Is Londonderry, New Hampshire Good for Airbnb Investment?

To start an Airbnb in Londonderry, New Hampshire, begin by researching local zoning laws and regulations through the Londonderry Planning and Economic Development Department, as the town requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to primary residences or require special permits in certain districts. Contact the Londonderry Building Department to secure necessary permits including a Certificate of Occupancy for short-term rentals, fire safety inspections, and ensure compliance with the town's life safety codes which typically require smoke and carbon monoxide detectors in all sleeping areas. Find a suitable property by purchasing or leasing a home in residential zones that allow short-term rentals, focusing on areas near Interstate 93 for easy access to Manchester and Boston, with properties averaging $400,000-$600,000 in 2023. Furnish the space with quality furniture, linens, kitchen essentials, and amenities like WiFi, focusing on a clean, modern aesthetic that appeals to business travelers and tourists visiting nearby attractions like Canobie Lake Park. Create listings on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to Manchester-Boston Regional Airport (20 minutes) and downtown Manchester (15 minutes), setting competitive rates around $100-150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges through lockboxes or smart locks, maintaining the property regularly, and keeping detailed records for tax purposes while ensuring compliance with New Hampshire's 8.5% rooms and meals tax that applies to short-term rentals.

To identify profitable short-term rental properties in Londonderry, New Hampshire, focus on locations within 10-15 minutes of major attractions like Canobie Lake Park, downtown Manchester, or ski areas, while prioritizing properties near Route 93 for easy access to Boston (45 minutes) and southern New Hampshire destinations. Target 3-4 bedroom single-family homes or condos built after 1980 with modern amenities, full kitchens, parking for 4+ vehicles, outdoor spaces, and reliable high-speed internet, as these appeal to families visiting the region's recreational attractions. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in nearby Salem, Derry, and Manchester, aiming for properties that can generate $150-250 per night during peak summer and fall foliage seasons. Research competition by analyzing existing STR listings within a 5-mile radius on Airbnb and VRBO, identifying gaps in amenities or pricing strategies, while monitoring occupancy rates and guest reviews to understand market saturation. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through New Hampshire Realtors Association, while connecting with Londonderry's planning department to understand zoning regulations and STR permit requirements, and consider properties near emerging developments or the expanding Manchester-Boston Regional Airport corridor for long-term appreciation potential.

To obtain an Airbnb/STR permit in Londonderry, New Hampshire, you must first contact the Londonderry Planning and Economic Development Department at Town Hall located at 268B Mammoth Road to determine current zoning compliance, as short-term rentals may require special use permits in certain residential zones. Submit an application to the Building Department including a completed short-term rental registration form, proof of property ownership or lease agreement, floor plan showing maximum occupancy, proof of liability insurance (typically $1 million minimum), fire safety inspection certificate, and septic system approval if applicable. Required fees typically range from $150-300 for the initial permit plus annual renewal fees of approximately $100-150. The process generally takes 30-60 days depending on zoning review requirements and inspection scheduling. Londonderry-specific requirements include compliance with the town's noise ordinance, maintaining guest registries, providing emergency contact information to neighbors within 200 feet, ensuring adequate parking (typically 2 spaces minimum), and adhering to maximum occupancy limits based on septic capacity and square footage. Properties must also meet all building and fire codes, have working smoke and carbon monoxide detectors, and maintain current health department approvals for water and septic systems.

Short-term rentals (STRs) are legal in Londonderry, New Hampshire, but operate under specific zoning regulations established by the town. As of 2023, STRs are permitted in residential zones but must comply with the town's zoning ordinance requirements, including obtaining proper permits and adhering to occupancy limits, parking requirements, and noise restrictions. The town requires STR operators to register their properties and maintain compliance with health and safety codes, fire safety regulations, and septic system capacity limits where applicable. Londonderry prohibits STRs in certain residential areas where they would conflict with neighborhood character preservation goals, and the town has implemented a cap on the total number of STR permits available to prevent over-concentration in specific neighborhoods. Recent changes in 2022-2023 included stricter enforcement mechanisms and enhanced neighbor notification requirements, with the town council reviewing applications more carefully to balance tourism revenue with residential community concerns, particularly in areas near Canobie Lake and other popular attractions.

