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Airbnb Regulations by State: A Guide for US Hosts
Vacation rental regulations are seen as one of the biggest hurdles for short-term rental hosts and investors. Licensing requirements, zoning restrictions, and tax rules vary widely from state to state, and on the surface, they can seem like nothing but red tape.
But regulation doesn’t just limit, it also defines the playing field. In many markets, strict rules actually create scarcity, which can drive up nightly rates and increase demand for compliant listings. Only armed with knowledge, you can assess whether investing in a certain area is worth the risk.
This state-by-state guide breaks down short-term rental laws across key U.S. markets, helping you understand legislation, avoid legal surprises, and make smarter investment decisions based on how regulations shape supply and demand.
Short-term Rental Regulations
Vacation rental owners face different regulations. The root cause is often the impact of short-term rentals on the housing market in urban areas. Sometimes, rules are created by local communities to preserve the neighborhood's character when tourism threatens to disrupt daily life.
Local governments play a key role in this process. They’re typically the ones who draft, enforce, and pass the short-term rental laws and regulations. In many places, it's not state laws, but city or county regulations that determine whether your Airbnb can legally operate, and under what conditions.
How Do I Know If I Can Put My Property on Airbnb?
Before launching an Airbnb or other short-term rental, it’s important to understand the rules in your area.
Here are the key questions to ask:
Do you need a business license or STR permit?
Many cities require a special license to operate a short-term rental. In addition to that, you’ll also need to renew that license every year.
Are there zoning laws that restrict where you can operate an Airbnb?
Zoning rules often limit STRs to certain zones. Some cities ban or cap short-term rentals in residential neighborhoods. It’s not just about what city you’re in, but also which part of the city.
Do primary residence rules apply?
In places like Los Angeles, you can only rent out your home if it’s your primary residence, and you must be present during your guests’ stay. Even then, there may be a cap on how many nights per year you can host.
What are your tax obligations?
Short-term rentals are usually subject to local taxes like state lodging or sales taxes. These taxes change over time. For example, Colorado recently proposed increasing its lodging tax from 2% to 6%.
Are there HOA or condo board restrictions?
Even if short-term rental properties are legal in your city, your homeowners’ association or condo board might prohibit them. Always check your building’s rules—some HOAs ban short-term rentals entirely.
What Cities Have Banned Airbnb?
No US state outright bans Airbnb. But some cities and counties impose strict regulations and pass short-term rental laws that make hosting difficult. For many hosts, the risk and cost of complying with these rules outweigh the potential rewards. Cities that are generally considered challenging for Airbnb include major metropolitan areas and popular destinations such as New York City, Los Angeles, San Francisco, and Santa Monica.
If you're seriously considering New York, explore opportunities just outside the city, in suburban areas, or in popular weekend getaway destinations. These are often better options than targeting Manhattan or Brooklyn, especially if you're not a resident.
Can I Operate an Airbnb If It’s Not My Primary Residence?
If you want to rent out a second home or an investment property, you'll need to check whether non-primary residences are allowed. In stricter markets, STRs in non-primary homes may be banned or require a complex process to obtain permissions.
In such markets, primary residence rules are usually accompanied by other limitations, such as a cap on the number of days. For example, Los Angeles has a 120-night annual cap for primary residences.
How Do the State Laws Apply?
State laws can either give cities more freedom or limit what they can do when it comes to short-term rentals. In some cases, the state sets broad rules that local governments have to follow, which can make it harder for cities to ban or heavily restrict rentals. This creates more flexibility for property owners.
In other situations, the state leaves it up to each city to decide its own rules and local laws, like requiring permits, setting caps, or limiting rental days. That’s why short-term rental laws can vary so much from one place to another.
Airbnb Regulations by State
Here's a breakdown of vacation rental regulations by US state. We covered some of the most visited states in the US.
Disclaimer: Short-term rental laws are continuously evolving. While we strive to keep this information current, it should not be considered legal advice. For guidance on specific cases, consult a lawyer specializing in short-term rentals.
