Everything You Need to Know About Owning a Short Term Rental in Highlands, North Carolina

Short-Term Rental Regulations in Highlands, North Carolina for 2026

Current and Proposed Regulations

Existing Regulations

• Grandfathering Clause: Short-term rentals (STRs) in operation as of September 15, 2022, are allowed to continue as nonconforming uses in the R-1 and R-2 zoning districts.
• Prohibition on New STRs: No new STRs are permitted in the R-1 and R-2 zoning districts after September 15, 2022.

Proposed and Approved Amendments

• Amortization: The Town of Highlands Board of Commissioners voted 4-1 to amortize STRs, effective September 15, 2027. This means all STRs in the R-1 and R-2 zoning districts must cease operations by this date.
• Transition Period: STRs currently operating have until September 15, 2027, to continue their operations before they must be discontinued.

Key Points

• Planning Board Opposition: The Highlands Planning Board voted unanimously against the proposed amendment to amortize STRs.
• Legal Challenges: The decision to amortize STRs is being challenged in court by groups such as Save Highlands, citing concerns over property rights and the impact on the local economy.

Enforcement and Impact

• Enforcement Mechanisms: There is discussion about enforcing STR regulations through fines to address issues related to misbehaving guests, but this is not yet implemented.
• Economic Impact: The amortization is expected to affect local jobs, small businesses, and the overall economy, which relies significantly on tourism.

Regulatory information last reviewed for accuracy in 2026. Local STR ordinances change frequently — verify current rules with the city or county before listing.

High-Revenue Airbnb Neighborhoods in Highlands, North Carolina

Why These Neighborhoods Are Appealing

Highlands, North Carolina, is a lucrative market for Airbnb investments, driven by its attractive amenities and strategic locations. Here are some of the top neighborhoods and reasons why they are appealing to guests:

Best Areas to Invest in Highlands

While specific neighborhood names within Highlands are not detailed in the sources, here are some broader areas and nearby locations that are highly sought after for Airbnb investments:

1. Downtown Highlands

• Proximity to Amenities: Being close to downtown Highlands offers easy access to local shops, restaurants, and cultural attractions, making it highly appealing to guests looking for a convenient and vibrant stay.

2. Areas Near Outdoor Attractions

• Natural Beauty: Highlands is surrounded by natural attractions such as waterfalls, hiking trails, and scenic views. Properties near these areas are in high demand due to their proximity to outdoor activities and the tranquil environment they offer.

3. Neighborhoods with Scenic Views

• Mountain Views: Guests often seek properties with scenic views of the Blue Ridge Mountains. Neighborhoods that offer such views are highly sought after and can command higher rental prices.

4. Areas with Local Charm

• Rustic Charm and Modern Comfort: Neighborhoods that blend rustic charm with modern comfort are particularly appealing. Guests appreciate properties with high-quality, stylish furnishings and amenities like hot tubs, fireplaces, and game rooms.

Nearby Towns and Areas Also Worth Considering

While not within Highlands proper, the following nearby towns are often considered in the broader investment strategy for the area:

- Asheville

• Known for its vibrant cultural scene and proximity to Highlands, making it a popular choice for guests looking to explore both areas.

- Waynesville

• Offers a mix of small-town charm and easy access to outdoor activities, making it an attractive option for those visiting Highlands.

- Brevard

• Known for its natural beauty and outdoor recreation opportunities, Brevard is another nearby town that can complement an Airbnb investment in Highlands.

These areas are appealing due to their combination of natural beauty, convenient amenities, and the ability to offer a relaxing yet engaging vacation experience.

Furnishing and Design Tips for an Inviting Airbnb in Highlands, North Carolina

Embrace the Mountain Aesthetic

• Incorporate natural materials such as wood, stone, and earthy tones to reflect the mountainous surroundings of Highlands.
• Use cozy and warm tones in decor choices to enhance the retreat-like atmosphere that guests desire.

Focus on Guest Comfort

• Invest in high-quality furnishings, including comfortable bedding and mattresses, to ensure guest satisfaction.
• Choose 100% cotton linens and durable duvet inserts for a luxurious yet practical touch.

Highlight Outdoor Spaces

• Since Highlands is known for its natural beauty, prioritize outdoor spaces such as decks or patios.
• Add outdoor furniture and consider amenities like hot tubs or fireplaces to enhance the outdoor experience.

Incorporate Local Elements

• Integrate local design elements and artwork to give your property a genuine mountain feel.
• Use local craftsmanship and materials to create a unique and authentic atmosphere.

Functional and Stylish Decor

• Balance functionality with style by choosing furniture that is both comfortable and aesthetically pleasing.
• Consider adding game rooms, well-equipped kitchens, and other amenities that enhance guest leisure activities.

Attention to Detail

• Add plants and other decorative elements to liven up the space and create a welcoming ambiance.
• Use mirrors, jars, and other decorative items to add a touch of elegance and personality to the space.

Neighborhood Considerations

• Choose locations that offer a blend of seclusion and proximity to key attractions, such as hiking trails, waterfalls, and downtown Highlands.
• Ensure that the property is conveniently positioned for tourists to engage in outdoor activities and explore local attractions.

Statement Pieces

• Invest in statement pieces such as high-quality couches, coffee tables, and dining room tables that define the space.
• Be selective about where you splurge, focusing on areas that will make the most impact on the guest experience.

