Short-Term Rental Laws in Cleveland, OH (2026)
Cleveland adopted a comprehensive short-term rental law (Ordinance No. 561-2026, passed June 1, 2026) that requires every STR (stays of 30 days or less) to hold an annual $150 Short-Term Rental License, carry $500,000 liability insurance, designate a 1-hour-response local contact, and observe a density cap of no more than 10% of residential units per block or multi-unit building. The licensing, density, and zoning provisions become operative November 28, 2026 (180 days after passage); until then the older 'limited lodging' rule still governs residence districts, allowing home-sharing only as an accessory use of a primary residence for fewer than 91 days per year. Guests pay Cleveland's 3% transient occupancy tax plus Cuyahoga County's 6.5% bed tax; Airbnb collects both on its bookings.
Reviewed by the STR Rule Watch research team against 10 official sources. How we verify data
Cleveland STR rules at a glance
| Legal status | Restricted |
|---|---|
| Permit required | Yes |
| Permit name | Short-Term Rental License |
| Permit fee | $150 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Total occupancy taxes | ~15.25% of gross revenue |
| Insurance | Yes - license applications must include proof of liability insurance for the STR (or proof the STR and its owner/operator are named insured under a booking agent's policy) with limits not less than $500,000 (CO 686B.03(b)(7)). |
| Enforcement | Administered by the City Commissioner of Assessments and Licenses; applications are verified by Building & Housing, City Planning, Public Health, and Public Safety before issuance. Mandatory license revocation after 3+ nuisance activities at the property within 12 months, or after a single occurrence of specified disorderly-conduct, assault, weapons, or violent offenses (no conviction or arrest required). Revocation can extend to the owner's other STR licenses; appeals go to the Board of Zoning Appeals (10 days); a revoked property must wait 1 year to reapply. Licenses require proof of paid real-estate and transient-occupancy taxes, a certificate of occupancy, lead-safe certification, floor and parking plans, smoke/CO alarms, fire extinguisher, neighbor notification of the local contact, and a local contact able to be on-site within 1 hour. |
| Current rules effective | 2026-11-28 |
What will guests pay in taxes on a Cleveland stay?
Itemized occupancy taxes for Cleveland, OH — enter your nightly rate to see the real cost breakdown.
Cleveland occupancy tax calculator
| Gross rent | $450.00 |
| City of Cleveland Transient Occupancy Tax (3%)· collection varies | $13.50 |
| Cuyahoga County Lodging (Bed) Tax (6.5%)· collection varies | $29.25 |
| Ohio state sales tax (only if 5+ sleeping rooms) (5.75%)· host remits | $25.88 |
| Total tax (15.25%) | $68.63 |
| Guest pays | $518.63 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Cleveland requires Short-Term Rental License to operate a short-term rental — the fee is $150, renewed annual.
Application fee is $150.00 and the annual renewal fee is also $150.00 (CO 686B.03(d)-(e), enacted by Ord. No. 561-2026). Licenses run on a fixed licensing year of December 1 through November 30; initial-year fees are prorated from the month of issuance. Renewal applications must be filed between September 1 and November 1. Licenses are non-transferable between persons or properties. The license requirement itself takes effect November 28, 2026 (180 days after the June 1, 2026 passage) - before that date no city STR license exists. Booking agents (platforms) must also register annually with the Commissioner of Assessments and Licenses (686B.08). Licensed STRs are exempt from the separate Chapter 365 residential rental registration ($70/unit) while they remain short-term rentals, and STR units are not eligible for property tax abatement (686B.05).
