Vacation Homes in the White Mountains: Short-Term Rental Considerations

Vacation Homes in the White Mountains: The Complete Guide to Short-Term Rental Investing in New Hampshire

New Hampshire’s mountainous regions attract outdoor enthusiasts year-round, generating billions in annual tourism revenue. From skiing and snowboarding at world-class resorts like Loon Mountain, Cannon, Attitash, and Bretton Woods in winter, to hiking and leaf-peeping along the Kancamagus Highway and Mount Washington region in autumn, the White Mountains region offers a unique blend of recreation and natural beauty. Vacation homes in this area have long been a favorite for buyers seeking both a personal retreat and a significant source of short-term rental income. As short-term rentals have surged in popularity across New Hampshire, it’s essential to understand the regulations, economics, and logistics of owning a vacation property in this competitive market.

Whether you’re a local looking for a second home or an investor targeting the thriving tourist market, this comprehensive guide will walk you through the key considerations—from municipal ordinances and HOA restrictions to seasonal demand, tax obligations, property management, and financing requirements. The White Mountains vacation rental market offers genuine profit potential, but success requires careful planning, regulatory compliance, and a deep understanding of market dynamics in specific towns.

Understanding the White Mountains Vacation Rental Market in 2025–2026

The White Mountains region is experiencing steady growth in vacation home demand, driven by both leisure tourism and remote work flexibility. According to 2025 market data, the region supports thousands of active vacation rentals across multiple platforms. Key White Mountains towns like Conway, Lincoln, North Woodstock, Franconia, and Waterville Valley each have distinct market characteristics and regulatory environments.

Conway, the largest White Mountains town, serves as the gateway to North Conway’s bustling downtown and proximity to numerous ski resorts. The Conway market shows average occupancy rates around 49–61% and average daily rates (ADR) of $273–$329, with projected annual rental revenues in the range of $43,000–$60,000 for moderately performing properties. Jackson, another popular White Mountains town, demonstrates strong seasonal variation, with peak February occupancy reaching 62.8% and monthly revenues exceeding $8,000 during high season, while lower shoulder months generate significantly less.

Waterville Valley presents a unique market opportunity. Though the year-round population is only about 250 people, visitor numbers swell to 4,000–6,000 on weekends and popular vacation periods. The town’s condo-dominated market saw median sales prices reach $870,250 in March 2025, reflecting strong underlying property values and investor confidence. Peak vacation season in Waterville Valley runs January through March, while off-peak periods (May–June and October) offer fewer bookings but potentially better acquisition opportunities.

Across the region, vacation rentals experience pronounced seasonal variation. Winter months typically generate peak occupancy and highest nightly rates due to ski resort demand, while summer and fall attract a different demographic seeking hiking, mountain biking, and scenic experiences. Understanding these seasonal patterns is critical for accurate revenue projections and property cash flow analysis.

Choosing the Right Location: A Town-by-Town Analysis

Selecting the right location is perhaps the most important decision when purchasing a vacation home. The White Mountains region encompasses a variety of towns, each with distinct appeal, regulatory environments, amenities, and market characteristics.

Conway and North Conway

Conway remains the most popular White Mountains destination, offering proximity to downtown North Conway’s restaurants, shops, and galleries alongside easy access to hiking, mountain biking, and winter sports. Properties near Main Street command premium nightly rates due to walkability and tourist appeal. The town requires STR operators to obtain annual licensing and maintain comprehensive insurance, with mandatory fire safety inspections verifying smoke detectors, carbon monoxide detectors, egress paths, and occupancy compliance. Conway enforces strict parking requirements—all guest vehicles must be accommodated on-property with no street parking permitted for rental guests.

Lincoln

Lincoln has embraced a more tourism-friendly regulatory approach, establishing permissive zoning that allows STRs in most residential districts with minimal restrictions. The town charges only a $100 annual registration fee and launched a dedicated STR portal in 2022, making registration a streamlined process completable in minutes. Lincoln’s proximity to Loon Mountain ski resort and the Franconia Notch Parkway makes it attractive for both winter sports enthusiasts and scenic visitors. Properties with direct ski resort access or panoramic mountain views command year-round bookings.

