Overview: Are Short-Term Rentals Allowed in Hagerstown, MD?

YES — Short-term rentals are explicitly allowed in Hagerstown, MD, but under a comprehensive regulatory framework that requires licensing, inspections, and ongoing compliance. The City of Hagerstown approved its lodging facilities licensing program on June 20, 2023, which specifically includes Short-Term Rentals as a defined transient housing type. Additionally, Washington County has its own ordinances governing STRs that apply to unincorporated areas.

How to Start a Short-Term Rental Business in Hagerstown

Step 1: Determine Zoning Eligibility

• City of Hagerstown: STRs are permitted through the city's licensing program
• Washington County: STRs are allowed in all residential districts by special exception only; in rural areas, they are principally permitted uses

Step 2: Complete the Licensing Process

1. Apply for a Lodging Facilities License through the City of Hagerstown's Planning and Code Administration Department
2. Submit required documentation (see permits section below)
3. Pay applicable licensing fees ($150-$300 annually depending on property size)
4. Pass required safety inspections
5. Complete mandatory training programs

Step 3: Obtain Insurance

• Minimum $1 million liability insurance coverage required
• Maintain current insurance documentation for licensing renewal

Step 4: Register for Tax Collection

• Collect and remit Maryland state sales tax (6%)
• Collect and remit Washington County hotel/motel tax (3%)
• Register with Maryland Comptroller's office for quarterly tax filing

Step 5: Operational Setup

• Install required safety equipment (smoke detectors, CO detectors)
• Establish guest registry system
• Post required contact information in units
• Implement parking arrangements meeting requirements

Required Documents, Permits, Licenses, and Guidelines

Required Licenses

1. Lodging Facilities License (City of Hagerstown)
   • Application through Planning and Code Administration
   • Annual renewal required
   • License number must be displayed in all listings

Required Documents

• Proof of property ownership
• Liability insurance documentation ($1 million minimum)
• Detailed floor plan of the property
• Parking plan demonstrating compliance with space requirements
• Guest registry system and procedures

Required Inspections

• Short-Term Rentals: Triennial inspections by Planning and Code Administration Department and Hagerstown Fire Department
• Inspections cover all exterior and interior areas
• Properties must meet current building and fire safety codes

Training Requirements

• Annual human trafficking awareness training (required for all owners, managers, and employees)
  • Must be approved by Governor's Office of Crime Prevention, Youth, and Victim Services
  • Approved programs include:
    • ECPAT USA: "Your Role in Preventing Human Trafficking: Recognize the Signs"
    • BEST: "Inhospitable to Human Trafficking"
    • Marriott Corporation: "Recognize and Respond: Addressing Human Trafficking in the Hospitality Industry"
• Overdose Response Program Training (provided by Washington County Health Department)
  • Contact: 240-313-3365 to schedule

Operational Guidelines

• No hourly charges permitted
• Maximum two rentals per 24-hour period per unit
• No illegal activities permitted on premises
• Mandatory posting of Planning and Code Administration Department and Hagerstown Fire Department contact information

Specific Regulations by Jurisdiction

City of Hagerstown Regulations

• Definition: "Residential rental unit or room of a dwelling unit for a fee less than 30 consecutive days through online sites such as Airbnb, Flipkey, Home Away and Vacation Rental By Owner (VRBO)"
• Inspection Frequency: Triennial for Short-Term Rentals
• Zoning: Permitted through licensing program (specific zoning restrictions may apply)
• Occupancy: Maximum 2 guests per bedroom plus 2 additional guests
• Parking: 1 space per bedroom required; overflow parking on streets prohibited
• Quiet Hours: Enforced 10 PM - 7 AM
• License Display: License number must be prominently displayed in all rental listings

Washington County Regulations (Unincorporated Areas)

• Definition: "Non-owner-occupied residential structure that provides temporary lodging to transient guests for compensation. Proprietors may rent all or a portion of the structure. Such uses shall not exceed rental of individual rooms or the entire structure for more than 30 consecutive days per client/reservation"
• Zoning:
  • All residential districts: Special exception use only
  • Rural areas: Principally permitted use
• Parking: Must provide off-street parking per Article 22 Division 1 requirements
• Maximum Stay: 30 consecutive days maximum per client/reservation
• Signage: Prohibited if requiring a zoning permit

State of Maryland Regulations

• Sales Tax: 6% on all STR rental income
• Hotel/Motel Tax: Additional 3% local tax
• Quarterly Filing: Required through Maryland Comptroller's office
• Annual Reporting: Properties exceeding $25,000 in rental income must report to city

Contact Information

City of Hagerstown - Planning and Code Administration

• Address: City Hall, 1 E. Franklin St., Hagerstown, MD 21740
• Phone: 301-739-8577
• Office Hours: Monday-Friday, 8:00 AM - 4:00 PM (Tuesday: 8:00 AM - 3:00 PM)
• Website: www.hagerstownmd.org/
• Services: Licensing applications, inspections, compliance inquiries

Hagerstown Fire Department

• Phone: Contact through Planning and Code Administration for STR inspections
• Inspection: Required for all STR licensing

Washington County Government

• Address: 100 West Washington Street, Hagerstown, MD 21740
• Phone: (240) 313-2776
• Office Hours: Monday-Friday, 7:30 a.m. – 4:30 p.m.
• TTY: 1-800-735-2258
• Email: [email protected] (Public Relations & Marketing)
• Website: www.washco-md.net/

Maryland Comptroller's Office (Tax Registration)

• Website: www.marylandtaxes.gov/
• Services: Sales tax registration and quarterly filing for STR operators

Washington County Health Department (Training)

• Phone: 240-313-3365 (for Overdose Response Program Training scheduling)

Source Links

1. Washington County STR Ordinance Update: www.washco-md.net/news/board-of-county-commissioners-approve-update-to-ordinance-for-short-term-residential-rentals/
2. City of Hagerstown Lodging Facilities Licensing: www.investhagerstown.org/1792/Lodging-Facilities-Licensing
3. City of Hagerstown Official Website: www.hagerstownmd.org/
4. Washington County Government Website: www.washco-md.net/
5. Maryland Comptroller's Office: www.marylandtaxes.gov/

Key Regulatory Notes for Investors:

• The City's program is relatively new (approved June 2023), so expect continued evolution
• Washington County's ordinance specifically addresses the "non-owner-occupied" requirement
• Both jurisdictions emphasize the 30-day maximum stay requirement
• Compliance costs should include licensing fees, insurance premiums, inspection costs, and mandatory training
• Properties in commercial or mixed-use zones typically face fewer restrictions than residential areas

This comprehensive regulatory framework represents significant compliance requirements but provides a clear pathway for legitimate STR operations in the Hagerstown market.