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Ithaca, NY

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STR Regulations for Ithaca, New York

Overview: Are Short-Term Rentals Allowed?

  • Yes—short-term rentals (STRs) are allowed in the City of Ithaca, but they are tightly regulated.
  • An STR is defined as a dwelling unit offered for rent, in whole or in part, for fewer than 30 days.
  • A Short-Term Rental Operating Permit is required to advertise or operate any STR located within the city.
  • Only the host’s primary residence is eligible for a permit; permits are not issued to corporations, LLCs, trusts, or other entities.
  • STRs are permitted in single-family homes, two-unit dwellings, and any owner-occupied unit; however, if a single- or two-family home has an occupancy of four or more unrelated persons, it is considered a multiple dwelling and is not eligible for a city STR permit.
  • Full enforcement of the ordinance began on June 1, 2025.

Source:

How to Start a Short-Term Rental Business in Ithaca

  • Confirm eligibility:
    • The STR must be your primary residence (you live there at least 184 days per year).
    • The property must be a single-family home, a two-unit dwelling, or an owner-occupied unit, and must not be classified as a multiple dwelling (4+ unrelated occupants in a single-/two-family home).
    • If you are a renter, you must have the property owner’s written authorization to operate an STR.
    • You must apply as a natural person (no corporate or trust applicants).
  • Secure a Certificate of Compliance:
    • Obtain or confirm an active Certificate of Compliance (housing safety inspection) for the unit you intend to rent; submit it with your permit application.
    • Single- and two-family dwellings: Certificate of Compliance is valid for five years; you will not need a re-inspection until renewal unless your inspection is older than one year, in which case you must complete the Certificate of Compliance Attestation Form.
    • Multiple dwellings are not eligible for the City’s STR permit; they require a Town of Ithaca Operating Permit (see “Regulatory Framework” section below for cross-jurisdictional notes).
  • Register for room occupancy taxes:
    • Register with the City of Ithaca Controller’s Office; once approved, you will receive a Certificate of Authority.
    • You must collect and remit the City’s Hotel Room Occupancy Tax (5%) on all STR stays.
  • Apply for the Short-Term Rental Operating Permit:
    • Submit your application online; include the Certificate of Compliance, your Certificate of Authority, and two proofs of primary residency (two different document types; one must be from the bolded options).
    • Pay the $400 annual permit fee.
  • Include your permit number on all online listings (Airbnb, Vrbo, etc.), and maintain compliance at all times.

Application and preparation steps are detailed on the city’s STR page and the city’s Guide to Applying for a Short-Term Rental Operating Permit.

Sources:

Required Documents, Permits, Licenses, and Guidelines

  • Required documents (with application):
    • Valid Certificate of Compliance (or attestation if inspection is more than one year old).
    • Certificate of Authority for City occupancy tax (Hotel Tax Registration).
    • Two proofs of primary residency (two different document types; one must be from the bolded options below):
      • Valid driver’s license, non-driver ID, or vehicle registration.
      • Previous year’s State or Federal Income Tax Return (NYS IT-201 or US Form 1040).
      • Previous year’s W-2 or 1099 Form.
      • Current signed and dated lease agreement (if renting).
      • Medical bill or personal credit card bill (no older than 30 days).
      • Valid voter registration.
    • Owner’s Authorization Form (if you are a renter).
  • Permits and licenses:
    • City of Ithaca Short-Term Rental Operating Permit (annual).
    • City of Ithaca Hotel Room Occupancy Tax Registration (Certificate of Authority).
    • Certificate of Compliance (housing safety inspection).
  • Guidelines:
    • Primary residence requirement (184+ days/year).
    • Host must be a natural person.
    • Listing must include the STR permit number.
    • Hosts must remit the 5% City occupancy tax and maintain records of quarterly filings.
  • Fees:
    • STR Operating Permit: $400 annually.
    • Certificate of Compliance: fee varies by unit size (e.g., $7 per room for one- and two-family homes).
    • Occupancy Tax: 5% on STR stays (City of Ithaca).

Sources:

Specific Regulations: City, County, and State

City of Ithaca STR Regulations

  • Eligibility:
    • Only the host’s primary residence qualifies.
    • Permitted dwelling types: single-family homes, two-unit homes, owner-occupied units.
    • Prohibited: properties with four or more unrelated occupants in a single- or two-family home (classified as a multiple dwelling), corporate/trust ownership.
  • Permit operational rules:
    • Permit must be displayed by inclusion of the permit number on all online listings.
    • Host cannot be a corporation, LLC, trust, or other entity.
    • If renting, you must provide the owner’s written authorization.
  • Taxes and fees:
    • City Hotel Room Occupancy Tax: 5%.
    • Certificate of Authority registration required before operations.
    • Permit fee: $400 per year.
    • Certificate of Compliance inspection: required for STR units; valid for five years for single- and two-family dwellings.
  • Safety/inspection:
    • Certificate of Compliance must be current; inspections follow state/local code.
  • Compliance and enforcement:
    • Full enforcement began June 1, 2025.
    • Violations: up to $500 per day; repeat offenders barred from obtaining a permit for three years.
    • 24/7 hotline and online complaint portal available for noise, parking, trash, and other disturbances.
  • Nonconforming use (established rights):
    • Properties legally operating as STRs prior to the new ordinance may retain nonconforming use if they maintained a Certificate of Compliance and paid both county and city occupancy taxes for all STR stays since March 1, 2021.
    • Contact the City’s Zoning Administrator to request a formal determination and submit supporting documentation.

