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

YES - Short-term rentals are explicitly allowed in Lusby, Maryland. As of the 2024 Calvert County Zoning Ordinance update, short-term rentals (defined as residences offering sleeping accommodations to transient guests for less than 30 days per client) are permitted uses in specific zoning districts within the county, including areas encompassing Lusby.

Lusby, located in Calvert County, Maryland, currently operates within a low-regulation environment for short-term rentals, with only 51 active STR listings as of 2025. The county recognizes that hundreds of short-term rentals are already operating and is in the process of formalizing regulations to enable tax collection and establish neighborhood protections.

How to Start a Short-Term Rental Business in Lusby

1. Verify Zoning Compliance

Critical First Step: Confirm that your property is located in a zoning district that permits short-term rentals. According to the draft Calvert County Zoning Ordinance, STRs are permitted in:

• Farm-Forest District (FFD)
• Rural Commercial District (RCD)
• Waterfront Community District (WCD)
• Marine Commercial District (MC)

2. State-Level Registration and Licensing

While Maryland doesn't have a unified statewide STR licensing system, you must:

• Register with the Maryland Short-Term Rental Commission (if applicable to your specific situation)
• Pay the annual $100 licensing fee
• Maintain commercial liability insurance with minimum $1,000,000 coverage
• Register any business entity (LLC, corporation) with the Maryland State Department of Assessments and Taxation if operating under a business structure

3. Tax Registration and Collection

• Maryland State Sales Tax: Collect and remit 6% sales and use tax on all stays under 88 nights
• Register with the Maryland Comptroller's Office for tax collection and remittance
• Monitor for local hotel/occupancy taxes that may apply in Calvert County

4. Safety and Compliance Preparation

• Install and maintain smoke detectors, CO detectors, and fire extinguishers
• Ensure compliance with building, fire, health, and safety codes
• Prepare for potential inspections as regulations develop

5. Platform Setup

• List on major platforms (Airbnb, VRBO, etc.)
• Ensure platform compliance with tax collection requirements
• Create comprehensive house rules addressing quiet hours, occupancy limits, and guest conduct

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements

• Maryland Short-Term Rental Registration (if required for your specific operation)
• Commercial Liability Insurance ($1,000,000 minimum)
• Maryland Sales Tax Registration with Comptroller's Office
• Business Entity Registration (if applicable)

Potential Local Requirements (Evolving)

• Calvert County STR License (under development)
• Business License from Calvert County
• Safety Inspection Certificate (may be required as regulations formalize)
• Zoning Compliance Verification

Recommended Documentation

• Property Deed or Lease Agreement
• Insurance Policy Documentation
• Property Management Agreement (if applicable)
• House Rules and Guest Policies
• Emergency Contact Information and Procedures
• Local Vendor Service Agreements (cleaning, maintenance)

Specific Regulations for Short-Term Rentals

Calvert County Zoning Regulations (Lusby Location)

Current Status: STRs are a newly recognized use category in Calvert County's zoning ordinance update process.

Permitted Zoning Districts:

• Farm-Forest District (FFD)
• Rural Commercial District (RCD)
• Waterfront Community District (WCD)
• Marine Commercial District (MC)

Definition: A short-term rental is "a residence or private dwelling that offers sleeping accommodations to the transient public for rent and for less than 30 days per client."

Development Status: The county is actively developing specific conditions and regulations. Planning commissioners have expressed interest in:

• Neighborhood protection measures to prevent noise and disturbance
• Guest conduct regulations
• Potential occupancy limits
• Noise and parking restrictions

Maryland State Requirements

• Tax Collection: 6% state sales tax on stays under 88 nights
• Insurance Requirements: $1,000,000 minimum commercial liability coverage
• Safety Standards: Compliance with building, fire, health, and safety codes
• Registration: State-level registration requirements as applicable

