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Short-term rental rules · Worcester County, Maryland

Short-term rentals in Worcester County, explained properly.

This page covers Worcester County, Maryland's own rules for the unincorporated area; Ocean City, Berlin and the other incorporated towns run their own licensing and zoning, so check the town's page if the address is inside town limits. The County requires a rental license from the County Department for any rental of a house, condominium, cabin, room or similar space as sleeping accommodations, whatever the rental term, and issues it only to the property owner for one year at a time. Short-term rentals must also meet Zoning Article § ZS 1-351: at least 50 square feet per occupant in shared bedrooms, one rental contract per night, a guest record, an extra parking space for newer structures, and no weddings, reunions or similar events. The license fee is set by a Commissioners' resolution that we haven't reviewed yet, and we haven't reviewed the zoning district rules, so confirm zoning before you buy.

17 rule fields8 cited sources

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At a glance

What you need to know before you buy or list

QuestionAnswer
Are short-term rentals allowed?Conditional: short-term rentals are allowed to operate in Worcester County's unincorporated area if they follow Zoning Article § ZS 1-351 and hold a County rental license, and only where the zoning district allows the use; we haven't reviewed the zoning district rules yet, so confirm zoning before you buy [1] [2] Clause 1 Clause 2Confirming
Is a County rental license required?Yes: any rental of a house, townhouse, apartment, condominium, cottage, cabin, room or similar space as sleeping accommodations needs a rental license from the County Department, whatever the length of the rental, and the license is issued only to the property owner [2] Clause
Must the owner live on the property?Not stated: the license is issued only to the property owner, and the application lists every owner plus any property manager and resident agent who can be reached 24 hours a day during a rental [2] Clause
Is there an occupancy limit?Yes: at least 50 square feet of clear floor area per occupant in any bedroom used by more than one person, and the total number of guests cannot exceed the sum of the occupants allowed in each bedroom [1] Clause
Are events and parties allowed at short-term rentals?No: weddings, receptions, family reunions, birthday and anniversary celebrations, corporate parties and similar gatherings of people other than the authorized lodgers are prohibited, whether or not anyone is paid [1] Clause
How much is the rental license fee?Needs review: the code leaves the fee to a County Commissioners' resolution, so the amount is not shown here; the fee is non-refundable and not prorated [2] ClauseConfirming

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Detailed rules

The full picture, section by section

Operating rules

Is a rental limited to one contract per night?Yes: a property used or planned for short-term rentals is limited to a single rental contract for any overnight period, however many sleeping rooms the home or accessory apartment has [1] Clause

Section ZS 1-351(b)(2) applies this to the principal dwelling unit and to an accessory apartment.

Is an extra parking space required?Conditional: one off-street space beyond the normal requirement in § ZS 1-320(a) is required only for short-term rental structures whose building permit application was received after the effective date of § ZS 1-351 [1] Clause

Section ZS 1-351(b)(5) sets the extra space. The effective date of the section is shown in the code as the date it was added, October 15, 2019 (Bill No. 19-3); we haven't reviewed § ZS 1-320(a), so the base parking count is not shown here.

Must the owner keep guest records?Yes: the owner keeps a record of every lodger's name, address, phone number and email (as applicable) and the dates of lodging, and gives it to the County on request [1] Clause

Section ZS 1-351(b)(6). The owner or an authorized agent must also make the dwelling unit available for County inspection during reasonable hours on request (§ ZS 1-351(b)(7)).

Must the license number appear in advertising?Yes: all advertising for a licensed rental, in print, electronic, audible or any other form, must show the valid rental license number, and the license must be displayed on the premises [2] Clause

Section TR 2-106(e)(3) and (e)(4).

How long is a rental license valid and when must it be renewed?One year from the date of issue; a renewal application is due at least 60 days before the license expires, and an expired license means the property cannot be rented until a new license is issued [2] Clause

Section TR 2-106(e)(1) and (e)(2). A renewal received less than 60 days before expiry is treated as a new application. Renewal does not need the full set of application documents if none of the information has changed.

Can a rental license be transferred to a new owner?No: rental licenses are not transferable; the license expires the day the property is transferred and a new license is needed, though a contract purchaser may apply before settlement [2] Clause

Section TR 2-106(f)(2). The new license is not issued until the new owner gives the Department proof of the transfer, and fees are not refunded for the unused part of a term.

Penalties & enforcement

Can a license be suspended or revoked?Yes: after giving the owner a chance to be heard, the County Commissioners may revoke, suspend or refuse to renew a rental license for listed reasons, and after a revocation no license is issued for that property to the former holder or the holder's housekeeping unit for 3 years [2] Clause

Section TR 2-106(g)(6) lists material falsification of the application, activity detrimental to public health, safety or welfare, certain criminal convictions (any felony, or gambling, alcohol, controlled substance or prostitution violations on the property during the license period), repeated failure to follow the license conditions or the zoning and rental housing rules, and recurrent offensive conduct causing a public nuisance. The 3-year bar is in § TR 2-106(g)(5).