Franconia and Franconia Notch

Franconia offers dramatic mountain scenery, including the Franconia Ridge Loop and Profile Lake. The area attracts serious hikers and nature photographers, supporting consistent summer and fall booking demand. While specific STR ordinances vary, operators should verify local zoning requirements before purchasing. Properties positioned as luxury retreats or adventure base camps perform well in this market segment.

Waterville Valley

Waterville Valley operates as a planned resort community with significant condominium inventory. The town sees explosive visitor traffic during peak seasons relative to its small permanent population. Many properties are managed through established property management companies familiar with the market. The town’s all-inclusive resort amenities (ski resort, golf course, restaurants) create stable bookings even during shoulder seasons.

When evaluating properties across these towns, consider distance to major attractions (ski resorts, trailheads, lakes), availability of restaurants and grocery stores, proximity to hospitals and emergency services, and local employment for property maintenance support. Identify the specific guest experience you wish to offer—a cozy ski chalet near slopes commands premium winter rates but slower shoulder seasons, while a lakefront property provides year-round appeal with boating and fishing in summer and snowshoeing in winter.

Understanding Regulations and Permitting: The Municipal Patchwork

New Hampshire does not have statewide short-term rental legislation, leaving regulation entirely to individual towns and cities. This regulatory patchwork creates significant variation in licensing requirements, fees, occupancy limits, minimum stay durations, and compliance standards.

Conway Permitting Requirements

Conway requires STR operators to obtain an annual rental license before offering accommodations. The application process involves submitting proof of liability insurance (typically $300–$500 annually), passing a fire safety inspection, documenting occupancy limits based on square footage and egress paths, and confirming parking capacity. The town enforces these requirements through complaint-driven code enforcement and periodic inspections. Failure to obtain proper licensing can result in fines, cease-and-desist orders, or forced closure of rental operations.

Lincoln Permitting Requirements

Lincoln’s registration process is notably more streamlined. The $100 annual fee and online portal system make compliance straightforward. Lincoln has established clear guidelines for operator responsibilities and guest conduct, but the overall regulatory burden remains lighter than neighboring towns.

Insurance and Liability Considerations

Standard homeowners insurance does not cover short-term rental liability. All STR operators must secure dedicated vacation rental insurance, which typically costs $400–$800 annually depending on property value, guest capacity, and loss history. Insurance requirements often include minimum coverage limits, which vary by town. Verify insurance requirements before purchasing, as some properties may have difficult or expensive coverage availability due to age, location, or prior claims history.

HOA Restrictions and Community Governance

Many White Mountains vacation homes are part of homeowners associations that impose rental restrictions. Some HOAs prohibit short-term rentals entirely to preserve neighborhood character, while others allow rentals but restrict lease lengths (minimum 30 days, for example), require guest screening and registration, impose limits on annual rental days, or charge additional HOA fees for rental operators. Review HOA bylaws and architectural guidelines thoroughly before purchasing. Contact the HOA directly to understand enforcement mechanisms and whether regulations have changed or are under consideration. HOA rules can change through membership vote, so staying informed through HOA meeting attendance and newsletter reviews is essential for ongoing compliance.

Seasonal Demand and Dynamic Pricing Strategy

The White Mountains region experiences dramatic seasonal fluctuations in demand, directly impacting occupancy rates and achievable nightly rates. Understanding these patterns enables sophisticated pricing strategies that maximize annual revenue.

Winter Peak Season (December–February)

Winter represents the highest-revenue season due to ski resort demand. Peak occupancy occurs during holidays (Christmas through New Year’s), school vacation weeks, and weekends. Nightly rates during these periods can reach $400–$600+ depending on location, amenities, and property condition. To maximize winter revenue, ensure properties offer ski storage, fireplace or wood stove, hot tub (a major rental draw), heated deck or patio, and proximity to resort shuttle services. Some hosts charge premium rates for holiday weeks with 5–7 night minimums and dynamic pricing that adjusts based on real-time demand.

Spring Shoulder Season (March–May)

Spring experiences declining demand as ski resorts close and shoulder season travelers become more price-sensitive. Occupancy may drop to 30–45% of winter levels. This period offers opportunity to implement special promotions, partner with local businesses for bundled offerings, or schedule maintenance and renovations with minimal impact on bookings. Spring break weeks (typically mid-March) provide a brief secondary demand peak.

