Is Squam Lake, New Hampshire Good for Airbnb Investment?

To start an Airbnb in Squam Lake, New Hampshire, begin by researching local regulations through the towns of Holderness, Center Harbor, Moultonborough, and Sandwich which surround the lake, as each municipality has different short-term rental ordinances requiring registration and potential zoning compliance. Obtain necessary permits including a business license from your specific town, state rooms and meals tax registration with New Hampshire Department of Revenue Administration, and ensure compliance with fire safety codes and septic system regulations common in lakefront properties. Find a suitable property either by purchasing lakefront real estate (averaging $800,000-$2,000,000 in 2023) or securing a rental property with owner permission for subletting, focusing on areas with lake access and proximity to attractions like the Squam Lakes Natural Science Center. Furnish the property with durable, lake-appropriate furniture including outdoor gear, kayaks or canoes, fishing equipment, and cozy indoor furnishings that reflect New Hampshire's rustic charm while meeting safety requirements like smoke detectors and carbon monoxide alarms. List your property on Airbnb and VRBO with professional photography showcasing lake views and seasonal activities, setting competitive rates ($200-$500 per night depending on size and amenities), and create detailed descriptions highlighting nearby attractions like hiking trails, boat launches, and the filming locations from "On Golden Pond." Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with lakefront properties, and consider hiring a property management company like Vacasa or RedAwning if you're not local, while maintaining responsive communication with guests and monitoring reviews to ensure consistent bookings throughout the peak summer season and fall foliage periods.

To identify profitable short-term rental properties in Squam Lake, New Hampshire, focus on waterfront or water-view locations within walking distance of the lake, particularly in Holderness, Center Harbor, and Moultonborough areas, as these command premium rates of $300-600+ per night during peak summer months. Target 3-4 bedroom properties with amenities like docks, fire pits, screened porches, and updated kitchens, as families and groups seeking lake vacations drive the highest occupancy rates from June through October, with additional winter demand from ice fishing enthusiasts. Analyze comparable properties using AirDNA and Mashvisor to benchmark nightly rates, which typically range from $150-400 in shoulder seasons, and research competition through Airbnb and VRBO searches within 5-mile radius to identify gaps in amenities or pricing. Utilize local resources like the Lakes Region Association, Squam Lakes Association, and New Hampshire Division of Travel and Tourism for market insights, while partnering with local property management companies like Vacation Rental Pros or White Mountain Property Management who understand seasonal patterns, local regulations, and can optimize occupancy rates that average 60-75% annually for well-positioned properties.

To obtain an Airbnb/STR permit in Squam Lake, New Hampshire, you must first contact the Town of Holderness Planning and Zoning Department (as Squam Lake spans multiple towns, but Holderness is the primary jurisdiction) at their town office located at 967 US Route 3, Holderness, NH 03245, or call (603) 968-7536. Required documents typically include a completed short-term rental application form, property deed or lease agreement, site plan showing parking and septic system, certificate of occupancy, proof of liability insurance ($1 million minimum), fire safety inspection certificate from the local fire department, and septic system inspection report if applicable. The application fee is approximately $150-250 with an annual renewal fee of $100-150, and you may need additional fees for inspections ($75-125 each). The timeline is generally 4-8 weeks for initial approval, depending on inspection scheduling and any required modifications. Specific Squam Lake area requirements include maintaining adequate parking (minimum 2 spaces per unit), ensuring septic systems can handle increased occupancy, limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 7 AM, providing emergency contact information to neighbors, and ensuring compliance with lake district environmental regulations including proper waste disposal and shoreline protection measures.

Short-term rentals (STRs) are generally legal in the Squam Lake area of New Hampshire, as the state does not have blanket prohibitions on STRs, but regulations vary significantly by municipality. Towns around Squam Lake including Holderness, Center Harbor, Moultonborough, and Sandwich each have their own zoning ordinances and rental regulations that may restrict or regulate STRs through requirements such as permits, occupancy limits, parking requirements, and noise ordinances. Some municipalities have implemented registration requirements and may limit STRs in certain residential zones or require special use permits. Recent changes in the region have included increased scrutiny from local planning boards due to concerns about housing availability and neighborhood character, with some towns considering or implementing stricter regulations on rental duration minimums and operational standards. Property owners should check with their specific town's zoning and code enforcement offices, as violations can result in fines and cease-and-desist orders, and what's permitted can vary dramatically even between adjacent communities around the lake.

