Quick Answer

Stowe did not ban short-term rentals. It capped them. The Selectboard adopted the Short-Term Rental Ordinance 5-0 in late July 2026. Beginning September 15, 2026, the Town issues no more than 850 general STR licenses, licenses do not transfer to a buyer, and new licenses come only through an annual July lottery. Owners whose primary residence is in Stowe can hold homestead licenses for up to two units outside the cap.

Key Takeaways

Two-Sentence Summary

Stowe's 850-license cap is now law, and the right to rent short-term stays with the owner, not the house. Buyers should value Stowe property without STR income they cannot yet license, and sellers should price for what a new owner can actually do.

If You Only Remember 3 Things

  1. An STR license does not transfer when the property sells, except to close family.
  2. New non-homestead licenses come only through the July lottery. The next one is in July 2027.
  3. Current license holders must renew by April 30 every year, starting April 30, 2027.

Quick Facts

  • Cap: 850 general STR licenses, starting September 15, 2026
  • Existing registrations: about 1,300, shrinking through attrition
  • Registration cutoff: 11:59 p.m., Monday, September 14, 2026
  • Lottery: forms June 1–30, drawing around July 15; 20 licenses in each of 2027 and 2028
  • Homestead limit: up to 2 units, outside the cap
  • Fee: $100 per unit for registration or renewal (as of August 2026)

Why a Cap Matters More Than a Registry

Registration adds cost. A cap changes value. Under the old registry, any buyer could register a home and rent it. Under the cap, the right to rent is scarce, and it does not come with the deed. Treat it like a water right that stays with the seller: the house may be identical, but the income stream is not.

If You Are Selling in Stowe

Your buyer cannot take over your license. Price and market the home on what a new owner can actually do with it: live there, rent it long-term, or enter the lottery. Buyers who modeled Airbnb income will adjust their numbers. Get ahead of that conversation with a clear, honest listing.

There is one exception. Licenses can pass between close family members, including spouses, parents, children, and grandchildren, without payment, into certain trusts, and at death to a relative who owns at least 10% of the property. If a family transfer is part of your plan, talk to your attorney before you move title.

If You Are Buying in Stowe

Do not underwrite a Stowe purchase on short-term rental income you do not yet have a license for. A non-homestead buyer gets a license only through the lottery, and the lottery offers very few licenses for now. Run your numbers on long-term rental or personal use. Count any future STR income as upside, not the base case.

If you will make Stowe your primary residence, the math changes. A homestead license lets you rent up to two units on your homestead property, outside the cap.

If You Already Hold a Stowe STR License

  • Renew on time. Licenses run May 1 to April 30. Your renewal is due by April 30, 2027, and every April 30 after that. Miss the deadline and you lose the ability to register that unit.
  • Watch how you hold title. The Town's guide says moving the property into an LLC or corporation voids the license. Get advice before you restructure ownership.
  • Keep the basics in place. Put your Town STR number in every ad. Keep a Fire Department-approved lockbox, such as a KnoxBox. Have a Designated Responsible Person who can respond in person within 45 minutes.
  • Fees: Registration and renewal are $100 per unit as of August 2026. The lottery fee has not been set yet.

Violations carry waiver fees of $100 to $400 and civil penalties of $200 to $800, rising with each offense in a 12-month period.

What Is Exempt

Designated resort areas are exempt from the ordinance. VTDigger reported that commercial properties in the ski and resort planned unit development zones, including Spruce Peak and the Trapp Family Lodge, fall outside it. Licensed lodging such as hotels, inns, and bed-and-breakfasts is also excluded, as are timeshares. For condos in or near those areas, confirm the exemption for the specific property with the Town before you rely on it.

How the Stowe STR Lottery Works

  1. Submit a lottery form and fee between June 1 and June 30.
  2. The Town draws by random number generator on or around July 15, livestreamed.
  3. If selected, submit your STR registration within 14 days of notice.

The next chance at a new license is the July 2027 lottery.

Frequently Asked Questions

Did Stowe ban short-term rentals?

No. Stowe capped general STR licenses at 850 starting September 15, 2026. Existing registrations moved over to licenses, and the total comes down through attrition.

Does a Stowe STR license transfer when I sell my house?

No. Licenses are not transferable in an arms-length sale. Limited transfers are allowed to close family members, into certain trusts, and at death.

How do I get a new STR license in Stowe?

Through the annual lottery. Forms are accepted June 1–30, and the drawing is around July 15. The Town's guide says 20 licenses will be issued in each of 2027 and 2028.

How many STR licenses can a Stowe resident hold?

Owners whose primary residence is in Stowe can hold homestead licenses for up to two units on their homestead property. These do not count against the 850 cap.

When do Stowe STR licenses renew?

Every year by April 30, starting April 30, 2027. The fee is $100 per unit as of August 2026.

What to Do Next

If STR income is part of your plan in Stowe, confirm the property's license status first. Then run the numbers without it. A plan that works without the license will hold up. A plan that needs a license you cannot get will not.

Questions on a specific Stowe property? Call New England Landmark Realty at 802-253-4711, or reach me directly at 802-233-4107. For the Town's side, contact STR@stowevt.gov or the Town Manager's office at 802-253-7350.

More from NELR: Vermont Home Buying Guide · Vermont Home Selling Guide · Vermont Real Estate Market Report · Vermont Closing Costs Guide

Sources

This post covers the ordinance as adopted in July 2026. It is not legal advice. Talk to an attorney about family transfers or changes to how you hold title.