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Ocean City

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Ocean City, MD

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STR Regulations for Ocean City, Maryland

Executive Overview: STR Status in Ocean City, MD

Short-term rentals are explicitly allowed in Ocean City, Maryland, with specific regulatory frameworks in place. The town operates a comprehensive licensing system that distinguishes between long-term rentals (31+ consecutive days) and short-term rentals (30 consecutive days or less). As of 2025, Ocean City has implemented targeted regulations while maintaining overall permit access, though new applications face restrictions in certain residential districts.

What do Airbnb hosts actually earn in Ocean City?

Ocean City hosts earn a median $29,704/year with $330 ADR and 52% occupancy.

Top performers pull in $43,958+ per year.

See the full Ocean City market breakdown

How to Start a Short-Term Rental Business in Ocean City

Step-by-Step Process

  1. Verify Zoning Eligibility

    • Confirm your property's zoning district using the town's online zoning map
    • Note: Properties in R-1 Single Family Residential and MH Mobile Home districts face an 11-month moratorium on new STR licenses (until December 2025)

  2. Designate Local Agent Requirements

    • Critical Requirement: Non-local owners (60+ miles from Ocean City) must designate a local agent responsible for:
      • Service of legal notices
      • Property issue response within 60 minutes
      • Code violation handling
      • Emergency repairs

  3. Complete Application Process

    • Submit annual rental license application with property details
    • Include bedroom count and parking space information
    • Provide agent contact information with 60-minute response commitment

  4. Payment and Inspection

    • Pay applicable fees (see fee structure below)
    • Consent to property inspections during reasonable hours
    • Complete safety compliance requirements

Required Documents, Permits, Licenses, and Guidelines

Primary Licensing Requirements

Annual Rental License (All Properties)

  • Base Fee: $196.00
  • Required for any property rented for any length of time
  • Must be obtained before operation

Short-Term Rental Supplemental License

  • Additional Fee: $50.00
  • Required for properties rented 30 consecutive days or fewer
  • Total Annual Cost: $246.00

Noise Control Permit (NCP)

  • Included in base fee
  • Required for all rental properties

Compliance Documents

  • Property ownership documentation
  • Local agent designation (if applicable)
  • Bedroom and parking space verification
  • Fire safety compliance certification
  • Occupancy limit declarations

Specific Regulations for Short-Term Rentals

Zoning District Restrictions

R-1 Single Family Residential and MH Mobile Home Districts:

  • 11-month moratorium on new STR licenses (through December 2025)
  • Exception process available for properties impacted by owner death
  • Existing 2024 license holders may renew for 2025

All Other Districts:

  • Unrestricted STR operation under existing regulations
  • No moratoria in effect

Occupancy Limitations

R-1 and MH Districts:

  • Maximum: 2 persons per bedroom + 2 additional persons
  • Children 10 and younger excluded from calculations
  • Enforced midnight to 7:00 AM

All Other Districts:

  • Minimum bedroom size: 70 square feet
  • 40 square feet per person in bedrooms
  • 10 square feet credit for closet space

Operational Requirements

Contact and Response Standards:

  • 24/7 local contact availability
  • 60-minute response time for property issues
  • Authorized to handle code violations

Safety and Compliance:

  • Annual inspection requirements
  • Fire safety equipment compliance
  • Accurate advertising requirements
  • No unauthorized bedroom conversions

Business Registration:

  • State sales tax registration required
  • Worcester County room tax registration
  • Compliance with state accommodations provider requirements

Enforcement and Penalties

  • Inspections conducted on five-year rotation
  • License suspension or revocation for violations
  • Code enforcement for occupancy and safety violations
  • Platform verification requirements for listing services

Contact Information for Local Authorities

Town of Ocean City - Division of Rental Housing

Town of Ocean City - Finance Department

Worcester County Room Tax Registration

Maryland Comptroller - Business Registration

Source Links

Primary Regulatory Sources

Fee Structure and Forms

Recent Regulatory Updates

This guide reflects current regulations as of 2025. Investors should verify current requirements before making investment decisions, as local ordinances and state regulations are subject to change.

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Ocean City

Market Saturation Score

036912
Moderate Saturation
6/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Ocean City Market Analysis

Photos of Ocean City

Overview of Ocean City

Ocean City is a beachside resort town situated on a long, narrow barrier island along Maryland's Atlantic coast in Worcester County. With a year-round population of roughly 7,000 residents, the town swells dramatically during the summer months as visitors pour in for the sand, surf, and salty air. It is best known for its lively boardwalk culture and as a popular family vacation destination on the Mid-Atlantic, and it also serves as the northern gateway to the wild beaches of Assateague Island. The resort lies about 140 miles east of Baltimore, a drive of roughly two and a half hours, and a similar distance southeast of Washington, D.C., making it one of the closest oceanfront escapes for the densely populated Mid-Atlantic corridor.

The Ocean City Boardwalk is the town's signature attraction, stretching for nearly three miles along the oceanfront and packed with candy shops, pizza stands, amusement rides, arcades, and restaurants that have been drawing families for generations. Steps away from the sand, it functions as both a strolling promenade and a small amusement district, with landmark spots such as Trimper's Rides, one of the oldest continuously operating carousels in the country, still drawing crowds. The boardwalk is essentially the social center of the town and the reason most first-time visitors return year after year.

Just to the south of Ocean City, Assateague Island National Seashore offers a striking contrast to the busy resort. About a fifteen-minute drive across the inlet, this protected barrier island is famous for its herds of wild ponies that wander the dunes and maritime forests, as well as for its wide, uncrowded beaches, marsh trails, and excellent surf fishing. Visitors can easily spend a full day switching from the buzz of the boardwalk to the quiet, windswept landscape of the seashore without ever straying far from town.

A short drive inland, the small town of Berlin has earned recognition as one of the region's most pleasant historic Main Street communities. Its preserved downtown features antique shops, art galleries, and cafes set in 19th-century buildings, giving Ocean City visitors an easy and atmospheric change of pace from the beach. Closer to the sand, the Ocean City Life-Saving Station Museum, located on the south end of the boardwalk, traces the town's history from its early days as a shipwreck-prone stretch of coast through its rise as a resort.

With its mix of classic seaside entertainment, nearby protected natural areas, and easy access from major Mid-Atlantic population centers, Ocean City offers short-term rental owners a dependable, well-established tourism base. Guests can choose between the high-energy boardwalk experience, the calm of a bayside condo, or a quieter stay near the inlet, making the town unusually versatile for a market of its size.

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