BREAKING: Stowe Adopts New Short-Term Rental Ordinance. What the 2026 STR Rules Mean for Buyers & Sellers.
STOWE, VT — July 22, 2026.
I'm Grant Wieler, Broker here at Green Peak Properties. I sit through the selectboard hearings, and I manage short-term rentals in this market every single day. So let me cut through the noise: this is not an Airbnb ban. But if you own, plan to buy, or plan to sell an STR anywhere in Stowe or greater Lamoille County, there are a handful of rules you genuinely need to understand before your next move. Let's walk through them together.
Stowe Short-Term Rental Ordinance: The 2026 Overview.
At its core, the new Stowe short term rental ordinance does three things: it requires every short-term rental to be licensed, it caps the total number of STR licenses in town at 850, and it makes those licenses non-transferable in an ordinary (arms-length) sale. There's also a homestead exception for Stowe residents and an annual lottery for anyone hoping to join the pool of licensed operators.
Under the ordinance, an STR is defined as renting residential property to the public for fewer than 30 consecutive days and more than 14 days per year. Traditional commercial lodging hotels, inns, bed-and-breakfasts, motels, condo-hotels, and units inside SkiPUDs or Resort PUDs — is excluded and follows its own rules.
If you've been searching "Stowe Airbnb ban," take a breath: existing, compliant STRs can keep operating and keep renewing. What changed is the door for new entrants and the rules for what happens when a licensed property sells.
The Key Rules Every Owner Needs to Understand
License Required (May 1 – April 30 License Year)
Every owner must register each dwelling unit and obtain a Short-Term Rental License before renting. The license year runs May 1 through April 30. Renewal provisions begin May 1, 2026, with the first renewal deadline on April 30, 2027, and every April 30 after that. The specific Registration, Renewal, and Lottery fee amounts are set by the Stowe Selectboard, so I won't quote a dollar figure here, confirm the current fees with the Town before you budget.
The 850-License Cap
Beginning September 15, 2026, Stowe will issue no more than 850 STR licenses total. Here's the part that protects current operators: as of January 1, 2027, existing valid license-holders may always renew, they're shielded from the cap. If the town is at or above 850 licenses in a given year, no new licenses are issued that year and no lottery forms are accepted.
The Annual STR Lottery
Want a new license once the cap is full? You enter a lottery. Owners without a valid license submit an STR Lottery Form plus fee between June 1 and June 30. A random-number-generator drawing is held around July 15, live-streamed, and the result can't be challenged; one alternate is also selected. Winners then submit a full Registration form and fee by August 1 (or within 14 days of notice). As a guaranteed floor, 20 new licenses are made available via lottery in each of the 2027–2028 and 2028–2029 periods, even if the cap would otherwise leave none.
Non-Transferable Licenses on Sale (The Big One)
This is the provision that matters most for real estate. STR Licenses are NOT transferable or assignable in an arms-length sale. When a licensed STR property sells to a new arms-length buyer, the license does not convey with the property, the buyer must obtain their own license, which means entering the lottery if the cap is full.
There are narrow exceptions where a license can transfer (the transferee files a new Renewal form within 30 days): transfers into a trust where the owner is the settlor with no consideration; transfers between close family (spouse, parent, child, child's spouse, grandparent, grandchild) without consideration; a divorce court judgment; and transfer on the owner's death to a qualifying family member who will own at least 10%, with a death certificate.
The Homestead STR License Exception
If your Primary Residence / Homestead is in Stowe, you can obtain a Homestead STR License for up to two dwelling units on your homestead property, even when the 850 cap is full. It must remain your primary residence the entire period; if you stop living there, the license is revoked after 7 days' notice. Homestead licenses are transferable/convertible to a standard license within 30 days of a qualifying family transfer without consideration. "Primary Residence" means you live there more than half the year, it's your primary tax/government ID address, and you claim the homestead tax rate (or it's held in trust and proven primary via voter registration).
Operating Rules
Every licensed STR must give the Fire Department year-round, 24-hour access via an approved lock box. A Designated Responsible Person (DRP) must be able to arrive in person within 45 minutes of a Fire or Police call, and the DRP's phone number must be posted inside the unit. Critically for marketing: your STR registration number must appear in every advertisement and listing - Airbnb, VRBO, your own website, all of it. And you must report any material change in your information within 30 days.
Enforcement & Penalties
The town uses escalating waiver fees of $100 / $200 / $300 / $400 (1st through 4th-plus offenses) and civil penalties of $200 / $400 / $600 / $800 per violation, counted within the May 1–April 30 year. A third offense can trigger revocation of the STR registration, which is appealable to the Selectboard. (Timeshares in timeshare ownership as of adoption are exempt from needing a license.)
What This Means If You're BUYING an STR in Stowe
Buying a short-term rental in Stowe Vermont is now a different exercise than it was even a year ago. The listing photos and the past occupancy numbers only tell part of the story — the license is what determines whether you can keep renting.
