Short-Term Rentals on Your Land: Rules Vary by County

Short-term rental rules are set almost entirely at the city and county level, with states layering in tax rules and, increasingly, limits on how far localities can go. There is no single rulebook to read once.

Why There's No National Answer

Short-term rental (STR) regulation in the US is fundamentally local: cities and counties define what counts as a short-term rental, decide whether and where it's allowed, and set registration and operating rules, while states add tax requirements and, in a growing number of states, restrictions on how aggressively local governments can regulate or ban STRs at all. That means two counties in the same state can have entirely different rules, and a rule change in one city has no bearing on the next one over. Before you assume anything about renting out a cabin, guest house, or the land itself, you need to check your specific city and county ordinance directly -- there is no substitute for that step.

Zoning: Whether It's Allowed at All

The first question isn't how to register -- it's whether short-term rental is a permitted use on your parcel's zoning designation in the first place. Some jurisdictions allow it by right in residential and agricultural zones; others require a conditional-use or special-use permit involving a public hearing; and some prohibit it outright in certain districts, particularly in areas zoned strictly residential. Rules can also depend on whether you'll be present during the stay (owner-occupied vs. whole-home rental), with many ordinances treating the two very differently. See our national guide to zoning for how to confirm your district and its allowed uses.

Registration, Permits, and Licenses

Where STRs are allowed, most jurisdictions still require some combination of a rental registration or permit number (often required to be posted on listings), a local business license, a designated local contact who can respond to problems, and compliance with life-safety requirements like smoke detectors and posted egress routes. Some cities cap the total number of STR permits issued or limit permits to owner-occupied properties only. None of this is standardized -- what Austin requires and what a rural county requires can look nothing alike.

Lodging Tax Is Almost Always Separate From Income Tax

Most states and many localities levy a lodging tax on short-term stays -- sometimes called a transient occupancy tax, hotel tax, or room tax -- that the operator collects from guests and remits to the tax authority, separate from any income tax on the rental itself. Rates vary widely: a handful of major markets charge in the low double digits, while many rural counties charge far less or nothing at all. Roughly 30 states apply a lodging tax statewide, with local governments frequently layering an additional local rate on top, so check both levels rather than assuming one covers it.

Federal Income Tax Has Its Own Rule

Separate from local lodging tax, the IRS has a specific national rule that's worth knowing regardless of where your property is: under IRS Topic 415, if you rent a dwelling you also use personally for fewer than 15 days in a year, you don't report that rental income at all and can't deduct rental expenses against it (sometimes called the "14-day rule"). Rent it more than 14 days, or use it personally for more than the greater of 14 days or 10% of the days it's rented, and different reporting rules apply on Schedule E. This is a federal rule and doesn't vary by state, unlike almost everything else on this page.

State Preemption Is Actively Reshaping Local Rules

A growing number of states have passed laws limiting how far cities and counties can go in restricting STRs -- generally preventing outright bans while still allowing reasonable local registration, safety, and nuisance rules. This is a live and changing area of law rather than a settled one, so a "no" from a local ordinance you find online may no longer be enforceable if your state has since passed a preemption law, and the reverse is also true if a preemption law has been narrowed. Check current state law in addition to the local ordinance rather than relying on either alone.

Deed Restrictions and HOA Covenants Are a Fourth Layer

Even where zoning and state law both permit short-term rental, a recorded deed restriction or HOA covenant can independently prohibit it, and courts are divided on how much a generic "residential use only" covenant restricts rental activity absent language specifically addressing rental terms. Some states now regulate how and whether an HOA can retroactively add rental restrictions. Read your parcel's actual recorded covenants -- not just the zoning -- before committing to an STR plan. See our national guide to deed restrictions.

Short-Term Rentals on Land You Own: The Regulatory Patchwork