Ocean City, Maryland Short Term Rental Regulations Guide for Airbnb hosts

Executive Overview: STR Status in Ocean City, MD

Short-term rentals are explicitly allowed in Ocean City, Maryland, with specific regulatory frameworks in place. The town operates a comprehensive licensing system that distinguishes between long-term rentals (31+ consecutive days) and short-term rentals (30 consecutive days or less). As of 2025, Ocean City has implemented targeted regulations while maintaining overall permit access, though new applications face restrictions in certain residential districts.

How to Start a Short-Term Rental Business in Ocean City

Step-by-Step Process

Verify Zoning Eligibility
- Confirm your property's zoning district using the town's online zoning map
- Note: Properties in R-1 Single Family Residential and MH Mobile Home districts face an 11-month moratorium on new STR licenses (until December 2025)
Designate Local Agent Requirements
- Critical Requirement: Non-local owners (60+ miles from Ocean City) must designate a local agent responsible for:
  - Service of legal notices
  - Property issue response within 60 minutes
  - Code violation handling
  - Emergency repairs
Complete Application Process
- Submit annual rental license application with property details
- Include bedroom count and parking space information
- Provide agent contact information with 60-minute response commitment
Payment and Inspection
- Pay applicable fees (see fee structure below)
- Consent to property inspections during reasonable hours
- Complete safety compliance requirements

Required Documents, Permits, Licenses, and Guidelines

Primary Licensing Requirements

Annual Rental License (All Properties)

Base Fee: $196.00
Required for any property rented for any length of time
Must be obtained before operation

Short-Term Rental Supplemental License

Additional Fee: $50.00
Required for properties rented 30 consecutive days or fewer
Total Annual Cost: $246.00

Noise Control Permit (NCP)

Included in base fee
Required for all rental properties

Compliance Documents

Property ownership documentation
Local agent designation (if applicable)
Bedroom and parking space verification
Fire safety compliance certification
Occupancy limit declarations

Specific Regulations for Short-Term Rentals

Zoning District Restrictions

R-1 Single Family Residential and MH Mobile Home Districts:

11-month moratorium on new STR licenses (through December 2025)
Exception process available for properties impacted by owner death
Existing 2024 license holders may renew for 2025

All Other Districts:

Unrestricted STR operation under existing regulations
No moratoria in effect

Occupancy Limitations

R-1 and MH Districts:

Maximum: 2 persons per bedroom + 2 additional persons
Children 10 and younger excluded from calculations
Enforced midnight to 7:00 AM

All Other Districts:

Minimum bedroom size: 70 square feet
40 square feet per person in bedrooms
10 square feet credit for closet space

Operational Requirements

Contact and Response Standards:

24/7 local contact availability
60-minute response time for property issues
Authorized to handle code violations

Safety and Compliance:

Annual inspection requirements
Fire safety equipment compliance
Accurate advertising requirements
No unauthorized bedroom conversions

Business Registration:

State sales tax registration required
Worcester County room tax registration
Compliance with state accommodations provider requirements

Enforcement and Penalties

Inspections conducted on five-year rotation
License suspension or revocation for violations
Code enforcement for occupancy and safety violations
Platform verification requirements for listing services

Contact Information for Local Authorities

Town of Ocean City - Division of Rental Housing

Phone: (410) 548-4820
Department: Planning and Community Development
Address: 3001 N. Baltimore Avenue, Ocean City, MD 21842
Website: oceancitymd.gov/oc/departments/planning-community-development/division-of-rental-housing/

Town of Ocean City - Finance Department

License Payments: (410) 548-4800
Website: oceancitymd.gov/oc/departments/finance/new-licenses/

Worcester County Room Tax Registration

Phone: (410) 632-0100
Website: co.worcester.md.us/departments/treasurer/room

Maryland Comptroller - Business Registration

Phone: (410) 260-7980
Website: marylandcomptroller.gov/businesses/tax-services.html

Source Links

Primary Regulatory Sources

Fee Structure and Forms

Recent Regulatory Updates

Avalara MyLodgeTax Report on Referendum

This guide reflects current regulations as of 2025. Investors should verify current requirements before making investment decisions, as local ordinances and state regulations are subject to change.

Ocean City, MD, is a popular coastal resort town located in Worcester County on Maryland's Eastern Shore. As of the most recent census, the city's population stands at around 7,100 permanent residents, though it swells significantly during the tourist season. Ocean City is approximately 120 miles from Baltimore, MD, and about 140 miles from Washington, D.C., making it a convenient getaway for residents of these major metropolitan areas.

Ocean City is renowned for its sandy beaches and vibrant boardwalk, which stretches for three miles and is lined with shops, restaurants, and amusement parks. Key landmarks include the Ocean City Boardwalk (ococean.com) and the historic Trimper's Rides and Amusements (trimpersrides.com), which offers a nostalgic amusement park experience dating back to the late 1800s.

The city also hosts a variety of events throughout the year, including the OC Air Show and Springfest, attracting tourists and making short-term rentals an appealing option for visitors. Proximity to major airports in Baltimore and Washington, D.C., as well as regional rail and bus services, enhance Ocean City's accessibility, amplifying the demand for short-term rental properties.

The city offers a mix of entertainment, dining, and shopping experiences. Attractions such as the Jolly Roger Amusement Park (jollyrogerpark.com), Ripley's Believe It or Not! (www.ripleys.com/oceancity), and the Ocean City Life-Saving Station Museum (www.ocmuseum.org) add to the city's charm and visitor appeal. Overall, the blend of convenience, activities, and accessibility makes Ocean City a rewarding destination for short-term rental opportunities.

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