Hagerstown, Maryland Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Hagerstown, MD?

YES — Short-term rentals are explicitly allowed in Hagerstown, MD, but under a comprehensive regulatory framework that requires licensing, inspections, and ongoing compliance. The City of Hagerstown approved its lodging facilities licensing program on June 20, 2023, which specifically includes Short-Term Rentals as a defined transient housing type. Additionally, Washington County has its own ordinances governing STRs that apply to unincorporated areas.

What do Airbnb hosts actually earn in Hagerstown?

Hagerstown hosts earn a median $22,712/year with $135 ADR and 63% occupancy.

Top performers pull in $34,171+ per year.

See the full Hagerstown market breakdown

How to Start a Short-Term Rental Business in Hagerstown

Step 1: Determine Zoning Eligibility

City of Hagerstown: STRs are permitted through the city's licensing program
Washington County: STRs are allowed in all residential districts by special exception only; in rural areas, they are principally permitted uses

Step 2: Complete the Licensing Process

Apply for a Lodging Facilities License through the City of Hagerstown's Planning and Code Administration Department
Submit required documentation (see permits section below)
Pay applicable licensing fees ($150-$300 annually depending on property size)
Pass required safety inspections
Complete mandatory training programs

Step 3: Obtain Insurance

Minimum $1 million liability insurance coverage required
Maintain current insurance documentation for licensing renewal

Step 4: Register for Tax Collection

Collect and remit Maryland state sales tax (6%)
Collect and remit Washington County hotel/motel tax (3%)
Register with Maryland Comptroller's office for quarterly tax filing

Step 5: Operational Setup

Install required safety equipment (smoke detectors, CO detectors)
Establish guest registry system
Post required contact information in units
Implement parking arrangements meeting requirements

Required Documents, Permits, Licenses, and Guidelines

Required Licenses

Lodging Facilities License (City of Hagerstown)
- Application through Planning and Code Administration
- Annual renewal required
- License number must be displayed in all listings

Required Documents

Proof of property ownership
Liability insurance documentation ($1 million minimum)
Detailed floor plan of the property
Parking plan demonstrating compliance with space requirements
Guest registry system and procedures

Required Inspections

Short-Term Rentals: Triennial inspections by Planning and Code Administration Department and Hagerstown Fire Department
Inspections cover all exterior and interior areas
Properties must meet current building and fire safety codes

Training Requirements

Annual human trafficking awareness training (required for all owners, managers, and employees)
- Must be approved by Governor's Office of Crime Prevention, Youth, and Victim Services
- Approved programs include:
  - ECPAT USA: "Your Role in Preventing Human Trafficking: Recognize the Signs"
  - BEST: "Inhospitable to Human Trafficking"
  - Marriott Corporation: "Recognize and Respond: Addressing Human Trafficking in the Hospitality Industry"
Overdose Response Program Training (provided by Washington County Health Department)
- Contact: 240-313-3365 to schedule

Operational Guidelines

No hourly charges permitted
Maximum two rentals per 24-hour period per unit
No illegal activities permitted on premises
Mandatory posting of Planning and Code Administration Department and Hagerstown Fire Department contact information

Specific Regulations by Jurisdiction

City of Hagerstown Regulations

Definition: "Residential rental unit or room of a dwelling unit for a fee less than 30 consecutive days through online sites such as Airbnb, Flipkey, Home Away and Vacation Rental By Owner (VRBO)"
Inspection Frequency: Triennial for Short-Term Rentals
Zoning: Permitted through licensing program (specific zoning restrictions may apply)
Occupancy: Maximum 2 guests per bedroom plus 2 additional guests
Parking: 1 space per bedroom required; overflow parking on streets prohibited
Quiet Hours: Enforced 10 PM - 7 AM
License Display: License number must be prominently displayed in all rental listings

Washington County Regulations (Unincorporated Areas)

Definition: "Non-owner-occupied residential structure that provides temporary lodging to transient guests for compensation. Proprietors may rent all or a portion of the structure. Such uses shall not exceed rental of individual rooms or the entire structure for more than 30 consecutive days per client/reservation"
Zoning:
- All residential districts: Special exception use only
- Rural areas: Principally permitted use
Parking: Must provide off-street parking per Article 22 Division 1 requirements
Maximum Stay: 30 consecutive days maximum per client/reservation
Signage: Prohibited if requiring a zoning permit

State of Maryland Regulations

Sales Tax: 6% on all STR rental income
Hotel/Motel Tax: Additional 3% local tax
Quarterly Filing: Required through Maryland Comptroller's office
Annual Reporting: Properties exceeding $25,000 in rental income must report to city

