Short-term-rental rules
Can you Airbnb in Sleepy Hollow, NY?
Researched and reviewed by Jake Lee, FounderCurrent as of July 2026How this atlas is maintained
Sleepy Hollow has no short-term-rental law, but its zoning permits only dwelling uses in residential districts: hotels, motels, tourist homes, B&Bs and boardinghouses are not permitted uses anywhere except the RF Riverfront district by special permit. Renting rooms to paying guests risks prosecution as an unpermitted boardinghouse or hotel use (the boardinghouse permit covers a maximum of 4 permanent roomers only), while whole-home short stays by a single family group sit in a legal gray area that the village has historically not pursued.
What the rules say in Sleepy Hollow
- No STR-specific local law or rental registry exists; the village code (current through 04-07-2026) contains no short-term-rental chapter.
- Zoning Ch. 450 is a permissive use scheme: districts R-1 through R-6 permit only 1-family, 2-family and multiple dwellings plus institutional uses; hotels, motels, tourist homes, B&Bs and boardinghouses are not listed as permitted uses in any residential or commercial district (450 Attachment 1, Schedule of Regulations).
- Inns, hotels, motels and bed-and-breakfast inns are allowed only in the RF Riverfront Development District, by special permit from the Mayor and Board of Trustees as part of a comprehensive riverfront development (Zoning §450-11A(1)(c)[8]).
- §450-4 defines any dwelling housing more than three persons for hire as a boardinghouse, and the strict "family" definition expressly excludes groups occupying a boardinghouse, lodging house or hotel; "tourist home" is excluded from permissible home occupations.
- Ch. 139 Boardinghouses requires an annual Board of Trustees permit for any rooming/boarding for hire; roomers are defined as permanent occupants, capped at 4 (one per room, 100 sq ft minimum), with sprinkler requirements and civil penalties of $250-$1,000 per day ($500-$2,500 for repeat violations). There is no permit path for transient guests.
- Ch. 319 Residential Occupancy Restrictions creates rebuttable presumptions of illegal occupancy (including from advertising rooms for rent), with fines of $1,000-$3,500 for a first violation and $5,000-$7,500 for repeat violations, each day a separate offense.
- Unlike neighboring Tarrytown, Sleepy Hollow's code does not expressly exclude transient occupancy from the definition of dwelling, so a whole-home rental to a single family group is not clearly barred; local reporting quotes the mayor saying the village received no complaints and does not pursue Airbnb advertisers.
- Hosts should also confirm compliance with New York State's statewide STR registration and sales-tax collection requirements that took effect in 2025, which apply on top of local rules.
Sources: Village of Sleepy Hollow Code, table of contents (eCode360, legislation through 04-07-2026); Zoning §450-4 Definitions (boardinghouse, dwelling, family, hotel, motel, tourist-home exclusion); Zoning 450 Attachment 1, Schedule of Regulations (permitted uses by district); Zoning §450-11 RF Riverfront Development District special permit uses (inns, hotels, motels, B&Bs); Ch. 139 Boardinghouses (permit regime, permanent-roomer definition, penalties); Ch. 319 Residential Occupancy Restrictions (presumptions, penalties); Ch. 245 Housing Standards, Part 1 definitions (lodging house, multiple dwelling/transient guests); The Hudson Independent: Airbnb Brings Challenge to Zoning in the Rivertowns (enforcement context; mayor quote). 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.
Sleepy Hollow short-term-rental FAQ
Can I run a short-term rental (Airbnb) in Sleepy Hollow, NY?
Sleepy Hollow has no short-term-rental law, but its zoning permits only dwelling uses in residential districts: hotels, motels, tourist homes, B&Bs and boardinghouses are not permitted uses anywhere except the RF Riverfront district by special permit. Renting rooms to paying guests risks prosecution as an unpermitted boardinghouse or hotel use (the boardinghouse permit covers a maximum of 4 permanent roomers only), while whole-home short stays by a single family group sit in a legal gray area that the village has historically not pursued.
Do I need a permit or registration to run an STR in Sleepy Hollow?
No STR-specific local law or rental registry exists; the village code (current through 04-07-2026) contains no short-term-rental chapter.
What taxes apply to a short-term rental in Sleepy Hollow, 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 Sleepy Hollow?
Short-term rentals face real limits in Sleepy Hollow (see the status above), so it may not be the right play. Palisade Stays can still help you understand what's possible for your property, including a compliant mid-term or longer rental, and run it if it's a fit. Start with a quick assessment.
Navigating Sleepy Hollow's rules?
We'll help you find out what's actually possible for your Sleepy Hollow property, short-term, mid-term, or otherwise, and run it if it's a fit.
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