Ocean City Short-Term Rental Regulations
| Permit | ✓ Required — Rental License ($196) — See below for other permit types |
| Primary Residence | Not required |
| Annual Day Limit | No limit |
| Tax Rate | 12% |
| Max Penalty | $5,000 per violation |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
- Rental License — No primary residence requirement ($196/year)
- Supplementary Short-Term Rental License — No primary residence requirement (Additional $50 (in addition to Rental License)/year)
Rental License
| Fee | Amount |
|---|---|
| Initial cost | $196 |
| Renewal | $196 / Annual |
This permit type does not require primary residence.
Supplementary Short-Term Rental License
| Fee | Amount |
|---|---|
| Initial cost | Additional $50 (in addition to Rental License) |
| Renewal | Additional $50 (in addition to Rental License) / Annual |
This permit type does not require primary residence.
Application Process
Apply through Division of Rental Housing (online via Click2Gov or in-person); provide owner/agent contact information; inspection may be required; license issued within 14 days; annual renewal due May 1
Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Maryland State Sales and Use Tax | 6% | Maryland Comptroller |
| Worcester County Room Tax | 6% | Worcester County Treasurer |
Combined rate: 12% of gross rental income.
Collection: Self-remit: property owner or agent must register with Maryland Comptroller for state sales tax; file Room Tax Report monthly with Worcester County Treasurer; platforms may remit on behalf of hosts
Filing: Monthly; Room Tax Report due by the 21st of the month for the previous month's rentals
Rental Limits
Ocean City does not impose an annual cap on the number of nights you can rent.
Occupancy & Density Limits
R-1/MH districts: 2 persons per bedroom plus 2 additional (excluding children 10 and under), midnight–7am. Other zones: 40 sq ft per person.
Zoning & Restrictions
STRs require supplementary short-term rental license effective January 1, 2025. New STR permits in R-1 and MH districts subject to moratorium through January 3, 2027.
Insurance & Safety
Safety & Operating Requirements
- Property must comply with International Property Maintenance Code (Chapter 10)
- Fire safety inspection required (Office of the Fire Marshal for hotels, motels, and condo buildings)
- Rental Housing Inspection on 5-year rotation
- Must declare number of bedrooms and available parking
- Cannot advertise more bedrooms than approved on building permit plans
- No unauthorized conversions of rooms, attics, or garages to bedrooms
Penalties for Non-Compliance
Maximum penalty: $5,000 per violation.
Platform Requirements
- Must include valid rental license control number in all advertisements/listings
- Must verify license validity before facilitating rentals
- Must stop listing units notified as unlawfully used for rental
- Must maintain records of all rental housing units facilitated
- Must provide mandatory field for rental license number on their online site
Compliance Checklist
Follow these steps to legally operate a short-term rental in Ocean City:
- Determine your permit type. Ocean City has 2 permit types. Identify which applies to your property (Rental License, Supplementary Short-Term Rental License).
- Meet safety requirements. Property must comply with International Property Maintenance Code (Chapter 10). Fire safety inspection required (Office of the Fire Marshal for hotels, motels, and condo buildings). Rental Housing Inspection on 5-year rotation. Must declare number of bedrooms and available parking. Cannot advertise more bedrooms than approved on building permit plans. No unauthorized conversions of rooms, attics, or garages to bedrooms.
- Apply for your STR permit. Submit application + $196 fee. See permit types above to determine which applies.
- Register for tax accounts. Set up lodging tax accounts with Maryland Comptroller (state sales tax); Worcester County Treasurer's Office (room tax).
- Display your permit number. Include your permit/license number in all listings and advertisements.
- Collect and remit taxes. 12% on all bookings.
- Renew annually. $196 renewal fee.