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Ithaca, NY

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STR Regulations for Ithaca, New York

Overview: Are Short-Term Rentals Allowed?

  • Yes—short-term rentals (STRs) are allowed in the City of Ithaca, but they are tightly regulated.
  • An STR is defined as a dwelling unit offered for rent, in whole or in part, for fewer than 30 days.
  • A Short-Term Rental Operating Permit is required to advertise or operate any STR located within the city.
  • Only the host’s primary residence is eligible for a permit; permits are not issued to corporations, LLCs, trusts, or other entities.
  • STRs are permitted in single-family homes, two-unit dwellings, and any owner-occupied unit; however, if a single- or two-family home has an occupancy of four or more unrelated persons, it is considered a multiple dwelling and is not eligible for a city STR permit.
  • Full enforcement of the ordinance began on June 1, 2025.

Source:

How to Start a Short-Term Rental Business in Ithaca

  • Confirm eligibility:
    • The STR must be your primary residence (you live there at least 184 days per year).
    • The property must be a single-family home, a two-unit dwelling, or an owner-occupied unit, and must not be classified as a multiple dwelling (4+ unrelated occupants in a single-/two-family home).
    • If you are a renter, you must have the property owner’s written authorization to operate an STR.
    • You must apply as a natural person (no corporate or trust applicants).
  • Secure a Certificate of Compliance:
    • Obtain or confirm an active Certificate of Compliance (housing safety inspection) for the unit you intend to rent; submit it with your permit application.
    • Single- and two-family dwellings: Certificate of Compliance is valid for five years; you will not need a re-inspection until renewal unless your inspection is older than one year, in which case you must complete the Certificate of Compliance Attestation Form.
    • Multiple dwellings are not eligible for the City’s STR permit; they require a Town of Ithaca Operating Permit (see “Regulatory Framework” section below for cross-jurisdictional notes).
  • Register for room occupancy taxes:
    • Register with the City of Ithaca Controller’s Office; once approved, you will receive a Certificate of Authority.
    • You must collect and remit the City’s Hotel Room Occupancy Tax (5%) on all STR stays.
  • Apply for the Short-Term Rental Operating Permit:
    • Submit your application online; include the Certificate of Compliance, your Certificate of Authority, and two proofs of primary residency (two different document types; one must be from the bolded options).
    • Pay the $400 annual permit fee.
  • Include your permit number on all online listings (Airbnb, Vrbo, etc.), and maintain compliance at all times.

Application and preparation steps are detailed on the city’s STR page and the city’s Guide to Applying for a Short-Term Rental Operating Permit.

Sources:

Required Documents, Permits, Licenses, and Guidelines

  • Required documents (with application):
    • Valid Certificate of Compliance (or attestation if inspection is more than one year old).
    • Certificate of Authority for City occupancy tax (Hotel Tax Registration).
    • Two proofs of primary residency (two different document types; one must be from the bolded options below):
      • Valid driver’s license, non-driver ID, or vehicle registration.
      • Previous year’s State or Federal Income Tax Return (NYS IT-201 or US Form 1040).
      • Previous year’s W-2 or 1099 Form.
      • Current signed and dated lease agreement (if renting).
      • Medical bill or personal credit card bill (no older than 30 days).
      • Valid voter registration.
    • Owner’s Authorization Form (if you are a renter).
  • Permits and licenses:
    • City of Ithaca Short-Term Rental Operating Permit (annual).
    • City of Ithaca Hotel Room Occupancy Tax Registration (Certificate of Authority).
    • Certificate of Compliance (housing safety inspection).
  • Guidelines:
    • Primary residence requirement (184+ days/year).
    • Host must be a natural person.
    • Listing must include the STR permit number.
    • Hosts must remit the 5% City occupancy tax and maintain records of quarterly filings.
  • Fees:
    • STR Operating Permit: $400 annually.
    • Certificate of Compliance: fee varies by unit size (e.g., $7 per room for one- and two-family homes).
    • Occupancy Tax: 5% on STR stays (City of Ithaca).

Sources:

Specific Regulations: City, County, and State

City of Ithaca STR Regulations

  • Eligibility:
    • Only the host’s primary residence qualifies.
    • Permitted dwelling types: single-family homes, two-unit homes, owner-occupied units.
    • Prohibited: properties with four or more unrelated occupants in a single- or two-family home (classified as a multiple dwelling), corporate/trust ownership.
  • Permit operational rules:
    • Permit must be displayed by inclusion of the permit number on all online listings.
    • Host cannot be a corporation, LLC, trust, or other entity.
    • If renting, you must provide the owner’s written authorization.
  • Taxes and fees:
    • City Hotel Room Occupancy Tax: 5%.
    • Certificate of Authority registration required before operations.
    • Permit fee: $400 per year.
    • Certificate of Compliance inspection: required for STR units; valid for five years for single- and two-family dwellings.
  • Safety/inspection:
    • Certificate of Compliance must be current; inspections follow state/local code.
  • Compliance and enforcement:
    • Full enforcement began June 1, 2025.
    • Violations: up to $500 per day; repeat offenders barred from obtaining a permit for three years.
    • 24/7 hotline and online complaint portal available for noise, parking, trash, and other disturbances.
  • Nonconforming use (established rights):
    • Properties legally operating as STRs prior to the new ordinance may retain nonconforming use if they maintained a Certificate of Compliance and paid both county and city occupancy taxes for all STR stays since March 1, 2021.
    • Contact the City’s Zoning Administrator to request a formal determination and submit supporting documentation.