California
Anyone planning to run a short-term rental in California must carefully include both state and local regulations in their vacation rental business plan. While California doesn’t issue vacation rental licenses or permits at the state level, most cities and counties require hosts to obtain their own short-term rental permits or licenses.
These permits usually last for one year and must be renewed before they expire to stay valid. Temecula, Irvine, and Santa Monica are places seen as hostile to investors, as they have bans or tight restrictions.
Licensing and Registration
Hosts must register their short-term rental with the local city or county and obtain any required licenses or permits before renting out their property.
Tax Obligations
Short-term rental operators are responsible for collecting and paying applicable taxes, such as transient occupancy taxes (hotel taxes) and state sales taxes.
Zoning and Operational Restrictions
Many California cities have zoning rules that limit where short-term rentals can operate. There are often additional restrictions on things like minimum stay lengths, the number of guests allowed, and limits on how many nights a property can be rented per year.
San Diego
San Diego regulates STRs through a tiered license system based on rental frequency and whether the host lives on-site. There are four tiers, including part-time rentals, home-sharing, whole-home rentals outside Mission Beach, and whole-home rentals in Mission Beach. Non-owner-occupied whole-home rentals are allowed but limited by license caps. Hosts must apply personally, maintain licenses, follow operating rules, and pay a transient occupancy tax.
Los Angeles
Los Angeles limits short-term rentals primarily to the host’s primary residence. Hosts can rent out part or all of their home for up to 120 days a year under standard registration, or apply for an extended registration for longer periods, though it's harder to obtain. Out-of-state investors cannot rent properties on Airbnb unless they live there. Hosts must follow strict registration, health, and safety requirements and pay a transient occupancy tax.
Colorado
Colorado has seen rapid growth in property values, but this has contributed to a housing shortage, especially in resort areas. State law (HB 20-1093) gives counties the authority to license and regulate STRs, but local rules vary widely. Many mountain towns have introduced taxes on STRs to fund affordable housing initiatives. Some cities cap the number of STR licenses or restrict where and how rentals can operate. Denver, for instance, has quite strict regulations on STRs.
Licensing and Registration
STR owners and property managers usually must obtain a short-term rental license or permit from their city or county before renting out their property. Licenses typically need renewal every 1-2 years.
Tax Obligations
STR operators must collect and remit lodging taxes, which vary by locality. Some communities have implemented additional excise taxes on STRs to fund affordable housing and community projects.
Zoning and Operational Restrictions
Zoning rules often restrict STRs to certain areas, typically residential zones, with some banning rentals in multifamily buildings or single-family neighborhoods.
Colorado Springs
Colorado Springs uses a permit system with two types of permits: owner-occupied and non-owner-occupied. Owner-occupied rentals mean the owner lives in the property at least half the year. Non-owner-occupied rentals face stricter limits—they aren’t allowed in single-family zones and must be spaced at least 500 feet apart. The city doesn’t cap permits overall, but limits how many rentals a property or owner can have.
Florida
Florida is one of the most active vacation rental markets in the US and is generally considered a STR-friendly state. Still, the state requires licensing for many rental types, taxes are enforced at both state and county levels, and zoning regulations vary widely by city. In some residential areas, the host must live on the property for more than six months a year.
Licensing and Registration
You must apply for a license through the Florida Department of Business and Professional Regulation (DBPR) if you're renting a full unit more than three times per year for fewer than 30 days at a time.
Tax Obligations
State Sales Tax applies to all STRs. County surtax and local tourist development taxes may also apply.
Zoning and Operational Restrictions
Zoning laws are handled by cities and counties, so check local sources. Some cities (like Orlando, Clearwater Beach, and Miami) allow STRs only in certain areas or require the owner to live on-site.
Miami
In the City of Miami, short-term rentals are restricted depending on the zoning. In most single-family residential zones, STRs are either banned or allowed only if the host lives on the property. Condo and multifamily buildings in tourist-friendly zones allow STRs, but hosts still need a state license, local business tax receipts, and must follow safety and occupancy rules.
