Across Vermont, the surge in short-term rentals has prompted towns to rethink how these properties fit into residential neighborhoods. Two neighboring municipalities—Shaftsbury and North Bennington—are at the forefront of this effort, each crafting distinct approaches to regulate Airbnb-style stays while protecting local quality of life.
State law defines a short-term rental as a furnished dwelling rented to travelers for fewer than 30 consecutive days and more than 14 days per calendar year. The definition explicitly excludes annual leases. Data from the Vermont Housing Finance Agency illustrate the scale of the shift: the number of active short-term rentals climbed from 6,753 in early 2018 to 11,194 by the end of 2025, reflecting a state-wide trend that towns must now manage.
Shaftsbury’s draft bylaw and public response
In early September, Shaftsbury’s Planning Commission convened a public hearing to examine several proposed bylaw revisions. The most contentious item concerned the regulation of short-term rentals. Under the draft, owners would be required to submit an annual fee and a copy of the state-approved short-term rental safety, health and financial obligations checklist. The checklist, described by Planning Commission Chair Tim Scoggins, serves as a step-by-step guide ensuring landlords meet fire, building and noise standards.
Originally, the proposal called for a $150 yearly charge, calculated as half the average nightly rate of existing rentals in the town. After hearing objections from owners such as Art Whitman, who questioned both the fee and the need for an annual checklist, the commission considered scaling the fee down to $50, or even $25 if the applicant agreed to be listed in the town’s business directory. The fee would be collected by the zoning administrator, who emphasized that the process would be a simple “fill-in-and-submit” form.
Beyond the financial component, the draft expanded permissible zones for short-term rentals. Previously limited to rural districts, the new language would allow such rentals in any zoning district, provided the owner or manager remains on-call to address guest issues, enforces local noise bylaws, and supplies off-road parking. As of December 2025, Shaftsbury recorded 15 active short-term rental listings, underscoring the need for clear guidance.
North Bennington adopts an enforcement framework
While Shaftsbury is still polishing its ordinance, North Bennington Village Trustees have moved to operationalize an existing short-term rental ordinance adopted in November 2025. In September, the trustees approved an administrative policy that designates a $100 annual fee and assigns the village clerk responsibility for enforcement, with the option to enlist a trustee for additional support.
Trustee Chair Mary Rogers explained that the policy bridges the gap between having a law on the books and ensuring compliance. The clerk, Lori Elwell, indicated that the workload is manageable and that the new fee structure mirrors other town-level occupational permits. The village’s approach mirrors Shaftsbury’s emphasis on transparency and accountability, though North Bennington has already set an enforcement mechanism in motion.
Statewide context and economic implications
Vermont’s rapid increase in short-term rentals mirrors national patterns, yet the local impact varies. Advocates argue that these rentals deliver private income for homeowners and boost municipal tax revenues. Critics, however, cite concerns about housing affordability and neighborhood disturbances.
Research from the National Association of Homebuilders indicates that regulatory costs—such as minimum lot sizes and single-family-only zoning—account for roughly 26% of the price of a new single-family home in Vermont. By contrast, a 2020 analysis of Airbnb data found that a 1% rise in listings in a ZIP code correlated with only a 0.018% increase in rents and a 0.026% rise in home values, suggesting that short-term rentals are a relatively minor driver of price inflation.
Both towns’ initiatives aim to strike a balance: securing the economic benefits of short-term rentals while mitigating potential nuisances. Requiring owners to adhere to a safety checklist and to remain responsive to guest issues directly addresses concerns about noise, parking and fire safety. Meanwhile, modest annual fees generate revenue that can fund enforcement and community monitoring.
As Vermont continues to grapple with the dual pressures of tourism growth and housing scarcity, the experiences of Shaftsbury and North Bennington may offer a template for other municipalities. Their willingness to experiment with fees, zoning flexibility, and clear administrative processes reflects a broader trend of local governments navigating the complexities of the sharing-economy era.
