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

• Explicit answer: Short-term rentals are prohibited in Rock Hall’s residential zoning districts as a use for Accessory Dwelling Units (ADUs). The Town’s zoning ordinance states that ADUs “shall not be used as short-term rentals.” [See Ordinance No. 2024-03 (Zoning Text Amendment), §225-6-1 A.3.(9)]
• Key timing rule for ADUs: The initial rental period for any tenant must be at least 90 consecutive days (after which it may convert to month-to-month). This requirement does not apply if the tenant is an immediate family member of the property owner. [See Ordinance No. 2024-03, §225-6-1 A.3.(8)]
• Town zoning does not currently contain a standalone, town-wide short-term rental licensing framework in the provided materials. The primary regulatory control visible at the municipal level is zoning, which restricts or prohibits short-term rental use of ADUs and similar units in many districts.
• County (Kent County) requirements: According to industry guidance focused on the Rock Hall market, STR operations under 30 days require a short-term rental license, and hosts must collect and remit a 5% Kent County Hotel Rental Tax. [See GoSummer market guidance for Rock Hall, MD] These statements appear county-specific; investors should verify the current status with Kent County finance/tax authorities.
• State-level obligations: Maryland imposes a state hotel tax (generally 6%) and a variety of safety requirements (e.g., smoke and carbon monoxide detectors, fire extinguishers) that apply to transient rental accommodations. Investors should ensure compliance with both state statutes and local requirements. [See GoSummer guidance; confirm current rates with the Maryland Comptroller and Kent County]
• Bottom line: In Rock Hall, zoning substantially limits short-term rental activity. ADUs are explicitly barred from STR use. Property owners should not assume a principal single-family home can be operated as an STR without first confirming zoning compliance and securing any applicable county or state authorizations.

How to Start a Short-Term Rental Business in Rock Hall

1. Verify zoning eligibility

• Confirm whether your property sits in a residential or commercial zoning district and whether it is a principal dwelling or an accessory structure (ADU, accessory apartment, “echo housing”).
• If the unit is an ADU or similar accessory unit, assume short-term rental use is prohibited unless a very specific, permissible scenario applies (e.g., accessory apartments in designated commercial/maritime districts with performance standards). [See Ordinance No. 2024-03, §§225-6-1 A.2–A.3 and district-specific provisions]

2. Determine licensing and tax obligations

• For any rental under 30 days, obtain a short-term rental license from Kent County (if applicable to your property location and use type) and set up a system to collect and remit the 5% Kent County Hotel Rental Tax. Confirm current procedures with the Kent County Finance/Tax Office. [See GoSummer guidance for Rock Hall, MD]
• Register with the Maryland Comptroller for state hotel tax remittance (generally 6%). Maintain records and remit on schedule. [General Maryland requirement; see GoSummer guidance]

3. Confirm safety and building requirements

• Equip the unit with working smoke detectors, carbon monoxide detectors, and fire extinguishers. Check with the Town Building Official and the Kent County Fire Marshal for any additional life-safety or inspection requirements. [See GoSummer guidance]

4. Owner-occupancy and deed restrictions

• For ADUs, the principal single-family detached dwelling must be occupied by the owner of the property, and deed restrictions must be recorded reflecting the ADU performance standards. [See Ordinance No. 2024-03, §225-6-1 A.3.(5) and (10)]

5. Utilities and meters

• Echo housing must share utilities with the principal structure; no separate meters are allowed. ADUs must also share utilities with the principal permitted use in certain districts; in the Maritime Water-Dependent District, accessory apartments must share utilities with the principal permitted use. [See Ordinance No. 2024-03, §225-6-1 O.3; §225-6-1 A.1.(5); §225-6-1 A.2]

6. Parking

• Provide one additional off-street parking space for an ADU. For accessory apartments in the Maritime Water-Dependent District, provide one parking space for the unit. [See Ordinance No. 2024-03, §225-6-1 A.3.(6); A.1.(7)]

7. Minimum rental periods and occupancy

• ADUs: Minimum 90-day initial rental period (unless tenant is an immediate family member of the owner). [See Ordinance No. 2024-03, §225-6-1 A.3.(8)]
• Accessory apartments in the Maritime Water-Dependent District: Short-term rentals are explicitly prohibited. [See Ordinance No. 2024-03, §225-6-1 A.1.(8)]

8. Apply for licenses and set up tax remittance

• Submit the STR license application to Kent County and enroll in tax remittance systems (county and state). Build processes for guest screening, house rules, incident response, and complaint management to align with any future county enforcement tools or programs.

9. Maintain documentation

• Keep proof of licensing, tax filings, safety inspections, deed restrictions, and correspondence with local authorities. Maintain a property file for audits and to support any HOA or neighbor relations.

