Are Short-Term Rentals Allowed in Raleigh, NC?

Yes, short-term rentals are explicitly allowed in Raleigh, NC. The City of Raleigh adopted comprehensive Short-Term Rental regulations that became effective on March 4, 2021, replacing previous homestay regulations. Short-term rentals are permitted as a Limited Use in specific zoning districts and are defined as dwelling units used for overnight lodging accommodations provided to renters for no longer than 30 days for compensation.

How to Start a Short-Term Rental Business in Raleigh

Step 1: Verify Zoning Compliance

Check if your property is located in an approved zoning district using the City's iMaps tool. Short-term rentals are permitted in the following zones:

• R-1, R-2, R-4, R-6, R-10 (Residential districts)
• RX, OX, NX, CX, and DX (Mixed-use districts)

Step 2: Obtain Required Permits

Submit your complete Short-Term Rental Application packet through the Permit and Development Portal. The zoning permit is mandatory before operating any short-term rental.

Step 3: Ensure Property Compliance

Verify your property meets all operational requirements including occupancy limits, parking restrictions, and safety standards.

Step 4: Set Up Tax Collection

Register for state and local tax collection, including North Carolina sales tax and local occupancy taxes.

Step 5: Display Permit Information

Once approved, prominently display your zoning permit number on all advertisements and at the property.

Required Documents, Permits, Licenses, and Guidelines

Mandatory Application Documents:

• Short-Term Rental Application - Complete application form with all sections filled out
• Owner's Affidavit - Signed affidavit from property owner
• Property Documentation - Floor plans and building layouts (required for multi-family properties)
• Zoning Permit - Must be obtained before operation begins

Additional Requirements:

• Business license registration
• Proof of insurance coverage
• Property inspection compliance
• Fire safety and building code adherence
• Smoke detecting and carbon monoxide detecting equipment
• Housing code compliance

Application Process:

Submit a PDF of the entire application packet via the Permit and Development Portal. The zoning permit and business license may take up to 4 weeks to obtain if all requirements are met.

Specific Regulations for Short-Term Rentals

Operational Restrictions:

1. Maximum Stay Duration: No guest stays longer than 30 days
2. Cooking Facilities: Prohibited in bedrooms (with specific exceptions for one-room studios)
3. No Exterior Advertising: Signs, banners, or visible advertisements are not permitted
4. Special Events: No special events or gatherings allowed in residential zoning districts
5. Multi-Unit Limitations: Maximum 25% or two dwelling units (whichever is greater) per building

Occupancy and Parking:

• Occupancy Limits: Maximum 2 people per bedroom plus 2 additional adults
• Parking Restrictions: Number of vehicles cannot exceed number of bedrooms
• On-site Parking: Required based on occupancy levels

Record Keeping:

• Maintain a complete list of all lodgers for three (3) years
• Keep detailed records of rental income and tax obligations
• Preserve all property-related documentation

Safety and Compliance:

• Comply with all fire and building codes
• Install required smoke and carbon monoxide detectors
• Meet all housing code requirements
• Pay all applicable state and local taxes, including occupancy taxes

Noise and Community Standards:

• Adhere to noise ordinances (typically enforced from 10 PM to 7 AM)
• Maintain good neighbor relationships
• Ensure guests respect community standards

Tax Requirements

State Taxes:

• State Sales Tax: 4.75%
• Local Sales Tax: 2% to 2.75% (varies by location)
• Total Sales Tax Range: 6.75% to 7.5%

Local Taxes:

• Occupancy Tax: Also known as Vacation Rental Tax (VRT), varies by location
• Must be remitted to local tax authorities

Tax Compliance:

• Platforms like Airbnb and Vrbo may collect taxes automatically
• Hosts remain responsible for direct bookings
• Keep detailed records for minimum three years
• Consider automated tax collection systems

Contact Information for Local Authority

Current Planning Team - City of Raleigh

• Phone: 919-996-2492
• Email: currentplanning@raleighnc.gov
• Office: Planning and Development Customer Service Center
• Address: One Exchange Plaza, Suite 400, Raleigh, NC 27601
• General Planning Department Phone: 919-996-2500

Source Links

• City of Raleigh Short-Term Rentals Official Page: raleighnc.gov/permits/services/short-term-rentals
• Short-Term Rental Application Form: cityofraleigh0drupal.blob.core.usgovcloudapi.net/drupal-prod/COR15/ShortTermRentalApplicationandChecklist.pdf
• Owner's Affidavit Form: cityofraleigh0drupal.blob.core.usgovcloudapi.net/drupal-prod/COR15/OwnerAffidavit.pdf
• Permit and Development Portal: permitportal.raleighnc.gov/
• City Zoning Maps (iMaps): maps.raleighnc.gov/iMAPS/
• Development Fee Guide: Available through the City's permits and inspections services
• Text Change Ordinance: cityofraleigh0drupal.blob.core.usgovcloudapi.net/drupal-prod/COR22/TC-08-20-ORD.pdf
• Airbnb Raleigh Information: www.airbnb.ca/help/article/3000

Key Compliance Considerations

For successful short-term rental operation in Raleigh, investors must:

1. Obtain all required permits before listing - Operating without proper permits can result in fines and shutdown
2. Maintain detailed records - Three-year record retention is mandatory for all guest information
3. Display permit numbers - Required on all advertisements and property signage
4. Respect occupancy limits - Strict enforcement of guest and vehicle limitations
5. Ensure neighbor compatibility - No exterior advertising and noise restrictions help maintain community relations
6. Stay current with regulations - Short-term rental laws continue to evolve, requiring ongoing compliance monitoring

The City of Raleigh takes short-term rental compliance seriously, with penalties for violations that can include fines and loss of operating privileges. Success in this market requires thorough understanding and adherence to all local regulations while maintaining positive community relationships.