Is Lyme, New Hampshire Good for Airbnb Investment?

To start an Airbnb in Lyme, New Hampshire, begin by researching local zoning laws and regulations through the Lyme Planning Board and Zoning Board, as New Hampshire towns typically require short-term rentals to comply with residential zoning requirements and may need special use permits or conditional use permits. Contact the Lyme Town Office to obtain necessary business licenses and verify if a home occupation permit is required, then register with the New Hampshire Department of Revenue Administration for rooms and meals tax collection (currently 8.5% state tax). Find a suitable property by searching real estate listings in Lyme's residential areas, ensuring the property meets fire safety codes and has adequate parking and septic capacity for increased occupancy. Furnish the space with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by New Hampshire fire codes. Create your Airbnb listing with professional photos highlighting Lyme's proximity to Dartmouth College and outdoor recreation opportunities, set competitive pricing based on similar properties in the Upper Valley region, and establish house rules complying with local noise ordinances. Manage your property by maintaining regular cleaning schedules, responding promptly to guest communications, collecting and remitting the required rooms and meals tax quarterly to the state, and ensuring ongoing compliance with any local regulations that may change, while considering hiring a local property management company if you live outside the area.

To identify profitable short-term rental properties in Lyme, New Hampshire, focus on locations within 10-15 minutes of Dartmouth College and downtown Hanover, near outdoor recreation areas like the Appalachian Trail, Connecticut River access points, and ski areas such as Whaleback Mountain. Target 3-4 bedroom properties built after 1980 with modern amenities, full kitchens, outdoor spaces, parking, and reliable internet, as these appeal to visiting families, outdoor enthusiasts, and business travelers. Analyze comparable STR properties using AirDNA and Mashvisor to identify optimal pricing between $150-300 per night depending on seasonality, with peak rates during Dartmouth events, fall foliage season (September-October), and winter sports months. Research competition by examining existing Airbnb and VRBO listings within a 5-mile radius, noting occupancy rates, guest reviews, and pricing strategies while identifying underserved niches like pet-friendly or luxury properties. Utilize tools like Rabbu, STR Helper, and local market data from the Upper Valley Board of Realtors, while consulting with Lyme's planning and zoning office regarding STR regulations, and consider properties near Route 10 for easy access to I-89 and regional attractions that can command premium rates year-round.

To obtain an Airbnb/STR permit in Lyme, New Hampshire, you must first contact the Lyme Planning and Zoning Office at the Town Office located at 480 Dorchester Road to determine if short-term rentals are permitted in your specific zoning district, as the town requires compliance with local zoning ordinances. Submit an application for a home occupation permit or special use permit (depending on the scale of operation) along with required documents including a site plan, floor plan showing the rental area, proof of property ownership, certificate of occupancy, and evidence of adequate parking and septic capacity. You'll need to pay application fees ranging from $50-200 depending on the permit type, provide proof of liability insurance (typically $1 million minimum), and demonstrate compliance with New Hampshire fire safety codes including smoke and carbon monoxide detectors. The application process typically takes 30-60 days and may require a public hearing if deemed necessary by the Planning Board. Additionally, you must register with the New Hampshire Department of Revenue Administration for rooms and meals tax collection, obtain a business license from the town clerk, and ensure compliance with health department regulations for water quality testing if using a private well, with annual renewal required for most permits.

Short-term rentals (STRs) are generally legal in Lyme, New Hampshire, as the town does not have specific ordinances prohibiting them as of 2024. However, STR operators must comply with New Hampshire state regulations including business licensing requirements and tax obligations such as the 8.5% rooms and meals tax. Lyme follows typical New Hampshire zoning patterns where STRs are permitted in residential areas but may face restrictions in certain districts or require conditional use permits for commercial-scale operations. The town likely requires STRs to meet health and safety standards, maintain adequate parking, and respect noise ordinances to minimize impacts on residential neighborhoods. Recent trends across New Hampshire have seen some municipalities implementing registration requirements and occupancy limits, though Lyme has not enacted comprehensive STR-specific regulations. Property owners should verify current zoning compliance with the Lyme Planning Board and ensure proper state business registration and tax collection procedures are followed.

The most promising Airbnb investment areas in Lyme, New Hampshire include the Connecticut River waterfront district where properties benefit from scenic river views and proximity to water activities, attracting summer tourists and fall foliage visitors. The village center near the Lyme Common offers charm and walkability to local amenities, appealing to visitors seeking authentic New England experiences. Areas near the Dartmouth College campus in nearby Hanover (within 15 minutes) capture overflow demand from parents visiting students, prospective families, and academic conference attendees year-round. Properties along Route 10 with mountain views toward the White Mountains attract outdoor enthusiasts visiting for hiking, skiing, and seasonal recreation. The historic district near Lyme Congregational Church and century-old homes appeals to heritage tourists and those seeking quintessential Vermont-New Hampshire border experiences. Locations near the Appalachian Trail access points draw through-hikers and outdoor adventure seekers, particularly during peak hiking seasons from late spring through early fall.

