Short-Term Rentals in the Town of Davis, West Virginia

A three-year moratorium, then a ballot fight over zoning

The Town of Davis put a moratorium on new short-term-rental business licenses in place starting in August 2021, and renewed it repeatedly over the following roughly three years while the town worked toward a permanent zoning ordinance -- an effort that, per WBOY-TV reporting, had actually been in the works for eight years by the time it finally came to a vote. The proposed ordinance would have created formal residential and commercial zoning districts within Davis and specifically addressed short-term rentals: a cap of 24 licenses within the small residential neighborhood area, with no cap at all in the business district (centered on William Avenue) or in areas already governed by a homeowners association.

That ordinance went to Davis voters in a special election in June 2024, and it lost -- an 80-115 vote, meaning roughly 59% of voters who turned out rejected it. Rather than trying again or extending the moratorium while the town regrouped, the Davis Town Council responded by unanimously voting to end the STR moratorium outright, effective June 12, 2024. In other words, the same vote that killed the proposed cap also ended the temporary freeze that had been holding new STR licenses back -- a genuinely consequential double effect for anyone who bought in Davis expecting either outcome.

Where that leaves things: no cap, but still a license requirement

As of this research pass (with searches run through September 2026), no replacement zoning ordinance or new STR cap has been enacted in Davis since the June 2024 vote -- the town currently operates without a numeric limit on short-term rentals, a materially more open regulatory environment than towns that have successfully capped STR licenses. That does not mean STRs in Davis are entirely unregulated, though: operators still need a West Virginia Business Registration Certificate from the State Tax Department, and then a separate Davis business license from the town itself, plus whatever building permit applies to the specific structure. If you're buying in Davis specifically to operate an STR, confirm the current business-license process and any fees directly with Davis Town Hall -- and don't assume the current no-cap environment is permanent, given how contested this issue has already been once.

The underlying tension that drove the 2021-2024 fight hasn't disappeared just because the ordinance failed: reporting on the broader Davis STR debate describes a real conflict between outside investors buying homes for vacation-rental conversion during the COVID-era tourism boom and long-time residents concerned about losing long-term housing stock and neighborhood character. A future council could revisit zoning or licensing limits, especially if STR growth continues -- worth asking Davis Town Hall directly whether any new proposal is under discussion before you finalize a purchase built around STR income projections that assume today's no-cap status will last indefinitely.

What to check before buying in Davis for STR use

1. Confirm directly with Davis Town Hall whether any new STR ordinance, cap, or moratorium has been proposed or enacted since this page's last review -- this has changed materially once already (2021-2024) and could change again.
2. Obtain a West Virginia Business Registration Certificate from the State Tax Department and a Davis business license before operating -- these requirements remained in place even after the moratorium ended.
3. Ask whether your specific property falls inside Davis town limits at all, since Davis is a separate, smaller incorporated area distinct from the unincorporated Canaan Valley zoning district covered in our separate Tucker County zoning standalone -- the two areas have entirely different regulatory histories.
4. If buying an existing STR property, confirm the current license and business-registration status directly rather than assuming it transfers automatically with the sale.
5. Talk to neighbors and the town clerk about the current mood on STR growth -- the 2024 vote was close enough (roughly 59-41) that local sentiment could plausibly shift a future council's decision either way.