Zoning & location rules
From November 28, 2026: short-term rentals are a permitted use in residential districts, including One-Family Districts (amended CO 337.02(f)), but subject to a density cap - in any residential district STRs are limited to the greater of one unit or 10% of the total residential units on the city block or in a multi-unit building (3+ units) (CO 686B.07). Exceeding the cap requires a variance from the Board of Zoning Appeals. Dwellings that operated as compliant 'limited lodging' for at least one year before the effective date, with no recorded complaints, are exempt from the density cap. Occupancy is capped at 2 overnight guests per bedroom plus 2 additional persons; rentals over 30 consecutive days are not STRs. Until November 28, 2026, the prior rule (CO 337.251, being repealed) still governs residence districts: 'limited lodging' is allowed only as an accessory use of a dwelling used as a primary residence, for fewer than 91 days per calendar year and no more than 30 consecutive days per lodger.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| City of Cleveland Transient Occupancy Tax3% excise tax on lodging furnished to transient guests (stays under 30 consecutive days) under CO Chapter 193; Ord. 561-2026 (effective July 1, 2026) expressly extended it to short-term rentals and their booking agents. Airbnb collects and remits it for its bookings; otherwise the vendor (owner/operator) must file monthly returns with the city's Division of Assessments and Licenses. | 3% | varies |
| Cuyahoga County Lodging (Bed) TaxCounty bed tax of 6.5% charged to every transient guest; the county fiscal officer explicitly applies it to 'airbnb rental, house rental' establishments. Monthly returns due by the 21st via the MuniRevs portal. Airbnb collects and remits for its bookings under an agreement with the county; hosts booking through other channels must register and remit. | 6.5% | varies |
| Ohio state sales tax (only if 5+ sleeping rooms)Ohio sales tax applies to lodging furnished to transient guests only by a 'hotel' - an establishment 'in which five or more rooms are used for the accommodation of...guests' (ORC 5739.01(M), (B)(2)). A typical STR offering fewer than five sleeping rooms is not subject to state/county sales tax on lodging; larger operations must also add applicable Cuyahoga County piggyback sales tax. | 5.75% | host |
Enforcement & penalties
Administered by the City Commissioner of Assessments and Licenses; applications are verified by Building & Housing, City Planning, Public Health, and Public Safety before issuance. Mandatory license revocation after 3+ nuisance activities at the property within 12 months, or after a single occurrence of specified disorderly-conduct, assault, weapons, or violent offenses (no conviction or arrest required). Revocation can extend to the owner's other STR licenses; appeals go to the Board of Zoning Appeals (10 days); a revoked property must wait 1 year to reapply. Licenses require proof of paid real-estate and transient-occupancy taxes, a certificate of occupancy, lead-safe certification, floor and parking plans, smoke/CO alarms, fire extinguisher, neighbor notification of the local contact, and a local contact able to be on-site within 1 hour.
Civil penalties (CO 686B.991): $5,000 for operating without a license; $1,000 per day for advertising an unlicensed STR; $1,000 per unlicensed reservation completed; $1,000 per day for failing to display the license; $1,000 (first) / $3,000 (repeat) for operating-standards violations; $5,000 for exceeding the density cap without a variance; $1,500 per year for booking agents that fail to register. Criminal penalties (686B.99): operating without a license or without a required variance is a first-degree misdemeanor - up to $1,000 fine and/or 6 months imprisonment. Civil and criminal penalties are cumulative.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Cleveland: the playbook
Generated from this market's verified rules — each step traces to the sources at the bottom of this page.
- 1
Verify your zoning
Location rules apply: From November 28, 2026: short-term rentals are a permitted use in residential districts, including One-Family Districts (amended CO 337.02(f)), but subject to a density cap - in any residential district STRs are limited to the greater of one unit or 10% of the total residential units on the city block or in a multi-unit building (3+ units) (CO 686B.07). Exceeding the cap requires a variance from the Board of Zoning Appeals. Dwellings that operated as compliant 'limited lodging' for at least one year before the effective date, with no recorded complaints, are exempt from the density cap. Occupancy is capped at 2 overnight guests per bedroom plus 2 additional persons; rentals over 30 consecutive days are not STRs. Until November 28, 2026, the prior rule (CO 337.251, being repealed) still governs residence districts: 'limited lodging' is allowed only as an accessory use of a dwelling used as a primary residence, for fewer than 91 days per calendar year and no more than 30 consecutive days per lodger. Confirm your parcel's zoning with the city before applying.
- 2
Check the covenant layer
HOA/condo rules may prohibit STRs regardless of city law.
- 3
Apply for the Short-Term Rental License
Budget $150 (annual renewal). Application fee is $150.00 and the annual renewal fee is also $150.00 (CO 686B.03(d)-(e), enacted by Ord. No. 561-2026). Licenses run on a fixed licensing year of December 1 through November 30; initial-year fees are prorated from the month of issuance. Renewal applications must be filed between September 1 and November 1. Licenses are non-transferable between persons or properties. The license requirement itself takes effect November 28, 2026 (180 days after the June 1, 2026 passage) - before that date no city STR license exists. Booking agents (platforms) must also register annually with the Commissioner of Assessments and Licenses (686B.08). Licensed STRs are exempt from the separate Chapter 365 residential rental registration ($70/unit) while they remain short-term rentals, and STR units are not eligible for property tax abatement (686B.05). Apply through the city — the official application page is linked in the sources below.