Summer Season (June–August)

Summer attracts families seeking outdoor adventures, with hiking, mountain biking, water sports, and sightseeing driving bookings. Properties near popular trails (Mount Washington, Franconia Ridge Loop) and water access (Echo Lake, Conway Lake) experience 50–65% occupancy with ADRs of $250–$350. Summer travelers often seek multi-night stays (3–7 nights) rather than single-night bookings. Family-friendly amenities (multiple bedrooms, kitchens, outdoor fire pits, yard space) become high-value features.

Fall Foliage Season (September–October)

Fall represents the second-highest revenue season as leaf-peepers and photographers converge on the region. Peak foliage weeks (typically mid-September through early October) see occupancy surging to 60–75% with nightly rates approaching summer levels or higher. Autumn properties should feature panoramic mountain views, proximity to scenic drives, and ready access to photography locations. Weekend bookings during foliage season often require 2–3 night minimums.

Thanksgiving Week

Thanksgiving week (typically mid-to-late November) represents a significant secondary demand peak, particularly for larger properties (4+ bedrooms) suitable for family gatherings. This week often achieves winter-level occupancy rates and commands premium pricing, despite occurring outside peak winter season.

Dynamic Pricing Technology

Modern STR operators employ dynamic pricing tools that analyze local market data, competitor pricing, upcoming events, and historical demand patterns to automatically adjust nightly rates in real-time. Platforms like Airbnb, VRBO, and Booking.com offer built-in pricing tools, while third-party services (PriceLabs, Wheelhouse, Beyond Pricing) provide more sophisticated algorithms. Property managers typically adjust pricing 2–4 weeks in advance based on booking trends, then make final adjustments within 7–10 days of arrival dates based on real-time market conditions.

Operating Costs and Professional Property Management

Vacation home operations require significantly higher management intensity than long-term rentals due to frequent guest turnovers, cleaning requirements, and maintenance demands. Understanding and budgeting for all operational costs is essential for accurate return projections.

Cleaning and Turnover Costs

Professional cleaning represents one of the largest operating expenses. Standard turnovers between guests typically cost $150–$300 for a 3–4 bedroom home, depending on cleanliness standards and local labor rates. Deep cleaning (required quarterly or when needed) costs $300–$600. Some operators factor in $25–$50 cleaning fees per guest charged to renters, which are taxable under NH Meals & Rooms Tax law. Restocking supplies (toiletries, linens, kitchen staples) adds $50–$150 per turnover.

Property Management Services

Many vacation home owners hire professional property management companies to handle bookings, guest communication, turnover coordination, maintenance, and emergency response. Management fees typically range from 15–30% of gross rental income, depending on services provided:

• Basic Management (20%–25%): Handles bookings, guest communication, turnover coordination, and minor maintenance coordination
• Full-Service Management (25%–30%): Adds 24/7 emergency response, linen/towel service, detailed maintenance management, and guest concierge services
• Owner-Managed Properties: Owners handling all functions themselves can achieve higher net income but require significant time commitment and operational expertise

Maintenance and Repairs in Mountain Environments

White Mountains properties experience elevated maintenance costs due to heavy seasonal use, snow/ice damage, and harsh mountain weather. Budget for:

• Snow Removal & Driveway Maintenance: $200–$500 per winter season (monthly or as-needed service)
• Heating System Maintenance: $150–$300 annually (inspection, cleaning, filter replacement)
• Septic System Pumping: $300–$500 every 3–5 years
• Chimney Cleaning & Inspection: $150–$300 annually if fireplace is guest amenity
• Roof & Gutter Maintenance: $200–$400 annually; major repairs $3,000–$8,000
• Deck Sealing & Repairs: $200–$600 annually depending on condition
• General Repairs & Turnover Issues: Budget 8–12% of gross income for unexpected failures

Winterization is particularly critical. Ensure properties have adequate insulation (R-30+ attic, R-13+ walls), backup heating sources (wood stove, propane heater), and reliable snow removal access. Properties without four-season access may require winter road maintenance contracts.

Utilities and Operating Expenses

Vacation properties typically incur $300–$600 monthly in utilities (electricity, heating fuel, water, septic treatment) depending on seasonal occupancy, heating system efficiency, and property size. Owners pay these costs even during vacant periods. Short-term rental properties experience higher utility costs than long-term rentals due to frequent turnover and guest expectations for heated pools, hot tubs, and generous heating/cooling.

