Airbnb and short-term rental laws and regulations in Washington DC - 2026

Washington DC regulates short-term rentals far more tightly than its Northern Virginia neighbors. DC law lets only a natural person hosting at their own primary residence get licensed, and it caps unhosted stays at 90 nights per calendar year. For an investor chasing lodging income, that combination rules the District out unless you actually live in the unit you list.

If you host in the District, or you're weighing a DC property, the Washington DC short-term rental regulations below set what you can legally list and for how many nights, what it costs, and how the Department of Licensing and Consumer Protection (DLCP) has enforced them ward by ward since 2025, plus what a pending 2026 bill could change.

What counts as a short-term rental in Washington DC?

The DC Council enacted the Short-Term Rental Regulation Act of 2018 (D.C. Law 22-307) to govern paid transient lodging in a home, splitting it into two categories built entirely around whether the host is on the premises. Under D.C. Code § 30-201.01, a short-term rental is "paid lodging for transient guests with the host present, unless it is a vacation rental." A vacation rental is a short-term rental "wherein a transient guest has exclusive use of the host's property during the transient guest's stay and the host is not present on the premises."

Rent out your basement bedroom while you sleep upstairs, and you're running a short-term rental. Hand guests the whole house while you're out of town, and you're running a vacation rental. The DC Council tied the license rules to host presence: host-present rentals have no annual night limit, while § 30-201.06(e) caps vacation rentals at 90 nights per calendar year. Each category also requires its own license endorsement.

These definitions have not changed since 2018. The only amendments to § 30-201.01 were a 2020 technical repeal and a 2021 agency-name substitution; the substantive definitions of "short-term rental" and "vacation rental" stand as originally enacted. A pending 2026 bill would rewrite them.

Who can legally operate a DC short-term rental?

Only a natural person can hold a DC short-term rental license: the statute defines a host as "a natural person", so a company or other business entity is ineligible. The rental must also operate within the host's primary residence, which the law defines as a property "eligible for the homestead deduction pursuant to § 47-850."

OTR staff verify homestead eligibility. Under OTR's Homestead Deduction rules, individuals must own and occupy the property as their principal residence, and the property may contain no more than five dwelling units. Properties owned by a company or other business entity do not qualify, with narrow exceptions for special needs trusts and revocable trusts where the grantor lives in the property. DLCP cannot license a second home, an investment condo, or any property titled to your holding company under current law. For a portfolio investor, that rules out DC entirely as an STR market unless you personally live in the property you list.

Can renters and tenants host?

Under current law, no. DLCP's guidance ties eligibility to the owner's Homestead Deduction, and its operating page states that an individual must own the property and use it as the homeowner's primary residence. A tenant cannot meet that test.

Two pending bills would change this. Councilmember Brianne Nadeau introduced B26-0368 in September 2025 to let tenants who demonstrate primary residency operate a licensed STR. The broader B26-0647, the Short-Term Rental Regulation Amendment Act of 2026, would let renters host at their primary residence with written owner authorization, while excluding rent-stabilized units and any unit whose lease prohibits hosting. Tenant-hosts would have to notify DLCP within 14 business days if the lease ends or the owner withdraws permission. Both bills sit in committee; neither has become law as of August 2026.

ADUs and English basements

An accessory dwelling unit can qualify, but only as part of your own home. The DC Zoning Code defines whether a space counts as an ADU in the first place, a separate question from DLCP's licensing test. For licensing purposes, DLCP treats ADUs, including English basements, as part of a host's primary-residence guidance when the owner is eligible for the Homestead Tax Deduction, regardless of how the DC Zoning Code classifies the unit. So DLCP can license the basement apartment under the rowhouse you live in, but it cannot license a freestanding investment unit at a different address, which fails the primary-residence test regardless of how the space is configured.

The two license types: short-term rental vs. vacation rental endorsement

DC licenses hosts through a Basic Business License (BBL) carrying one of two endorsements, and the endorsement must match how you operate:

• A Short-Term Rental endorsement covers host-present stays with no annual night limit.
• A Short-Term Rental: Vacation Rental endorsement covers host-absent, whole-unit stays, subject to the 90-night cap.

Match the endorsement to how the listing reads. Under D.C. Code § 30-201.09, if any part of a listing claims or suggests the guest gets exclusive use of your entire residence, that is prima facie evidence the rental is a vacation rental, whatever endorsement you hold. A host with a standard STR endorsement whose Airbnb listing reads "entire home" risks enforcement on that basis alone.

How the 90-night annual cap works

D.C. Code § 30-201.06(e) limits vacation rentals to "no more than 90 nights cumulatively in any calendar year, unless the host has received an exemption." Every vacation-rental night counts toward the same 90, and the count resets with each calendar year. DLCP's licensing guidance also limits each individual stay to 30 or fewer continuous nights. Nights when you are present and hosting do not count against the cap, because those stays fall under the standard STR endorsement instead.

