What zoning rules apply to STRs in Chapel Hill?

Dedicated STRs (investor-owned) are strictly prohibited in all residential-only zones.

Are there rental limits in Chapel Hill?

A 3% limit or 2-unit cap (whichever is greater) applies to the number of STRs allowed in any single multi-family development.

What should Chapel Hill hosts know about the 183-day residency rule is?

The 183-day residency rule is strictly enforced to distinguish between owner-occupied and commercial operations.

What should Chapel Hill hosts know about parking requires one dedicated off-street?

Parking requires one dedicated off-street space per bedroom plus one additional space.

Chapel Hill

Prohibited

STRs Allowed

North CarolinaLast updated: February 10, 2026

Baseline Verification

100%

Basic verification complete

Verified: Feb 7, 2026

Summary

Chapel Hill requires permits for all short-term rentals, allowing owner-occupied units in all residential zones while restricting investor-owned 'Dedicated STRs' to commercial and mixed-use districts.

Restriction Level

🚫

Prohibited

Score: 100 (lenient)

Why this classification:

•Banned in all/most residential zones
•Standard permit fee: $150
•Permit required
•Reporting required
•No night cap
•No primary residence requirement
•Tenants can host

In Plain English

If you live in your home for at least 183 days a year, you can rent out a room or the whole house as a short-term rental in any neighborhood after getting a $150 permit. However, if you don't live there (an investor-owned property), you can only operate in specific commercial or high-density zones. You must also collect and pay a total of 13.5% in combined sales and occupancy taxes.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$150

Processing Time

2-4 weeks

4 Things Hosts Often Miss

1.Dedicated STRs (investor-owned) are strictly prohibited in all residential-only zones.
2.A 3% limit or 2-unit cap (whichever is greater) applies to the number of STRs allowed in any single multi-family development.
3.The 183-day residency rule is strictly enforced to distinguish between owner-occupied and commercial operations.
4.Parking requires one dedicated off-street space per bedroom plus one additional space.

Regulation Details

Eligibility(6)

•Chapel Hill allows tenants to host STRs. Requirements: Requires written owner consent as part of the permit application process.
•Chapel Hill allows STRs in the following property types: Single Family, Condo, Townhouse, Accessory Dwelling Unit.
•Chapel Hill does NOT require the property to be a primary residence. Investment properties are allowed.

Requirements(12)

•Chapel Hill: The 183-day residency rule is strictly enforced to distinguish between owner-occupied and commercial operations.
•Chapel Hill: Tenants CAN host STRs but must get written landlord approval first. Keep documentation.
•Chapel Hill: You must display your permit/registration number on your Airbnb listing.

Application Process(7)

•Chapel Hill: To apply for an STR permit, you'll need: Proof of Residency, Site Plan/Floor Plan, Self-Certification Safety Checklist, Parking Plan.

Fees & Costs(1)

•Chapel Hill charges a registration fee of $150 (one_time).

Taxes(3)

•Orange County charges a Orange County Occupancy Tax of 0.03%. Platforms like Airbnb collect and remit this tax.
•Chapel Hill charges a Town Occupancy Tax of 0.03%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO generally collect and remit the 3% Town and 3% County taxes, but hosts must still register and file returns.

Limits & Restrictions(5)

•Chapel Hill limits stays to a maximum of 29 nights.
•Chapel Hill occupancy calculation: 2 per bedroom plus 2 additional guests. Count your bedrooms to determine your max guest limit.
•Chapel Hill: A 3% limit or 2-unit cap (whichever is greater) applies to the number of STRs allowed in any single multi-family development.

Safety Requirements(1)

•Chapel Hill requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, posted emergency contact, Self-certification of safety standards, Egress windows in all sleeping rooms, Human Trafficking Awareness Training (effective 2025).

Penalties(3)

•Chapel Hill enforces the following penalties for STR violations: First offense: $100 fine. Second offense: $250 fine. Third offense: $500 fine. Permit may be revoked for violations. Criminal penalties may apply.
•Chapel Hill: Serious or repeated STR violations can result in criminal charges, not just fines.

Exemptions(2)

•Chapel Hill: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Chapel Hill exempts the following from STR regulations: long-term rentals (30+ days), Hotels, Bed and Breakfasts, Non-profit educational lodging.

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Disclaimer

Regulatory information is AI-researched 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.

Other North Carolina Markets

Cary

North Carolina

Permissive

Cary does not have a dedicated short-term rental ordinance and does not require a specific STR permit or city-level registration. Hosts must comply with general town ordinances regarding noise, parking, and minimum housing standards. A 6% Room Occupancy Tax is collected by Wake County, which is typically handled automatically by major platforms like Airbnb.

0.1% total tax

Hyde County

North Carolina

Permissive

Hyde County does not currently have a dedicated short-term rental ordinance or registration requirement for unincorporated areas, including Ocracoke Island. However, all hosts are required to remit a 5% Occupancy Tax to the county finance department on a monthly basis.

0.1% total tax

Wilmington

North Carolina

Permissive

Following a 2022 North Carolina Court of Appeals ruling, Wilmington no longer requires short-term rental registration or limits the number/density of rentals. Hosts must still comply with zoning standards, parking requirements, and collect a total of 13% in taxes (6% Room Occupancy Tax + 7% State Sales Tax).

0.1% total tax

Cullowhee

North Carolina

Moderate

Short-term rentals in Cullowhee are permitted and regulated by Jackson County, primarily requiring registration for occupancy tax collection.

Permit required

0.1% total tax

Chapel Hill

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(6)

Requirements(12)

Application Process(7)

Fees & Costs(1)

Taxes(3)

Limits & Restrictions(5)

Safety Requirements(1)

Penalties(3)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

Related Content

Other North Carolina Markets

Cary

Hyde County

Wilmington

Cullowhee

Chapel Hill

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Chapel Hill?

2What is the TOT tax rate in Chapel Hill?

3Are there rental night limits in Chapel Hill?

4What are the penalties for non-compliance in Chapel Hill?

Related Content

Other North Carolina Markets

Cary

Hyde County

Wilmington

Cullowhee