Is Windham, New Hampshire Good for Airbnb Investment?

To start an Airbnb in Windham, New Hampshire, begin by researching local zoning laws and regulations through the Windham Planning Department, as the town may require special permits or have restrictions on short-term rentals in residential areas. Contact the New Hampshire Department of Revenue Administration to understand state tax obligations, including the 8.5% rooms and meals tax that applies to short-term rentals. Obtain necessary permits from Windham's Building Department, which may include a business license and potentially a special use permit depending on your property's zoning district. Find a suitable property by working with local real estate agents familiar with Windham's market, focusing on areas near Canobie Lake Park or with easy access to Route 93 for Boston commuters, with properties typically ranging from $400,000-$800,000. Furnish the space with quality furniture, linens, and amenities, ensuring compliance with New Hampshire fire safety codes and installing smoke and carbon monoxide detectors as required by state law. Create your listing on Airbnb, Vrbo, and other platforms, highlighting proximity to attractions like America's Stonehenge and easy access to both Boston and southern New Hampshire's lakes region. Manage your property by establishing cleaning protocols, coordinating with local cleaning services in the Windham area, setting competitive rates (typically $100-250 per night depending on size and season), and maintaining responsive communication with guests while ensuring compliance with Windham's noise ordinances and parking regulations.

To identify profitable short-term rental properties in Windham, New Hampshire, focus on locations within 15-20 minutes of Canobie Lake Park (major tourist draw), near hiking trails like those at Windham Rail Trail, and properties with lake or pond access given the town's numerous water bodies. Target 3-4 bedroom single-family homes or cabins built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking for 4+ vehicles, as families visiting the area prefer these features. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Salem and Derry, aiming for properties under $400,000 that can command $150-250 per night during peak summer months (June-September) when Canobie Lake Park and outdoor activities drive demand. Research competition by studying existing Airbnb and VRBO listings within a 5-mile radius, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu and AllTheRooms for market analysis, partner with local property management companies like Vacasa or RedAwning for operational insights, and connect with Windham's planning department to ensure compliance with local short-term rental regulations, while monitoring seasonal trends since the market peaks during summer months and New England fall foliage season.

To obtain an Airbnb/STR permit in Windham, New Hampshire, contact the Windham Planning and Development Department at Town Hall located at 3 North Lowell Road. Submit a completed short-term rental application form along with required documents including property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), septic system inspection certificate, and fire safety inspection report. Pay the application fee of approximately $150-250 plus annual renewal fees of $100-150. The approval process typically takes 4-6 weeks after submission of complete application materials. Windham requires STR properties to maintain maximum occupancy limits based on septic capacity, provide adequate parking (minimum 2 spaces), comply with noise ordinances with quiet hours from 10 PM to 7 AM, display permit number in all advertisements, maintain 24/7 local contact information, and undergo annual inspections for health and safety compliance. Properties must also meet all building codes, have working smoke and carbon monoxide detectors, and maintain guest registry records for minimum two years.

Short-term rentals (STRs) are generally legal in Windham, New Hampshire, as the town has not enacted specific prohibitions against them as of 2024. However, STR operators must comply with New Hampshire state regulations including business licensing requirements, rooms and meals tax collection (8.5%), and safety standards. Windham's zoning ordinances may restrict STRs in certain residential districts, and operators typically need to obtain proper permits and ensure compliance with fire safety codes, septic system capacity limits, and parking requirements. The town has seen increased STR activity since 2020, particularly in lakefront properties near Cobbetts Pond, and while there have been discussions about implementing stricter local regulations similar to neighboring communities, no comprehensive STR ordinance has been adopted. Property owners should verify current zoning compliance and may face restrictions on the number of guests, noise ordinances, and requirements for local contact persons, with enforcement typically handled through the town's code enforcement office and planning department.

The best Airbnb investment areas in Windham, New Hampshire include the neighborhoods near Canobie Lake Park, which attract families and tourists visiting the amusement park from May through October, generating strong seasonal rental demand. The Cobbetts Pond area offers waterfront and near-waterfront properties that appeal to summer vacationers seeking lake activities and peaceful retreats. The Route 111 corridor provides convenient access to both Massachusetts employment centers and local attractions, making it ideal for business travelers and weekend visitors. The Windham Rail Trail vicinity attracts outdoor enthusiasts year-round for hiking, biking, and winter activities. Properties near the town center and historic district benefit from proximity to local events, farmers markets, and the charming New England atmosphere that draws tourists. The areas closest to the Massachusetts border, particularly near Salem and Derry, capture overflow demand from visitors to those more expensive markets while offering easier access to Boston-area attractions, making them attractive for both leisure and business travelers who prefer more affordable accommodations outside the city.

