Note: This guide is a summary of applicable rules based on the provided documents. Always confirm current requirements with the Town of Montgomery before proceeding.

1) Overview: Are STRs allowed in Montgomery Center, VT?

Short-term rentals (STRs) are permitted in the Town of Montgomery but only in specific zoning districts and only with local approvals. STRs are allowed as a “lodging establishment” use in Village I, Village II, and Rural/Residential districts (subject to conditional use approval and a town STR registration). STRs are prohibited in Conservation I and Conservation II districts. Montgomery Center refers to the Montgomery Center Village area; STRs are allowed there if the parcel is within Village I or Village II.

Montgomery defines an STR as a furnished house, condominium, or other dwelling room or self-contained dwelling unit rented to the transient, traveling, or vacationing public for a period of fewer than 30 consecutive days and for more than 14 days per calendar year.

2) How to Start a STR Business in This Market

The pathway depends on whether your property is in Village I, Village II, or Rural/Residential. If the parcel is in Conservation I or II, STRs are prohibited.

1. Confirm zoning eligibility

• Confirm the parcel’s zoning district (Village I, Village II, Rural/Residential, Conservation I, or II). STRs are prohibited in Conservation I and II.
• If in Conservation I or II, you cannot operate an STR.

2. Secure zoning approval

• Because STRs (lodging establishments) are “conditional uses” in Village I, Village II, and Rural/Residential districts, you must obtain conditional use approval from the Development Review Board (DRB) before operating.
• Apply to the DRB for conditional use approval (see “Required documents” and “Contact information” below).

3. Obtain a zoning permit

• After DRB approval, obtain a zoning permit from the Zoning Administrator (ZA).

4. Register the STR with the Town

• Complete a separate STR Registration application for each STR unit.
• Fees (as stated in the Town STR ordinance): $100 for a partial-home listing; $250 for an entire-home listing.
• Registrations run July 1 to August 31 and must be renewed by July 15 each year.
• No prorating for partial-year registrations.

5. Comply with safety obligations

• If the approved occupancy is greater than 8 guests: obtain an inspection report with occupancy approval from the Vermont Division of Fire Safety.
• If the approved occupancy is 8 or fewer guests: complete the Vermont Division of Fire Safety “Short-Term Rental Safety, Health and Financial Obligations” form and post it within the STR unit.
• Declarations of insurance specific to short-term rentals are required.
• Post safety documentation and required information inside the unit as required by state guidance.

6. Post emergency contact information and notify local authorities

• Maintain a local emergency contact person within a 25-mile radius. Post their name and phone number in the STR.
• Provide emergency contact details to the constable, town clerk, and fire department.

7. Maintain compliance

• Operate only within approved occupancy limits and district rules.
• Renew the STR registration annually and keep all documentation current.

3) Required Documents, Permits, Licenses, and Guidelines

Zoning and land use

• Zoning confirmation (parcel zoning district and status).
• DRB Conditional Use application and approval (for lodging establishment in Village I, II, and Rural/Residential).
• Zoning permit from the ZA (issued post-DRB approval).

Town STR registration

• STR Registration Application (one per unit).
• Registration fee: $100 (partial-home) or $250 (entire-home).
• STR registration year: July 1–August 31; renew by July 15.

Safety documentation

• Approved occupancy determination (based on approved bedrooms).
• For occupancy > 8: Vermont Division of Fire Safety inspection report with occupancy approval.
• For occupancy ≤ 8: Vermont Division of Fire Safety “Short-Term Rental Safety, Health and Financial Obligations” form completed and posted inside the unit.
• Declaration of insurance specific to STR operations.

Emergency contact and notices

• Local emergency contact information (name, phone, within 25 miles).
• Posting of emergency contact and required safety information in the STR.

