Do I need a permit for short-term rentals in Cape Charles?

**Yes**, Cape Charles requires a Short-Term Rental Permit for all rentals. You need to apply for a Town STR Permit, which costs $100 annually. Additionally, you must also obtain a Town Business License to legally operate a short-term rental within town limits. Operating without the permit may result in fines.

What is the TOT tax rate in Cape Charles?

**4.7%** is the Transient Occupancy Tax (TOT) rate for short-term rentals in Cape Charles. You need to collect this tax from your guests and remit it to the town government on a quarterly basis. Even if Airbnb collects taxes, you must still file quarterly forms showing $0 due if applicable.

Are short-term rentals allowed in Cape Charles?

**Yes**, short-term rentals are generally allowed in Cape Charles, but they are subject to regulations. You need to obtain the required permits and licenses, adhere to occupancy limits (2 per bedroom plus 2), and maintain $1 million in liability insurance. Failure to comply with these rules may result in penalties.

How much does an STR permit cost in Cape Charles?

**$100** is the annual fee for a Short-Term Rental Permit in Cape Charles. In addition to the STR permit, you are also required to obtain a Town Business License to operate a short-term rental legally. Make sure to renew both permits annually to maintain compliance with local regulations.

Can renters host on Airbnb in Cape Charles?

**No**, the information available does not specify whether renters can host on Airbnb in Cape Charles. You should check with the town planning and zoning department for clarification on the latest regulations regarding tenant hosting. Ensure you understand all requirements before listing a rental property.

Cape Charles, VA Short-Term Rental... | Learn STR by GoStudioM

Baseline Verification

60%

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Verified: Jan 30, 2026

4 Official Sources

Summary

Cape Charles requires all short-term rental operators to obtain both a town business license and a specific STR permit, subject to an annual $100 fee. The town enforces strict occupancy limits (2 per bedroom + 2) and requires a $1M liability insurance policy. Hosts must remit 4.7% in local Transient Occupancy Tax in addition to state sales taxes.

Restriction Level

⚠️

Moderate

Score: 18 (restrictive)

Why this classification:

•Tenants cannot host
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

To host an Airbnb in Cape Charles, you must apply for a Town STR Permit and a Business License. You don't need to live in the home to rent it out, but you must follow strict occupancy rules, usually limited to 2 people per bedroom plus 2 extra guests. You are required to have $1 million in liability insurance and must post emergency contact info and exit maps inside the house. Even if Airbnb collects your taxes, you still have to file quarterly tax forms with the Town showing $0 due.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$100

7 Things Hosts Often Miss

1.Verify your property is within the Town Limits; 'Cape Charles' mailing addresses in the county follow different rules.
2.Accessory Dwellings (guest houses) cannot be used as STRs unless they were legally established before the current ordinance.
3.Occupancy is strictly capped at 2 per bedroom plus 2 additional people; exceeding this can lead to $500 daily fines.
4.You must file TOT returns every quarter even if you had zero bookings or if the platform collected the tax.
5.Proof of $1 million liability insurance is mandatory and must be submitted with the initial application.
6.Permits must be renewed annually; they do not automatically roll over.
7.Quiet hours (10 PM - 7 AM) are strictly enforced and must be included in your rental agreement.

Regulation Details

Eligibility(7)

•Cape Charles: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Cape Charles allows STRs in the following property types: Dwellings, Accessory Dwelling Units (ADUs) per 2026 resolution.
•Cape Charles: Simultaneous rentals under separate contracts in the same house are strictly prohibited.

Requirements(17)

•Cape Charles STR warning: The tax isn't just a percentage; there is an additional $4.00 flat fee charged for every night booked.
•Cape Charles STR warning: Adjacent neighbors must be notified of your permit application and annual renewals.
•Cape Charles STR warning: A 24/7 local contact person must be on file and available to the Town (though their info is not given directly to neighbors).

Application Process(8)

•Cape Charles STR permit - Step 3: Submit STR Zoning Permit. Apply through the Cape Charles STR Customer Portal. Include site plans, parking photos, and floor plans. Required documents: Site Plan, Photos, Floor Plan, Owner Affidavit. Time: 2-4 weeks. Cost: 150.

Fees & Costs(1)

•Cape Charles charges a registration fee of $150 (annual). Extended/additional fee: $375 (Combined annual fee mentioned in some reports; $150 specifically for the registration permit.).

Taxes(2)

•Virginia has a state sales tax of 5.3% that applies to STR rentals.
•Cape Charles charges a Transient Occupancy Tax of 4%. This applies to stays under 30 days. Note: A flat fee of $4.00 per night applies in addition to the 4% percentage rate for STRs.

Limits & Restrictions(8)

•Cape Charles limits STRs to a maximum of 10 guests. Formula: 2 persons per bedroom plus an additional 2 people; maximum 10 without CUP.
•Cape Charles: The tax isn't just a percentage; there is an additional $4.00 flat fee charged for every night booked.
•Cape Charles: Maximum occupancy is strictly enforced at 2 people per bedroom + 2, capped at 10 total without a special permit.

Safety Requirements(1)

•Cape Charles requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Windows must meet egress size requirements (at least 5sq ft first floor, 5.7sq ft second floor), No locking bars on egress windows, Conspicuous posting of 24/7 contact information.

Penalties(2)

•Cape Charles enforces the following penalties for STR violations: First offense: Notice of violation and requirement to cure. Second offense: Fines per zoning violation schedule. Third offense: Permit revocation. Daily fine: Varies by zoning violation type. Permit may be revoked for violations.

Exemptions(2)

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

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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.

Cape Charles

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Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

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Regulation Details

Eligibility(7)

Requirements(17)

Application Process(8)

Fees & Costs(1)

Taxes(2)

Limits & Restrictions(8)

Safety Requirements(1)

Penalties(2)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Cape Charles

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 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 Cape Charles?

2What is the TOT tax rate in Cape Charles?

3Are short-term rentals allowed in Cape Charles?

4How much does an STR permit cost in Cape Charles?

5Can renters host on Airbnb in Cape Charles?

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Arlington

Harrisonburg

Herndon

Richmond