Short-term-rental rules
Can you Airbnb in Washington, NY?
Researched and reviewed by Jake Lee, FounderCurrent as of July 2026How this atlas is maintained
The Town of Washington (which surrounds the Village of Millbrook) restricts short-term rentals under Local Law No. 1 of 2024, which added Chapter 166 to the Town Code. Every STR (any rental of 31 days or less) needs a revocable town permit, and to qualify at least one owner must actually reside in the dwelling at least 100 days per year, must have owned the property for at least a year before applying, and town-wide permits are capped at 40. A typical dedicated, non-owner-occupied whole-home Airbnb does not qualify; the permit costs $1,050, runs two years, and caps occupancy at 8 guests.
What the rules say in Washington
- Sec. 166.1 (Local Law No. 1 of 2024): a short-term rental is any portion of a dwelling or housing unit rented for compensation for not more than 31 consecutive days; only one STR is allowed per property, and STRs are allowed in every zoning district.
- Sec. 166.3(A): owners may not advertise or use a property as an STR without first obtaining a revocable STR permit; only owners (not tenants) may apply, limited to one permit per owner per two-year cycle.
- Sec. 166.3(A)(1): at least one owner must have owned the property (or held an interest in the owning entity) for at least one year before applying for an STR permit.
- Sec. 166.3(A)(2): at least one owner must reside in the dwelling unit at least 100 days per year, both while the permit is in effect and for the year immediately preceding issuance - an effective owner-occupancy requirement that excludes typical dedicated investor STRs.
- Sec. 166.3(A)(3): no more than 40 STR permits may be in effect town-wide at any time (exclusive of the Village of Millbrook).
- Sec. 166.3(B)-(C): permits are valid for 2 years, must be renewed 30 days before expiration, and are not transferable to a new owner; the town's posted permit fee is $1,050.
- Sec. 166.5(A)(9)-(11): minimum one off-road parking space per bedroom; maximum occupancy of 2 people per bedroom and an absolute cap of 8 people per STR unit (including permanent residents), further limited by septic capacity.
- Sec. 166.5(A)(13) and (B): septic must have been pumped and inspected within the past 4 years (and every 4 years thereafter), and applicants must carry property and liability insurance rating the premises as an STR.
- Sec. 166.6(B)-(C): applicants must notify adjacent property owners by certified mail, and the Code Enforcement Officer inspects the property within 30 days before a permit issues; a local contact able to reach the property within 30 minutes is required (Sec. 166.6(D)(2)).
- Sec. 166.8(A)(5): violations can lead to permit suspension or revocation; after revocation, all owners are barred from obtaining an STR permit on the property for one year.
Sources: Town of Washington Local Law No. 1 of 2024 (Chapter 166, Short-Term Rentals) - full adopted text; Town of Washington Building & Zoning - STR permit page ($1,050 fee, 2-year term, application forms); Town of Washington STR Permit Application; Town of Washington, NY Code on eCode360. 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.
Washington short-term-rental FAQ
Can I run a short-term rental (Airbnb) in Washington, NY?
The Town of Washington (which surrounds the Village of Millbrook) restricts short-term rentals under Local Law No. 1 of 2024, which added Chapter 166 to the Town Code. Every STR (any rental of 31 days or less) needs a revocable town permit, and to qualify at least one owner must actually reside in the dwelling at least 100 days per year, must have owned the property for at least a year before applying, and town-wide permits are capped at 40. A typical dedicated, non-owner-occupied whole-home Airbnb does not qualify; the permit costs $1,050, runs two years, and caps occupancy at 8 guests.
Do I need a permit or registration to run an STR in Washington?
Sec. 166.3(A): owners may not advertise or use a property as an STR without first obtaining a revocable STR permit; only owners (not tenants) may apply, limited to one permit per owner per two-year cycle.
What taxes apply to a short-term rental in Washington, 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 Washington?
Short-term rentals face real limits in Washington (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 Washington's rules?
We'll help you find out what's actually possible for your Washington property, short-term, mid-term, or otherwise, and run it if it's a fit.
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