The best areas for Airbnb investment in Londonderry, New Hampshire include the neighborhoods near Manchester-Boston Regional Airport due to consistent business traveler demand, the historic town center around Mammoth Road which attracts visitors interested in colonial history and local events, and properties near the Londonderry Town Forest and conservation areas that appeal to outdoor enthusiasts and families seeking recreational activities. The Woodmont Commons area is attractive for its proximity to shopping and dining amenities, while neighborhoods near major employers like Stonyfield Farm headquarters draw business travelers and corporate visitors. Areas close to the Londonderry Country Club attract golf enthusiasts and event attendees, and properties near the Apple Hill Farm benefit from seasonal tourism during apple picking season and fall foliage tours. The South Londonderry area near Route 28 offers good accessibility for visitors traveling to nearby attractions in Salem and Derry, while maintaining the quiet suburban appeal that many short-term rental guests prefer.

In Londonderry, New Hampshire, Airbnb hosts are subject to the state's Rooms and Meals Tax of 8.5% on rental income, which applies to all short-term rentals under 185 days. The tax is collected by the New Hampshire Department of Revenue Administration, and hosts must register for a tax permit and file monthly returns by the 15th of the following month, remitting taxes collected from guests. Londonderry does not impose a separate local occupancy tax beyond the state requirement. Hosts can collect this tax directly from guests and must maintain detailed records of all transactions. Exemptions include rentals to permanent residents (185+ days) and certain government employees on official business. The state began more actively enforcing these requirements around 2019, and platforms like Airbnb may collect and remit taxes on behalf of hosts in some cases, though hosts remain ultimately responsible for compliance. Registration can be completed online through the NH Department of Revenue Administration portal, and failure to comply can result in penalties and interest charges.

To start an Airbnb in Londonderry, New Hampshire, expect total costs around $450,000-$500,000. Property purchase represents the largest expense at approximately $400,000 based on median home prices in the area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchen essentials, and decor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in New Hampshire are relatively minimal at $500-$1,000, covering business registration and any local short-term rental permits required by Londonderry. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable total around $1,000-$1,500. First six months operating costs including utilities ($800/month), cleaning services ($100-150 per turnover), supplies and maintenance ($200/month), platform fees (3% of bookings), and marketing expenses total approximately $8,000-$12,000, assuming moderate occupancy rates of 50-60% during the initial period.

Airbnb properties in Londonderry, New Hampshire typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$80 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,200-$2,000 annually), and maintenance costs ($2,000-$4,000 yearly). Properties within 10 miles of major attractions like Canobie Lake Park or those offering unique amenities such as hot tubs, fire pits, or proximity to hiking trails command premium rates and achieve 65-75% occupancy rates during peak summer months (June-September). A typical 3-bedroom home purchased for $400,000 with a $100,000 renovation investment can generate net profits of $8,000-$18,000 annually, representing profit margins of 25-35% after all expenses. Success factors include strategic pricing during New England's fall foliage season (September-October), targeting Boston-area visitors seeking weekend retreats, maintaining 4.8+ star ratings through exceptional cleanliness and local recommendations, and leveraging Londonderry's position as a gateway to New Hampshire's tax-free shopping and outdoor recreation areas.

Airbnb investments in Londonderry, New Hampshire typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the town's proximity to major employment centers like Boston (45 minutes) and Manchester, and seasonal demand from visitors to nearby attractions like Canobie Lake Park. Properties in the $300,000-$450,000 range can expect gross rental income of $35,000-$55,000 annually, with net returns after expenses averaging $18,000-$28,000, leading to profitability within 18-24 months of initial investment. The market benefits from consistent year-round demand due to business travelers working in the greater Boston area, families visiting local attractions, and seasonal tourism, with peak summer months (June-August) commanding 20-30% higher nightly rates of $120-$180 compared to off-season rates of $85-$130, while the relatively stable New Hampshire real estate market and lack of state income tax provide additional investment advantages for long-term appreciation.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Londonderry, New Hampshire. Local real estate agents in the area who work with Airbnb investors include Keller Williams Realty Metropolitan agents, Coldwell Banker Residential Brokerage professionals, and RE/MAX Professionals who understand the Lakes Region vacation rental market. National services like Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools for the New Hampshire market. Local property management companies such as White Mountain Property Management and Lakes Region Rental Management offer turnkey Airbnb services for investors. Real estate investment firms like BiggerPockets-connected agents and Roofstock (which expanded into short-term rental markets around 2021) also serve the New Hampshire market. Additionally, local vacation rental specialists and property scouts who understand Londonderry's proximity to skiing areas and seasonal tourism patterns can help identify properties with strong rental potential in this southern New Hampshire location.