The best areas for Airbnb investment around Squam Lake, New Hampshire are Holderness and Center Harbor on the lake's southern shore, which offer prime waterfront access and proximity to the Squam Lakes Natural Science Center, attracting families and nature enthusiasts year-round. Moultonborough provides excellent investment opportunities due to its direct lake access, upscale summer community atmosphere, and proximity to Castle in the Clouds attraction, drawing tourists from May through October. Sandwich offers a more secluded, rustic experience that appeals to visitors seeking authentic New Hampshire charm while still maintaining reasonable lake access, particularly attractive during fall foliage season. The Ashland area, while slightly further from the main lake, provides more affordable investment entry points and attracts visitors to the nearby White Mountain National Forest activities, making it suitable for budget-conscious travelers and outdoor enthusiasts. Center Sandwich presents opportunities for luxury vacation rentals due to its historic village character and scenic mountain views, appealing to higher-end tourists seeking a quintessential New England experience, especially during summer months and peak foliage periods in September and October.

Airbnb properties in Squam Lake, New Hampshire 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 host at the time of booking and must be remitted to the New Hampshire Department of Revenue Administration monthly if collections exceed $100, or quarterly if under that threshold. Hosts must register for a rooms and meals tax license before operating and file returns by the 15th of the month following the collection period. Additionally, some municipalities in the Lakes Region may impose local occupancy taxes ranging from 1-3%, though specific rates for Squam Lake area towns like Holderness or Center Harbor vary by municipality. The state tax applies to the total rental amount including cleaning fees, with exemptions only for rentals exceeding 185 consecutive days or properties rented for more than 30 days to the same guest. Collection typically occurs through platforms like Airbnb's automated tax collection service, which began handling New Hampshire rooms and meals tax remittance in 2019, though hosts remain ultimately responsible for compliance and must verify proper collection and remittance.

The total cost to start an Airbnb in Squam Lake, New Hampshire is approximately $850,000-$950,000. Property purchase represents the largest expense at $750,000-$850,000 for a median lakefront or lake-view property, as Squam Lake is a premium vacation destination popularized by "On Golden Pond." Furnishing costs range $25,000-$35,000 for quality furniture, appliances, linens, and decor suitable for a vacation rental. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,000. Permits and fees including business registration, short-term rental permits, and local licensing total $1,500-$2,500 annually. Insurance for short-term rental coverage runs $3,000-$4,000 per year. Utilities including electricity, heating, water, internet, and cable average $400-$600 monthly or $2,400-$3,600 for six months. First six months operating costs including cleaning services, maintenance, supplies, property management software, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees, property taxes averaging 1.17% annually in New Hampshire, and seasonal maintenance for winter weather conditions typical in the Lakes Region.

Airbnb properties around Squam Lake, New Hampshire typically generate annual revenues of $25,000-$45,000 for seasonal rentals, with peak summer months (June-September) commanding $200-$400 per night for lakefront properties and $120-$250 for properties within walking distance of the lake. Operating expenses generally run 40-60% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$150 per turnover), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance/repairs ($2,000-$5,000 annually). Profit margins typically range from 15-35% after all expenses, with the most successful properties being those offering direct lake access, kayak/canoe rentals, and modern amenities like hot tubs or fire pits. Properties within the Holderness and Center Harbor areas have shown particularly strong performance, with some lakefront cabins achieving occupancy rates of 75-85% during peak season. Success factors include professional photography, responsive guest communication, local activity partnerships with businesses like Squam Lakes Natural Science Center, and strategic pricing that capitalizes on the area's popularity following the movie "On Golden Pond" which was filmed on the lake, with the most profitable properties typically being 2-4 bedroom homes purchased for $400,000-$800,000 that can accommodate families seeking authentic New Hampshire lake experiences.

Airbnb investments in Squam Lake, New Hampshire typically generate annual ROI of 12-18% due to the area's strong seasonal tourism driven by lake activities, fall foliage, and proximity to White Mountain attractions. Cash-on-cash returns generally range from 8-14% annually, with properties near the lake commanding premium rates of $200-400 per night during peak summer and fall seasons. Most investors achieve profitability within 18-24 months, particularly for well-located properties that can capitalize on the 16-20 week high-demand period from June through October. The market benefits from consistent demand from Boston and New York metropolitan areas, with successful properties typically achieving 60-75% occupancy rates and generating $35,000-65,000 in annual gross rental income depending on property size and lakefront proximity.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties including Airbnb investments in Squam Lake, New Hampshire. Local real estate agents serving the Lakes Region include Peabody & Smith Realty, Maxfield Real Estate, and Roche Realty Group who have extensive knowledge of vacation rental markets around Squam Lake. National services like AirDNA provide market analytics and investment insights for the area, while Mashvisor offers property analysis tools specifically for short-term rental investments. RedAwning and AvantStay focus on vacation rental property management and investment opportunities in resort areas like Squam Lake. Local property management companies such as White Mountain Vacation Rentals and Lakes Region Vacation Rentals can provide insights into profitable properties and ongoing management services. Additionally, platforms like Roofstock and Awning (now part of RedAwning) specialize in turnkey vacation rental investments, though their inventory in the Squam Lake area may be limited given the exclusive nature of this market.