DC Regulations

DC Short-Term Rental Regulations: The Complete 2026 Guide

Licensing requirements, the 90-night vacation rental cap, DC's transient lodging taxes, and how to stay compliant as a property owner.

Last updated March 2026
90 nights
Vacation rental cap (unhosted)
~16%
Total transient lodging tax
$500K
Minimum liability insurance
2 years
License validity before renewal

Understanding DC's Two STR Categories

Washington DC draws a critical legal distinction between two types of short-term rentals that determines your annual night cap and operating rules.

Short-Term Rental (Hosted)

Any rental of your home to a transient guest for fewer than 30 consecutive nights, while you are present in the property. There is no annual night cap for hosted rentals, but the property must remain your primary residence.

No night cap
Vacation Rental (Unhosted)

Renting your entire home while you are not present. DC imposes a 90-night cap per calendar year on vacation rentals. Exceeding 90 nights without an approved exemption means you are operating illegally.

90-night annual cap

Not sure which category applies? Get a free compliance assessment from Alcove Stays. We review your property, HOA documents, and eligibility before you spend a dollar on applications. Get a free assessment →

How to Get Your DC STR License

Operating any STR in DC without a valid license is illegal. Here is the process step by step.

1
Confirm Your Property Qualifies
DC law requires that the property is your primary residence. Investment properties and second homes do not qualify. Only one STR license is issued per host.
2
Check HOA or Condo Rules
If your property is in a condominium or HOA, obtain written proof that the association permits short-term rentals before applying.
3
Secure Liability Insurance
Carry a minimum of $500,000 in liability insurance. This can be satisfied by Airbnb's AirCover, but you must be able to document coverage.
4
Apply for Your Business License
Submit your application to DLCP including evidence of primary residence, HOA documentation, description of rental spaces, and the license fee.
5
Display License and Set Up Taxes
Post your license number in all listings and inside the unit. Register for DC transient lodging tax remittance. Maintain records for at least 2 years.

Want someone to handle all of this? Alcove Stays manages the full licensing and compliance process for DC property owners.

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DC STR Taxes: What You Owe

DC imposes transient lodging taxes on all short-term rental revenue. Here is the breakdown for property owners.

Tax TypeRateNotes
Hotel occupancy tax10.20%Applies to all transient lodging
Sales tax6.00%General DC sales tax rate
Total effective rate~14.95–16.20%Combined burden on STR revenue

Good news: Airbnb and VRBO automatically collect and remit most DC taxes for platform bookings. If you accept direct bookings, you are personally responsible for collection and remittance to DC OTR.

Frequently Asked Questions

Let Us Handle DC Compliance for You

Alcove Stays manages licensing, tax remittance, and regulatory compliance so you can focus on earning.

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Related Guides

Regulations
Virginia STR Regulations

Fairfax, Arlington, and Alexandria rules for short-term rental operators.

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Maryland STR Regulations

Montgomery County's 120-day cap, $1M insurance, and PG County rules.

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Revenue Estimator

See what your DC property could earn as an STR in 30 seconds.

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This content is for informational purposes only and does not constitute legal advice. Regulations change frequently — always verify current requirements with the relevant authorities.