- 4
Line up required insurance
Yes - license applications must include proof of liability insurance for the STR (or proof the STR and its owner/operator are named insured under a booking agent's policy) with limits not less than $500,000 (CO 686B.03(b)(7)).
- 5
Set up tax collection & remittance
Platforms don't collect everything here: City of Cleveland Transient Occupancy Tax (3%), Cuyahoga County Lodging (Bed) Tax (6.5%), Ohio state sales tax (only if 5+ sleeping rooms) (5.75%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.
- 6
Calendar the renewal before you forget it
This permit renews annual (budget $150 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.
- 7
Know the cost of getting it wrong
Civil penalties (CO 686B.991): $5,000 for operating without a license; $1,000 per day for advertising an unlicensed STR; $1,000 per unlicensed reservation completed; $1,000 per day for failing to display the license; $1,000 (first) / $3,000 (repeat) for operating-standards violations; $5,000 for exceeding the density cap without a variance; $1,500 per year for booking agents that fail to register. Criminal penalties (686B.99): operating without a license or without a required variance is a first-degree misdemeanor - up to $1,000 fine and/or 6 months imprisonment. Civil and criminal penalties are cumulative. Administered by the City Commissioner of Assessments and Licenses; applications are verified by Building & Housing, City Planning, Public Health, and Public Safety before issuance. Mandatory license revocation after 3+ nuisance activities at the property within 12 months, or after a single occurrence of specified disorderly-conduct, assault, weapons, or violent offenses (no conviction or arrest required). Revocation can extend to the owner's other STR licenses; appeals go to the Board of Zoning Appeals (10 days); a revoked property must wait 1 year to reapply. Licenses require proof of paid real-estate and transient-occupancy taxes, a certificate of occupancy, lead-safe certification, floor and parking plans, smoke/CO alarms, fire extinguisher, neighbor notification of the local contact, and a local contact able to be on-site within 1 hour.
Recent rule changes in Cleveland
November 28, 2026critical
Licensing, density cap, and zoning changes become operative; limited lodging repealed
Per Section 5 of Ord. 561-2026, the Chapter 686B license requirement, the 337.02 zoning amendment, and the repeal of 337.251 (limited lodging / primary-residence home-sharing, 91-day annual cap) take effect 180 days after the June 1, 2026 passage. Operating an unlicensed STR after this date risks a $5,000 civil fine and first-degree-misdemeanor charges.
Official source →July 1, 2026material
Transient occupancy tax amendments effective - 3% city tax expressly covers STRs
Ordinance 561-2026 took general effect July 1, 2026; amended CO Chapter 193 now defines short-term rentals and booking agents and levies the 3% transient occupancy tax on STR lodging, with quarterly transaction-report duties for booking agents that do not collect the tax.
Official source →June 1, 2026critical
Ordinance No. 561-2026 passed - comprehensive STR licensing regime
After six years of debate, Cleveland City Council enacted Chapter 686B: annual $150 Short-Term Rental License, $500,000 liability insurance, 1-hour local contact, 2-per-bedroom+2 occupancy cap, 10%-per-block density limit with BZA variances and grandfathering for compliant limited-lodging operators, booking-agent registration, and civil fines up to $5,000. Sponsors: Council Members Davis, Santana, Polensek, Harsh.
Official source →
Frequently asked questions
›Is Airbnb legal in Cleveland?
Airbnb is legal in Cleveland, OH, but with significant restrictions — check the zoning and eligibility rules on this page before listing. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Cleveland?
Yes. Cleveland requires a Short-Term Rental License to operate a short-term rental, which costs $150 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Cleveland short-term rental permit cost?
The Short-Term Rental License costs $150 (annual renewal). Application fee is $150.00 and the annual renewal fee is also $150.00 (CO 686B.03(d)-(e), enacted by Ord. No. 561-2026). Licenses run on a fixed licensing year of December 1 through November 30; initial-year fees are prorated from the month of issuance. Renewal applications must be filed between September 1 and November 1. Licenses are non-transferable between persons or properties. The license requirement itself takes effect November 28, 2026 (180 days after the June 1, 2026 passage) - before that date no city STR license exists. Booking agents (platforms) must also register annually with the Commissioner of Assessments and Licenses (686B.08). Licensed STRs are exempt from the separate Chapter 365 residential rental registration ($70/unit) while they remain short-term rentals, and STR units are not eligible for property tax abatement (686B.05).