Georgia
In cities like Atlanta and Savannah, you’ll likely need a local license or certificate, register with the Georgia Department of Revenue, and collect and remit sales and hotel-motel taxes. STRs are subject to state sales tax, a nightly fee, and possibly local hotel taxes. Some cities may also require you to notify neighbors or follow zoning limits and occupancy caps. While enforcement used to be loose, local governments have started cracking down in urban areas.
Licensing and Registration
Georgia doesn't require a statewide license for short-term rentals, but most cities and counties do.
Tax Obligations
Short-term rental hosts in Georgia must register with the Georgia Department of Revenue to handle taxes. Hosts need to pay: state sales tax, per-night hotel-motel fee, local sales tax, and local hotel-motel tax.
Zoning and Operational Restrictions
Georgia leaves STR laws to local governments.
Atlanta
Atlanta requires short-term rental hosts to obtain a city-issued license, which costs $150 per year and limits each person to two properties, one of which must be their primary residence. Hosts must renew their application every year. Rentals are allowed in residential zones but must follow occupancy limits, noise rules, and offer off-street parking where required.
New York
New York, especially New York City, is famous for its strict regulations. New York has changed how it regulates short-term rentals like Airbnb and Vrbo, moving to treat them more like hotels. A new state law requires platforms to report detailed booking and tax data quarterly. Hosts must now collect state sales tax (typically 8%) in addition to local occupancy taxes.
Licensing and Registration
If you are a short-term rental host, you are required to register with the Mayor's Office of Special Enforcement.
Tax Obligations
New regulations require that short-term rental properties also pay the same sales and occupancy taxes as hotels.
Zoning and Operational Restrictions
It's less strict outside of metro areas.
New York City
Hosts (both owners and tenants) cannot rent out an entire apartment or home to visitors for fewer than 30 days, even if the host owns or lives in the building. As a host, you must: Stay in the same unit or apartment as the guests, and have no more than two guests staying.
North Carolina
North Carolina takes a localized and evolving approach to short-term rental regulation. While the state passed a law in 2018 preventing local governments from fully banning STRs, cities and counties retain the power to set zoning, safety, and operational rules.
For example, the city of Asheville has banned short-term rentals, except for those located in resort zoning districts. The Vacation Rental Act requires written agreements for STRs and treats rentals of 90 days or less as vacation rentals (owned by a person who has a place of permanent residence to which they intend to return).
Licensing and Registration
There's no universal STR license, but hosts must register with the NC Department of Revenue for tax purposes.
Tax Obligations
Hosts renting for 15+ days a year must collect and remit state sales tax, local sales tax, and occupancy tax.
Zoning and Operational Restrictions
Short-term rentals are often subject to local zoning laws, which determine where and how they can legally operate, and sometimes occupancy limits (2 guests per bedroom). This is especially true for Asheville and Wilmington.
Charlotte
Charlotte, North Carolina, has clear rules for operating short-term rentals. To stay compliant, hosts must obtain a zoning permit (renewed annually), register their business, and display the permit number in all listings. Properties must meet local safety standards, including compliance with building and fire codes, and provide a local contact for emergencies. Hosts are also responsible for collecting and remitting state sales tax, and local room occupancy tax.
Oregon
Oregon defines short-term rentals as lodging rentals for fewer than 30 consecutive nights. Providers, called “transient lodging providers” (owners) and “transient lodging intermediaries” (agents or short-term rental platforms), must collect and remit the Oregon Transient Lodging Tax, currently set at 1.5% of the rent charged.
Back in 2019, Oregon introduced Senate Bill 621, which tried to stop local governments from placing tight restrictions on short-term rentals and give more freedom to property owners. The local governments pushed back, worried about housing and neighborhood impacts. The bill has not been voted on to date.
Licensing and Registration
Many cities and counties in Oregon require hosts to obtain local STR licenses or permits, often renewed annually with fees.