Sources:

County-Level (Tompkins County) Note

  • City documents reference Tompkins County occupancy taxes being automatically collected by Airbnb; hosts must ensure all county and city occupancy taxes are paid.
  • County-specific licensing or permitting for STRs is not identified in the provided sources. Where a property falls under Town of Ithaca jurisdiction (see below), separate town rules may apply.

Source:

State-Level (New York) Notes

  • Certificate of Compliance (housing inspection) requirements align with New York State and City codes for rental dwelling units.
  • State enabling legislation governs local room occupancy taxes; the City of Ithaca’s hotel room tax includes STRs and requires registration and quarterly remittance.
  • State law implications for multiple dwellings (4+ unrelated occupants) help define eligibility—single- and two-family homes with such occupancy are treated as multiple dwellings and are not eligible for city STR permits; they are instead governed by town operating permit rules (see below).

Sources:

Town of Ithaca (Cross-Jurisdictional) Operating Permit

  • If your property is classified as a multiple dwelling (3+ units) or has 4+ unrelated occupants in a single-/two-family home, it falls under Town of Ithaca jurisdiction for certain occupancies.
  • The Town requires an Operating Permit for “Short Term Rentals – less than 30 days” for applicable properties.
  • Contact the Code Enforcement & Zoning Department for application, inspection, and fee details.
  • Application portal: ViewPoint Cloud.

Source:

Investor Checklist: Operational Compliance in Ithaca

  • Confirm primary residence status (184+ days/year).
  • Ensure the property qualifies (single-family, two-unit, or owner-occupied; not a multiple dwelling).
  • Obtain or renew the Certificate of Compliance (valid five years for single-/two-family dwellings).
  • Register for the City’s Hotel Room Occupancy Tax and receive the Certificate of Authority.
  • Apply for and receive the STR Operating Permit; pay the $400 annual fee.
  • Add the permit number to all online listings; maintain listing compliance.
  • Collect and remit the 5% City occupancy tax quarterly; retain receipts.
  • Monitor for disturbances; respond to complaints via the 24/7 hotline and city reporting channels.
  • If the property is a multiple dwelling, secure the Town of Ithaca Operating Permit.

Contact Information (Local Authority in Charge of STRs)

Links to Source Pages (IMPORTANT)

What do Airbnb hosts actually earn in Ithaca?

Ithaca hosts earn a median $33,537/year with $212 ADR and 62% occupancy.

Top performers pull in $48,274+ per year.

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Ithaca

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2–4 declining months: early saturation pressure - watch for trend persistence.
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Overview of Ithaca

Ithaca, NY, is a vibrant city located in the Finger Lakes region of Upstate New York. Boasting a population of approximately 31,000 residents, Ithaca is renowned for its natural beauty, academic excellence, and cultural richness. It sits roughly 50 miles south of Syracuse, the nearest major city, and is a quintessential college town, housing both Cornell University (www.cornell.edu/) and Ithaca College (www.ithaca.edu/).

Ithaca's appeal for short-term rentals is bolstered by its multitude of attractions and scenic surroundings. Renowned for its breathtaking gorges and waterfalls, the city is home to several notable parks and natural landmarks such as Buttermilk Falls State Park (parks.ny.gov/parks/buttermilkfalls) and Taughannock Falls State Park (parks.ny.gov/parks/taughannockfalls). These sites offer visitors exquisite hiking trails, picnic areas, and picturesque views.

Culturally, Ithaca has much to offer. The Ithaca Commons (www.downtownithaca.com/ithaca-commons/), a pedestrian mall in the heart of downtown, is a hub for dining, shopping, and entertainment. It hosts numerous festivals throughout the year, contributing to a lively and engaging atmosphere.

Academic institutions further enhance Ithaca's attractiveness. Both Cornell University and Ithaca College bring in a constant flow of visitors for college tours, academic conferences, and events, creating a robust market for short-term rentals.

The city’s commitment to sustainability and local agriculture is epitomized by the Ithaca Farmers Market (ithacamarket.com/), where visitors can purchase fresh, locally-sourced produce and crafts. Additionally, Cayuga Lake offers opportunities for boating, fishing, and other water activities, adding to the recreational options available for tourists and residents alike.

In summary, Ithaca, NY, is a city that combines natural beauty, educational prominence, and cultural vibrancy, making it a highly appealing destination for short-term rentals. Its proximity to major natural landmarks, academic institutions, and rich cultural venues provides a compelling case for anyone considering a visit.

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