Is Vergennes, Vermont Good for Airbnb Investment?

To start an Airbnb in Vergennes, Vermont, begin by researching local zoning laws and regulations through the Vergennes City Hall, as the city requires short-term rental operators to obtain a business license and comply with fire safety codes including smoke detectors and carbon monoxide detectors in all sleeping areas. Contact the Vermont Department of Taxes to register for a Vermont Business Account and obtain a sales tax permit, as you'll need to collect and remit the 9% rooms and meals tax plus any local option taxes. Find a suitable property by searching real estate listings in Vergennes' historic downtown or residential neighborhoods, ensuring the property is zoned for short-term rentals and considering proximity to Lake Champlain attractions and downtown amenities. Apply for necessary permits including a Certificate of Occupancy from the city's building inspector and ensure compliance with Americans with Disabilities Act requirements if applicable. Furnish the property with quality linens, furniture, and amenities while highlighting Vermont's charm with local artwork and maple syrup welcome gifts, ensuring fast WiFi and modern appliances. Create your Airbnb listing with professional photos showcasing views of the Otter Creek or nearby mountains, competitive pricing around $100-200 per night depending on season and property size, and emphasize proximity to Shelburne Museum, Lake Champlain ferries, and Burlington (20 minutes away). Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, and considering hiring local cleaning services like those found through Vergennes area Facebook groups or Craigslist, while keeping detailed records for tax purposes and potentially partnering with local property management companies if you live out of state.

To identify profitable short-term rental properties in Vergennes, Vermont, focus on properties within walking distance of downtown's historic district and Lake Champlain waterfront, as these locations attract tourists year-round for outdoor activities and scenic views. Target 2-4 bedroom properties built before 1900 with original character features like hardwood floors, fireplaces, and period details, while ensuring modern amenities like updated kitchens, reliable WiFi, and parking are present. Analyze pricing by researching comparable Airbnb listings in Vergennes and nearby Middlebury, aiming for properties that can command $150-300 per night depending on size and season, with peak rates during fall foliage (September-October) and summer months. Study competition by examining occupancy rates and guest reviews of existing STRs within a 5-mile radius, identifying gaps in amenities or property types that are underserved. Utilize tools like AirDNA and Mashvisor for market analysis, consult with local real estate agents familiar with Vergennes' tourism patterns, monitor the Addison County Chamber of Commerce for event calendars that drive demand, and verify compliance with local zoning laws and Vermont's Act 250 land use regulations before purchasing.

To obtain an Airbnb/STR permit in Vergennes, Vermont, you must first contact the Vergennes City Clerk's Office at City Hall located at 120 Main Street to apply for a short-term rental permit, as Vermont municipalities typically regulate STRs locally. Required documents generally include a completed application form, proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), fire safety inspection certificate from the local fire department, and a waste management plan. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. You'll need to ensure compliance with zoning regulations (STRs may be restricted in certain residential zones), obtain a business license if required, register with the Vermont Department of Taxes for rooms and meals tax collection, and potentially limit occupancy based on bedroom count and parking availability. The approval timeline typically takes 30-60 days from submission of a complete application, including time for inspections and any necessary corrections. Contact the Vergennes Planning and Zoning Department to verify current requirements, as regulations may have been updated since 2023, and ensure you comply with any neighborhood notification requirements or public hearing processes that may be mandated by local ordinances.

Short-term rentals (STRs) are legal in Vergennes, Vermont, but operate under local zoning regulations and state requirements. The city allows STRs in residential areas with proper permitting and registration, requiring hosts to obtain a business license and comply with health and safety standards. Properties must meet fire safety codes, have adequate parking, and maintain septic system compliance where applicable. Vermont state law requires STR operators to register with the Department of Taxes, collect and remit rooms and meals tax, and carry liability insurance. Vergennes has implemented occupancy limits based on property size and requires hosts to provide emergency contact information to neighbors. The city prohibits STRs in certain historic district properties without special approval and restricts them in areas zoned exclusively for single-family residential use. Recent changes in 2022-2023 included stricter noise ordinances and enhanced enforcement mechanisms, with the city requiring annual permit renewals and conducting periodic inspections to ensure compliance with local housing standards and neighborhood compatibility requirements.

The most promising Airbnb investment areas in Vergennes, Vermont include the Historic Downtown District along Main Street, where properties benefit from proximity to the Bixby Memorial Library, local restaurants, and walkable charm that attracts tourists exploring Vermont's oldest city founded in 1788. The Otter Creek waterfront area offers exceptional potential due to scenic views, fishing access, and proximity to the Vergennes Falls, drawing nature enthusiasts and photographers year-round. The residential neighborhoods near Vergennes Union High School and the city center provide steady demand from visiting families, school events, and business travelers visiting local employers like Goodrich Corporation. Properties within walking distance of Kennedy Brothers Factory Marketplace attract visitors interested in Vermont's manufacturing heritage and artisanal shopping. The areas near Button Bay State Park (approximately 6 miles away) capture overflow demand from park visitors seeking more luxurious accommodations than camping, while the proximity to Lake Champlain creates appeal for summer tourists, boaters, and fall foliage seekers. The neighborhoods around Rokeby Museum benefit from cultural tourism and educational group visits, while properties near the Vergennes Opera House tap into arts and entertainment tourism throughout the year.

