Rental Rules by City / Free checklist / Ocean City, MD

Is my Ocean City, MD rental legal? Checklist

Worcester County, Maryland · Based on our Ocean City, MD page, last verified Oct 24, 2026 · Print

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📋 The Basics

Can I rent my place short-term here?: Yes, with a permit
Do I need a permit?: Yes. Any rental needs a yearly town rental license, plus a short-term add-on for stays of 30 days or less.
What taxes do I pay?: Total about 12%. Check your Airbnb payout report to see which ones Airbnb collects; you pay the rest yourself.

Your 3 steps to be legal

Apply by mail or in person for the rental license and Noise Control Permit.
Schedule the rental inspection within 30 days.
Register for the Worcester County room tax.

⚠️ Biggest risk: Renting without a license: up to $5,000 a day.

Words confusing? See the glossary. Details and official sources are below.

This is the general rule for Ocean City, MD. Does your address qualify?

The free info covers the city as a whole. Your property can still be different: zoning can change from one street to the next, and an HOA or condo ban can stop rentals even where the city allows them. The penalties Ocean City, MD lists are on the Ocean City, MD page.

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Whether your exact address and zone allow short-term rentals
A check of HOA / condo rental restrictions to look for
Which permits and tax accounts you personally need
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Permit / license / registration

Rental license: Any rental of any length needs an annual Town rental license and Noise Control Permit; stays of 30 days or less also need a Short-Term Rental Housing Unit License (Town Code Sec. 14-174).
Inspection: New licenses must schedule a rental inspection within 30 days; an emergency contact must respond within 60 minutes.
Applying: New applications by mail or in person only.

Zoning, where allowed & definitions

Not listed on our page: Verify with the city/county before renting.

Night limits, minimum stays & occupancy

Not listed on our page: Verify with the city/county before renting.

Fees, penalties & pending changes

Fees: $196 + $50 short-term add-on = $246 for a condo or house (Resolution 2025-01).
Penalties: Renting without a license: up to $5,000 per day.

Taxes & who collects them

Register / account for Maryland sales tax (6%)
Register / account for Worcester County room tax (6%)
What Airbnb collects: Confirm in your payouts that Airbnb collects the new 6% Worcester room tax (not the old 5%); file any shortfall.
Vrbo and direct bookings: check which taxes Vrbo collects in your area; for direct bookings you collect and remit all of them yourself.

Total rate: 12%. County room tax rose to 6% on Jan 1, 2026; reports due the 21st monthly to the Worcester County Treasurer. Calculate.

HOA / condo check

Read your declaration, bylaws and rules for rental bans, minimum terms, caps and approval requirements.
Get any association sign-off or approval letter your city or association requires.
See our HOA & condo guide.

Insurance

Confirm your homeowner/condo policy covers short-term rental use, or add a short-term rental policy. Platform host protection is not a substitute for insurance.
Ask your association whether it requires specific liability coverage.

Deadlines

Renew city/county permits or registrations on their schedule (often annually): confirm the date with the office that issued it.
File state and local lodging tax returns on the schedule your tax office assigns.

Official sources

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Not legal or tax advice. Last verified Oct 24, 2026. Rules and rates change: confirm with the official sources linked before you rent or file.