Is Mendon, Vermont Good for Airbnb Investment?

To start an Airbnb in Mendon, Vermont, begin by researching local zoning laws and regulations through the Mendon Town Office, as Vermont requires short-term rental operators to register with the state and obtain a Vermont Meals and Rooms Tax license, while Mendon may have specific ordinances regarding rental properties in residential areas. Contact the Rutland County planning department and Vermont Department of Taxes to understand permit requirements, which typically include a business license, fire safety inspection, and potentially a conditional use permit depending on your property's zoning classification. Find a suitable property by working with local real estate agents familiar with Mendon's market, focusing on areas near Killington Resort or Pico Mountain for higher demand, with properties averaging $300,000-$600,000 in the area as of 2023. Furnish the space with durable, mountain-appropriate furniture and amenities like ski storage, outdoor gear, and cozy Vermont-style decor, budgeting approximately $15,000-$25,000 for a complete setup. List your property on Airbnb, VRBO, and local Vermont vacation rental sites, highlighting proximity to skiing, hiking trails, and Rutland attractions, with competitive pricing around $150-$300 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider property management companies like Vacasa or local Vermont-based firms, while maintaining compliance with Vermont's 9% rooms and meals tax and any local hotel taxes that may apply in Rutland County.

To identify profitable short-term rental properties in Mendon, Vermont, focus on locations within 10-15 minutes of Killington Resort and Pico Mountain, as proximity to these ski destinations drives year-round demand with winter being peak season. Target properties with 3-4 bedrooms, hot tubs, fireplaces, mountain views, and adequate parking for multiple vehicles, as these features command premium rates averaging $200-400 per night during ski season and $150-250 in summer. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that successful STRs in Mendon typically achieve 60-75% occupancy rates with annual revenues of $40,000-80,000 depending on size and amenities. Research competition by studying existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or pricing strategies, while monitoring properties managed by local companies like Killington Rental Associates and Green Mountain Vacation Rentals. Utilize tools like Rabbu, STR Helper, and local market data from the Rutland County MLS, while connecting with Mendon town officials to understand zoning regulations and short-term rental permit requirements, as the town has specific guidelines for STR operations that must be followed for legal compliance.

To obtain an Airbnb/STR permit in Mendon, Vermont, you must first contact the Mendon Town Clerk's Office at the Town Office located on US Route 4 to inquire about local short-term rental regulations and obtain application forms. Required documents typically include a completed STR permit application, proof of property ownership or lease agreement, site plan showing parking and septic capacity, certificate of occupancy, proof of liability insurance (minimum $1 million), fire safety inspection certificate from the local fire department, and a waste management plan. You'll need to pay an estimated application fee of $150-300 plus annual renewal fees of approximately $100-200. The process involves submitting your complete application to the Town Clerk, scheduling required inspections with the fire department and health officer, attending a Development Review Board meeting if required, and waiting for final approval. The timeline typically takes 4-8 weeks from submission to approval, depending on inspection scheduling and any required hearings. Mendon-specific requirements likely include compliance with septic system capacity limits, adequate off-street parking (typically 2 spaces minimum), adherence to the town's noise ordinance, and potential restrictions on the number of guests and vehicles, with some properties requiring additional approvals if located in flood hazard areas or near sensitive environmental zones.

Short-term rentals (STRs) are generally legal in Mendon, Vermont, but operate under state regulations and local zoning requirements. Vermont passed Act 250 in 1970 and has various housing regulations, but does not have a statewide ban on STRs. Mendon, a small town in Rutland County, typically allows STRs in residential areas subject to local zoning ordinances and state health and safety requirements. Property owners must comply with Vermont's rooms and meals tax requirements and register with the state tax department. The town may require conditional use permits or special permits for STRs depending on the zoning district, and there may be restrictions on the number of guests, parking requirements, and septic system capacity. Recent changes in Vermont include increased focus on housing availability due to the housing crisis, with some municipalities considering stricter regulations. Mendon has not implemented specific STR prohibitions, but owners should verify current zoning compliance with the town clerk and planning commission, as regulations can change and enforcement has become more common statewide since 2020.

The best areas for Airbnb investment in Mendon, Vermont are primarily concentrated around the Killington Resort corridor along Route 4, particularly the Killington Access Road area and nearby Thundering Brook Road neighborhoods, which offer year-round appeal due to proximity to Killington's world-class skiing in winter and mountain biking, hiking, and scenic gondola rides in summer. The Pico Mountain area on the western side of town presents excellent opportunities given its direct ski-in/ski-out potential and attracts both winter sports enthusiasts and summer adventure seekers visiting Pico Adventure Center. Properties near the Green Mountain National Forest boundaries, especially those with mountain views along Wheelerville Road and Cold River Road, are highly desirable for guests seeking authentic Vermont experiences including hiking, leaf-peeping in fall, and peaceful retreats. The Route 4 corridor itself offers strategic advantages for business travelers and tourists accessing both Killington and nearby Rutland, while properties near Mendon Brook and other waterfront areas appeal to fishing enthusiasts and families seeking scenic, tranquil settings with easy access to outdoor recreation throughout all four seasons.

