Overview: Are Short-Term Rentals Allowed in Rockville, Maryland?

Short-term rentals are currently in a regulatory transition in Rockville, Maryland. As of the latest information, Rockville is one of several Montgomery County municipalities where the county's short-term rental regulations do not apply. The City of Rockville is actively developing its own short-term rental regulations, with proposed ordinances under consideration that would establish licensing requirements, occupancy limits, and tax obligations.

For properties located within Rockville city limits, you must follow Rockville's forthcoming regulations rather than Montgomery County's rules. For properties in unincorporated Montgomery County (areas outside Rockville city limits), Montgomery County's short-term rental regulations apply.

How to Start a Short-Term Rental Business in Rockville

For Properties Within Rockville City Limits:

Current Status: Rockville is developing its own short-term rental regulations. The Mayor and Council are considering:

• Registration requirements for landlords
• Application of the city's hotel tax
• Licensing and regular safety inspections
• Limitations on rental days per year
• Limits on the number of guests

Action Steps:

1. Monitor Rockville's city code amendments at www.rockvillemd.gov/AgendaCenter
2. Contact the zoning administrator for updates: Jim Wasilak at 240-314-8211 or jwasilak@rockvillemd.gov
3. Prepare for compliance with anticipated regulations including registration, licensing, and tax obligations

For Properties in Unincorporated Montgomery County (Outside Rockville):

Step 1: Obtain Required Tax IDs

• Apply for Maryland State Sales & Use Tax ID: Maryland Sales & Use Tax ID
• Register for Montgomery County's Room Rental–Transient Tax (7% rate): Room Rental–Transient Tax Application

Step 2: Apply for Short-Term Rental License

• Submit Short-Term Residential License Registration and Renewal Form: Apply for License
• License Fee: $325 per year (valid for 12 months)
• Include license number on all rental advertisements

Step 3: Ensure Compliance

• Notify neighbors as required
• Post house rules and emergency contact information
• Install functional smoke and carbon monoxide detectors

Required Documents, Permits, Licenses, and Guidelines

Montgomery County Requirements (for unincorporated areas):

Licensing:

• Short-Term Residential Rental License ($325/year)
• Maryland State Sales & Use Tax ID
• Room Rental–Transient Tax registration (7%)

Required Documentation:

• Property ownership verification
• Maryland State Tax ID
• Guest registry (maintained for inspection)
• Emergency contact information posted inside rental
• Proof of insurance (recommended)
• Zoning compliance certification

Safety Requirements:

• Functional smoke detectors in all units
• Carbon monoxide detectors in units using natural gas
• Operational sanitation facilities
• Posted house rules and emergency contacts

Specific Regulations for Short-Term Rentals

Montgomery County Regulations (Unincorporated Areas):

Occupancy Limits:

• Maximum of 6 overnight guests total
• Maximum of 2 overnight guests per bedroom
• Applies to all guests regardless of age

Primary Residence Requirement:

• Property must be owner's primary residence
• Owner-authorized residents no longer permitted to apply

Day Limitations:

• Non-hosted stays (owner not present): Maximum 120 days per calendar year
• Hosted stays (owner present): No day limit

Prohibited Uses:

• Accessory Dwelling Units (ADUs) cannot be used for short-term rentals
• Properties in certain municipalities (see exemptions below)

Parking:

• One off-street parking space required per rental contract
• Exception if online listing explicitly prohibits vehicle parking

Rockville Municipal Regulations (In Development):

The City of Rockville is considering regulations that would:

• Require registration and licensing
• Apply city hotel tax
• Implement safety inspections
• Establish occupancy limits (currently allows up to two non-family members plus resident family)
• Limit rental days per year

State of Maryland Requirements:

Tax Obligations:

• Maryland State Sales & Use Tax (varies by jurisdiction)
• Local transient occupancy taxes

Municipal Exemptions:

Montgomery County's short-term rental regulations do NOT apply in:

• Chevy Chase Village
• Town of Chevy Chase
• Town of Chevy Chase View
• City of Gaithersburg
• City of Rockville
• Town of Kensington
• Town of Laytonsville
• Town of Poolesville
• Town of Somerset
• Town of Washington Grove
• Town of Garrett Park

Important: Always verify local municipal regulations as they may differ significantly from county rules.

Contact Information

Montgomery County Department of Housing and Community Affairs (DHCA):

• Address: 2425 Reedie Drive, 7th Floor, Wheaton, MD 20902
• Phone: 240-777-0311
• Hours: 7:30am - 4pm, Monday-Friday
• Website: Montgomery County DHCA

City of Rockville:

• Zoning Administrator: Jim Wasilak
• Phone: 240-314-8211
• Email: jwasilak@rockvillemd.gov
• Website: City of Rockville
• Address: 111 Maryland Ave, Rockville, MD 20850

Maryland State Tax Administration:

• Website: Maryland Sales & Use Tax ID

Montgomery County Finance Department (Room Tax):

• Website: Room Rental–Transient Tax Application

General Information:

• MC311 (Montgomery County): 240-777-0311
• Online: Montgomery County MC311

Source Links

• Montgomery County DPS - Short-Term Rentals
• Montgomery County DHCA - Short-Term Rental Licensing
• Airbnb Help - Montgomery County, MD
• Rockville News - Short-Term Rental Regulations
• Montgomery Planning Board - ZTA 23-04 & Bill 22-23
• Montgomery County Code Chapter 54
• Maryland Sales & Use Tax ID
• Room Rental–Transient Tax Application

Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Regulations may change, and investors should consult with local authorities and legal professionals for the most current requirements.