Overview: Are short-term rentals allowed in Boston (including South Boston)?

• Yes. Short-term rentals (STRs) are allowed in Boston, but only under a tightly regulated, owner-occupied framework. The City defines an STR as the rental of a residential unit for fewer than 28 consecutive days for a fee.
• Legal operation requires: (1) annual STR registration with the Inspectional Services Department (ISD), (2) a Boston Business Certificate from the City Clerk, (3) ongoing compliance with city and state rules, and (4) compliance with tax obligations.
• Three legal STR categories exist: Limited Share, Home Share, and Owner-Adjacent. Only owner-occupied properties qualify (owner must live there at least nine months per year). In two-family and three-family buildings, the owner must own all units to use the Owner-Adjacent category.
• South Boston falls under Boston’s citywide STR ordinance and must follow all city rules outlined below.

How to start a short-term rental business in Boston (including South Boston) Step 1 — Confirm eligibility and unit type

• Determine which STR category fits your situation:
  • Limited Share: You live in the property and rent one or more private bedrooms; you must be present during all rentals.
  • Home Share: You live in the property and rent the entire unit while you’re away.
  • Owner-Adjacent: You live in one unit of an owner-occupied 2–3 family property and rent a separate, entire unit in the same building; you must own all units in the building.
• Verify your property is eligible:
  • Not income-restricted or affordability covenanted.
  • No outstanding violations of certain ordinances/codes (excessive noise, trash disposal, disorderly conduct, Sanitary/Building/Fire Code).
  • Not located in a Problem Property or owned by a Problem Property owner (as defined in Boston municipal code).
  • If the property contains long-term rental units and you intend to use Owner-Adjacent, the property must be current in the city’s Long-Term Rental Registry.

Step 2 — Prepare documentation

• Gather at least two documents proving primary residence (owner must live there ≥9 months/12 months):
  • Proof of residential tax exemption; utility bill (gas/electric/oil/water) showing service and mailing addresses; voter registration certificate; motor vehicle registration; deed; driver’s license or state ID.
• Identify a local emergency contact who can respond in-person within two hours.
• Ensure safety equipment is installed and ready for inspection:
  • Post a sign inside the unit showing locations of fire extinguishers, fire exits, and pull fire alarms.

Step 3 — Register the STR unit

• Register online through Boston’s Short-Term Rental portal (hosted by ISD).
• Pay the annual registration fee:
  • Limited Share: $25
  • Home Share: $200
  • Owner-Adjacent: $200
• After approval, you will receive an STR registration number; this number must appear on every listing and advertisement.

Step 4 — Obtain a Business Certificate

• Apply through the City Clerk’s office after you receive your STR registration number.
• Business Certificate filing fee: $65 for Massachusetts residents (valid for 4 years).

Step 5 — Taxes and insurance

• Massachusetts Room Occupancy Excise Tax (5.7%) and Boston Local Room Occupancy Tax (6.5%) apply to STRs, plus the Boston Convention Center Financing Fee (2.75%), for a combined tax rate of approximately 14.95% on most short-term stays.
• Major platforms generally collect and remit these taxes. For direct bookings, you are responsible for collection and remittance.
• Minimum $1 million liability insurance is recommended and may be required by platforms/associations.

Step 6 — Neighbor notification

• Notify abutters (residential dwellings within 300 feet) within 30 days of receiving your STR license. Maintain proof of notification.

Step 7 — Operations

• Annual license renewal is required. Licenses do not transfer with sale.
• Post required safety signage in the unit.
• You may only offer one whole unit at a time. If you have both a Home Share and an Owner-Adjacent unit at your property, you cannot rent both while you are away.

Required documents, permits, licenses, and guidelines

• Short-Term Rental Registration
  • Application and annual registration via Boston’s online STR portal.
  • Annual fee by unit type (see above).
  • Required documents include primary residence proofs and local contact info.
• Boston Business Certificate
  • City Clerk application (include STR registration number). $65 fee; valid 4 years.
• Safety and compliance
  • Safety signage required inside unit (fire extinguisher/exit/alarm locations).
  • Compliance with Boston and Massachusetts building/sanitary/fire codes.
  • Must maintain ongoing compliance; violations can trigger license suspension.
• Tax registration and collection
  • Registration with Massachusetts Department of Revenue if you collect/remit taxes directly.
  • 5.7% state + 6.5% Boston local + 2.75% convention fee = ~14.95% total (platforms typically collect automatically).
• Additional requirements for specific property types
  • Lodging houses and B&Bs must be licensed and post their licenses/certificates; registration in the STR database applies but the annual STR fee does not.