You cannot quietly run past the limit, because the law requires platforms to stop you. Under § 30-201.08, a booking service may not book a vacation rental beyond 90 cumulative nights in a calendar year unless DLCP has transmitted notice of an exemption, and platforms must keep records of all DC short-term rentals for two years.

Exemptions to the 90-night cap

Section 30-201.06(f) recognizes two grounds for exemption: your employer (or your spouse's or domestic partner's) requires you to work outside the District for more than 90 cumulative days in a calendar year, or you leave the District for more than 90 cumulative days to receive treatment for a serious health condition or to care for a family member receiving such treatment. If DLCP approves the exemption, it authorizes additional rental nights equal to the qualifying days you spend away.

Hosts apply for an exemption through the licensing portal, and DLCP staff review it. You need an active vacation rental license first; DLCP's instructions direct you to select "Apply for Exemption" from your dashboard at boss.dc.gov. Employment exemptions require a notarized form signed by an employer representative (self-employed hosts submit a signed affidavit plus travel documentation); medical exemptions require a notarized form from a healthcare provider. Both require proof of travel, such as airline tickets or an out-of-District lease. Email the documents to shorttermrentals@dc.gov. DLCP processes applications within 2 to 3 business days, and you must notify the STR program within 10 days of returning to DC.

Current law recognizes a hardship exemption for hosts who can demonstrate qualifying employment or medical grounds, but it has no special event license category. B26-0647 would change that by creating a Short-Term Rental: Special Event endorsement covering presidential inaugurations, the National Cherry Blossom Festival, Independence Day, and other events the Mayor designates. Nights rented under this special event license would not count toward the 90-night limit, though a separate 30-night annual cap would apply. Until the bill passes, inauguration-week whole-home rentals count against your 90 nights like any others.

How to apply for a DC short-term rental license

Applications now run through BOSS at boss.dc.gov. DLCP launched the licensing platform on August 10, 2026, and the prior portal at shorttermrentals.dc.gov went offline August 5, 2026, so any guide written before that date points you to a dead system. DLCP has run the STR program since the District split the old DCRA into DLCP and the Department of Buildings on October 1, 2022.

The application itself is fully online and follows this sequence:

1. Confirm your Homestead Deduction status at MyTax.DC.gov. No login is needed: search Real Property by address or SSL, open the SSL record, and check "Applications and Actions" then "Homestead Applications." If you haven't applied, file the ASD-100 electronically; OTR processes online applications within 30 days.
2. Create an Access DC single sign-on account, which BOSS requires before you can apply.
3. Request a Certificate of Clean Hands through MyTax.DC.gov. Compliant applicants receive it instantly.
4. Gather proof of liability insurance and, if your property belongs to an association such as an HOA or condo board, complete the attestation form.
5. Apply at boss.dc.gov, self-certify housing code compliance, and pay by credit or debit card.

For complaints about suspected unlicensed rentals, DLCP runs a dedicated STR hotline at (202) 221-8550; general licensing questions go to (202) 671-4500 or dlcp@dc.gov.

Required documents

DLCP's application checklist comes down to four items plus payment:

• A Certificate of Clean Hands that OTR issued within the last 30 days, in the property owner's name. Since October 1, 2024, the disqualifying threshold for delinquent DC taxes, fines, penalties, and interest is $1,000, up from $100, with a five-year look-back. Traffic tickets and unpaid child support don't count against you, and DLCP cannot deny a license if you're complying with an approved payment plan.
• Proof of liability insurance, which may come from a rental platform or directly from an insurer.
• The Short-Term/Vacation Rental Attestation Form, which you need only if the property belongs to an association.
• Self-certification of compliance with the DC Housing Code and Property Maintenance Code. DLCP does not require a physical inspection before issuance; you attest to habitability inside the BOSS portal.

Fees and renewal

DC's short-term rental licensing fees are straightforward: DLCP's fee guidance lists a total cost of $99 for a two-year license, comprising a $99 BBL and $0 endorsement fees for both STR endorsements. That structure reflects the BEST Act, which eliminated business license endorsement fees and the old 10% technology fee. Renewals cost the same as the original license. Under the license-period format DLCP adopted effective August 1, 2025, licenses run from issuance to the last day of the same month two or four years later, and you can renew starting 90 days before expiration. Late renewals trigger an escalating penalty fee.

Safety, insurance, and housing code requirements for DC hosts

D.C. Code § 30-201.06 sets these physical requirements for every licensed rental:

• Working smoke detectors outside the sleeping area and on all habitable floors, plus working carbon monoxide detectors on all habitable floors.
• Unobstructed egress from the rental.

