Is Holley, New York Good for Airbnb Investment?

To start an Airbnb in Holley, New York, begin by researching local zoning laws and regulations through Orleans County and the Village of Holley offices, as short-term rentals may require special permits or have restrictions in residential areas. Contact the Orleans County Building Department to obtain necessary permits, which typically include a certificate of occupancy for short-term rental use and potentially a business license from the village clerk. Find a suitable property by searching local real estate listings through companies like Howard Hanna or Nothnagle Realtors, focusing on properties near Holley's historic canal district or within walking distance of local attractions like the Holley Falls. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, WiFi, and local guidebooks highlighting nearby attractions such as Lakeside Beach State Park and the Erie Canal trail system. Create your Airbnb listing with high-quality photos emphasizing the rural charm and proximity to Rochester (about 30 minutes away), setting competitive rates around $75-120 per night based on local market analysis. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication through the Airbnb platform, and consider partnering with local cleaning services in nearby Brockport or Albion if needed, while ensuring compliance with New York State's short-term rental tax requirements and Orleans County's 8% sales tax on lodging.

To identify profitable short-term rental properties in Holley, New York, focus on properties within walking distance of the Erie Canal and historic downtown area, as these locations attract tourists interested in canal history and outdoor activities. Look for 2-3 bedroom homes or apartments with modern amenities, full kitchens, parking, and outdoor spaces like patios or decks that appeal to families and couples seeking weekend getaways. Analyze pricing by researching comparable Airbnb listings in nearby Brockport and Spencerport (typically $80-150/night), while considering Holley's lower property costs may allow for competitive rates around $70-120/night. Study competition from existing STRs in Orleans County and Monroe County border areas, noting that limited inventory in Holley itself presents opportunity but requires marketing to Rochester-area visitors and canal tourists. Utilize AirDNA for market analysis, STR Helper for performance tracking, and monitor local Facebook groups and tourism boards promoting Seaway Trail activities, while ensuring compliance with Orleans County regulations and considering seasonal demand fluctuations tied to canal season (May-October) and winter sports at nearby facilities.

To obtain an Airbnb/STR permit in Holley, New York, you must first contact the Village of Holley Building Department at Village Hall located at 34 Public Square, as short-term rentals typically fall under local zoning and building regulations. Required documents generally include a completed short-term rental application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the Orleans County Fire Department, proof of liability insurance (minimum $1 million coverage), floor plan of the rental unit, and contact information for a local property manager if you're not residing on-site. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150, plus inspection fees of around $75-125. The timeline typically takes 4-6 weeks from submission to approval, depending on inspection scheduling and document completeness. Holley-specific requirements likely include compliance with the village's residential zoning ordinances, maximum occupancy limits based on square footage and bedrooms, adequate parking provisions (typically 1-2 spaces per unit), noise ordinance compliance with quiet hours from 10 PM to 7 AM, and registration with New York State for tax collection purposes. You must also ensure the property meets all building and fire codes, install smoke and carbon monoxide detectors in accordance with state regulations, and maintain a guest registry available for local inspection upon request.

Short-term rentals (STRs) in Holley, New York are generally legal but subject to local zoning regulations and New York State requirements. As a small village in Orleans County, Holley likely follows standard New York State regulations requiring STR hosts to register with the state, collect occupancy taxes, and comply with safety standards including smoke and carbon monoxide detectors. The village may have specific zoning restrictions limiting STRs to certain residential districts or requiring special use permits, and properties must typically meet building and fire codes. Recent changes across New York State since 2021-2022 have included stricter registration requirements and enhanced tax collection procedures, though enforcement varies significantly between municipalities. Property owners should verify current local zoning laws with the Village of Holley planning department, as small communities often have specific restrictions on commercial activities in residential areas, and some may prohibit STRs in certain neighborhoods or require conditional use permits for operation.