Required Documents, Permits, Licenses, and Guidelines

• Short-Term Rental License (Kent County). Required for rentals under 30 days. Verify with the Kent County Finance/Tax Office. [See GoSummer guidance for Rock Hall, MD]
• Hotel Rental Tax Registration/Remittance
  • 5% Kent County Hotel Rental Tax (hosts must collect and remit; some platforms may not automatically collect it). [See GoSummer guidance]
  • Maryland State Hotel Tax (generally 6%; confirm current rate and registration requirements with the Comptroller). [See GoSummer guidance]
• Zoning Compliance Documentation
  • Site plan or floor plan showing accessory unit relationships, parking, setbacks, and architectural compatibility (for ADUs and accessory apartments).
  • Proof that the principal dwelling is owner-occupied (for ADUs).
  • Recorded deed restrictions reflecting ADU performance standards (minimum 90-day rental, prohibition on STR use, owner-occupancy). [See Ordinance No. 2024-03, §225-6-1 A.3.(5), (8), (9), (10)]
• Safety and Life Safety
  • Smoke detectors, carbon monoxide detectors, and fire extinguishers; verify local inspection requirements with the Town Building Official and Kent County Fire Marshal. [See GoSummer guidance]
• Utility Arrangements
  • Shared utilities documentation for echo housing and ADUs in applicable districts. [See Ordinance No. 2024-03, §225-6-1 A.3.(5); O.3; A.1.(5)]
• Annual Zoning Certificate (if required by county/country proposals)
  • Queen Anne’s County (not Rock Hall) proposed requiring an annual zoning certificate for STRs. This is context only and not applicable in Rock Hall; it shows neighboring jurisdictions may adopt such requirements. [See My Eastern Shore MD article on Queen Anne’s County hearing]

Specific Regulations for Short-Term Rentals (Town, County, and State)

Town of Rock Hall (Zoning)

• ADUs (Accessory Dwelling Units)
  • 650 square feet maximum, one bedroom, and must meet accessory-structure height limits. [See Ordinance No. 2024-03, §225-6-1 A.3.(1)]
  • Must be architecturally compatible with the main structure (materials, roof type, roofline). [See Ordinance No. 2024-03, §225-6-1 A.3.(2)]
  • One ADU per lot; only allowed on lots with a single-family detached principal dwelling; owner-occupancy required. [See Ordinance No. 2024-03, §225-6-1 A.3.(3)–(5)]
  • One additional off-street parking space required. [See Ordinance No. 2024-03, §225-6-1 A.3.(6)]
  • Setbacks must meet those applied to the principal dwelling. [See Ordinance No. 2024-03, §225-6-1 A.3.(7)]
  • Initial rental period minimum of 90 consecutive days (tenant may convert to month-to-month after the initial period). Exception for immediate family members of the property owner. [See Ordinance No. 2024-03, §225-6-1 A.3.(8)]
  • Short-term rentals are prohibited. [See Ordinance No. 2024-03, §225-6-1 A.3.(9)]
  • Recorded deed restrictions required to reflect owner-occupancy, the 90-day minimum, and the STR prohibition. [See Ordinance No. 2024-03, §225-6-1 A.3.(10)]
• Accessory Apartments
  • Maritime Water-Dependent District: One accessory apartment per parcel as it existed on the adoption date; must be on the second floor of the primary structure; must be secondary to the primary use in size and appearance; primary use must operate at least nine months per year; must share utilities with principal permitted use; subject to site plan review by Planning Commission; one parking space required; short-term rentals are prohibited. Board of Appeals may impose setbacks for post-adoption structures. [See Ordinance No. 2024-03, §225-6-1 A.1]
  • C-1, C-2, C-3, Maritime Recreational, and Maritime Commercial Districts: Accessory Apartments are permitted by performance standards with caps such as one unit per 2,000 square feet of nonresidential floor area (max four units, each min 600 sq ft), and in structures under 2,000 sq ft, one unit with at least 600 sq ft; unit cannot be on the ground level. [See Ordinance No. 2024-03, §225-6-1 A.2; and district sections for accessory apartment allowances]
• Echo Housing (Accessory structures for immediate family only)
  • Limited to 650 sq ft and one bedroom; must be architecturally compatible; must share the principal structure’s utilities; no separate meters. [See Ordinance No. 2024-03, §225-6-1 O]
• District-Specific Notes
  • R-1 Low Density Residential District: Echo housing/ADU is a permitted use subject to performance standards. [See Ordinance No. 2024-03, §225-5-1 B.(12)]
  • Commercial and Maritime Districts: Many district sections list accessory uses but exclude ADUs (e.g., C-1, C-2, C-3, Maritime Recreational, and Maritime Commercial districts list “any accessory use permitted in the R-1 district except accessory dwelling units”). [See Ordinance No. 2024-03, §§225-5-4 through 225-5-9]

Kent County (State context applicable to Rock Hall)

• Short-Term Rental License: Required for rentals under 30 days. [See GoSummer guidance for Rock Hall, MD]
• Hotel Rental Tax: 5% Kent County Hotel Rental Tax must be collected and remitted; confirm collection/remittance procedures and any platform interactions with the Kent County Finance/Tax Office. [See GoSummer guidance]
• Note on neighboring jurisdictions: Queen Anne’s County held a public hearing on a countywide STR ordinance (owner/manager proximity, occupancy, quiet hours, on-site parking, annual zoning certificate, registration with finance office for hotel tax). This is not binding on Rock Hall but illustrates adjacent county regulatory trends. [See My Eastern Shore MD article]

State of Maryland (General)

• Hotel Rental Tax: The state hotel tax is generally 6%; register with the Comptroller and remit taxes per statute. Confirm the current rate and filing procedures. [See GoSummer guidance]
• Safety Requirements: Transient rental properties must have working smoke detectors, carbon monoxide detectors, and fire extinguishers; additional requirements may apply. [See GoSummer guidance]

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