After six years of debate, Nantucket voters decidedly passed Article 1 at the November 4th, 2025 Special Town Meeting which formally codifies short term rentals in the zoning code. Renting homes on the island has been a longstanding tradition dating back at least a hundred years, but in 2019 ACK NOW, a special interest group claiming to improve the island’s quality of life, vehemently expressed their opposition to short term rentals. This resulted in a neighbor vs neighbor lawsuit in the Residential Old Historic (ROH) district, resulting in years of failed attempts at Town Meeting to codify short term rentals in any capacity. Over these six years, voters were successful at creating some restrictions and regulations, including a corporate ownership ban, creation of a local rental registry, and mandatory compliance with the Town’s noise, parking, occupancy, and safety regulations. However, without express permission as a zoning use, STRs were illegal in the eyes of the Massachusetts Land Court, despite continued taxation by the Commonwealth and the Town.

Many are scratching their heads, wondering how we got here, when vacation rentals have been occurring for over one hundred years on the island. It didn’t happen overnight, though there were some factors that accelerated and escalated awareness of short-term rentals in our market and subsequently their opposition. Generally speaking, the island’s economy has always centered around tourism, which, for many, has been a double-edged sword. The popularity of the island is seemingly increasing year after year, which drives up prices as a result of simple supply and demand. As demand for services, transportation, and experiences grows, so does the demand for real estate – both from part- and full-time residents and visitors, both for purchase and for rental. The onset of COVID contributed to a major real estate (and rental) boom, coupled with times of major development, which had islanders feeling the squeeze in terms of demand for services as well as housing options. Around the same time, special interest group ACK NOW shifted their focus from smaller issues such as a ban of gas-powered leaf blowers to full-blown opposition of short term rentals, citing their attack on islanders’ quality of life. ACK NOW also appealed to affordable housing supporters, claiming that short term rentals cut into the year round housing stock. However, short term rentals only account for 11% of the 12,700 total residential dwelling units on the island and short term rental operators are often homeowners who split their use between rentals and personal use, so the affect on the year-round housing stock is a moot point. Additionally, in 2019 the Commonwealth of Massachusetts instituted a short term rental registry (and subsequent taxation) which increased awareness of the issue.

The debate over legality of short term rentals came to a head in February of 2022 when Nantucket resident Cathy Ward sued her neighbors, Peter and Linda Grape, over the legality of short term rentals being operated at the Grapes’ home in the Residential Old Historic district. The Zoning Board of Appeals rejected Ward’s request for enforcement which ultimately sent the case to Massachusetts Land Court. In 2024, Land Court Judge Michael Vhay ruled against the Town’s decision to take no action and deemed short term rentals an illegal zoning use. This was a welcome ruling from those opposed to short term rentals, many of whom are members or supporters of ACK NOW, the group that has provided ample funding to this cause. On the other hand, short term rental supporters cited imminent impacts to the island’s economy should this ban become set in stone (after the Town’s appeal). Additionally, some feel that this is an attack on basic property rights. 

Over this handful of years, multiple compromise articles have been presented at Town Meeting (including a strong article brought forth by the ad hoc Short Term Rental Workgroup), but none of them proved strong enough to garner the 2/3 majority required to affect zoning bylaws. Some of the meetings stretched double-digit hours or multiple days so voter fatigue became very real. The difference with the 2025 fall Special Town Meeting was voter turnout as this meeting had short term rentals as the only issue on the docket. Nantucket fishing captain Brian Borgeson put forth a citizen’s article that was simpler than any of its predecessors: codify short term rentals in Nantucket’s zoning code. No further restrictions were included in the article, with the sponsor and his supporters citing the pre-existing state and local restrictions and regulations. The article passed with a super majority of 71%, preserving the time-honored tradition of renting homes on Nantucket as well as the major infusion to Nantucket’s tax base. 

For more information on the state and local short term rental regulations, check out Marleah’s blog.

For more Nantucket stories visit our blog at Fisher Real Estate.