Do I need a permit for short-term rentals in Ocean City, MD?

**Yes**, Ocean City requires a Rental License (Residential) for all short-term rentals. You need to obtain this license annually to legally operate your rental. Make sure to also obtain a mandatory Noise Control Permit. Check the Ocean City government website for the most updated application process and requirements.

What is the TOT tax rate in Ocean City, MD?

**5% is the TOT** (Transient Occupancy Tax) rate for short-term rentals in Ocean City. You are required to collect this tax from your guests. In addition to the TOT, you must also collect 6% Maryland Sales Tax. Ensure you remit these taxes to the appropriate authorities as required.

How much does an STR permit cost in Ocean City, MD?

**$191 is the annual** fee for the required Rental License (Residential) in Ocean City. You must renew this license each year to continue operating your short-term rental legally. This fee covers the administrative costs associated with regulating short-term rentals in the city and helps ensure compliance.

Are short-term rentals allowed in Ocean City, MD?

**Yes**, short-term rentals are generally allowed in Ocean City, MD, provided you comply with local regulations. This includes obtaining the required Rental License and Noise Control Permit. Ensure your property meets all safety and zoning requirements. Failure to comply can result in fines and penalties.

Ocean City, MD Short-Term Rental Laws

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Regulation Details

Eligibility(6)

•Ocean City, MD: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Ocean City allows STRs in the following property types: Single-family, Townhouse, Condo, Apartment.
•Ocean City does NOT require the property to be a primary residence. Investment properties are allowed.

Requirements(17)

•Ocean City: You MUST have a separate Noise Control Permit even if you only have one rental unit.
•Ocean City STR warning: Fines for noise violations are significantly higher than standard administrative fines.
•Ocean City, MD has different permit classes: R-1 (One Family), R-2 (Two Family), R-3 (Multi-Family). Hosted vs. unhosted rentals have different requirements.

Application Process(10)

•Ocean City extended permit requirement: Fee includes $166 Rental License and $25 Noise Control Permit
•Ocean City, MD extended permit requirement: Fee includes $166 Rental License and $25 Noise Control Permit

Fees & Costs(2)

•Ocean City charges a registration fee of $191 (annual).
•Ocean City: The Rental License fee of $191 includes the $25 noise permit fee and is due annually by May 31st.

Taxes(4)

•Ocean City: Ocean City Room Tax applies to all stays under 4 months (120 days).
•Ocean City charges a Ocean City Room Tax of 5%. This applies to stays under 120 days. Platforms like Airbnb collect and remit this tax. Note: Platforms collect but hosts must still file 'Zero' returns to the city.
•Maryland has a state sales tax of 6% that applies to STR rentals.

Limits & Restrictions(3)

•Ocean City occupancy calculation: Limited by building code and septic capacity if applicable. Count your bedrooms to determine your max guest limit.
•Ocean City, MD occupancy calculation: Limited by building code and septic capacity if applicable. Count your bedrooms to determine your max guest limit.
•Ocean City enforces quiet hours: 12:00 AM to 7:00 AM.

Safety Requirements(2)

•Ocean City: Every rental unit is subject to periodic inspections by the Fire Marshal.
•Ocean City requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Carbon Monoxide detector required in units with fuel-burning appliances.

Penalties(4)

•Ocean City enforces the following penalties for STR violations: First offense: $500 fine. Second offense: $1,000 fine. Third offense: License revocation. Daily fine: $100 - $1,000. Permit may be revoked for violations.
•Ocean City, MD: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions(3)

•Ocean City exempts the following from STR regulations: long-term rentals (30+ days), extended stays.
•Ocean City: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

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