Tax Obligations
Hosts must collect and remit state Transient Lodging Tax on stays under 30 days. Tax returns must be filed quarterly.
Zoning and Operational Restrictions
Varies by city. Most Oregon cities and counties require STRs to comply with local zoning codes.
Portland
Portland requires STRs to align with Zoning Code Section 33.207, allowing STRs only in designated residential dwelling units.
This city allows short-term rentals only in primary residences, with Type A (up to 2 bedrooms) needing a basic permit and Type B (3–5 bedrooms) requiring additional review. There's no limit on rental nights if residency rules are met, but hosts must live there at least 270 days per year
Texas
Texas remains a top short-term rental market, driven by strong tourism and significant growth potential. In cities like Dallas and Houston, Airbnb regulations are relatively lenient, while Austin and Fort Worth enforce stricter rules. Austin is known for its strict short-term rental regulations, with new license applicants facing fees exceeding $700.
Houston is also changing rules: beginning in 2026, a new short-term rental ordinance will require registration and safety compliance. However, Houston is expected to remain more affordable and less restrictive than Austin.
Licensing and Registration
No state-level license is required for STRs. Most cities require a local permit, license, or registration, usually renewed annually.
Tax Obligations
As for tax compliance, the Hotel Occupancy Tax (HOT) applies statewide to rentals shorter than 30 nights.
Zoning and Operational Restrictions
Austin limits non-owner-occupied rentals. Fort Worth and Corpus Christi restrict STRs by zoning and density caps. San Antonio imposes occupancy limits, fire safety standards, and insurance requirements.
Houston
In Houston, the Hotel and Motel Ordinance outlines definitions and expectations for short-term rentals (like bed and breakfasts) in the city, especially in the Central Business District. Hosts must also comply with building and housing codes, which cover safety, habitability, and maintenance standards.
Illinois
In Illinois, the Chicago Airbnb market leads in listings, occupancy, and revenue. Chicago requires either a Vacation Rental License (for entire units that are not your primary residence) or a Bed and Breakfast License (for renting rooms in your primary residence).
As for other cities, in Aurora, short-term rentals follow the same general rules as long-term rentals, but hosts must obtain a license and meet safety standards. Aurora is considered a moderately Airbnb-friendly city.
In Rockford, STRs are permitted with a city-issued license, along with required inspections, zoning compliance, and occupancy limits. The city is seen as an emerging but regulated market. Meanwhile, Naperville has banned all short-term rentals outright, with fines ranging from $1,000 to $2,500 per violation.
Licensing and Registration
Illinois imposes some rules and regulations at the state level, but you'll probably need to register with the city to get necessary permits. If you rent out two or more units in a building with four or more units, you must be licensed by the Illinois Department of Public Health. Hosts need to pay and renew the annual fee.
Tax Obligations
Short-term rental operators in Illinois are subject to several taxes, primarily centered around the Hotel Operators' Occupation Tax and related local lodging taxes.
Zoning and Operational Restrictions
Depends on the local jurisdiction. Chicago requires registration and limits STRs in some residential zones. Rockford, Joliet, and Elgin enforce zoning and require special use permits.
Chicago
Chicago maintains a relatively strict regulatory environment for short-term rentals. The city categorizes STRs into three main types: Shared Housing Units, Vacation Rentals, and Bed & Breakfasts. Operators must register with the city and display the license number in all listings and ads. The regulations also define occupancy limits, such as a maximum of two guests per bedroom (excluding children under 18), or one guest per 125 square feet, whichever is less.
Kentucky
Kentucky loosely defines vacation rentals, and local governments have more power to regulate short-term rentals compared to many other states. Short-term rentals may be even classified as a commercial entity, which can mean higher property taxes and stricter zoning. Most major cities require STR permits, business licenses, and annual fees.
Lexington introduced stricter regulations in July 2023, requiring hosts to obtain a Zoning Compliance Permit, Business License, and Special Fees License. The process includes submitting property details and a guest review site, with annual fees starting at $200. Louisville also requires hosts to register their STR, get a business license, and pass an inspection.
