Short-term-rental rules
Can you Airbnb in Montgomery (Town), NY?
Researched and reviewed by Jake Lee, FounderCurrent as of July 2026How this atlas is maintained
The Town of Montgomery adopted its first short-term rental law in 2026 (Local Law No. 1 of 2026, now Town Code Chapter 186): renting a home for 30 days or less is legal, but you need a revocable two-year permit from the Building Department, and only single-family homes in residential zoning districts on a minimum-size lot qualify, with caps of 2 guests per bedroom (10 max, 8 on septic), one parking space per bedroom, inspections, and insurance. The draft required 2 acres; the board voted to lower that to 1 acre with an appeal path before adopting, and the final codified text is not yet published online, so we will confirm the adopted figures for your specific address with the town.
What the rules say in Montgomery (Town)
- Permit required: no property may be used as a short-term rental (a single-family dwelling rented for 30 days or less) without a revocable short-term rental permit from the Town Building Department; permits run 2 years, are non-transferable on sale, and renewal requires re-inspection (draft Sections 186-1, 186-3, 186-10).
- Eligibility is limited to single-family dwellings in the town's residential zoning districts; short-term rental of two- or three-family dwellings, multiple dwellings, or homes with accessory dwelling units is not permitted (draft Section 186-5.A.1).
- Minimum lot size: the December 2025 draft required a lot of at least 2 acres (draft Section 186-5.A.3); at its April 1, 2026 meeting the Town Board voted to lower this to 1 acre with a ZBA appeal path for smaller lots before adoption (Wallkill Valley Times, April 2026). Final adopted figure should be confirmed with the town.
- Occupancy caps: 2 people per bedroom and never more than 10 people per unit including permanent residents; homes on septic are capped at 2 people per bedroom, a maximum of 4 bedrooms, and 8 people total (draft Section 186-5.A.12-13).
- At least one off-road parking space per bedroom shown on the required floor plan (draft Section 186-5.A.11).
- Application requires owner signatures, an inspection authorization, a certified floor plan, a 24-hour local contact, proof of property and STR-rated liability insurance, a water quality test (Total Coliform and E. coli), and septic pumping within the last 4 years; a nonrefundable fee is set by Town Board resolution (draft Sections 186-4, 186-5.B, 186-5.A.16-17).
- Adjacent property owners are notified of each application by first-class mail, and the Building Department has 30 days to consider comments and inspect before a permit issues with Town Board approval (draft Section 186-6).
- Pre-existing short-term rentals had to apply within 60 days of the law's effective date and prove at least 1 calendar year of prior STR operation; lapsed use for 1 year or more forfeits the grandfathering (draft Section 186-8).
- Renter conduct: the adopted chapter includes quiet-hours and nuisance standards in Section 186-5.D(3)(b); a pending amendment (Introductory Local Law No. 3 of 2026, public hearing July 15, 2026) would set quiet hours at 9:00 p.m. to 8:00 a.m. (9:00 a.m. Saturdays) and bar noise-code violations, disorderly conduct, and public nuisances (fetched amendment text).
- Violations are punishable by fines up to $350 for a first offense, escalating to $1,000 to $1,500 for a third offense within 5 years, plus possible permit suspension or revocation; a revoked owner is barred from a new permit on the property for 2 years (draft Sections 186-9, 186-11).
Sources: Town of Montgomery, Introductory Local Law No. 3 of 2026 (confirms enactment of Local Law No. 1 of 2026 creating Chapter 186, Short-Term Rentals); Town of Montgomery, Introductory Local Law No. 7 of 2025, A Local Law Creating Chapter 186 (Short-Term Rentals), full draft text; Town of Montgomery, Notice of Public Hearing on Introductory Local Law No. 3 of 2026 (July 15, 2026); Wallkill Valley Times, Town of Montgomery board is close to finalizing short-term rentals law (April 2026); eCode360, Town of Montgomery, NY Code (codified through 03-05-2025; Chapter 186 not yet published online). Last reviewed 2026-07.
How short-term rentals are regulated in New York
- New York has no single statewide short-term-rental ban. Towns, villages, and cities set their own rules through local ordinances and zoning, so rules can differ sharply between neighboring municipalities in the same county.
- Short stays in New York are generally subject to state and local sales tax, and many counties add a local occupancy (hotel/motel) tax, often collected by the booking platform on the host's behalf.
- Common local controls include permits or registration, primary-residence requirements, and zoning limits on which districts allow short-term use. In New York, a town and a village inside it can each have their own rule.
- Rules change. An ordinance can be added or amended at any time. Always confirm the current rule with the municipality before listing.
Montgomery (Town) short-term-rental FAQ
Can I run a short-term rental (Airbnb) in Montgomery (Town), NY?
The Town of Montgomery adopted its first short-term rental law in 2026 (Local Law No. 1 of 2026, now Town Code Chapter 186): renting a home for 30 days or less is legal, but you need a revocable two-year permit from the Building Department, and only single-family homes in residential zoning districts on a minimum-size lot qualify, with caps of 2 guests per bedroom (10 max, 8 on septic), one parking space per bedroom, inspections, and insurance. The draft required 2 acres; the board voted to lower that to 1 acre with an appeal path before adopting, and the final codified text is not yet published online, so we will confirm the adopted figures for your specific address with the town.
Do I need a permit or registration to run an STR in Montgomery (Town)?
Permit required: no property may be used as a short-term rental (a single-family dwelling rented for 30 days or less) without a revocable short-term rental permit from the Town Building Department; permits run 2 years, are non-transferable on sale, and renewal requires re-inspection (draft Sections 186-1, 186-3, 186-10).
What taxes apply to a short-term rental in Montgomery (Town), New York?
Short-term stays in New York are generally subject to state and local sales tax, and many counties add a local occupancy (hotel) tax, often collected for you by the booking platform. A tax professional can confirm what applies to your property.
Can Palisade Stays manage a short-term rental in Montgomery (Town)?
Palisade Stays launches and runs short-term rentals for owners end to end. Where a short-term rental works in Montgomery (Town), we can handle setup, listing, guest operations, and turnovers. Start with a quick property-fit assessment.
Thinking about a short-term rental in Montgomery (Town)?
Palisade Stays launches and runs short-term rentals for owners end to end. Tell us about your property and we'll see if it's a fit.
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