Airbnb properties in Vergennes, Vermont are subject to Vermont's statewide 9% rooms and meals tax, which applies to all short-term rental accommodations under 30 days and is collected by the host and remitted monthly to the Vermont Department of Taxes if gross receipts exceed $500 annually. Additionally, Addison County (where Vergennes is located) may impose a local option tax of up to 3% on lodging, though this varies by municipality and would be collected alongside the state tax. Hosts must register with the Vermont Department of Taxes, obtain a Business Account Number, and file monthly returns by the 25th of the following month, with payments due at the same time. The city of Vergennes itself does not currently impose additional municipal lodging taxes beyond the state requirements, though hosts should verify current local ordinances as municipalities can adopt their own regulations. Exemptions typically include stays of 30 days or longer (considered long-term rentals rather than transient lodging) and certain nonprofit or government-related accommodations, with hosts required to maintain detailed records of all transactions and tax collections for audit purposes.

To start an Airbnb in Vergennes, Vermont, expect total costs around $385,000-$425,000. Property purchase represents the largest expense at approximately $350,000 based on median home prices in the Champlain Valley region as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-$3,000. Permits and fees in Vermont include short-term rental registration ($300), potential local permits ($200-$500), and business license fees ($50-$100). Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage beyond standard homeowner's insurance. Monthly utilities average $200-$350 covering electricity, heating, water, internet, and cable services. First six months operating costs including utilities ($1,500), cleaning supplies and services ($1,200), maintenance reserves ($1,000), marketing ($500), and miscellaneous expenses ($800) total approximately $5,000. Additional considerations include potential property management software subscriptions ($50-$100 monthly) and emergency repair funds, making the comprehensive startup investment range from $385,000 to $425,000 depending on property size and furnishing quality choices.

Airbnb properties in Vergennes, Vermont typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on seasonality and property type. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Lake Champlain or with unique features like historic charm command premium rates, particularly during summer months (June-September) and fall foliage season when occupancy rates peak at 70-85% compared to winter lows of 25-40%. Successful hosts in the area typically achieve net profit margins of 20-35% by focusing on properties within walking distance of downtown Vergennes or offering lake access, maintaining high cleanliness standards, and providing local experience packages. A typical 2-bedroom historic home near the city center might generate $28,000 in annual revenue with $17,000 in expenses, yielding approximately $11,000 in net profit, while waterfront properties can achieve higher margins due to premium pricing despite similar cost structures.

Airbnb investments in Vergennes, Vermont typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the town's proximity to Lake Champlain and seasonal tourism patterns. Properties in downtown Vergennes or near the waterfront command premium rates of $150-250 per night during peak summer months (June-September) and fall foliage season (September-October), while winter rates drop to $80-120 per night. With average property acquisition costs of $300,000-450,000 for suitable investment properties, investors can expect initial cash investments of $60,000-90,000 (20% down payment plus renovation costs), generating annual gross revenues of $25,000-40,000 depending on occupancy rates of 60-75%. After accounting for property management fees (20-25%), cleaning costs, utilities, insurance, and maintenance, net annual returns typically reach $12,000-22,000, achieving profitability within 12-18 months of operation. The market benefits from Vergennes' historic charm, outdoor recreation opportunities, and limited hotel inventory, though seasonal fluctuations require careful cash flow management during slower winter months when occupancy can drop to 30-40%.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Vergennes, Vermont. Local real estate agents serving the Vergennes area include Coldwell Banker Hickok & Boardman Realty, Shelburne Bay Realty, and RE/MAX North Professionals, with agents like Sarah Mitchell and Tom Bradley who have experience with investment properties in Addison County. National services include Mashvisor, which provides Airbnb analytics and property search tools, BiggerPockets for investor networking and deal finding, and Awning for short-term rental investment analysis. RedfinNow and Zillow Instant Offers occasionally operate in Vermont markets for quick property acquisitions. Local property management companies that can assist investors include Green Mountain Property Management and Champlain Valley Property Services, while national STR management platforms like Vacasa, RedAwning, and AvantStay help optimize rental performance. Investment-focused brokerages such as Roofstock (primarily for traditional rentals but expanding to STR) and specialized consultants like STR Wealth and AirDNA provide market analysis and investment guidance for the Lake Champlain region where Vergennes is located.