Licensing and Registration
Most areas require property owners to register their rental and obtain a local business license or short-term rental permit. Annual fees typically go from $200 for the first unit, and many jurisdictions (like Lexington, Louisville, and Boone County) require inspections and proof of $1 million in liability insurance.
Tax Obligations
Hosts in Kentucky are responsible for several types of taxes. These include a state sales tax, a state-level transient room tax, and various local taxes like county transient room taxes.
Zoning and Operational Restrictions
Some cities, like Bowling Green, ban STRs in certain residential zones. Other areas, like Boone County, restrict STRs to specific zones and impose spacing rules, which means that properties must be 1,000 feet apart.
Lexington
Lexington has established a clear legal definition for short-term rentals, distinguishing between hosted (owner-occupied) and un-hosted (non-owner-occupied) properties. All STR operators must obtain a Zoning Compliance Permit, a Business License, and a Special Fees License. The application must be renewed annually. Unlicensed STRs can be fined up to $500 per day.
Tennessee
Tennessee is a popular tourist destination, known for its scenic landscapes, rich music heritage, the stunning Smoky Mountains, and warm Southern hospitality. Short-term rentals in Tennessee are regulated at both the state and local levels.
The state distinguishes between two types of STRs: Owner-Occupied Rentals and Non-Owner-Occupied Rentals. In major cities like Nashville, new non-owner-occupied STR permits are only allowed in certain non-residentially zoned areas. To operate a short-term rental, you must carry liability insurance of at least $500,000, unless the hosting platform provides coverage.
Licensing and Registration
Besides a business license, most cities and counties require a separate STR permit or certificate, typically valid for one year and requiring annual renewal.
Tax Obligations
Tennessee short-term rental operators need to pay Transient Occupancy Tax (TOT) or hotel/motel tax, and state and local sales tax.
Zoning and Operational Restrictions
Cities like Nashville and Knoxville have zoning restrictions that limit where STRs can operate.
Nashville
All short-term rentals in Nashville and Davidson County require a permit from the Metro Codes Department before listing. There are two permit types: owner-occupied and non-owner occupied. Owner-occupied STRs are allowed in most residential zones, while new non-owner-occupied permits are limited to certain non-residential districts. Hosts must also follow local tax laws, including business, sales, and hotel occupancy taxes. Permits are valid for one year and must be renewed annually.
Ohio
Ohio is one of the states that is slower to regulate short-term rentals, even though recently they have made some steps. Ohio cities have Airbnb-friendly regulations, providing a safer investment environment.
In Columbus, hosts must register with the city, complete a background check, and pay a fee that is lower than in many other states. Cleveland requires annual registration and building inspections, with a fee per unit. Cincinnati issues a 3-year permit after verifying ownership, code compliance, and tax status.
Licensing and Registration
Licensing is handled at the city or county level. Usually includes registration, background check and paying fees.
Tax Obligations
In Ohio, short-term rentals may be subject to several lodging taxes depending on location, including state sales tax and the Resort Area Gross Receipts Excise Tax (for properties with five or more sleeping rooms), and a local lodging tax.
Zoning and Operational Restrictions
There are in cities like Columbus. Residential zones in Columbus are categorized as R-1, R-2, and R-3, each with different density allowances and property use restrictions.
Columbus
Anyone hosting short-term stays in Columbus must obtain a Short-Term Rental Permit, which is valid for the calendar year and must be renewed annually. Hosts can apply in person or by drop-off at the Division of Licensing. The application requires a BCI background check, proof of identity, documentation of ownership or residency, a notarized affidavit of legal compliance, and consent to share tax info. And you need to pay fees. Once approved, you’ll receive a registration number that must be displayed on your listing. STR properties must also meet local housing, health, and safety standards.
Legal Risks
It’s not the most exciting part of running an Airbnb business, but let’s take a quick look at the legal side.
Regulatory Changes
When it comes to regulations, staying up to date is key. Rules are popping up in every state. Even in places like Ohio, where things have been slower, clearer guidelines for short-term vacation rentals are on the way.
