Short-Term Rentals

The popularity of Short-Term Rentals (STRs) has exploded in the last decade with the rapid increase of online and app-based services such as Airbnb and VRBO. Homer is a popular place for STRs with an estimated 326 units available, which represents a significant portion of the local housing stock.

In early 2024 the City considered requiring registration of STRs and provided opportunities for public engagement about the proposed regulations. Ordinance 23-61(S) failed to be adopted. Short-term rentals continue to be topic of interest through 2025, as noted in discussions around the Comprehensive Plan update.

The City will continue to share the steps in the process to examine Short Term Rentals in Homer on this webpage. For more information, contact the planning department at planning@ci.homer.ak.us.

What is a Short-Term Rental?

Short-Term Rentals (STRs) refer to the temporary rental of either an entire residential dwelling unit or a portion thereof, typically for a period of less than 30 days. There are three main categories of STRs:

Hosted Sharing: In this arrangement, the primary occupants of a residence continue to reside on-site while accommodating short-term guests.
Unhosted Sharing: With unhosted sharing, the primary occupants of a residence temporarily vacate the unit while it is rented out to short-term guests.
Dedicated Vacation Rentals: Dedicated vacation rentals are characterized by the absence of primary occupants, as the property is solely intended for short-term rental purposes.

Reasons to Initiate a Discussion on Short-Term Rentals

Addressing a Council Priority: Acknowledge and prioritize the issue of short-term rentals as a key concern for the City Council.
Assessing Impacts on Residential Properties: Evaluate the effects of short-term rentals on long-term rental availability, affordability, and stability within residential communities.
Ensuring Collection of Sales Tax: Establish mechanisms to guarantee the proper collection and remittance of sales tax from short-term rental transactions.
Investigating Impacts on Quality of Life in Residential Neighborhoods: Examine the potential consequences of short-term rentals on the overall well-being, livability, and community cohesion within residential areas.
Exploring the Relationship with the Local Economy: Analyze the interconnectedness between short-term rentals and the local economy, investigating their influence on businesses, employment, tourism, and related economic factors.

Impacts of Short-Term Rentals

Positive Impacts

Utilized by many residents to enhance their income
Investors who purchase properties to generate rental income can often find a more financially lucrative benefit from a short-term rental than a long-term rental
Provide additional units for tourism and special events
When regulated, increase taxable income

Negative Impacts

Reduction in the number of available rental properties for residents and seasonal workers
Increased rent for available long-term units due to low inventory
Can lead to closure of affordable hotels and motels
Employability and services are impacted when there is no/low affordable housing inventory
Disruption to neighborhoods such as noise and parking