What is a short-term rental in Montgomery County, MD?

In Montgomery County, Maryland, stays of less than 30 days are considered short-term rentals. These rentals consist of an entire home, or a suite or room within a home. For these short-term rentals, there is typically no lease agreement in place.

How do you get a short-term rental license in Mongtomery County, MD?

You must first apply for a Maryland State Sales Use and Tax ID. Next, apply for a room rental transient tax account. Finally, submit the short-term rental application with the $150 fee to the Department of Health and Human Services (DHHS).

The most up to date guidance on applying for a short-term rental license can be found here.

Are Montgomery County, MD homeowners required to notify your neighbors before obtaining a short-term rental license?

Yes. All of the following parties must be notified as applicable:

• In a single-unit or attached unit, abutting and confronting neighbors;
• In a multi-unit building, neighbors living across the hall and those that share a ceiling, floor, and walls with the applicant’s unit;
• The municipality in which the residence is located;
• Any applicable homeowner’s association, condominium, housing cooperative; and
• The owner of the unit or the owner’s rental agent, if the applicant is not the owner

What restrictions are there on short-term rental properties in Montgomery County, MD?

• Property must be your primary residence
• You may only use one property as a short term rental
• 6 adults maximum per stay
• 2 adults maximum per bedroom
• Non-hosted stays (i.e. when you are not in the property) are limited to 20 days per year. 
• An ADU (Accessory Dwelling Unit) may not be used for STRs

Where is Airbnb prohibited in Montgomery County?

According to MontgomeryCountyMD.gov:

"Zoning regulations. prohibitshort-term residential rentals in the following municipalities: Chevy Chase Village, Town of Chevy Chase, Town of Chevy Chase View, Chevy Chase Section 3, City of Gaithersburg, Town of Garrett Park, Town of Kensington, Town of Laytonsville, Town of Poolesville, City of Rockville, Town of Somerset, and Town of Washington Grove."

Your HOA or condo association may also have bans or restrictions on short-term rentals. Be sure to verify the most current guidance.

Which taxes and fees apply to short-term rentals in Montgomery County, MD?

Those who operate short-term rentals in Montgomery County, MD must pay the room rental transient tax of 7% of total room rental collected.

Additionally there is an annual license fee of $325 for the short-term residential rental license.