In Windham, 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 rooms and meals tax license if their annual rental income exceeds $20,000 or they have more than 60 rental days per year. Tax collection occurs monthly, with returns due by the 15th of the following month, and hosts can either collect the tax directly from guests and remit it to the state or utilize Airbnb's automatic tax collection service where available. Windham does not impose additional local occupancy taxes beyond the state requirement. Exemptions include rentals to permanent residents (stays over 185 consecutive days) and certain government or charitable organization bookings. Hosts must maintain detailed records of all transactions, guest information, and tax collected, with penalties ranging from $50 to $500 for late filings or non-compliance, plus interest on unpaid amounts.

To start an Airbnb in Windham, New Hampshire, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$600,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $25,000-$40,000 for a complete 3-4 bedroom home including furniture, bedding, kitchenware, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $3,000-$5,000. Permits and fees vary but expect $500-$2,000 for business licenses, short-term rental permits, and any required inspections depending on local regulations. Insurance costs approximately $2,000-$4,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable services typically cost $1,500-$3,000 initially. First six months of operating costs including utilities ($1,200-$1,800), cleaning services ($3,000-$4,500), maintenance and repairs ($2,000-$3,000), property management software ($300-$600), and marketing expenses ($500-$1,000) total approximately $7,000-$10,900. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected expenses or vacancy periods.

Airbnb properties in Windham, New Hampshire typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $120-$180 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 averaging $2,000-$4,000 yearly. Properties near Canobie Lake Park and those offering seasonal attractions like proximity to skiing areas in nearby mountains achieve higher occupancy rates of 60-75% compared to the regional average of 45-55%. A typical 3-bedroom home in Windham generating $28,000 annually faces approximately $16,000 in total expenses, yielding net profit margins of 35-45% for well-managed properties. Success factors include strategic pricing during peak summer months (June-August) and fall foliage season (September-October), professional photography, responsive guest communication, and partnerships with local cleaning services. Properties within 30 minutes of Boston's suburbs and featuring amenities like hot tubs, fire pits, or lake access consistently outperform basic listings by 20-30% in both occupancy and nightly rates, with some premium properties achieving gross yields exceeding 12% annually on property value.

Based on Windham, New Hampshire market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the town. Properties near Canobie Lake Park and ski areas like Pats Peak (30 minutes away) tend to perform at the higher end of this range, with seasonal vacation rentals achieving occupancy rates of 65-75% during peak summer and winter months. Initial profitability usually occurs within 18-24 months for well-positioned properties, with average daily rates ranging from $150-250 depending on property size and amenities. The proximity to Massachusetts border towns and Boston (45 minutes) drives consistent demand from weekend visitors and business travelers, while local attractions and outdoor recreation support year-round bookings. Investment properties in the $300,000-500,000 range typically generate $35,000-65,000 in annual gross rental income, with net returns after expenses, management fees, and vacancy allowances settling in the 10-15% range for most investors who maintain properties to Airbnb standards.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Windham, New Hampshire, offering comprehensive market analysis and property recommendations. Local real estate agents specializing in investment properties include Keller Williams Realty Metropolitan in nearby Salem and Coldwell Banker Residential Brokerage agents who focus on the southern New Hampshire market. National services like Awning, RedAwning, and Vacasa provide end-to-end Airbnb investment solutions including property identification, purchase assistance, and management services in the Windham area. AirDNA and Mashvisor offer market analytics and investment property search tools specifically for short-term rental investors targeting the Lakes Region and southern New Hampshire markets. Local investment-focused real estate professionals at RE/MAX Integrity and Century 21 North East have experience with vacation rental properties in Windham, while national companies like Roofstock and BiggerPockets connect investors with Airbnb-suitable properties. Property management companies such as New England Vacation Rentals and White Mountain Property Management also assist investors in identifying and acquiring profitable short-term rental properties in the Windham market, leveraging their local market knowledge and established networks.