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.  

The City will share the steps in the process to examine Short Term Rentals in Homer on this webpage. For more information, contact Ryan Foster, Special Projects Coordinator, at rfoster@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:

1. Hosted Sharing: In this arrangement, the primary occupants of a residence continue to reside on-site while accommodating short-term guests.
2. Unhosted Sharing: With unhosted sharing, the primary occupants of a residence temporarily vacate the unit while it is rented out to short-term guests.
3. 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
• Increase 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

Community Outreach & Education

Check back for updates on this project.