Specific regulations for STRs in Boston (city and state)

• Unit eligibility
  • Owner-occupied primary residence required for Limited Share and Home Share.
  • Owner-Adjacent allowed only in owner-occupied 2–3 family buildings where owner owns all units.
  • No income-restricted or affordability-covenant properties.
  • No more than three violations in six months (relating to STR, noise, trash, disorderly conduct, Sanitary/Building/Fire codes) and no outstanding violations.
  • Not located in a Problem Property or owned by a Problem Property owner.
• Occupancy limits (annual)
  • Limited Share: up to 3 guest bedrooms or 6 guests, whichever is fewer.
  • Home Share: up to 5 bedrooms or 10 guests, whichever is fewer.
  • Owner-Adjacent: entire unit; subject to building and safety limits.
• Operating rules
  • Stays fewer than 28 consecutive days for a fee qualify as STRs.
  • You may only offer one whole unit at a time.
  • Lodging houses and bed-and-breakfasts must display proper licensing and/or certificates of occupancy.
• Neighbor and community
  • Notify abutters within 30 days (residential dwellings within 300 feet).
  • Maintain emergency contact and respond within two hours.
• Registry and renewal
  • Annual STR license renewal required; no transfer upon sale.
  • If the building contains long-term rental units and you hold an Owner-Adjacent STR license, the property must be current in the Long-Term Rental Registry.
• Enforcement and penalties
  • Operating without registration or failing to maintain compliance may result in fines, suspension, or revocation of the STR license.
  • Additional penalties can apply for tax and code violations.

City/state contact information for STRs (Boston)

• Inspectional Services Department (ISD) — Housing Division (STR program owner)
  • Phone: 617-635-5300
  • Email: shorttermrentals@boston.gov
  • Address: ISD Housing Division, 1010 Massachusetts Ave, Boston, MA 02118
  • STR registration portal: online permits portal (link below)
• City Clerk — Business Certificates
  • Phone: 617-635-4600
  • Address: Office of the City Clerk, 1 City Hall Square, Room 601, Boston, MA 02201
  • Business Certificate information and form (links below)
• Boston 311 (for general city services and complaint intake)
  • Phone: 311 (within Boston) or 617-635-4500
• Massachusetts Department of Revenue (tax registration and compliance)
  • Phone: 617-887-6367
  • Website: mass.gov/dor

Key links and source pages

• Boston STR program page: Short-Term Rentals (ISD) — www.boston.gov/departments/inspectional-services/short-term-rentals
• STR registration portal: Register a Short-Term Rental — onlinepermitsandlicenses.boston.gov/isd/ShortTermRental/
• Boston STR eligibility database (check if a unit is eligible): Short-Term Rental Eligibility Dataset — data.boston.gov/dataset/short-term-rental-eligibility/resource/83621b97-9a00-4aa7-bf43-28cae04969d4
• Short-Term Rental Ordinance (PDF): Short-Term Rental Ordinance — www.boston.gov/sites/default/files/document-file-08-2018/short-term_rental_ordinance.pdf
• Business Certificate information: How to Apply for a Business Certificate — www.boston.gov/departments/city-clerk/how-apply-business-certificate
• Business Certificate form (PDF): Business Certificate Application — www.boston.gov/sites/default/files/new-biz-cert.pdf
• Long-Term Rental Registry guidance (for Owner-Adjacent properties with other rental units): How to Register a Rental Property — www.boston.gov/departments/inspectional-services/how-register-rental-property
• Additional guidance (overview and practical tips): Understanding Boston’s Short-Term Rental Regulations (Keycafe) — blog.keycafe.com/understanding-bostons-short-term-rental-regulations/
• Boston vs. surrounding markets (comparative context): Short-Term vs. Long-Term Rentals in Boston: What Investors Should Know in 2025 (Centre Realty Group) — www.centrerealtygroup.com/short-term-vs-long-term-rentals-boston-2025/
• Permitting process walk-through: Navigating Boston’s Short-Term Rental Permitting Process (Green Ocean Property Management) — greenoceanpropertymanagement.com/navigating-bostons-short-term-rental-permitting-process/
• Boston STR rules investor handbook (comprehensive overview): Boston MA Short-Term Rental Regulations: Your Complete Owner’s Handbook (The Offer Sheet) — local.theoffersheet.com/legal/boston-ma/

Notes for investors

• Boston’s STR framework heavily prioritizes owner-occupation and housing preservation. As a result, it’s not a market for non-owner-occupied, multi-unit STR portfolios.
• South Boston follows the same citywide rules and processes described here.
• Fee and tax amounts, forms, and enforcement practices can evolve; always verify the latest requirements on the city portals and with ISD before committing capital or listing a unit.