What are the penalties for violations?A violation is a civil infraction, each day is a separate offense, and penalties may include license suspension or revocation, fines, an injunction and abatement of imminent dangers; the fine amount is not shown in the sections we saved [2] Clause

Section TR 2-106(g)(3) and (g)(4). The Department first sends a notice of violation by certified mail, by posting the property or by another method including email with receipts, ordering correction within a reasonable period. We haven't reviewed the Civil Infractions title (§ GP 5-101 to 5-301) that may set fine amounts.

State law that also applies

Maryland state sales tax on short-term rentals6% Maryland sales and use tax: the Tax-General Article counts a short-term rental (the temporary use of a home or part of one to lodge transient guests for pay) as taxable tangible personal property, taxed at 6 cents on each dollar [3] [4] [5] Clause 1 Clause 2 Clause 3

Section 11-101 of the Tax-General Article defines a short-term rental as the temporary use of a short-term rental unit (a residential dwelling unit or part of one, including a house, apartment, condominium or cooperative) to provide accommodation to transient guests for lodging purposes in exchange for consideration, and lists both an accommodation (a right to occupy a room or lodgings as a transient guest) and a short-term rental as tangible personal property. Section 11-104(a) sets the general sales and use tax rate at 6 cents for each exact dollar of the taxable price. The Comptroller of Maryland's 2016 tax alert on accommodations says that individuals who rent out their homes or rooms are accommodations providers who must register with the Comptroller and collect the tax, that the tax does not apply to monthly or permanent residents, and that all rentals in resort areas for terms of 4 months or less are subject to the tax. Local room or hotel taxes are shown on each place's page.

Do booking platforms collect the state sales tax?Yes: Maryland law makes a short-term rental platform a vendor, counts bookings made through it as sales, and requires vendors to collect the sales and use tax from the guest; tax is due on the full amount the guest pays, not counting other taxes remitted [3] [6] [5] Clause 1 Clause 2 Clause 3

Section 11-101 defines a short-term rental platform as an Internet-based digital entity that advertises short-term rental units and is paid for facilitating reservations or processing booking transactions for the owner, operator or manager, and lists a short-term rental platform as a vendor. Section 11-403(a)(5) says sales include a booking transaction made through a short-term rental platform, and 11-403(b) requires a vendor to collect the sales and use tax from the buyer. Under 11-101(l)(5), when a platform facilitates a stay, the taxable price is the full amount the guest pays, not counting any tax remitted to a taxing authority; a commission paid by the host after the booking is not included. The Comptroller's 2016 alert says hosting platforms that collect payments on behalf of an owner must register and collect the tax, and that an owner's duty to collect is waived only when the platform gives the owner a resale certificate. A 2025 law (Chapter 638) rewrites these definitions from July 1, 2027 so that an accommodations intermediary includes a short-term rental platform. The sources read do not say whether a host who books through a platform that collects must still file returns; check with the Comptroller.

Statewide short-term rental law?Yes, a statewide safety law (in effect since October 1, 2026): hosts of rentals offered for less than 30 consecutive days must post an evacuation diagram and emergency numbers and provide a working fire extinguisher, smoke alarms and carbon monoxide alarms; booking services must tell hosts about these rules. There is no statewide short-term rental license, ban or cap, and the law does not limit local rules [7] [8] Clause 1 Clause 2 Clause 3 Clause 4 Clause 5

Chapter 9 of the 2026 Laws of Maryland (House Bill 1221) added Public Safety Article sections 9-1101 to 9-1106, effective October 1, 2026. They apply only to a short-term rental unit offered for less than 30 consecutive days. The host must conspicuously post an evacuation diagram identifying all exits and a list of emergency numbers for police and fire rescue, and provide a working fire extinguisher and working smoke and carbon monoxide alarms. Booking services must electronically notify hosts of these requirements and require each host to provide the inspection confirmation for each unit. By July 1, 2028, each county and Baltimore City must, by local law or regulation, require annual inspections of all short-term rental units for these requirements (this does not apply to a county that prohibits short-term rentals) and may charge an inspection fee. The law does not require a county or Baltimore City to allow short-term rentals and does not preempt other local measures. In the 2026 session, House Bill 993 (local rules on short-term rentals run by tenants) passed the House; its last action shown, on April 13, 2026, was Second Reading Passed in the Senate, and it has no chapter number.

Changes

Recent and pending changes

We read Worcester County Code § TR 2-106 (rental licenses, added by Bill No. 19-4 on August 20, 2019), § ZS 1-351 (short-term rentals, added by Bill No. 19-3 on October 15, 2019) and the code's table of contents (legislation through November 18, 2025) as published on eCode360 on October 18, 2026. We haven't reviewed the zoning district rules, the fee resolution or County Commissioners agendas yet, so we will watch the Code for changes.

No changes recorded.

Sources

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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.