DIVISION OF RENTAL HOUSING
The Division of Rental Housing is a collaborative effort between the Department of Planning and Community Development, the Office of the Fire Marshal, and the Department of Finance. Its mission is to ensure safe, well managed, and sanitary rental housing for both residents and visitors. Through proactive enforcement of Town ordinances and standards, we work to preserve neighborhood integrity, prevent overcrowding, and ensure compliance with health, safety, and welfare regulations, protecting property owners, tenants, and guests.
The Mayor and Council of Ocean City adopted Ordinances 2024-27, 2025-04, 2025-02, and 2025-01, along with Resolution 2025-01, to implement a comprehensive update to the regulations for both long-term and short-term rentals. All ordinances have been adopted and are effective as of March 3, 2025.
List of Adopted Ordnances
Ordinance 2024-10 – Add the Definition of Long-Term Rental Housing Unit and Short Term Housing Unit
Ordinance 2024-27 – Amend Chapter 14 to add Short Term Rental Housing
Ordinance 2025-01 – Amend Chapter 14 Regulations
Ordinance 2025-02 – Amend Chapter 110, Zoning, Sect 110-2 Definitions
Ordinance 2025-05 – Emergency Moratorium on SRT in R1 and MH
The Rental License
If you rent your property for any length of time, the Town of Ocean City requires you to first obtain an annual rental license and noise permit.
The primary rental license applies to Long Term Housing Units, which are defined as:
“Long Term Rental Housing Unit means the use or occupancy, in exchange for consideration, of all or part of a dwelling unit to provide accommodations to a person for 31 or more consecutive days in a calendar year (excluding hotels, motels, apartments, dormitories, and employee housing).”
If you intend to rent your property for 30 consecutive days or fewer, you will need to obtain a Short-Term Rental License for an additional fee. A Short-Term Rental Unit is defined as:
“Short Term Rental Housing Unit means the use or occupancy, in exchange for consideration, of all or part of a dwelling unit to provide accommodations to a person for no more than 30 consecutive days in a calendar year (excluding hotels, motels, apartments, dormitories, and employee housing).”
Rental License in R-1 and MH Zoning Districts – Regarding New Applicants
Moratorium on Short – Term Rental Licenses:
• For 11 months, new supplementary short-term rental licenses (31 days or less rentals) cannot be issued for properties in the R-1 Single Family Residential and MH Mobile Home Residential districts.
• Applications for new supplementary short-term rental licenses in these areas will not be accepted, processed, or reviewed during this time.
• Any applications submitted before January 28, 2025, will not be affected by this rule.
• Property owners who already have a rental license for 2024 can apply for a rental license and a supplementary rental license for the 2025 license year (5/1/25 – 4/30/26).
• No licenses will be issued for properties that change ownership, except in certain circumstances if the property owner passes away, in which case an exception can be requested.
Notice to Existing Rental License Holders in the R-1 Single Family Residential and MH Mobile Home Residential Districts:
• There shall be a five (5) consecutive overnight minimum length of stay for any dwelling rented in the R-1 single family residential district or in the MH mobile home residential district. This shall not apply to a rental booking in the R-1 single family residential district or in the MH mobile home residential district reserved prior to March 3, 2025, for a 2025 calendar year stay.
• Beginning January 1, 2027, there shall be a thirty-one (31) consecutive overnight minimum length of stay for any dwelling rented in the R-1 single family residential district or in the MH mobile home residential district.
Review by Mayor and City Council:
• The Mayor and City Council will review this moratorium in a public meeting no later than October 28, 2025, to decide what to do for 2026 and beyond.
• For reference: Ordinance 2025-05 Establishing a Moratorium on the Issuance of New Short-term Rental Licenses in the R-1 and MH Districts
Important Reminders When Applying for a Rental License:
• Provide Contact Information: You must provide the Town with the name, address, and phone number of a person who is:
o Legally authorized to accept legal notices and address property issues (such as repairs).
o Able to respond to property issues within 60 minutes.
o Authorized to handle code violations.
• Rental License Requirements:
o By applying for a rental license, property owners consent to inspections during reasonable hours.
o You must also declare the number of bedrooms and available parking on the property.
• Bedroom and Advertising Limits:
o Rental properties cannot advertise more bedrooms than are approved in the building permit plans for the property.
• No Unauthorized Conversions:
o Rooms, attics, or garages cannot be converted into bedrooms without following Town ordinances and obtaining the necessary permits.
Locate your Zoning District with our online zoning map or you can download the PDF version
Occupancy Information
For dwellings in the R-1 Single Family Residential and MH Mobile Home Residential districts used as rental housing:
• Occupancy is limited to 2 persons per bedroom, plus 2 additional persons, excluding 10 years old or younger.
• Between midnight and 7:00 AM, occupancy must adhere to these limits
For all other zoning districts used as rental housing, occupancy is based on square footage requirements:
• Minimum bedroom size: 70 square feet.
• 40 square feet per person in the bedroom, with an additional 10 square feet credit for closet space.
Fee Structure
DESCRIPTION | FEE |
|---|---|
Rental – Condo Unit - + NCP* | $196.00 |
Rental – Single Family Home + NCP* | $196.00 |
Rental – Apt Building + NCP* Plus: $8.00 for Each Sleeping Room | $196.00 |
Rental – Hotel, Motels & Inns + NCP Plus: $8.00 for Each Sleeping Room | $196.00 |
Rental – Rooming House + NCP* | $196.00 |
Short-Term Rental Housing Unit (Additional Fee) | $50.00 |
Total with the Short-Term Rental Housing Unit Additional Fee | $246.00 |
NCP: * = Noise Control Permit
Rental Inspection Notification
Rental license inspections will be conducted by:
• Division of Rental Housing/Planning and Community Development for single-family homes, duplexes, and townhouses.
• Office of the Fire Marshal for Hotels, Motels, Lodging/Rooming Houses, Dormitories, and condominium apartment buildings containing rental units.
If you are a unit owner in a condominium apartment building, the Office of the Fire Marshal will coordinate with your association to schedule the building’s inspection over the next five years.
Rental properties will be inspected on a five-year rotation, selected randomly. Inspections will be scheduled for properties between 2025 and 2029. If your property is selected in a given year, you will be contacted by the Division of Rental Housing to schedule the inspection.