›Can I Airbnb a non-primary residence in Cleveland?
Yes — Cleveland does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Cleveland?
Hosts in Cleveland are subject to: City of Cleveland Transient Occupancy Tax (3%), Cuyahoga County Lodging (Bed) Tax (6.5%), Ohio state sales tax (only if 5+ sleeping rooms) (5.75%) — roughly 15.25% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›Do I need insurance to run a short-term rental in Cleveland?
Yes - license applications must include proof of liability insurance for the STR (or proof the STR and its owner/operator are named insured under a booking agent's policy) with limits not less than $500,000 (CO 686B.03(b)(7)). Always confirm current requirements with the city before operating.
›Does Airbnb collect taxes automatically in Cleveland?
No — in Cleveland hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.
›What happens if I operate a short-term rental illegally in Cleveland?
Civil penalties (CO 686B.991): $5,000 for operating without a license; $1,000 per day for advertising an unlicensed STR; $1,000 per unlicensed reservation completed; $1,000 per day for failing to display the license; $1,000 (first) / $3,000 (repeat) for operating-standards violations; $5,000 for exceeding the density cap without a variance; $1,500 per year for booking agents that fail to register. Criminal penalties (686B.99): operating without a license or without a required variance is a first-degree misdemeanor - up to $1,000 fine and/or 6 months imprisonment. Civil and criminal penalties are cumulative. Administered by the City Commissioner of Assessments and Licenses; applications are verified by Building & Housing, City Planning, Public Health, and Public Safety before issuance. Mandatory license revocation after 3+ nuisance activities at the property within 12 months, or after a single occurrence of specified disorderly-conduct, assault, weapons, or violent offenses (no conviction or arrest required). Revocation can extend to the owner's other STR licenses; appeals go to the Board of Zoning Appeals (10 days); a revoked property must wait 1 year to reapply. Licenses require proof of paid real-estate and transient-occupancy taxes, a certificate of occupancy, lead-safe certification, floor and parking plans, smoke/CO alarms, fire extinguisher, neighbor notification of the local contact, and a local contact able to be on-site within 1 hour.
›When did Cleveland's current short-term rental rules take effect?
The current ordinance took effect on November 28, 2026. See the change timeline on this page for amendments since, and the sources section for the official text.
Cleveland's STR rules changed 3 times recently.
Get an email the moment Cleveland changes its short-term rental rules — plus renewal reminders before your permit expires.
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Related
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More resources
- How to get a short-term rental permit in Cleveland
- Cleveland short-term rental taxes explained
- Can I Airbnb in Cleveland?
- All Ohio STR laws by city
- Occupancy tax calculator
- Compare STR permit costs across cities
- Cleveland ranks among cheapest str permit cities
- Cleveland ranks among highest str occupancy tax cities
- STR city rankings: strictest, cheapest permits & more
- What is transient occupancy tax?
- Best STR compliance tools, compared
- Latest STR rule changes nationwide
Sources
- The City Record, June 12, 2026 - full text of Ordinance No. 561-2026 (Cleveland City Council)retrieved July 20, 2026
- Cleveland City Council Legistar - Ordinance 561-2026 (Short-Term Rentals) legislative detailretrieved July 20, 2026
- Cleveland City Council - Council Meeting Highlights for June 1, 2026retrieved July 20, 2026
- Cuyahoga County Fiscal Officer - Lodging Occupancy Taxretrieved July 20, 2026
- City of Cleveland - Excise Tax Administration (Division of Assessments and Licenses)retrieved July 20, 2026
- Ohio Revised Code 5739.01 - Sales tax definitions ('hotel', taxable lodging)retrieved July 20, 2026
- Cleveland Codified Ordinances 337.251 - Limited Lodging in Residence Districts (American Legal Publishing)retrieved July 20, 2026
- Airbnb Help - Occupancy tax collection and remittance by Airbnb in Ohioretrieved July 20, 2026
- Ohio Legislature - House Bill 109 (136th GA), local regulation and taxing of short-term rental propertiesretrieved July 20, 2026
- Avalara MyLodgeTax - Cleveland passes new short-term rental law (secondary corroboration)retrieved July 20, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Cleveland and a qualified professional before operating.