Technology and Marketing Investment

Successful vacation rental operations require investment in:

• Booking Platform Fees: Airbnb charges 3% host service fee; VRBO charges 5% commission to operators
• Professional Photography & Virtual Tours: $300–$800 initial investment; photos should be refreshed annually
• Smart Home Systems: $1,000–$3,000 for keyless entry, smart thermostats, security cameras, and guest communication automation
• Website & Direct Booking Infrastructure: $50–$200 monthly for hosting and booking engine to capture direct bookings and reduce platform dependency

Tax Obligations: The 8.5% Meals & Rooms Tax and Federal Income Tax

New Hampshire short-term rental operators face significant tax obligations at both state and federal levels. Understanding and budgeting for tax liability is essential for accurate profit projections.

New Hampshire Meals & Rooms Tax (8.5%)

New Hampshire requires all STR operators to register for a Meals & Rooms Tax license and collect 8.5% on all rental charges. This includes:

• Nightly rental fees
• Cleaning fees
• Pet fees
• Rollaway bed fees
• Extra guest fees
• All other nonoptional charges

Operators must file and remit taxes monthly with the New Hampshire Department of Revenue Administration using Form CD-3 (Application for Meals & Rentals Tax Operator’s License). While some platforms like Airbnb automatically collect and remit this tax, others do not, and operators remain legally responsible for compliance regardless. Failure to properly register or remit taxes can result in penalties and back-tax assessments.

All STR advertisements must display the Meals & Rooms Tax Operator’s License number. Successful compliance requires maintaining detailed booking records, calculating taxable charges accurately, and filing timely returns.

Federal Income Tax Reporting

Short-term rental income is fully taxable at the federal level. Operators must report all rental income on Schedule C (Self-Employment Income) or Schedule E (Supplemental Income), depending on filing structure. Deductible expenses include:

• Property management fees
• Cleaning and laundry services
• Utilities (proportional if owner-occupied)
• Maintenance and repairs
• Depreciation (real estate, furniture, appliances)
• Mortgage interest (if loan-financed)
• Property taxes
• Insurance premiums
• Capital expenditure reserves
• Booking platform fees and commissions
• Advertising and marketing
• HOA fees and assessments

Maintain detailed records of all expenses with supporting documentation. Many professional property managers provide quarterly accounting statements that simplify tax preparation. Consult with a tax professional experienced in vacation rental operations to optimize deductions and understand estimated tax payment requirements.

The 14-Day Rule

The IRS allows homeowners to rent their primary residence for up to 14 days annually without reporting rental income, known as the "Masters Exemption" or "14-day rule." However, this exemption only applies to properties used for personal purposes the remainder of the year. Properties rented more than 14 days must report all income. Additionally, local STR regulations still apply regardless of the 14-day exemption.

Financing a Vacation Home Investment: Requirements and Options

Financing a vacation home requires different underwriting standards and down payment requirements than primary residence financing, though lower down payments are available than for pure investment properties.

Down Payment Requirements

Second home mortgages typically require 10–20% down payment depending on lender and property characteristics. Some lenders offer competitive terms on second homes equal to or only slightly higher than primary residence mortgages, while others charge premium rates. The distinction between second home financing and investment property financing is critical: second home mortgages assume owner-occupancy for a portion of the year, while investment property financing applies to properties rented 12 months annually.

Occupancy Requirements

Lenders define second homes as properties occupied by the owner for at least part of the year. Properties financed as second homes cannot be rented full-time during the mortgage period without lender approval. Operators planning to rent 365 days annually must pursue investment property financing rather than second home mortgages. Misrepresenting intended occupancy can violate mortgage terms and trigger loan acceleration.

Documentation and Credit Requirements

Lenders will request:

• Proof of income and recent tax returns (typically 2 years)
• Detailed bank statements
• Documentation of primary residence and other real estate holdings
• Debt-to-income ratio analysis (generally under 43%)
• Credit score (typically 720+ for favorable terms)
• Explanation of investment intent if property will be partially rented

Interest Rates and Terms

Second home mortgages carry interest rates approximately 0.25–0.75% higher than primary residence mortgages, though competitive lenders offer rates within 0.25% of primary home rates. Loan terms typically range from 15–30 years. Local New Hampshire lenders like Union Bank often provide competitive second home programs tailored to vacation property investors familiar with regional market characteristics.