In Mendon, Vermont, Airbnb hosts are subject to Vermont's statewide 9% rooms and meals tax, which applies to all short-term rental accommodations under 30 days. The tax is collected by the Vermont Department of Taxes, and hosts must register for a Vermont Business Account to obtain a rooms and meals tax license before operating. Hosts are required to collect the tax from guests at the time of booking or check-in and remit payments monthly by the 25th of the following month if monthly gross receipts exceed $1,000, or quarterly if receipts are less than $1,000. Additionally, Mendon may impose a local option tax of up to 1% on rooms and meals, which would be collected and remitted through the same state system. Airbnb can collect and remit these taxes automatically for hosts who opt into their tax collection service, though hosts remain ultimately responsible for compliance. Exemptions include stays of 30 days or longer, which are considered long-term rentals rather than taxable lodging, and accommodations provided to certain tax-exempt organizations. Hosts must maintain detailed records of all bookings, tax collected, and payments made, and file returns even in months with no activity.

The total cost to start an Airbnb in Mendon, Vermont would be approximately $485,000-$565,000. Property purchase costs around $400,000-$450,000 based on median home prices in the Killington area where Mendon is located. Furnishing a 2-3 bedroom property suitable for vacation rental would cost $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and outdoor equipment for the ski/mountain location. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including short-term rental permits, business registration, and local compliance would cost $500-$1,500 annually. Insurance for short-term rental coverage would be $2,000-$3,500 per year. Utilities including electricity, heating (significant in Vermont winters), water, internet, and cable would cost $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs including cleaning services, supplies, maintenance, platform fees, and marketing would be approximately $8,000-$12,000. Additional considerations include property management software subscriptions, welcome amenities, and emergency repair funds which could add another $2,000-$3,000 to initial costs.

Airbnb properties in Mendon, Vermont show strong seasonal profitability potential, with average nightly rates ranging from $150-300 during peak ski season (December-March) due to proximity to Killington Resort, generating estimated monthly revenues of $3,000-6,000 for well-positioned properties. Annual gross revenues typically range from $25,000-45,000 for a 2-3 bedroom property, while expenses including mortgage, utilities, cleaning, maintenance, property management, and taxes average $18,000-28,000 annually, resulting in net profit margins of 15-35% for successful operators. Success factors include ski slope proximity, professional photography, responsive guest communication, and strategic pricing during Killington's peak periods, with properties within 10 miles of the resort commanding premium rates. A typical case involves a 3-bedroom chalet purchased for $400,000 in 2019, generating $38,000 in annual Airbnb revenue with $24,000 in expenses, yielding a 14% return on investment, though profitability heavily depends on occupancy rates which average 45-65% annually with summer months (hiking season) providing secondary revenue streams at $120-200 nightly rates.

Airbnb investments in Mendon, Vermont typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the town's proximity to Killington Resort and Pico Mountain ski areas which attract year-round tourism. Properties in Mendon generally reach profitability within 18-24 months, with peak earning potential during ski season (December-March) when nightly rates can reach $200-400 for well-appointed properties, while summer months generate $150-250 per night from hiking and mountain biking enthusiasts. The market benefits from consistent demand due to Killington's status as one of Vermont's premier ski destinations, with investors typically seeing occupancy rates of 60-75% annually, though success heavily depends on property condition, amenities, and proximity to ski lifts, with properties within 5 miles of Killington base lodge commanding premium rates and achieving the higher end of ROI expectations.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Mendon, Vermont. Local real estate agents specializing in investment properties include Coldwell Banker Hickok & Boardman Realty, Pall Spera Company Realtors, and The Real Estate Company of Vermont, all of whom have experience with vacation rental properties in the Killington area where Mendon is located. National services like Mashvisor, AirDNA, and BiggerPockets offer market analysis tools and investment property search capabilities for the Vermont market. Vacasa and RedAwning provide property management services for short-term rentals in the region, while companies like Awning and AvantStay specialize in identifying and managing high-performing Airbnb investments. Local property management companies such as Killington Rental Associates and Summit Vacation Rentals offer expertise in the seasonal rental market that dominates the Mendon area due to its proximity to Killington Resort and Pico Mountain.