DLCP's self-certification adds a portable fire extinguisher, a requirement that appears in agency guidance but not the statute; treat it as mandatory anyway, since you certify to it in the application.

The statute and DLCP's guidance set different insurance minimums. D.C. Code § 30-201.02(b) requires "current liability insurance of at least $500,000." A booking service may provide the coverage, and the statute authorizes the Mayor to adjust the minimum by rulemaking. DLCP's operating page and application checklist consistently state a $250,000 minimum, citing 14 DCMR § 9901.6, which may reflect such an adjustment. The practical enforcement threshold appears to be $250,000, but carrying at least $500,000 keeps you safe under either reading.

Platform coverage can technically satisfy the requirement: Airbnb's AirCover includes $1M in host liability insurance, and the D.C. Bar Pro Bono Center notes that third-party booking-site insurance is generally sufficient under DC law while warning hosts to "carefully evaluate the coverage offered." The DC Department of Insurance, Securities and Banking adds a sharper warning in its DISB insurance guidance: standard homeowners and renters policies "are not designed to cover accidents arising from property rental" and may deny claims outright.

Taxes on DC short-term rentals

The current transient lodging tax rate is 15.95%. Older guides may still list 14.5% or 14.95%. The rate increased from 14.95% to 15.95% effective April 1, 2023, and OTR's 2026 FR-800SE filing instructions confirm that the 15.95% rate applies to short-term lodging. The rate includes a temporary 1.0% surtax that expires September 30, 2027.

Whether you personally remit depends on where your bookings come from:

• Platform | DC remittance status
• Airbnb | Collects and remits at 15.95% for stays of 90 nights or fewer
• Vrbo | Collects and remits for stays under 91 nights (since September 1, 2017)
• Booking.com | DC is not in its automated US tax remittance program as of June 2026

DC law puts the collection duty on booking services: under § 30-201.08, "a booking service shall collect and remit on behalf of hosts all required transient occupancy taxes." But hosts remain legally responsible even when a platform remits, and OTR is explicit that a facilitator agreement "does not relieve either the marketplace facilitator or the marketplace seller from liability for any District sales tax due."

If you take direct bookings or use a non-remitting platform, follow these steps:

1. Register with OTR via Form FR-500 at MyTax.DC.gov before your first taxable stay.
2. Collect 15.95% on gross receipts.
3. File electronically according to your liability:

• Return | Filing threshold | Due date
• FR-800M, monthly | $1,201 or more per period, or if you are a marketplace facilitator or remote seller | The 20th of the following month
• FR-800Q, quarterly | $201 to $1,200 | The applicable quarterly deadline
• FR-800A, annually | $200 or less | October 20

4. Deduct marketplace sales only where the platform collected and remitted for you.
5. Keep records of every booking for two years.

Association and lease restrictions city rules cannot override

A DLCP license settles only your obligation to the city. If your property belongs to an HOA or another association, including a condo or co-op, DLCP requires the Short-Term/Vacation Rental Attestation Form, on which you certify under penalty of perjury that one of four conditions holds:

• The governing documents expressly allow short-term rentals.
• They don't prohibit them.
• They allow them subject to conditions you're meeting.
• The association has given you written permission.

You must retain that written permission for the life of the license plus three years after expiration, and DLCP can demand supporting evidence at any time. Fail to produce it within 5 business days and your license faces automatic suspension or revocation. Tenants face the parallel problem with leases: even if the pending B26-0647 becomes law, a lease that prohibits short-term rentals would bar hosting.

Fines and penalties for operating without a license

D.C. Code § 30-201.10 sets a graduated civil penalty schedule for hosts, with the same structure applying to booking services that violate § 30-201.08:

• Offense | Civil penalty
• First violation | $500
• Second violation | $2,000
• Third violation | $6,000 plus revocation of the STR license endorsement

DLCP's consumer warning page states fines "can start at $1,000," a figure that conflicts with the $500 statutory first-violation amount; the statute lets the Mayor adjust penalties by rulemaking, which may account for the difference. Unpaid fines accrue 1.5% interest per month after 30 days.

DLCP's Consumer Protection Unit handles enforcement. It opens investigations from resident complaints submitted through the website or the (202) 221-8550 hotline and from its own monitoring of rental platforms for unlicensed listings and vacation rentals exceeding 90 days. The unit issues Notices of Infraction and files them with the Office of Administrative Hearings.