Contact Information

City of Hagerstown - Planning and Code Administration

Address: City Hall, 1 E. Franklin St., Hagerstown, MD 21740
Phone: 301-739-8577
Office Hours: Monday-Friday, 8:00 AM - 4:00 PM (Tuesday: 8:00 AM - 3:00 PM)
Website: www.hagerstownmd.org/
Services: Licensing applications, inspections, compliance inquiries

Hagerstown Fire Department

Phone: Contact through Planning and Code Administration for STR inspections
Inspection: Required for all STR licensing

Washington County Government

Address: 100 West Washington Street, Hagerstown, MD 21740
Phone: (240) 313-2776
Office Hours: Monday-Friday, 7:30 a.m. – 4:30 p.m.
TTY: 1-800-735-2258
Email: [email protected] (Public Relations & Marketing)
Website: www.washco-md.net/

Maryland Comptroller's Office (Tax Registration)

Website: www.marylandtaxes.gov/
Services: Sales tax registration and quarterly filing for STR operators

Washington County Health Department (Training)

Phone: 240-313-3365 (for Overdose Response Program Training scheduling)

Source Links

Washington County STR Ordinance Update: www.washco-md.net/news/board-of-county-commissioners-approve-update-to-ordinance-for-short-term-residential-rentals/
City of Hagerstown Lodging Facilities Licensing: www.investhagerstown.org/1792/Lodging-Facilities-Licensing
City of Hagerstown Official Website: www.hagerstownmd.org/
Washington County Government Website: www.washco-md.net/
Maryland Comptroller's Office: www.marylandtaxes.gov/

Key Regulatory Notes for Investors:

The City's program is relatively new (approved June 2023), so expect continued evolution
Washington County's ordinance specifically addresses the "non-owner-occupied" requirement
Both jurisdictions emphasize the 30-day maximum stay requirement
Compliance costs should include licensing fees, insurance premiums, inspection costs, and mandatory training
Properties in commercial or mixed-use zones typically face fewer restrictions than residential areas

This comprehensive regulatory framework represents significant compliance requirements but provides a clear pathway for legitimate STR operations in the Hagerstown market.

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Ask the AI Advisor about Hagerstown

Hagerstown sits in Washington County in western Maryland, a city of roughly 40,000 residents that has long carried the nickname "Hub City" because of its position at the crossroads of Interstates 70 and 81. Founded in the 1730s by German colonist Jonathan Hager, the city blends frontier-era roots with the energy of a regional commercial and transportation center. It serves as a convenient gateway to Civil War battlefields, the Blue Ridge Mountains, and outdoor recreation across the tri-state area, and it lies approximately 70 miles west-northwest of Baltimore and a similar distance northwest of Washington, D.C., making it easy to reach for travelers moving through the Mid-Atlantic.

Just south of the city, Antietam National Battlefield preserves the site of the bloodiest single day in American military history, fought on September 17, 1862. The park's fields, sunken roads, and Dunker Church are interpreted through a visitor center and a self-guided auto tour, and it sits only about ten or twelve miles from downtown Hagerstown, an easy day trip for history-minded guests staying in the area.

To the east of town, [South Mountain State Park](en.wikipedia.org/wiki/South_Mountain_State_Park_(Maryland) and the adjacent Washington Monument State Park anchor a stretch of the Blue Ridge that draws hikers, picnickers, and leaf-peepers in autumn. The stone monument, completed in 1827, was the first in the country built to honor George Washington, and the surrounding trail network weaves along ridgelines with views over the Middletown Valley and the surrounding farmland.

Downtown Hagerstown forms a walkable historic core around the Public Square and City Park, where the Jonathan Hager House, a stone frontier home dating to 1739, stands as a small museum of pioneer life in the valley. Nearby, the Hagerstown Roundhouse Museum, set in a restored nineteenth-century railroad roundhouse, offers a look at the rail heritage that gave the city its "Hub City" identity, while a cluster of preserved Victorian and Italianate facades gives the district a distinct nineteenth-century character that pairs well with an evening out.

Hagerstown's combination of affordability, interstate access, and proximity to both Civil War sites and outdoor recreation makes it a practical base for short-term rentals. Guests can spend a morning on the Antietam battlefield, an afternoon hiking South Mountain, and an evening exploring a historic downtown, all within a short drive, and the city is well positioned to capture travelers bound for the Blue Ridge, the Chesapeake & Ohio Canal region, or weekend getaways from the Washington–Baltimore corridor.