Maryland Regulations

Maryland Short-Term Rental Regulations: The Complete 2026 Guide

Montgomery County, Prince George's County, and other Maryland jurisdictions each have their own STR rules. Here's what property owners need to know to stay compliant.

Last updated March 2026
120 days
Montgomery County annual cap (unhosted)
Varies
Transient tax by jurisdiction
$1M
Required liability insurance (Montgomery Co.)
Annual
Permit renewal requirement

Understanding Maryland's Two STR Categories

Maryland 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. Montgomery County imposes a 120-day cap per calendar year on unhosted vacation rentals. Exceeding 120 days without an approved exemption means you are operating illegally.

120-day annual cap (Montgomery Co.)

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 Maryland STR Permit

Operating any STR in Maryland without a valid permit is illegal. Here is the process step by step.

1
Confirm Your Property Qualifies
Maryland counties generally require the property to be your primary residence. Investment properties and second homes do not qualify in most jurisdictions. Permit eligibility varies by county.
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
Montgomery County requires a minimum of $1,000,000 in liability insurance — double DC's requirement. Verify your coverage meets the county's specific documentation requirements.
4
Apply for Your Permit
Submit your application to Montgomery County DPS (or your relevant county authority) including evidence of primary residence, HOA documentation, description of rental spaces, and the permit fee.
5
Display Permit Number and Register for Taxes
Post your permit number in all listings and inside the unit. Register for Maryland transient lodging tax remittance with your county. Maintain records per county requirements.

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Maryland STR Taxes: What You Owe

Maryland imposes transient lodging taxes on all short-term rental revenue. Rates vary by county.

Tax TypeRateNotes
Hotel occupancy taxVaries by countyCheck with your specific county
Maryland sales tax6.00%State-level rate
Total effective rateVariesTypically 10–16% combined

Airbnb and VRBO automatically collect and remit most Maryland taxes for platform bookings. If you accept direct bookings outside a platform, you are personally responsible for collection and remittance to your county.

Frequently Asked Questions

Let Us Handle Maryland Compliance for You

Alcove Stays manages licensing, tax remittance, and regulatory compliance across Montgomery County and greater Maryland.

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Related Guides

Regulations
DC STR Regulations

90-night vacation rental cap, DLCP licensing, and DC transient lodging taxes.

Read guide →Regulations
Virginia STR Regulations

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

Read guide →Tool
Revenue Estimator

See what your Maryland property could earn as a short-term rental.

Try it free →

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