Monticello, New York

Short-term rentals are effectively banned inside the incorporated Village of Monticello. In 2026, the Village Board unanimously adopted Local Law No. 4, amending the village code to prohibit residential rentals of fewer than 30 days anywhere in the village. That eliminates the weekend and holiday nightly rentals associated with Airbnb and VRBO within village limits; an owner can still rent a property for 30 days or longer, but cannot operate nightly or weekend lets. The Village Board’s stated motivation was the village’s affordable-housing shortage, with the goal of returning units to year-round housing stock. Enforcement is rated strict, with suspected violations referred to the Sullivan County District Attorney’s office.

This ban applies only within the incorporated Village of Monticello, not the surrounding unincorporated areas of Sullivan County covered in the broader market data used in this report. Outside the village, any lodging operator, including STR hosts, must register for a Certificate of Authority with the Sullivan County Treasurer and collect a 5% room occupancy tax, filing quarterly returns whether or not tax is due; late filings carry a 5% per-month penalty. Sullivan County’s room occupancy tax law was amended in full on December 18, 2025.

Investors evaluating any specific Monticello-area address must first confirm whether it sits inside the village’s incorporated boundary, where nightly STRs are now prohibited, or outside it, where the county’s registration and tax rules apply instead.