The rise of short-term rental properties in the United States and across the world has dramatically changed the way that people travel. Several types of research examine externalities associated with the rise of short-term rental properties, specifically looking into indicators of gentrification, impacts on housing and rent prices, and various neighbourhoods’ effects. Previous literature also examines the effectiveness of regulations, policies, and taxes to mitigate these externalities. This research aims to fill a gap in the literature by examining the relationship between Airbnb and school funding at the New York State zip code level, while specifically looking at the influence of the property tax rate and controlling for varying demographic characteristics. This study concludes that zip codes with a higher abundance of Airbnb properties are associated with higher instances of school funding at the statewide level. Results differ while testing for just New York City, although there are limitations regarding the observation count in this test. These conclusions provide insights to policy makers for additional areas where they should investigate impacts before implementing STR regulations or policies. These results also provide insights to schools and how they can anticipate changes in school funding with the rise and fall of Airbnbs and their associated regulations.