety codes, have working smoke and carbon monoxide detectors in each bedroom and common area, provide adequate parking for guests, maintain a maximum occupancy limit based on square footage (typically 2 people per bedroom plus 2 additional), and display the permit number in all advertising. You must also register with Ontario County for tax collection purposes and obtain a sales tax certificate from New York State. The approval process typically takes 4-6 weeks after submission of complete documentation, and the town may conduct an inspection before issuing the permit. Annual renewals are required by December 31st each year, and you must maintain a guest registry and respond to any complaints within 2 hours during your rental period.

Short-term rentals (STRs) in Farmington, New York are generally legal but subject to local zoning regulations and permit requirements established by the Town of Farmington. The town typically requires STR operators to obtain proper permits and comply with safety standards, noise ordinances, and occupancy limits, with properties needing to meet building and fire codes. Most residential zones allow STRs as accessory uses, though some areas may have restrictions on the number of rental days per year or require special use permits. The town has implemented registration requirements and may impose taxes on STR operations, similar to other municipalities in Ontario County. Recent years have seen increased scrutiny and potential updates to regulations as the STR market has grown, with the town balancing tourism revenue against neighborhood character preservation. Property owners should verify current zoning compliance and obtain necessary permits before operating STRs, as violations can result in fines and cease-and-desist orders.

The most promising Airbnb investment areas in Farmington, New York include the historic downtown district near Main Street, which attracts visitors interested in the area's 19th-century architecture and local antique shops, and properties near Finger Lakes Community College which generate consistent demand from visiting families, prospective students, and academic conference attendees. The residential neighborhoods around Beaver Creek and near Farmington Country Club appeal to business travelers working with local companies like Rochester Gas & Electric and visitors attending events at nearby venues, while properties within a 10-minute drive of the New York State Thruway (I-90) interchange capture overflow demand from Rochester's tourism market, particularly during summer months when Finger Lakes wine tourism peaks. Areas near Ganondagan State Historic Site benefit from cultural tourism and educational group visits, and neighborhoods close to recreational facilities like Powder Mills Park attract families and outdoor enthusiasts year-round, with particularly strong demand during fall foliage season and winter sports activities.

Airbnb properties in Farmington, New York are subject to New York State sales tax at 4% plus local sales tax which varies by county but typically ranges from 3-4.75%, resulting in a combined rate of approximately 7-8.75% on short-term rental accommodations. Additionally, there is a state occupancy tax of $2 per unit per night for rentals under 90 days. These taxes are collected either directly by Airbnb through their automated tax collection service for participating jurisdictions, or must be collected by the host and remitted quarterly to the New York State Department of Taxation and Finance using form ST-809. Hosts must register for a Certificate of Authority to collect sales tax if Airbnb is not collecting on their behalf. Exemptions may apply for rentals to permanent residents (stays over 90 consecutive days) and certain government or charitable organization bookings. Local municipalities may impose additional hotel/motel taxes ranging from 1-5%, and hosts should verify with Ontario County and local Farmington authorities for any specific local occupancy taxes, as these can vary significantly by municipality and may require separate registration and remittance procedures.

To start an Airbnb in Farmington, New York, expect total costs of approximately $285,000-$320,000. Property purchase costs around $220,000-$250,000 based on median home prices in the Finger Lakes region. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor. Initial setup costs including professional photography, listing optimization, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registrations cost $500-$1,500. Annual insurance premiums for short-term rental coverage run $2,000-$3,000. Utility setup and deposits for electricity, gas, water, internet, and cable total $800-$1,200. First six months operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance reserves ($2,000), marketing ($600), and property management software ($300) total approximately $6,000. Additional considerations include potential HOA fees, property taxes averaging $4,000-$6,000 annually, and maintaining 3-6 months of mortgage payments as reserves totaling $15,000-$25,000.

Airbnb properties in Farmington, New York typically generate annual revenues between $15,000-$35,000 depending on property type and location, with single-family homes near Finger Lakes attractions commanding higher rates of $120-180 per night during peak summer months compared to $60-90 in off-season. Operating expenses generally run 40-60% of gross revenue, including cleaning fees ($50-75 per turnover), property management (15-25% if outsourced), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Profit margins typically range from 15-35% after expenses, with properties near Canandaigua Lake or those offering unique amenities like hot tubs or waterfront access achieving higher occupancy rates of 60-75% versus 40-55% for standard properties. Success factors include proximity to seasonal attractions, professional photography, responsive host communication, and strategic pricing that adjusts for local events like the Finger Lakes Wine Festival or summer boating season, with the most profitable properties being those purchased specifically for short-term rental rather than converted primary residences, as they can optimize layouts and amenities for guest experience while maintaining lower acquisition costs compared to primary tourist markets.

Airbnb investments in Farmington, New York typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the area. Properties near Finger Lakes attractions and seasonal destinations tend to perform better, with average daily rates of $120-180 during peak summer months and $80-120 in off-season periods. Initial profitability usually occurs within 18-24 months for well-positioned properties, assuming 60-70% average occupancy rates throughout the year. Single-family homes and lakefront properties command premium rates and can achieve the higher end of ROI ranges, while standard residential properties typically fall into the 8-9% annual return category. Market factors including proximity to Canandaigua Lake, seasonal tourism patterns, and local regulations supporting short-term rentals contribute to relatively stable performance, with most investors seeing positive cash flow within the first year of operation when leveraging 20-25% down payments on investment properties.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Farmington, New York, using data analytics and market insights. Local real estate agents like Coldwell Banker Prime Properties and RE/MAX Results have agents experienced in investment properties and vacation rentals in the Finger Lakes region. AirDNA provides market data and analytics specifically for Airbnb investments, while Mashvisor offers property analysis tools for short-term rental investments nationwide including upstate New York markets. RedAwning specializes in vacation rental property sales and management services. Local property management companies like Finger Lakes Property Management and CNY Property Management can assist with operations after purchase. BiggerPockets connects investors with local professionals and resources, while Awning provides end-to-end Airbnb investment services including property identification. Hunt Real Estate and Howard Hanna also have investment-focused agents serving the Farmington area who understand the short-term rental market dynamics in this region near Canandaigua Lake.