In Lyme, New Hampshire, Airbnb hosts are subject to the state's 8.5% rooms and meals tax, which applies to all short-term rental accommodations under 185 days. The tax is collected by the New Hampshire Department of Revenue Administration, and hosts must register for a license and file monthly returns by the 15th of the following month, remitting taxes collected from guests. Additionally, hosts may be subject to local occupancy taxes if imposed by the town of Lyme, though many smaller New Hampshire municipalities do not have separate local lodging taxes. Airbnb can collect and remit state taxes on behalf of hosts through their platform in New Hampshire as of 2019, simplifying compliance for many operators. Exemptions typically include stays exceeding 185 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in Lyme, New Hampshire requires approximately $650,000-750,000 in total initial investment. Property purchase costs around $550,000-650,000 based on median home prices in the Upper Valley region as of 2023-2024. Furnishing a 3-bedroom property typically costs $25,000-35,000 including beds, linens, kitchen essentials, living room furniture, and décor to create an appealing guest experience. Initial setup expenses of $3,000-5,000 cover professional photography, listing creation, welcome materials, and basic amenities. Permits and fees total approximately $500-1,500 including business registration, short-term rental permits from Lyme town offices, and any required inspections. Insurance costs $2,000-3,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $500-1,000 for electricity, heating oil/propane, water, sewer, internet, and cable services. First six months of operating costs average $8,000-12,000 covering utilities ($2,400-3,600), cleaning services ($2,000-3,000), maintenance and supplies ($1,500-2,500), property management software ($300-600), marketing ($500-1,000), and miscellaneous expenses ($1,300-1,300). Additional considerations include potential property taxes of $8,000-12,000 annually and maintaining 10-15% of gross revenue for ongoing maintenance and improvements.

Airbnb properties in Lyme, New Hampshire typically generate annual revenues between $15,000-$35,000 for seasonal rentals, with peak summer months (June-September) accounting for 60-70% of bookings due to proximity to Dartmouth College and outdoor recreation areas. Operating expenses generally range from $8,000-$18,000 annually, including property management fees (15-25%), cleaning costs ($75-125 per turnover), utilities ($2,400-3,600), insurance ($800-1,200), and maintenance ($1,500-3,000), resulting in profit margins of 25-45% for well-managed properties. Success factors include proximity to the Connecticut River, ski areas like Whaleback Mountain, and maintaining high guest ratings above 4.7 stars, with properties featuring amenities like hot tubs, fireplaces, and scenic views commanding premium rates of $150-250 per night during peak season versus $80-120 in off-season. A typical 3-bedroom cabin near the Appalachian Trail might generate $28,000 in revenue with $16,000 in expenses, yielding a $12,000 annual profit, though properties require significant upfront investment and consistent marketing through platforms like Airbnb and VRBO to maintain occupancy rates above 50% annually.

Airbnb investments in Lyme, New Hampshire typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the town's proximity to Dartmouth College and seasonal tourism from outdoor recreation activities along the Connecticut River and nearby ski areas. Properties in Lyme generally achieve profitability within 18-24 months, with peak earning potential during fall foliage season (September-October) and winter months when Dartmouth parents and ski tourists drive occupancy rates to 65-75%. The market benefits from limited hotel inventory in the area, allowing well-positioned properties near Route 10 or with river access to command nightly rates of $150-250 depending on seasonality, with annual gross revenues typically ranging $25,000-45,000 for a 2-3 bedroom property after accounting for Lyme's rural character and lower year-round tourism compared to more established New Hampshire destinations.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties across markets including Lyme, New Hampshire. In the local market, Coldwell Banker Lifestyles and Peabody & Smith Realty have agents experienced with investment properties in the Upper Valley region who understand Airbnb regulations and market dynamics. Century 21 Country Lakes Realty and RE/MAX Northern Edge also serve the Lyme area with agents knowledgeable about vacation rental investments. National services include AirDNA for market analysis and revenue projections, Mashvisor for investment property analytics, and BiggerPockets for investor networking and education. RedAwning and Vacasa provide property management services for Airbnb investments, while companies like Awning and AvantStay specialize in identifying and managing short-term rental properties. Local property management companies such as White Mountain Property Management and Lakes Region Property Management offer services for investors looking to outsource their Airbnb operations in the Lyme area, which benefits from proximity to Dartmouth College and seasonal tourism from outdoor recreation activities.