Property Type Considerations

• Single-family residences: Generally permitted in qualifying zoning districts
• Accessory dwelling units: May be subject to additional restrictions
• HOA/Community Rules: Many Lusby-area communities have HOAs that may restrict or prohibit STRs
• Condominium associations: Often have their own rental restrictions

Emerging Regulations

Calvert County is actively developing more comprehensive STR regulations, with public forums and planning sessions ongoing through 2024. New requirements may include:

• Annual licensing fees
• Inspection requirements
• Neighbor notification procedures
• Operational restrictions (maximum rental days per year)

Contact Information for Local Authority

Calvert County Planning Department

Primary Contacts for Zoning and STR Regulations:

Will Hager, Planner

• Phone: 410-535-1600 ext. 8553
• Email: will.hager@calvertcountymd.gov

Rachel O'Shea, Zoning Planner

• Phone: 410-535-1600 ext. 2339
• Email: rachel.oshea@calvertcountymd.gov

Mailing Address: Calvert County Planning & Zoning 150 Main Street Prince Frederick, MD 20678

General Information:

• Phone: 410-535-1600
• Website: www.calvertcountymd.gov
• Zoning Ordinance Update Portal: calvertcountymd.gov/ZoningOrdinanceUpdate

Additional Maryland State Contacts

Maryland Comptroller's Office (Tax Registration):

• Website: www.marylandtaxes.gov
• Phone: 1-800-MD-TAXES

Maryland Department of Assessments and Taxation (Business Registration):

• Website: www.dat.maryland.gov
• Phone: 410-767-1170

Important Links to Source Pages

Primary Regulatory Sources

1. Calvert County Zoning Ordinance Update: www.calvertcountymd.gov/DocumentCenter/View/44517/Presentation-for-Articles-18-and-19

   • Direct source for zoning regulations and STR permitting requirements

2. SOMD News STR Regulation Coverage: www.somdnews.com/recorder/news/local/calvert-boards-consider-short-term-rental-regulations-taxing/article_7a12e1b0-d651-11ee-b39a-7fe22ee6bc71.html

   • Current news coverage of county board discussions on STR regulations

Market Analysis Sources

3. RedAwning Lusby Market Overview: www.redawning.com/pm/market-overview/lusby-maryland

   • Market performance data and general regulatory overview

4. AirROI Lusby Market Analysis: www.airroi.com/report/world/united-states/maryland/lusby

   • Detailed market analytics and regulation level assessment

State-Level Information

5. Maryland STR Regulations Overview: www.redawning.com/pm/post/maryland-short-term-rental-laws
   • Comprehensive state-level requirements and tax obligations

Critical Considerations for Lusby STR Operators

Neighborhood Relations

Given Calvert County's expressed concerns about neighborhood protection, STR operators in Lusby should:

• Proactively communicate with neighbors about STR operations
• Establish clear guest guidelines regarding noise, parking, and behavior
• Monitor guest reviews for potential neighbor complaints
• Consider local community standards even where formal regulations are limited

HOA and Community Restrictions

Many Lusby-area residential communities have homeowners associations that may:

• Prohibit short-term rentals entirely
• Require host approval or registration
• Impose additional restrictions on guest conduct and property use
• Enforce quiet hours and occupancy limits

Future Regulatory Development

As Calvert County continues developing STR regulations:

• Stay informed about public forums and zoning updates
• Participate in the regulatory process to ensure reasonable requirements
• Prepare for potential compliance costs including licensing and inspection fees
• Maintain documentation of current operations for regulatory transition

Investment Considerations

The low regulation environment in Lusby presents both opportunities and risks:

• Lower barriers to entry for new STR operators
• Operational flexibility with minimal restrictions
• Potential for regulatory changes that could impact operations
• Strong market performance with 51% average occupancy and $285 daily rates

---

This guide is based on available information as of 2024-2025. Given the evolving nature of STR regulations in Calvert County, investors should verify current requirements directly with local authorities before making investment decisions.