Investment Property Financing

Properties financed as investment properties (rented 12 months annually) typically require 20–25% down payment with interest rates 1.0–1.5% higher than primary residence mortgages. Lenders will request detailed property analysis including projected rental income, operating expense budgets, and pro forma cash flow statements. Some portfolio lenders (traditional banks) offer favorable investment property terms to borrowers with strong personal income and existing real estate experience.

Alternative Financing Options

• Home Equity Lines of Credit (HELOC): Allows borrowing against primary residence equity at favorable rates for acquisition and renovation funding
• Portfolio Loans: Community banks may offer flexible terms based on relationships rather than standardized guidelines
• Hard Money and Private Loans: Useful for renovation-intensive acquisitions with plan to refinance after stabilization; expect 6–12% interest rates and short (3–5 year) terms
• Partnerships and Syndication: Pooling capital with other investors spreads financial burden and expertise

Case Studies: White Mountains Vacation Home Investments

Case Study 1: Premium Winter-Focused Property in North Conway

A family purchased a 4-bedroom ski-in/ski-out chalet near North Conway with a purchase price of $575,000. They renovated with upgraded appliances, smart home systems (keyless entry, smart thermostat), and added a hot tub—total renovation cost $75,000. After obtaining proper licensing and insurance, they listed on Airbnb, VRBO, and Booking.com with premium positioning.

Performance: First-year winter months achieved 72% occupancy with $425 average nightly rate, generating $47,000 in gross winter revenue (December–February). Summer and fall achieved 48% occupancy at $275 nightly rate, contributing $18,000 additional revenue. Total first-year rental revenue: $65,000. After deducting management fees (20%), cleaning ($120 per turnover × 120 turnovers), utilities ($450 monthly), maintenance ($800 annually), insurance ($600), property taxes ($5,500), and HOA fees ($2,400), net cash flow after all expenses but before mortgage interest: $12,000. With mortgage interest around $13,000 annually (on $460,000 at 6% over 30 years), the property generated modest positive cash flow in year one, with the primary return coming from mortgage principal paydown and property appreciation.

Case Study 2: Year-Round Lakefront Investment in Waterville Valley

An investor acquired a 3-bedroom waterfront property near Waterville Valley for $425,000 with 15% down ($63,750). The property featured existing furnishings and rental history. Investment property financing required 22% down, resulting in $93,500 required capital (15% cash down plus closing costs and initial improvements). The investor contracted with a full-service property management company at 28% commission.

Performance: Year-one gross rental revenue: $68,000 (averaging 56% annual occupancy with seasonal variation from 72% in winter to 35% in spring). Management fees consumed $19,040; cleaning, laundry, and turnover supplies: $8,500; utilities: $5,400; maintenance and repairs: $7,200; insurance: $850; property taxes: $3,200; and capital expenditure reserves: $5,000. Total operating expenses: $49,190. EBITDA (Earnings Before Debt Service): $18,810. With mortgage payments of $2,100 monthly ($25,200 annually) on a $330,250 loan at 6.5% over 25 years, annual cash flow: negative $6,390 in year one. However, the investor realized $8,000 in mortgage principal paydown and claimed $12,500 in depreciation deductions against other income. The property cash-flowed negatively in year one, but mortgage paydown and tax deductions provided investor returns. Year two improved as management optimized pricing and guest experience, increasing occupancy to 62% and improving cash flow.

Case Study 3: Value-Add Renovation in Lincoln

An experienced investor purchased a dated 5-bedroom home in Lincoln listed for $385,000. The property required significant updates (kitchen, bathrooms, flooring, deck) estimated at $95,000. The investor financed with 25% down ($96,250) on the purchase, then accessed a HELOC for $100,000 renovation funding. Total capital deployed: $196,250.

Strategy: Complete comprehensive renovations over 6 months, then position as luxury rental targeting corporate retreats and large family gatherings (4–6 bedroom premium pricing). Implement dynamic pricing using PriceLabs software and hire co-host for local management at $500 monthly.