The best areas for Airbnb investment in Holley, New York are concentrated around the historic village center near the Erie Canal, particularly properties within walking distance of Holley Canal Falls and the canal towpath system, as this area attracts tourists interested in New York's canal heritage and outdoor recreation. The residential neighborhoods along Lake Avenue and Hulberton Road offer strong potential due to their proximity to Brockport State University (approximately 10 miles away), generating consistent demand from visiting families, prospective students, and university-related business travelers. Properties near the intersection of Routes 31 and 237 provide excellent accessibility for guests traveling between Rochester and the Finger Lakes region, making them attractive for weekend tourists exploring western New York's wine country and lake activities. The area around Holley's antique shops and historic district appeals to heritage tourists and couples seeking quiet getaways, while properties with canal or rural views command premium rates from city dwellers seeking peaceful retreats within 45 minutes of Rochester's business district.

In Holley, New York, Airbnb hosts are subject to New York State sales tax of 8% on rental stays less than 30 days, which applies to the total rental amount including cleaning fees, and this tax is typically collected by Airbnb directly from guests and remitted to the state on behalf of hosts through their automatic tax collection program that began around 2018. Orleans County, where Holley is located, imposes an additional 3% occupancy tax on short-term rentals under 30 days, bringing the total tax rate to approximately 11%, and this county tax may need to be collected and remitted directly by hosts to the Orleans County Treasurer's office on a quarterly basis depending on local agreements with Airbnb. The Village of Holley does not currently impose a separate local occupancy tax beyond state and county requirements. Stays of 30 days or longer are generally exempt from these occupancy taxes as they are considered long-term rentals rather than transient accommodations, and hosts must maintain records of all bookings and tax collections for at least three years for potential audit purposes by the New York State Department of Taxation and Finance.

To start an Airbnb in Holley, New York, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in this rural Orleans County area. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchenware, and electronics from retailers like IKEA, Wayfair, and Amazon. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and potential zoning approvals through Orleans County and New York State. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Monthly utilities including electricity, gas, water, internet, and cable average $200-$350 depending on property size and season. First six months operating costs including cleaning services, supplies, maintenance, property management software subscriptions, and marketing total approximately $3,000-$6,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-$5,000 to initial startup costs.

Airbnb properties in Holley, New York, a small rural village in Orleans County, face challenging profitability conditions due to limited tourism demand and low nightly rates typically ranging from $60-120 per night with occupancy rates around 30-45% annually. Properties in this area generate average annual revenues of $8,000-15,000, while expenses including mortgage payments, utilities, cleaning fees, insurance, and maintenance typically consume 70-85% of gross income, resulting in net profit margins of 15-30% or roughly $1,200-4,500 annually per property. Success factors include targeting seasonal workers at nearby farms, marketing to families visiting Seabreeze Amusement Park 30 minutes away, and maintaining extremely low operating costs through self-management and minimal amenities. A typical 3-bedroom home purchased for $80,000-120,000 in Holley might achieve a 3-8% annual return on investment, significantly lower than urban markets like Rochester or Buffalo where similar properties could generate 12-18% returns, making Holley's Airbnb market suitable primarily for local investors seeking modest supplemental income rather than substantial real estate investment returns.

Based on Holley, New York market conditions, Airbnb investments 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 Holley's recreational areas and along the Erie Canal corridor tend to perform better, with investors seeing profitability within 18-24 months of initial investment. The market benefits from seasonal tourism and proximity to Rochester, with average daily rates of $85-120 generating gross rental yields of 10-14% annually. Initial investment recovery typically occurs within 8-10 years, though properties requiring significant renovation may extend this timeline to 12-15 years, while turnkey properties in prime locations can achieve break-even in 6-8 years with consistent 75-85% occupancy rates throughout peak seasons.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Holley, New York. Local real estate agents serving the Holley area include Keller Williams Realty of Greater Rochester, RE/MAX Realty Group, and Hunt Real Estate ERA, who have experience with investment properties in Orleans County. National services like Mashvisor, BiggerPockets, and AirDNA provide market analysis and property identification tools for the Holley market. Specialized Airbnb investment companies such as RedAwning, Awning, and Vacasa offer property management and acquisition services in upstate New York markets including Holley. Local property management companies like Finger Lakes Property Management and Western New York Property Services can assist with both finding and managing Airbnb properties in the area. Additional national platforms like Roofstock, HomeUnion, and Arrived Homes occasionally feature investment properties in smaller New York markets, while local mortgage brokers and investment advisors in the Rochester-Buffalo corridor can provide financing guidance for Airbnb property purchases in Holley.