Why You Can't Assume the Seller's License Comes With the Property
Because licenses are non-transferable in an arms-length sale, that thriving Airbnb you're eyeing doesn't hand you its license at closing. Unless one of the narrow family/trust/divorce/death exceptions applies, you'll need your own license — and if the 850 cap is full, that means entering the annual lottery (June 1–30) and hoping your number comes up around July 15. Build that reality into your offer price, your financing timeline, and your income projections. A property you can't legally short-term rent this season is a very different investment than the proforma the seller handed you.
How to Verify a Property's License Status Before You Offer
Before you write an offer, verify three things:
(1) Does the property currently hold a valid STR License?
(2) Is the town at or under the 850 cap right now, or is the lottery the only path in?
(3) Does the property qualify for the Homestead exception (i.e., could it be your primary residence)? This is exactly the kind of due diligence I handle for buyers. I'll check a property's license standing and the current cap situation before you commit, so there are no surprises. It's part of the same on-the-ground rental expertise we bring to every Green Peak client from Stowe Village to Smugglers' Notch, Jay Peak, and the Mad River Valley.
What This Means If You're SELLING STR Property in Stowe
Selling STR property in Stowe Vermont now comes with a nuance that directly affects value and marketability and, handled right, it can actually work in your favor.
How Non-Transferability Affects Value & Marketability
When your license doesn't convey to the buyer, the "turnkey Airbnb" pitch gets more complicated. A buyer who can't secure their own license may value the property purely as a residence, not as an income producer. That can compress your buyer pool if it isn't addressed head-on. The fix isn't to hide it, it's to position it with full transparency and a clear roadmap for how a buyer can get licensed (including the lottery timeline and the homestead path if applicable).
How to Position a Licensed / Grandfathered STR
If you hold a valid, compliant license one that's protected under the cap-and-renew structure, that's a genuine selling point for the right buyer, even though the license itself won't transfer. The strongest positioning combines your documented rental history, your clean compliance record, and a straightforward explanation of the buyer's licensing path. I help sellers package all of that into marketing that speaks to serious investors and lifestyle buyers alike, because in a niche mountain market, the story around the numbers is what closes the deal.
Frequently Asked Questions
- Does Stowe's new ordinance ban short-term rentals?
No. Stowe has not banned short-term rentals or Airbnb. Existing, compliant STRs can keep operating and renewing their licenses. The 2026 ordinance caps the total number of licenses at 850 and limits new entrants through an annual lottery it restricts growth, it does not shut down current, licensed rentals. - Is my STR license transferable when I sell my property in Stowe?
Generally, no. STR licenses are not transferable or assignable in an arms-length sale, so a buyer must obtain their own license. Narrow exceptions exist for certain family transfers, trusts where the owner is settlor, divorce judgments, and transfers on death to a qualifying family member each with its own filing requirement. - Can I still start a new STR in Stowe in 2026 or 2027?
Yes, if a license is available. Once the 850-license cap is full, new operators must enter the annual lottery: submit a lottery form and fee June 1–30, with a drawing around July 15. A guaranteed floor of 20 new licenses is offered via lottery in each of the 2027–2028 and 2028–2029 periods. - How does the STR lottery work?
Owners without a valid license submit an STR Lottery Form and fee between June 1 and June 30. A live-streamed, random-number-generator drawing is held around July 15, and the result cannot be challenged. One alternate is selected. Winners must submit a full Registration form and fee by August 1 (or within 14 days of notice). - What is the Homestead STR license?
It's an exception for Stowe residents. If your primary residence is in Stowe, you can obtain a Homestead STR License for up to two dwelling units on that homestead property even when the 850 cap is full. It must stay your primary residence throughout, or the license is revoked after a 7-day notice. - Do ski condos and resort properties (SkiPUDs / Resort PUDs) need a license?
No. Units within SkiPUDs and Resort PUDs are excluded from the ordinance's STR definition, along with hotels, inns, bed-and-breakfasts, motels, and condo-hotels. Those commercial lodging types follow their own rules rather than the STR licensing framework. - What are the penalties for operating an unlicensed STR?
The ordinance uses escalating waiver fees of $100/$200/$300/$400 (first through fourth-plus offenses) and civil penalties of $200/$400/$600/$800 per violation, counted within the May 1–April 30 license year. A third offense can trigger revocation of the STR registration, which is appealable to the Selectboard. - When does the ordinance and the 850-cap take effect?
The ordinance was adopted by the Stowe Selectboard in 2026 and became effective on its date of passage under Town Charter Section 204(c). The 850-license cap begins September 15, 2026, and existing valid license-holders are protected — able to renew — as of January 1, 2027.
Thinking About Buying or Selling an STR in Stowe? Let's Talk.
The new Stowe short term rental ordinance rewards owners and buyers who understand the details and it penalizes assumptions. Whether you're weighing an STR purchase, preparing to sell a licensed rental, or just want to know where a specific property stands, I can help.
Here's how Green Peak Properties can help right now:
- Get a property's license status checked before you buy, I'll confirm whether it's licensed and where the 850 cap stands today.
- Book a strategy consultation to map your STR buying or selling plan around the cap, lottery, and homestead rules.
- Request a home valuation that reflects how licensing and marketability affect your property's real market value.
Reach out to Grant Wieler at Green Peak Properties, your local insider for Stowe, Lamoille County, and Northern Vermont mountain real estate. Let's make your next move a confident one.