Sources:

County-Level (Tompkins County) Note

  • City documents reference Tompkins County occupancy taxes being automatically collected by Airbnb; hosts must ensure all county and city occupancy taxes are paid.
  • County-specific licensing or permitting for STRs is not identified in the provided sources. Where a property falls under Town of Ithaca jurisdiction (see below), separate town rules may apply.

Source:

State-Level (New York) Notes

  • Certificate of Compliance (housing inspection) requirements align with New York State and City codes for rental dwelling units.
  • State enabling legislation governs local room occupancy taxes; the City of Ithaca’s hotel room tax includes STRs and requires registration and quarterly remittance.
  • State law implications for multiple dwellings (4+ unrelated occupants) help define eligibility—single- and two-family homes with such occupancy are treated as multiple dwellings and are not eligible for city STR permits; they are instead governed by town operating permit rules (see below).

Sources:

Town of Ithaca (Cross-Jurisdictional) Operating Permit

  • If your property is classified as a multiple dwelling (3+ units) or has 4+ unrelated occupants in a single-/two-family home, it falls under Town of Ithaca jurisdiction for certain occupancies.
  • The Town requires an Operating Permit for “Short Term Rentals – less than 30 days” for applicable properties.
  • Contact the Code Enforcement & Zoning Department for application, inspection, and fee details.
  • Application portal: ViewPoint Cloud.

Source:

Investor Checklist: Operational Compliance in Ithaca

  • Confirm primary residence status (184+ days/year).
  • Ensure the property qualifies (single-family, two-unit, or owner-occupied; not a multiple dwelling).
  • Obtain or renew the Certificate of Compliance (valid five years for single-/two-family dwellings).
  • Register for the City’s Hotel Room Occupancy Tax and receive the Certificate of Authority.
  • Apply for and receive the STR Operating Permit; pay the $400 annual fee.
  • Add the permit number to all online listings; maintain listing compliance.
  • Collect and remit the 5% City occupancy tax quarterly; retain receipts.
  • Monitor for disturbances; respond to complaints via the 24/7 hotline and city reporting channels.
  • If the property is a multiple dwelling, secure the Town of Ithaca Operating Permit.

Contact Information (Local Authority in Charge of STRs)

Links to Source Pages (IMPORTANT)

What do Airbnb hosts actually earn in Ithaca?

Ithaca hosts earn a median $34,980/year with $207 ADR and 62% occupancy.

Top performers pull in $49,797+ per year.

See the full Ithaca market breakdown

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Ithaca

Market Saturation Score

036912
Low Saturation
1/ 12
months with declining YoY revenue
0–1 declining months: minimal saturation pressure — revenue trends are stable.
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Photos of Ithaca

Overview of Ithaca

Ithaca is a small city in Tompkins County, New York, set at the southern tip of Cayuga Lake in the heart of the Finger Lakes region. With a population of roughly 32,000, it carries the unmistakable feel of a classic college town, shaped primarily by Cornell University and Ithaca College. The city is best known for its striking natural scenery, particularly its many gorges and waterfalls, and serves as a natural gateway to Finger Lakes wine country, lake recreation, and a long list of outdoor destinations. The nearest major city is Syracuse, which sits about 50 miles to the northeast and is roughly an hour's drive away, while New York City lies approximately 220 miles to the southeast, a journey of around four hours by car.

At the heart of the community is Cornell University, an Ivy League institution whose expansive hilltop campus draws visitors year-round for its architecture, the Cornell Botanic Gardens, and its museums. The university hosts concerts, lectures, and Division I sporting events that consistently fill local hotels and inns. The campus is only minutes from downtown and open to the public, making it an easy addition to any visitor's itinerary.

Just beyond the city limits, a string of state parks showcases the area's most photographed feature: its gorges. Taughannock Falls State Park lies about 8 miles north of the city on the western shore of Cayuga Lake and contains one of the tallest single-drop waterfalls in the eastern United States, with hiking trails, lake access, and campsites available. Closer in, Buttermilk Falls State Park and Robert H. Treman State Park both offer additional waterfalls, swimming holes, and picnic areas within roughly 5 to 10 minutes of downtown.

A short drive west leads deeper into the Finger Lakes, a region defined by more than ten long glacial lakes and a thriving wine and craft beverage scene. About 45 miles from Ithaca, Watkins Glen State Park at the southern end of Seneca Lake is renowned for its stone staircases and narrow gorge walls, drawing visitors from across the Northeast. Back in Ithaca, Cayuga Lake itself provides boating, paddling, and a string of waterfront villages connected by the Cayuga Lake Wine Trail.

For short-term rental operators, Ithaca combines a year-round visitor base drawn by college events, gorges and waterfall tourism, fall foliage, and Finger Lakes wine country traffic. Its compact, walkable downtown pairs naturally with a strong outdoor recreation scene, while the surrounding region offers enough variety to extend guest stays from a weekend to a full week. The mix of natural beauty, cultural depth, and limited traditional lodging makes the area a reliable market for owners looking to host travelers who want more space and personality than a standard hotel can offer.

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