What did the court decide?
Conway sought to stop a short-term rental operation on the basis that the use wasn't permitted in a residential district. The New Hampshire Supreme Court, in a divided opinion, ruled against the town.
The reasoning came down to Conway's own definitions. The ordinance described a residential dwelling unit without specifying any minimum length of occupancy, saying nothing about how long someone had to stay for the use to count as residential. The court read that literally: because the definition didn't exclude short-stay occupancy, short-term rental use fell within it.
Put simply, the town lost on its own drafting. What determined the outcome was the language Conway had adopted, rather than any general principle about whether short-term rentals belong in residential neighborhoods.
How is this different from Portsmouth?
Portsmouth won the same fight four years earlier, and the contrast is the most useful thing in New Hampshire STR law.
In Working Stiff Partners, LLC v. City of Portsmouth, 172 N.H. 611, decided September 27, 2019, the court upheld Portsmouth's restriction. Portsmouth's ordinance defined "dwelling unit" in a way that expressly excluded transient occupancies like hotels and rooming houses, so short-term rental use fell outside the permitted residential use.
Two towns, two ordinances, opposite outcomes from the same court. Portsmouth had the exclusion; Conway didn't.
For an investor, that's the whole lesson. New Hampshire has no statewide answer, and a favorable ruling in one town tells you nothing about the town next door.
Does the ruling mean I can operate without permission?
No. The decision addressed whether the use is permitted under zoning. It didn't eliminate the town's ability to regulate.
Towns retain authority to impose reasonable safety and operational requirements, and Conway does. Expect registration or licensing, fire and life-safety inspection covering smoke and carbon monoxide detectors and egress, occupancy limits, and parking requirements. Published accounts of Conway's requirements vary in their specifics, so confirm the current process with the town's planning and fire departments before you advertise a property.
There's also the state layer. The Meals & Rooms (Rentals) Tax of 8.5% applies to stays under 185 consecutive days under RSA 78-A, regardless of local zoning.
Comparing Conway against other White Mountains towns? I'll pull the current ordinance language for each and show you what actually differs. Two business days, no obligation.
Is the legal position settled?
Settled enough to plan around. Not settled enough to stop watching.
New Hampshire STR case law has kept moving. In Appeal of Hoekstra, 2024 N.H. 23, decided May 14, 2024, the court examined Sunapee's ordinance and found that language written as a restriction actually created new permitted uses. The New Hampshire Municipal Association's read was that towns now have to re-examine provisions they'd assumed were restrictions.
Towns also amend zoning at March town meeting, and a town that lost in court has an obvious incentive to redraft. Several tax bills affecting short-term rentals were before the legislature in 2026, which sits through December.
If you're buying on the strength of Kudrick, check Conway's current ordinance rather than the 2023 outcome. The ruling interpreted the language as it stood then.
What should I do before buying in Conway?
- Read the current ordinance, especially the definitions section, to confirm the language Kudrick relied on is still there.
- Check the district the specific property sits in.
- Confirm the registration and inspection process with the town's planning and fire departments.
- Check March town meeting warrant articles for pending zoning amendments.
- Verify occupancy limits, which in White Mountains towns are often tied to bedroom count or septic capacity, and can cap how many bedrooms you can legally advertise.
- Register for the state Meals & Rooms tax.
