Top 5 States with Harsh Regulations for Running an Airbnb in 2025

Several states in the US have strict regulations and restrictions on short-term rentals, making them difficult to operate. Hawaii, California, and New York are among the worst states to run an Airbnb due to high regulatory risk, high expenses, and potential bans on short-term rentals. Investors should research local market dynamics and regulations before investing in a vacation rental property.