DLCP launched a ward-by-ward initiative in September 2025 starting in Ward 1, then Wards 3 and 4 in November, sending warning letters to unlicensed operators; roughly 50% came into compliance on the warning alone, and DLCP referred the rest for infraction notices. By April 17, 2026, DLCP had issued more than 300 notices of infraction in Ward 6 alone, with over 127 operators subsequently obtaining licenses. No documented grace period applies; if you're operating unlicensed in 2026, assume you're already visible.

How DC STR rules compare and what's next

DC's regime is materially tighter and more expensive on the tax side than its Virginia neighbors:

• Feature | Washington DC | Arlington County, VA | Falls Church, VA
• Permit type | BBL with STR or vacation rental endorsement | Accessory Homestay Permit plus business license | No dedicated STR permit; STRs prohibited in ADUs
• Primary residence required? | Yes, via Homestead Deduction eligibility | Yes, occupied at least 185 days/year | Yes, for the ADU property owner
• Tenants eligible? | No under current law | Yes | Not applicable
• Annual night cap | 90 nights (vacation rental); none host-present | None stated | Not applicable
• Lodging tax | 15.95% | 8.25% | 9%

Arlington's short-term rental rules allow both owner and tenant hosts and set no annual night cap. Falls Church took the opposite tack: its April 14, 2025 accessory-dwelling ordinance prohibits ADU rentals.

For investors whom DC's primary-residence rule locks out of the STR market, a mid-term rental strategy offers a practical workaround. DC's framework applies to stays of 30 or fewer continuous nights, so pivoting to month-plus furnished rentals generally places a property outside that regulatory scope, though you should confirm with DLCP before restructuring a listing.

The biggest open question is B26-0647. Chairman Mendelson introduced the 2026 amendment bill on March 13, 2026, at Mayor Bowser's request. The bill would eliminate the STR/vacation rental distinction and replace it with primary- and secondary-residence endorsements, create a special-event endorsement, open hosting to renters with owner authorization, and let a DC-resident host license one second property that need not be owner-occupied (capped at 90 nights per year if unoccupied). If the host stops maintaining a DC primary residence, the second-property license becomes void. The Council referred the bill to committee on March 30, 2026, and it remains there as of August 2026, with no hearing, markup, or vote. Treat every B26-0647 provision as proposed until the Council acts.

How Steadily fits in for DC STR hosts

Platform coverage may satisfy DC's licensing requirement, but DISB warns that standard homeowners and renters policies may deny rental-related claims, so review the platform policy's coverage period and exclusions before relying on it. Good short-term rental insurance in Washington, DC closes that gap: Steadily writes policies for owners who operate short-term rentals, naming Airbnb and Vrbo occupancy as covered, with furnished-contents and liability coverage that holds up between bookings. Get a quote in minutes at quote.steadily.com.

FAQ

What's the difference between a short-term rental and a vacation rental in DC?

The difference is whether you're on the premises during the stay. With a vacation rental, the guest has exclusive use of the property while you're away. DC law applies the 90-night annual cap to vacation rentals; host-present rentals have no annual cap.

What documents do I need to apply?

A Certificate of Clean Hands that OTR issued within 30 days in the owner's name, proof of liability insurance, the association attestation form if the property is in an HOA or condo, a housing-code self-certification completed in the BOSS portal, and a card to pay the $99 two-year fee.

Do I have to live in the property?

Yes. The property must be your primary residence, which OTR verifies through eligibility for the Homestead Tax Deduction, and the license holder must be an individual person.

Can I exceed the 90-night vacation rental cap?

Only with a DLCP exemption for employer-required work outside the District or out-of-District medical treatment or caregiving, each exceeding 90 cumulative days. Current law has no special-event exemption; B26-0647 would create one.

Can a renter or an LLC get a license?

Neither can under current law. Renters can't meet the Homestead Deduction test, and entities aren't "natural persons" under the statute. Pending bills B26-0368 and B26-0647 would open hosting to tenants, but both remain in committee.

Who handles the lodging tax?

Airbnb and Vrbo collect and remit DC's 15.95% tax on qualifying stays. Booking.com does not include DC in its automated remittance program, so hosts booking there (or directly) must register with OTR and file FR-800 returns themselves. Legal liability for the tax stays with the host either way.

What happens if I operate without a license?

Statutory fines run $500 for a first violation, $2,000 for a second, and $6,000 plus endorsement revocation for a third, though DLCP's consumer page cites fines starting at $1,000. DLCP finds violators through complaints and by monitoring the platforms directly.

What safety equipment and insurance does DC require?

DC requires working smoke and CO detectors in the specified locations and unobstructed egress, and DLCP guidance also requires a portable fire extinguisher, all of which you self-certify when you apply. DLCP guidance requires $250,000 in liability insurance while the statute specifies $500,000; platform coverage such as AirCover's $1M host liability insurance can satisfy the requirement.