Short-Term Rental Rules in the Mid-Atlantic Beach Towns (2026)
The Mid-Atlantic shore markets regulate short-term rentals with unusually different philosophies for towns a few hours apart: Ocean City, Maryland and Cape May, New Jersey run classic license-and-inspect rental regimes shaped by decades of summer-rental tradition, while Virginia Beach layers zoning overlays and conditional-use permits on top of state registration — so an oceanfront strategy that works in one boardwalk town can be a violation in the next.
Compare the Mid-Atlantic Beaches jurisdictions
| Permit | Status | |||
|---|---|---|---|---|
| Virginia Beach, VA | Short-Term Rental Zoning Permit (plus Conditional Use Permit in the Oceanfront Resort STR Overlay District) | $500 | annual | Restricted |
| Ocean City, MD | Rental License & Noise Control Permit plus Short-Term Rental License (Short-Term Rental Housing Unit additional fee) | $246 | annual | Permit required |
| Cape May, NJ | Rental License (Mercantile License - Residential Short Term Rental Unit) | $125 | annual | Permit required |
Short-term rentals (30 consecutive days or fewer) are legal town-wide in Ocean City, MD, but every rental property must hold an annual Rental License & Noise Control Permit plus a supplemental Short-Term Rental License — $246 total per unit, renewing each May 1. The biggest restriction is in the R-1 single-family and MH mobile-home districts, where overnight occupancy (midnight–7 a.m.) is capped at 2 persons per bedroom plus 2, and where a moratorium on new STR licenses ran through early 2026 until the council repealed it on February 17, 2026 after a citizen petition; a proposed 5-night minimum stay was rejected by voters in a July 2025 referendum, so there is currently no minimum-stay rule. Always confirm current requirements with the city before operating.
Full Ocean Cityrules, taxes & sources →Short-term rentals (any lease under 175 consecutive days) are legal throughout Cape May, but every rental unit must be inspected and licensed annually through the City Clerk's mercantile/rental license program, with square-footage-based fees of $125-$300 per unit plus a $50 tourism assessment and $25 parking surcharge (license year May 1-April 30). The biggest obligations are the annual Fire Prevention Bureau inspection, mandatory liability insurance ($500,000 for typical non-owner-occupied rentals), and a Cape May County-resident managing agent; there is no owner-occupancy rule, night cap, or minimum stay. Lodging taxes total about 14.625% (6.625% sales tax + 5% state occupancy fee + 3% municipal occupancy tax) on marketplace bookings, which platforms like Airbnb collect, while traditional realtor-brokered rentals are tax-exempt. Always confirm current requirements with the city before operating.
Full Cape Mayrules, taxes & sources →Virginia Beach only allows whole-home short-term rentals (under 30 days) in the Sandbridge Special Service District, in the Oceanfront Resort STR Overlay District (where new operators need a Conditional Use Permit, $360 application fee, renewed every 5 years), or at properties grandfathered before July 1, 2018 (or with a pre-Sept. 7, 2021 CUP); new STRs are prohibited everywhere else in the city. Every STR needs a $500 annual STR Zoning Permit plus annual Commissioner of the Revenue registration, $1 million liability insurance, one off-street parking space per bedroom, and safety inspections, and since August 2025 violations are criminal misdemeanors with fines of up to $1,000 for an initial violation and up to $2,000 for continuing violations. Always confirm current requirements with the city before operating.
Full Virginia Beachrules, taxes & sources →Informational only — not legal advice. Boundaries matter in this market: confirm which jurisdiction a specific parcel falls in before relying on any rule here, and verify current requirements with that jurisdiction.