Short-Term Rentals in Craftsbury, VT: A Comprehensive Guide for Investors

Overview: Are Short-Term Rentals Allowed?

Yes, short-term rentals are currently allowed in Craftsbury, VT. According to the provided Craftsbury Town Plan data from February 2024, there are currently 33 homes actively listed as short-term rentals in the town, indicating an established and legal STR market. The document notes that these properties are generating significant revenue, with an average of $234 per day and $2,874 per month.

Current Market Status

Craftsbury's STR market appears to be thriving, with the town being described as having "very popular" short-term rentals. The average daily rate of $234 suggests strong market demand, likely driven by the town's tourism attractions including:

• Outdoor recreation opportunities (cross-country skiing, sculling, cycling)
• Natural amenities (three lakes: Eligo, Little Hosmer, and Big Hosmer)
• Cultural events and the Craftsbury Outdoor Center
• Historic village centers and scenic rural landscapes

How to Start a Short-Term Rental Business

Based on the information available, the process appears straightforward since no specific local STR regulations are mentioned in the town plan:

1. Property Assessment: Ensure your property meets basic housing standards and zoning requirements
2. Property Preparation: Prepare the property for tourist accommodations
3. Marketing: List on platforms like Airbnb, VRBO, or other vacation rental sites
4. Insurance: Secure appropriate liability and property insurance coverage
5. Tax Registration: Register for Vermont state taxes (rooms tax and meals tax may apply)

Required Documents, Permits, and Licenses

Important Limitation: The provided town plan document does not specify any city or town-level permits, licenses, or specific regulatory requirements for short-term rentals in Craftsbury. This suggests that as of the 2025 plan date, Craftsbury has not implemented local STR-specific regulations.

State-Level Requirements (Vermont):

• Rooms Tax Registration: Vermont requires registration and collection of 9% rooms tax on short-term rentals
• Meals Tax: If you provide breakfast or other meals, Vermont's 9% meals tax applies
• Business Registration: Register your business with the Vermont Department of Taxes

Specific Regulations

Local Regulations: The provided documents indicate that as of June 2025, Craftsbury has not adopted local land use regulations or zoning bylaws that would specifically govern short-term rentals. The town has historically relied on "incentive-based non-regulatory measures" rather than formal regulations.

State-Level Context: Vermont's current state-level framework appears to apply to Craftsbury STRs, but no specific state restrictions are detailed in the provided materials.

Zoning Considerations: While no specific STR zoning exists, the town plan emphasizes maintaining "rural character" and supports density that "is consistent with scale, building bulk, and dimensional standards of its surrounding environment."

Housing and STR Market Concerns

The town plan identifies potential concerns about STRs that investors should be aware of:

1. Housing Availability: The plan notes concerns that STR popularity may contribute to reducing year-round housing availability in a tight rental market
2. Community Response: Some residents may view STR proliferation as potentially impacting rural character
3. Future Regulatory Potential: The plan indicates ongoing community discussions about development oversight, which could potentially include STR regulations in the future

Contact Information for Local Authority

Town of Craftsbury

• Town Office Location: Craftsbury Village
• Contact Information: The provided documents do not include specific phone, email, or website contact details for STR-related inquiries
• Planning Commission: The Craftsbury Planning Commission handles land use and development policy discussions
• Selectboard: The primary governing body that would implement any future STR regulations

Source Pages

• Primary Source: townofcraftsbury.squarespace.com/s/Craftsbury-062025b.pdf (Craftsbury Town Plan Draft, June 20, 2025)
• Specific STR Data Page: Page 26 of the Town Plan contains the key STR market information

Investment Considerations

Market Strengths:

• Strong average daily rates ($234)
• Established tourist infrastructure
• Natural and recreational attractions
• No current regulatory barriers

Potential Risks:

• Future regulatory uncertainty as the town considers development oversight
• Community concerns about housing availability
• Potential for future zoning or STR-specific regulations

Recommendations for Investors:

1. Monitor town planning discussions for potential future STR regulations
2. Consider the community's emphasis on maintaining rural character
3. Stay informed about Vermont state tax and registration requirements
4. Engage with local community stakeholders to understand resident perspectives

The lack of specific local STR regulations in Craftsbury as of June 2025 presents both opportunities and uncertainties for potential investors in the short-term rental market.