Discovering Highlands, North Carolina: Local Attractions and Insider Tips

Outdoor Adventures

• Hiking Trails:
• Hike to the top of Whiteside Mountain for breathtaking views and sheer 750-ft. high cliffs.
• Explore Sunset Rock for stunning sunset views.
• Visit Glen Falls, Dry Falls, and Bridal Veil Falls, each offering unique waterfall experiences.
• Take a leisurely walk around Cliffside Lake or venture on the Vista Trail.
• Fishing:
• Fly fish in the Nantahala, Tuckasegee, Cullasaja, Chattooga, White Water, and Panther Town Valley rivers. Prime fishing months are May through October.
• Fish at Harris Lake, Cliffside Lake Recreation Area, and other stocked lakes.
• Water Activities:
• Enjoy swimming holes and swimming at Secret Falls, a 50-ft. waterfall in Nantahala National Forest.
• Canoe or paddle board on Apple Lake at Half-Mile Farm.

Cultural and Artistic Experiences

• Theater and Music:
• Attend professional summer stock theater at the Highlands Playhouse.
• Enjoy performances at the Martin-Lipscomb Performing Arts Center and the Instant Theatre Company.
• Experience the Highlands-Cashiers Chamber Music concerts.
• Art and Galleries:
• Visit the Bascom Center for the Visual Arts for classes, workshops, and exhibitions by artists-in-residence.
• Explore various art galleries and exhibits in downtown Highlands.

Shopping and Dining

• Shopping:
• Stroll through downtown Highlands to discover antique shops, furniture stores, and upscale boutiques.
• Visit the Highlands Heritage Trail for a historic walking tour of the downtown area.
• Dining:
• Enjoy fine dining at one of the six restaurants awarded the Wine Spectator Award of Excellence.
• Dine at Madison’s Restaurant and Wine Garden at Old Edwards Inn and Spa.

Community Events and Festivals

• Local Festivals:
• Participate in community festivals, arts and crafts shows, and events like Chili cook-offs and Independence Day fireworks.
• Classes and Workshops:
• Attend classes and workshops offered by the Center for Life Enrichment on various topics.

Insider Tips

• Seasonal Activities:
• Visit in the fall to enjoy the scenic autumn foliage, or in the winter for a serene winter landscape.
• Pet-Friendly:
• Highlands is a pet-friendly town, so feel free to bring your pets along for the adventure.
• Unique Landmarks:
• Drive behind Bridal Veil Falls, a unique experience in the state.
• Look out for the Shadow of the Bear, a natural phenomenon visible several weeks a year near Whiteside Mountain.
• Local Resources:
• Visit the Highlands Visitor Center/Highlands Chamber of Commerce for more information and local insights.

By sharing these attractions and tips, you can help your Airbnb guests make the most of their visit to Highlands, North Carolina.

Practical Tips to Run a Successful Short-Term Rental Business in Highlands, North Carolina

To ensure a successful and hassle-free short-term rental business in Highlands, North Carolina, several key practices can be implemented. Here are some practical tips:

Noise Regulations and Quiet Hours

Inform your guests about the local noise regulations and quiet hours to avoid any potential issues. Highlands has a residential atmosphere, and respecting quiet hours is crucial to maintaining good relations with neighbors. Include this information in your digital and physical house manual to set clear expectations.

Comprehensive House Manual

Create a detailed digital and physical house manual that includes essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also cover local amenities, nearby attractions, and any specific rules or regulations of the property.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, along with parking instructions accompanied by photos to avoid any confusion. This ensures a smooth and welcoming experience for your guests.

Compliance with Local Regulations

Be aware of and comply with local regulations, such as obtaining a business license and paying occupancy and sales taxes. Additionally, note the recent decision by the Town of Highlands to amortize short-term rentals in certain zoning districts, which may affect your business starting in 2027.

By implementing these strategies, you can enhance guest satisfaction, reduce potential issues, and optimize the overall performance of your short-term rental business in Highlands, North Carolina.

Short-Term Rental Management Fees in Highlands, North Carolina (2026)

Short-term rental management fees in Highlands, North Carolina in 2026 typically range from 15% to 30% of gross rental revenue, depending on the scope of services provided. Full-service management — covering guest communication, channel distribution across Airbnb, Vrbo, and Booking.com, dynamic pricing, cleaning coordination, and 24/7 guest support — generally falls in the 22% to 30% range. Co-hosting or partial-service arrangements that leave more responsibility with the owner usually run 15% to 20%.

Industry-wide management fees have crept upward by roughly 1–2 percentage points since 2024 as operating costs, insurance premiums, and labor expenses have risen across the vacation rental sector. Highlands-area managers may also charge separately for cleaning turnovers, maintenance dispatch, linen programs, and listing optimization. Some full-service operators in North Carolina now offer guaranteed-rent or revenue-share hybrid models, which can be worth comparing against a flat percentage structure for higher-revenue properties.

Market estimates as of 2026. Conditions vary; consult local operators for current data.

Short-Term Rental Market in Highlands, North Carolina (2026)

Vacation rental performance in Highlands, North Carolina has held up through 2025–2026 despite broader supply growth. The average daily rate is approximately $446, and estimated monthly revenue tracks around $46,571. These figures reflect 2024 baseline data adjusted for 2025–2026 ADR growth of 3–5% and the modest occupancy compression seen across the U.S. short-term rental sector as new supply has entered the market.

For investors and operators evaluating Highlands, the broader North Carolina dynamic remains favorable: rate strength continues to offset volume softness, keeping RevPAR (revenue per available rental) relatively stable year-over-year. Hyperlocal factors — neighborhood-level demand, seasonality, and the regulatory environment — should be confirmed before making investment or pricing decisions.

Market estimates as of 2026. Conditions vary; consult local operators for current data.