Maryland Short-Term Rental Rules, City by City (Verified July 2026)
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Buying a Maryland short-term rental in the wrong jurisdiction is a six-figure mistake, and Maryland's twist is that its biggest markets quietly require the property to be your home. This is the status table we check before writing a loan.
The 2026 status table
| Market | Status (as of July 24, 2026) | Cost | Key rules |
|---|---|---|---|
| Baltimore City | Hosted (owner-occupied) only for new licenses; no new unhosted | City license required | Principal residence, deeded to an individual; existing unhosted holders may renew |
| Montgomery County | Legal with license; primary residence required | $325 per year | 120-night cap when owner absent; 11 municipalities ban STRs outright |
| Prince George's County | Legal with DPIE license; primary residence required | $165 initial + $165/yr | Homestead Tax Credit eligibility proof; $1,000,000 liability insurance; 180-night cap |
| Ocean City | R-1/MH moratorium REPEALED 3/17/2026; permits open | Annual rental + STR license | Politically contested; local contact within 60 minutes; recheck before you buy |
| Annapolis | Legal; new licenses barred once a blockface hits 10% density | City license | Owner-occupied exempt from cap; over-cap non-owner licenses renew until Nov. 2027 |
| Deep Creek Lake | Legal with county TVRU license | Two-year TVRU license | Deep Creek Watershed Zoning District; 8% accommodation tax; occupancy 2/bedroom + 4 |
| City of Frederick | Legal with Residential Rental License | $240 for a 2-year term | Unlicensed renting is a municipal infraction (fine up to $1,000) |
Statuses verified July 24, 2026 against city and county sources; Ocean City and Baltimore City STR rules are in active motion. Confirm current rules with the jurisdiction before purchase.
Can I get a new Airbnb license in Baltimore City as an investor?
Increasingly no, and this is the corrective that saves money. Baltimore City licenses short-term rentals under its city code, but the property must be the applicant's principal residence, deeded to an individual rather than an entity, and free of code violations. Unhosted (non-owner-occupied) STR licenses are no longer being issued; only existing unhosted license-holders may renew. So a pure investor with no Baltimore primary residence cannot obtain a new whole-home STR license in the city. Hosted, owner-occupied units may still apply. If your Baltimore plan assumed a portfolio of whole-home Airbnbs, the honest structure is long-term or mid-term rental underwriting.
Montgomery and Prince George's: primary residence required
Both large DC-suburb counties tie STR licensing to owner-occupancy. Montgomery County requires the property be the operator's primary residence, charges $325 a year, caps rentals at 120 nights per year when the owner is absent (unlimited when present), and 11 municipalities within the county ban STRs outright. Prince George's requires a DPIE license, proof of primary residence and Homestead Tax Credit eligibility, $1,000,000 in liability insurance, a $165 initial and annual fee, and caps owner-occupied listings at 180 nights. In both counties the primary-residence rule forecloses most pure-investor STR plays, which is why we steer DC-suburb STR ambitions toward mid-term furnished rentals or long-term holds.
Ocean City, Annapolis, and Deep Creek Lake
The vacation markets are where non-owner-occupied STR investing still works, with caveats. Ocean City is the volatile one: after a rejected 2025 ballot measure and an extended moratorium, the council repealed the R-1/MH moratorium on March 17, 2026 following a successful referendum petition, so STR permits in those single-family districts are open again alongside standing requirements like an annual rental license and a local contact reachable within 60 minutes. The underlying political fight is unresolved, so we recheck Ocean City before every loan there. Annapolis bars new STR licenses on any blockface once short-term rentals reach 10% density, though owner-occupied STRs are exempt from that cap. Deep Creek Lake (Garrett County) requires a two-year TVRU (Transient Vacation Rental Unit) license inside the Deep Creek Watershed Zoning District, with an 8% county accommodation tax; anchored by Wisp Resort, it is Maryland's only four-season lake and ski market. The City of Frederick requires a $240 Residential Rental License for a two-year term covering all rentals including STRs; we do not publish Frederick County-level STR zoning specifics because the available secondary sources appear to conflate Frederick County, Maryland with Frederick County, Virginia. Financing for all of these: Maryland STR loans.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Can I get a new Airbnb license in Baltimore City as an investor?
Increasingly no. Baltimore City no longer issues new unhosted (non-owner-occupied) STR licenses; only existing unhosted holders may renew. A new license requires the property be the applicant's principal residence, deeded to an individual, and code-compliant. A pure investor with no Baltimore primary residence cannot get a new whole-home STR license in the city (as of July 2026).
Can I run a short-term rental in Montgomery County if I don't live there?
Effectively no. Montgomery County's STR license requires the property be the operator's primary residence, with a 120-night annual cap when the owner is absent, a $325 yearly fee, and neighbor notice. On top of that, 11 municipalities within the county ban STRs outright. The primary-residence rule forecloses most non-resident investor STR plays (as of July 2026).
What are the short-term rental rules in Prince George's County?
Prince George's requires a DPIE license tied to the operator's primary residence and proof of Homestead Tax Credit eligibility, $1,000,000 in liability insurance, a $165 initial and annual fee, and a 180-night cap on owner-occupied listings, with human-trafficking-awareness training required. The Homestead-proof requirement structurally ties licensing to owner-occupancy (as of July 2026).
Are short-term rentals still allowed in Ocean City, Maryland in 2026?
Yes. On March 17, 2026 the Ocean City council repealed the R-1/MH moratorium after a successful referendum petition, reopening STR permits in those single-family districts, alongside standing rules like an annual rental license and a local contact reachable within 60 minutes. The underlying political fight is unresolved, so confirm the current status before relying on it.
Does Annapolis limit how many Airbnbs can operate on my street?
Yes. Under Ordinance 17-25, Annapolis bars new short-term rental licenses on any blockface once short-term rentals reach 10% density, though owner-occupied STRs are exempt from that cap. Existing over-cap non-owner-occupied licenses may renew under a grace period until November 2027, after which a lottery allocates the capped slots.
What license do I need for a short-term rental at Deep Creek Lake?
A two-year TVRU (Transient Vacation Rental Unit) license from Garrett County if the property sits inside the Deep Creek Watershed Zoning District, plus an 8% county accommodation tax on rental receipts. License conditions include parking, bear-proof trash containment, and occupancy limits (2 persons per bedroom plus 4). Deep Creek is Maryland's only four-season lake and ski STR market.
Does the City of Frederick require a rental license for short-term rentals?
Yes: the City of Frederick requires a $240 Residential Rental License for a two-year term covering all rentals, short-term rentals included, and unlicensed renting is a municipal infraction with a fine up to $1,000. We do not publish Frederick County-level STR zoning specifics, because the available secondary sources appear to conflate Frederick County, Maryland with Frederick County, Virginia.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. City and county STR rules, tax figures, rent-stabilization caps, and filing fees change; verify current requirements with the jurisdiction, your CPA, or a Maryland real estate attorney before you buy. Loans are subject to buyer and property qualification.