State references

• Vermont STR safety checklist and codesheets (Division of Fire Safety):
  • firesafety.vermont.gov/buildingcode/codesheets

4) Specific Regulations (Town, Zoning District, and State Context)

Town STR ordinance (key requirements)

• Definition: Furnished dwelling rented to the transient public for fewer than 30 consecutive days and more than 14 days per calendar year.
• Registration: Required for each STR unit; fee is $100 (partial-home) or $250 (entire-home); annual term July 1–August 31; renewal by July 15.
• Occupancy: Two occupants per approved bedroom plus two additional occupants (e.g., 3 bedrooms = 8 guests). Approved bedrooms are determined by a state Wastewater and Water Supply Permit, a Town Zoning Permit, or where none required, the number of bedrooms on the Listers Card.
• Safety: For occupancy > 8, a Vermont Division of Fire Safety inspection report with occupancy approval is required. For occupancy ≤ 8, the owner must complete the state “Short-Term Rental Safety, Health and Financial Obligations” form and post it in the unit.
• Insurance: A declaration of insurance specific to STR operations is required.
• Emergency contact: A local emergency contact within 25 miles must be available; contact details posted in the unit and provided to the constable, town clerk, and fire department.
• Enforcement: Civil ordinance violations can be penalized up to $800 per violation; each day of a continuing violation constitutes a separate offense. The Selectboard can appoint a STR Compliance Officer and may revoke permits after due process for repeated non-compliance.

Zoning district rules ( lodging establishments)

• Allowed with conditional use approval:
  • Village I district
  • Village II district
  • Rural/Residential district
• Prohibited:
  • Conservation I district
  • Conservation II district

Note: There is also a Hazard Area Overlay (flood-related) and a River Corridor overlay. Development within these overlays may require additional reviews or permits; confirm parcel status with the ZA.

Vermont state-level statutory context

• 24 V.S.A. §2291(29) authorizes municipalities to regulate short-term rentals by ordinance or bylaw, provided the regulation does not adversely impact the availability of long-term rental housing. Montgomery has exercised this authority.
• 24 V.S.A. §2291(14) authorizes towns to define and abate public nuisances, and §2291(15) authorizes penalties for ordinance violations.
• 24 V.S.A. §1974a provides enforcement mechanisms for civil ordinance violations (e.g., penalties up to $800 per violation; continuing violations treated separately).

5) Contact Information (Local Authority in Charge of STRs)

Montgomery Town Office (general inquiries and filing)

• Mailing Address: Town of Montgomery, PO Box 356, Montgomery Center, VT 05471
• Phone: 802-326-4719
• Email: admin@montgomeryvt.us
• Website: montgomeryvt.us

Zoning Administrator (ZA) (zoning permits and district confirmation)

• Phone: 802-326-4719
• Email: admin@montgomeryvt.us

Development Review Board (DRB) (conditional use approvals)

• Hearings are posted at the Town Office and on the Town website; contact the ZA or Town Clerk for hearing schedules and agendas.
• Phone: 802-326-4719
• Email: admin@montgomeryvt.us

Selectboard (appointed STR Compliance Officer and policy direction)

• Contact via Town Office
• Phone: 802-326-4719
• Email: admin@montgomeryvt.us

Montgomery Constable, Town Clerk, Fire Department (emergency contact registry)

• Constable and Town Clerk: Town Office, 802-326-4719
• Fire Department: Contact via Town Office or local listings; confirm current contact details directly

Vermont Division of Fire Safety (inspection reports and safety guidance)

• Phone: Not specified in provided documents
• Website and STR checklist/codesheets: firesafety.vermont.gov/buildingcode/codesheets

6) Links to Source Pages

• Town of Montgomery Short-Term Rental Ordinance (effective draft 10/11/22): montgomeryvt.us/wp-content/uploads/2022/12/Short-Term-Rental-Ordinance-10-11-22.pdf
• Montgomery Zoning Regulations (as amended through 2018): www.nrpcvt.com/wp-content/uploads/2022/08/ZoningRegs_Montgomery2018.pdf
• Vermont Division of Fire Safety STR checklist and codesheets: firesafety.vermont.gov/buildingcode/codesheets

This guide provides a comprehensive overview for STR investors in Montgomery Center, VT, and the surrounding Town of Montgomery. Confirm current fees, application forms, and hearing schedules with the Town Office before submitting any applications.