Performance: Year two (post-renovation) achieved 68% annual occupancy with average nightly rate of $385 (vs. pre-renovation $210), generating $96,000 gross revenue. Operating expenses (management, cleaning, utilities, maintenance, insurance, taxes, HOA): $52,000. EBITDA: $44,000. Mortgage payments on $288,750 at 6% over 30 years: $17,325 annually. Year two cash flow before HELOC payments: $26,675. HELOC payments ($500 monthly) reduced cash flow to $20,675. Year three and beyond, with HELOC paid down, generated $35,000+ annual cash flow. The property appreciated significantly due to improved condition and market strength, with estimated value reaching $520,000 by year three—providing $135,000 equity gain ($520k current value minus $385k purchase minus $96k renovations) plus cumulative cash flow.

Building Your Vacation Home Investment Strategy

Success in White Mountains vacation home investing requires disciplined analysis, local expertise, and realistic expectations about cash flow and returns. Consider these strategic guidelines:

• Target Markets: Focus on towns with clear STR-friendly regulations, strong seasonal demand, and reasonable licensing/permit requirements (Lincoln, Conway for most flexibility)
• Property Selection: Choose properties with high-demand amenities (hot tubs, fireplaces, mountain views, proximity to attractions) that support premium nightly rates and reduce marketing burden
• Capital Deployment: Budget conservatively for operating costs (cleaning, management, utilities, maintenance) at 45–55% of gross revenue. Many investors underestimate these expenses
• Financing Strategy: Consider whether second home mortgages (lower rates, 10% down) or investment property mortgages (higher down, flexibility) better match your occupancy plans and risk tolerance
• Tax Planning: Engage a tax professional early. Understanding depreciation, expense allocation, and estimated tax requirements prevents costly errors
• Risk Management: Secure adequate insurance, maintain sufficient capital reserves (6–12 months operating expenses), and establish clear guest policies to mitigate liability and damage risk
• Professional Support: Partner with experienced property managers, local agents, lenders familiar with vacation rentals, and attorneys versed in White Mountains regulations

Market Outlook and Future Considerations

The White Mountains vacation home market shows resilience and steady growth through 2025–2026. Tourism to New Hampshire ski resorts and mountain attractions has recovered to pre-pandemic levels and continues expanding. Remote work trends support longer stays and off-peak bookings. However, regulatory environments are evolving, with some towns considering stricter STR controls due to housing affordability concerns and neighborhood impact.

Stay informed about proposed zoning changes, HOA regulation modifications, and state-level legislation. Join local STR owner associations to advocate for reasonable regulations and stay ahead of regulatory shifts. Properties in towns with clear, stable regulations and transparent permitting processes offer lower regulatory risk than those in towns with uncertain or hostile STR policies.

Conclusion: Turning Your White Mountains Retreat Into a Profitable Investment

Owning a vacation home in New Hampshire’s White Mountains can provide both a cherished personal retreat and a source of meaningful short-term rental income. The region’s year-round tourism appeal, diverse seasonal demand drivers, and generally favorable regulatory environment make it an attractive market for vacation property investment.

However, success requires far more than finding an attractive property and listing it online. You must carefully select a location aligned with your strategy, thoroughly understand municipal licensing and HOA requirements, accurately budget for substantial operating costs, and recognize significant tax obligations. Professional property management, dynamic pricing strategies, and continuous amenity improvements separate thriving investments from poorly performing properties.

Work with local experts—experienced real estate agents, professional property managers, lenders familiar with vacation home financing, and attorneys versed in New Hampshire regulations—to navigate zoning rules, licensing, and financing. With thoughtful planning, disciplined execution, and realistic return expectations, your White Mountains vacation home can deliver both personal enjoyment and sustained investment returns.

Ready to Explore White Mountains Vacation Home Opportunities?

Bean Group | Brokered by eXp Realty specializes in New Hampshire real estate investment opportunities, including vacation homes and short-term rental properties throughout the White Mountains region. Our agents understand local market dynamics, municipal regulations, financing requirements, and investment performance metrics. Whether you’re seeking your first vacation property or expanding an existing rental portfolio, we provide the market expertise, local connections, and professional guidance essential for successful investment decisions. Contact Bean Group today to discuss your White Mountains vacation home goals and explore available opportunities in Conway, Lincoln, Franconia, Waterville Valley, and throughout the region.