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Short-Term Rental Regulations
in Ocean City, MD

Last verified: March 2026 · Report an update

Zoning & Conditions

Ocean City defines short-term rentals as stays of 30 days or fewer and requires an annual rental license plus a supplementary short-term rental license/fee; applicants must declare bedrooms and on-site parking, provide a local agent able to respond within 60 minutes, comply with periodic inspections, display license numbers in ads, and maintain records for five years.

How to Obtain a Permit

1) Complete the Town’s license application form declaring bedrooms, parking, and a local agent, and pay the annual license fee plus the $50 supplementary short-term rental fee. 2) Undergo a review and potential inspection by the Division of Rental Housing, Fire Marshal, and Zoning; the Division issues or denies the license within 14 days. 3) Renew the license annually and maintain rental records for five years.

Regulatory Updates — Ocean City

Proposed and recent legislation

PassedJanuary 2023

Ocean City Rental License Program Active

Ocean City requires all short-term rental properties to obtain a city rental license, which includes a safety inspection (smoke detectors, egress, occupancy compliance), a local contact designation, and registration for state and county tax collection. Annual renewal is required.

PassedJuly 2023

Maryland Sales Tax on Short-Term Rentals

Maryland's 6% state sales tax applies to all short-term rental income. Maryland designated Airbnb and Vrbo as marketplace facilitators required to collect and remit state sales tax on behalf of hosts, simplifying compliance for most Ocean City operators.

Official source
PassedApril 2024

Worcester County Rental Registration Compliance

Worcester County requires vacation rental operators in Ocean City and surrounding areas to register with the county and obtain a rental license in addition to any applicable city license. The county's rental registration program coordinates with city inspection records to streamline the dual-licensing process.

Official Resources

Official Ocean City STR regulation source

Local Resources & Advocacy

Ocean City Hotel-Motel-Restaurant AssociationLocal

Represents Ocean City's hospitality industry including vacation rental operators and property managers. Tracks city and state regulations affecting the rental market.

Maryland Tourism CouncilStatewide

Statewide tourism advocacy organization monitoring regulations affecting Maryland's visitor economy, including STR policy at the state and local level.

Vacation Rental Management Association (VRMA)National

National trade association providing compliance resources and regulatory monitoring for vacation rental managers in Mid-Atlantic beach resort markets.

Frequently Asked Questions

Are short-term rentals allowed in Ocean City, MD?
Ocean City defines short-term rentals as stays of 30 days or fewer and requires an annual rental license plus a supplementary short-term rental license/fee; applicants must declare bedrooms and on-site parking, provide a local agent able to respond within 60 minutes, comply with periodic inspections, display license numbers in ads, and maintain records for five years.
Is a permit required to operate a short-term rental in Ocean City?
Yes, a permit is required to operate a short-term rental in Ocean City. 1) Complete the Town’s license application form declaring bedrooms, parking, and a local agent, and pay the annual license fee plus the $50 supplementary short-term rental fee. 2) Undergo a review and potential inspection by the Division of Rental Housing, Fire Marshal, and Zoning; the Division issues or denies the license within 14 days. 3) Renew the license annually and maintain rental records for five years.
How do I get a short-term rental permit in Ocean City?
1) Complete the Town’s license application form declaring bedrooms, parking, and a local agent, and pay the annual license fee plus the $50 supplementary short-term rental fee. 2) Undergo a review and potential inspection by the Division of Rental Housing, Fire Marshal, and Zoning; the Division issues or denies the license within 14 days. 3) Renew the license annually and maintain rental records for five years.
What licenses are required to operate a vacation rental in Ocean City, MD?
Operators need both a City of Ocean City rental license (annual renewal with safety inspection) and a Worcester County rental registration. Maryland state sales tax registration is also required. Most Ocean City condominiums operate under a building-wide rental license administered by a property management company — individual condo owners renting through a management company are typically covered by that company's license. Independent operators must obtain their own city and county licenses.
What taxes apply to Ocean City short-term rental income?
Maryland imposes a 6% state sales tax on short-term rental income. Worcester County may impose additional county taxes. Ocean City does not impose a separate municipal lodging tax beyond state and county obligations. Airbnb and Vrbo collect and remit Maryland state sales tax on behalf of hosts as marketplace facilitators. Operators booking directly must register with the Maryland Comptroller's office independently.
Are there condo association rules I need to follow for Ocean City rentals?
Yes — and they matter as much or more than city regulations. Most Ocean City condominiums have homeowners association (HOA) or condominium association rules governing short-term rentals. Common provisions include: minimum rental periods (many OC condos require 7-day minimums), age restrictions on renters, pool and amenity usage rules for rental guests, and requirements to rent through the building's affiliated management company. Always review your building's condo declaration and bylaws before listing independently.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction