Overview: Are Short-Term Rentals Allowed in Raleigh, NC?

YES, short-term rentals are explicitly allowed in Raleigh, NC. Short-term rentals are permitted as a Limited Use in specific zoning districts, including R-1, R-2, R-4, R-6, R-10, RX, OX, NX, CX, and DX. The city defines short-term rentals as dwelling units used for overnight lodging accommodations provided to guests for no longer than 30 days for compensation.

How to Start a Short-Term Rental Business in Raleigh

Step 1: Verify Zoning Compliance

Before proceeding with any applications, determine if your property is located in an approved zoning district. Use the Raleigh iMaps tool to verify your property's zoning classification. Your property must be located within one of the permitted districts: R-1, R-2, R-4, R-6, R-10, RX, OX, NX, CX, or DX.

Step 2: Prepare Required Documentation

Gather all necessary documents for your application packet:

• Complete Short-Term Rental Application (PDF format)
• Signed Owner's Affidavit
• Building layout plans (for multi-unit buildings)
• Property identification documentation

Step 3: Submit Application

Submit your complete application packet via the Permit and Development Portal. Registration is required for all users before accessing the portal.

Step 4: Await Processing and Pay Fees

After submission, the city will review your application. Permit fees are determined by the Development Fee Guide and are due when permits are issued. Annual renewal fees equal the original zoning permit fee amount.

Step 5: Display Registration Number

Once approved, prominently display your zoning permit number on all advertisements and the property itself.

Step 6: Annual Renewal

Remember that zoning permits must be renewed annually, with renewal fees equal to the original permit cost.

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Licenses

• Zoning Permit: Required from the City of Raleigh (must be renewed annually)
• State and Local Tax Registration: Required for collection and remittance of occupancy taxes

Required Documentation

• Short-Term Rental Application: Complete PDF packet submitted via the Permit and Development Portal
• Owner's Affidavit: Required document for all applications
• Property Ownership Verification: Documentation proving ownership
• Building Layout Plans: Required for multi-unit buildings showing all floors and units
• Fire and Building Code Compliance Documentation: Proof of compliance with applicable codes

For Multi-Unit Buildings

• Complete building/layout documentation of all floors/units
• Clear labeling of units designated for short-term rental use
• Compliance with the 25% rule (no more than 25% or two units, whichever is greater)

Ongoing Compliance Documentation

• Guest Registry: Maintain a list of all guests for a minimum of three years
• Tax Records: Keep detailed records of all rental income and tax obligations
• Insurance Documentation: Maintain appropriate property and liability coverage

Specific Regulations for Short-Term Rentals in Raleigh

Zoning and Location Requirements

• Permitted Zoning Districts: R-1, R-2, R-4, R-6, R-10, RX, OX, NX, CX, DX
• Building Limits: For multi-unit buildings, maximum of 25% or two dwelling units (whichever is greater) may be used for short-term rental

Operational Restrictions

Kitchen and Cooking Facilities

• Cooking facilities are not permitted in any bedroom
• Prohibited cooking equipment includes:
  • Refrigerators exceeding seven cubic feet
  • Stovetop ranges operating on 220-volt electric service
  • Natural gas appliances
  • Cooktops with more than two cooking surfaces or burners
• Exception: Studio units (single-room rentals combining sleeping, living, and kitchen areas) are permitted to have cooking facilities

Advertising and Marketing

• No exterior advertising is allowed (no signs, banners, or visible advertisements on the building)
• Interior signage must comply with all applicable regulations
• Online advertising is permitted but must include the zoning permit number

Property Use Restrictions

• Special Events: In residential zoning districts, short-term renters cannot use the premises for special events or gatherings
• Prohibited Uses: Property cannot be used for "Live-Work" or "Day Care, Home" operations
• Maximum Stay: Properties cannot be rented for more than 30 days to the same guest

Compliance Requirements

• Operators must comply with all applicable state and local laws, including:
  • Fire and building codes
  • Smoke detection and carbon monoxide detection equipment requirements
  • Housing codes
  • Payment of taxes to appropriate governmental entities, including occupancy taxes

Record-Keeping Requirements

• Guest Registry: Maintain a complete list of all short-term rental guests for a minimum of three years
• This registry must be available for city inspection upon request

State-Level Regulations (North Carolina)

• North Carolina Vacation Rental Act: Provides protections for guests renting vacation properties for fewer than 90 days
• Sales Tax: 4.75% state sales tax applies to short-term rentals
• Local Sales Tax: Varies throughout Wake County (typically 2-6%)
• Occupancy Tax: Additional local occupancy taxes apply

Contact Information for Local Authority

Primary Contact - City of Raleigh Planning and Development Department

Phone: 919-996-2500
Email: currentplanning@raleighnc.gov
Website: raleighnc.gov/permits/services/short-term-rentals
Address:
Planning and Development Customer Service Center
One Exchange Plaza, Suite 400
Raleigh, NC 27601

Online Services

• Permit Portal: permitportal.raleighnc.gov
• Zoning Verification Tool: Raleigh iMaps
• Ask Raleigh Service Portal: For general inquiries and service requests

Customer Service Hours

• Phone Support: Monday through Friday, 8:30 AM - 5:00 PM
• In-Person Service: By appointment through the online portal

Source Links for Reference

• City of Raleigh Short-Term Rental Information
• Short-Term Rental Application Form
• Owner's Affidavit Form
• Raleigh Permit and Development Portal
• Development Fee Guide
• Raleigh iMaps - Zoning Verification Tool
• Unified Development Ordinance (UDO)
• Short Term Rental Ordinance TC-8-20
• Airbnb Raleigh Responsible Hosting Information
• North Carolina Department of Justice - Vacation Rental Information

Important Investment Considerations

Timeline and Costs

• Application Processing: Typically 4-6 weeks when all requirements are met
• Initial Fees: Vary by permit type and property characteristics
• Annual Renewal: Required with fees equal to original permit cost

Ongoing Compliance

• Tax Collection: Host responsibility for collecting and remitting state and local taxes
• Record Maintenance: Three-year record-keeping requirement for all guest information
• Code Compliance: Ongoing adherence to fire, building, and safety codes

Market Considerations

• Competition: Limited to specific zoning districts, affecting inventory availability
• Seasonality: Consider local tourism patterns and seasonal demand fluctuations
• Insurance: Verify coverage requirements and consider additional liability protection

This comprehensive guide provides all essential information for legally operating a short-term rental investment in Raleigh, NC. Always verify current regulations and requirements before proceeding with your investment.