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  1. Home
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  3. Regulations
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  5. Delaware
  6. ·
  7. Rehoboth Beach

Rehoboth Beach

Moderate
DelawareUpdated Mar 20, 2026
Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

Short-term rentals in the City of Rehoboth Beach are strictly regulated and require both a state and local rental license. The city imposes a 7% accommodations tax that must be remitted quarterly by the host, as platforms do not collect this tax automatically.

Restriction level

Severity 21
Classification
Moderate
21
Severity

Why this classification

  • Standard permit fee: $275
  • Tenants cannot host
  • Permit required
  • Reporting required
  • No night cap
  • No primary residence requirement

In plain English

What this means for you

To host an Airbnb in Rehoboth Beach, you must first get a Delaware State Business License and then apply for a City Rental License (which costs $275 annually). You are required to pass a safety inspection and follow strict occupancy limits (2 people per bedroom plus 2). Most importantly, you must manually collect and pay a 7% city tax every quarter, as Airbnb will not do this for you in this jurisdiction.

At a glance

Key numbers
Permit requiredYes
Night limitNone
Primary residenceNot required
Total tax rate0.1%
Permit fee$275
Processing time2-4 weeks

6 things hosts often miss

Common compliance gaps
  1. 1You are in the City of Rehoboth Beach jurisdiction only if you are within the incorporated town limits; areas with 'Rehoboth Beach' addresses outside the city follow Sussex County rules.
  2. 2Airbnb and VRBO do NOT collect the 7% city tax; you must file this manually every quarter.
  3. 3The maximum occupancy limit (2 per bedroom + 2) is strictly enforced and must be advertised correctly.
  4. 4A local contact person who can respond to issues within 1 hour is required if you live outside the area.
  5. 5The 7% tax applies to any rental stay up to 120 days.
  6. 6Rentals are prohibited from having outdoor music or noise that disturbs neighbors after 11 PM.

Regulation details

Sourced from official code
Eligibility9 rules
  • Rehoboth Beach does NOT allow tenants to host STRs. Only property owners may operate short-term rentals.
  • Rehoboth Beach: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
  • Rehoboth Beach: Rentals are prohibited from having outdoor music or noise that disturbs neighbors after 11 PM.
Requirements16 rules
  • Common mistakes and gotchas for STR hosts in Rehoboth Beach: 1. You are in the City of Rehoboth Beach jurisdiction only if you are within the incorporated town limits; areas with 'Rehoboth Beach' addresses outside the city follow Sussex County rules. 2. Airbnb and VRBO do NOT collect the 7% city tax; you must file this manually every quarter. 3. The maximum occupancy limit (2 per bedroom + 2) is strictly enforced and must be advertised correctly. 4. A local contact person who can respond to issues within 1 hour is required if you live outside the area. 5. The 7% tax applies to any rental stay up to 120 days. 6. Rentals are prohibited from having outdoor music or noise that disturbs neighbors after 11 PM.
Application process10 rules
  • Rehoboth Beach STR permit - Step 3: Pass Fire Safety Inspection. Schedule and pass a mandatory inspection by the city fire marshal or building inspector. Time: 1 week.
  • Rehoboth Beach: To apply for an STR permit, you'll need: Completed Rental License Application, Proof of General Liability Insurance, Delaware Business License, Contact info for local agent/manager.
Fees & costs1 rule
  • Rehoboth Beach charges a registration fee of $275 (annual).
Taxes3 rules
  • Rehoboth Beach charges a Accommodations Tax of 7%. This applies to stays under 120 days. Hosts are responsible for collecting and remitting this tax. Note: Hosts are responsible for quarterly remittance to the City of Rehoboth Beach; platforms do not currently collect local rental tax automatically.
Limits & restrictions7 rules
  • Rehoboth Beach: You are in the City of Rehoboth Beach jurisdiction only if you are within the incorporated town limits; areas with 'Rehoboth Beach' addresses outside the city follow Sussex County rules.
  • Rehoboth Beach, DE occupancy calculation: Two persons per bedroom plus two additional persons. Count your bedrooms to determine your max guest limit.
Safety requirements1 rule
  • Rehoboth Beach requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Egress windows must be compliant, Working telephone line for emergency use.
Penalties5 rules
  • Rehoboth Beach, DE: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
  • Rehoboth Beach: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
  • Rehoboth Beach, DE: Serious or repeated STR violations can result in criminal charges, not just fines.
Exemptions3 rules
  • Rehoboth Beach, DE: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
  • Rehoboth Beach exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

Frequently asked questions

5 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Researched & verified by Learn STR at GoStudioM

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