Regulations often follow market growth. As tourism picks up and Airbnb becomes more profitable, local residents push for rules to protect long-term residents. Moderate regulations are actually a good sign of a thriving market.
When things get more complicated, big cities like San Francisco and New York allow STRs only in primary residences or place caps on the number of days properties can be rented out.
Some states have tried to pass laws that limit local governments from banning STRs entirely, but this often creates friction between state and city policies, and many times these laws do not pass.
Penalties for Non-Compliance
It's very important to stay compliant with the rules because consequences can be dire. Penalties can range from $100 to a few thousand dollars per violation, depending on the jurisdiction (we saw Naperville, IL issues fines from $1000 and up).
In addition to fines, some cities require Airbnb or VRBO to remove non-compliant listings, cutting off host income entirely, and can even withdraw a license.
Tips for Staying Compliant With Airbnb Regulations
As we mentioned in the short-term rental industry, rules vary not just by state, but down to the county and city level. Here's some advice on how to find your way through the intricate maze of local regulations and stay compliant as regulations evolve.
How to Find Out Short-Term Rental Regulations for Your Area?
To find out the regulations in your city or neighborhood, you can start with an online search. Always check the rules at the state, county, and city levels—and keep in mind that local authorities often override state policies. You can also check Airbnb's help page for some locations, but the official government website should be your primary source.
Type in your county name plus “short-term rental regulations” to find official government websites. It’s important to rely on verified sources. Unofficial ones like forums or social media groups can be misleading, so always cross-check details on official county or state pages.
If the rules aren’t clear or well-defined, try reaching out to your local zoning board for clarification. You can also join local community groups to stay in the loop. And if you still have questions, consider contacting a real estate attorney or a lawyer who specializes in short-term rental laws in your area.
Can My Neighbor Stop Me from Having an Airbnb?
Running a short-term rental business means staying mindful of how your business impacts the neighborhood. In many cities, neighbors can file complaints that lead to inspections or trigger enforcement actions.
If your home is part of an HOA, there’s an added layer. Neighbors may vote to restrict or even ban short-term rentals entirely. To avoid conflict, it's smart to set clear house rules for your guests around things like noise, parking, and trash. You can always install noise monitors. Being a good neighbor is just as important as being a good host.
How Can I Find Airbnb-Friendly Cities or Markets to Invest In?
When thinking about which vacation rental market is best, look for cities with clear, loose to moderate STR regulations and established processes for permits. Avoid gray zones where rules can change day to day. These markets can be risky because shifting policies can affect your ability to scale a vacation rental business.
Use platforms like AirDNA or Mashvisor to analyze not just occupancy rates, nightly prices, and vacation rental hotspots, but also legal restrictions.
A good telltale sign of a host-friendly environment is when a city collects taxes automatically through Airbnb. It usually means a more host-friendly environment.
How Do I Stay Compliant Long-Term?
To build a sustainable Airbnb business, keep track of annual permit renewals, inspections, and local tax obligations. In some states, you’ll need to collect and remit lodging taxes yourself. If your city requires it, make sure your registration number is always visible in your listings.
Sign up for local government newsletters or check their websites regularly for zoning updates or new proposals. And don’t underestimate the value of having a local lawyer or accountant familiar with STR rules. They can help you avoid costly mistakes and stay on the right side of the law.
Takeaway
Most local governments have some short-term rental regulations in place. Know the landscape, licenses, and other requirements before turning a property into an Airbnb. Once vacation rental hosts are confident they’re operating legally, they can start thinking about how to increase rental income.
One way to run a better Airbnb business is to put it on autopilot with iGMS. It integrates with Airbnb, Vrbo, and other short-term rental platforms. Manage your entire vacation rental operation from one place.
About the Author
Zorica Milinkovic is a B2B SaaS writer who is passionate about psychology, marketing, and, when inspiration strikes, cooking. You can find her on LinkedIn.
