Cambridge Short-Term Rental Regulations

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Permit & Licensing

Certificate of Registration (Short-Term Rental)

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Application Process

Submit a Short-Term Rental Registration Application online through ISD with supporting documents (proof of liability insurance, condo/owner approval, floor plan, proof of primary residence); ISD schedules and conducts a life-safety inspection after approval; Certificate of Registration issued upon satisfactory inspection.

Tax Obligations

Combined rate: 14.45% (state 5.7% + Cambridge local 6.00% + convention center 2.75%); up to 17.45% if the Short-Term Rental Community Impact Fee (up to 3%) applies of gross rental income.

Collection: Operators generally collect room occupancy taxes and fees from occupants when rent is collected and remit to DOR; where an intermediary collects the rent, the intermediary is responsible for collecting and remitting the related taxes and fees

Filing: Monthly; returns due on or before the 30th day following the month represented by the return, filed via MassTaxConnect

Rental Limits

Cambridge does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 30 consecutive days.

Occupancy & Density Limits

Operator-occupied: up to 3 individual bedrooms, not exceeding the number of lawful bedrooms in the unit. Owner-adjacent: whole dwelling unit rented to a single party only, not by individual bedroom.

Zoning & Restrictions

Only two forms of short-term rental are permitted: operator-occupied (the unit is the operator's primary residence, up to 3 bedrooms rented) and owner-adjacent (a whole dwelling unit rented, where the operator owns and lives in another unit in the same building of 4 or fewer dwelling units total). Non-owner-occupied whole-home rentals are not permitted.

Insurance & Safety

Insurance

Liability insurance is required for the property's use as a short-term rental, though the required coverage amount is not publicly specified.

Safety & Operating Requirements

• Mandatory life-safety inspection by Inspectional Services prior to registration, and every 5 years or upon change of ownership/operator
• Unit must comply with State Building and Sanitary Code requirements for occupancy, including ceiling height, ventilation, room size/light, life safety devices, and egress
• Emergency-exit diagram posted in each bedroom used for owner-adjacent short-term rental and on all egresses
• Certificate of Registration must be posted in the STR unit

Penalties for Non-Compliance

Fines of up to $300 per day for code violations or violations of the Short-Term Rental Ordinance

Platform Requirements

Intermediaries (booking platforms) or operator's agents that collect rent must register with the Massachusetts DOR on MassTaxConnect and are responsible for collecting and remitting the related room occupancy taxes and fees

Compliance Checklist

Follow these steps to legally operate a short-term rental in Cambridge:

1. Confirm eligibility. The property must be your primary residence. Investment properties are not eligible.
2. Meet safety requirements. Mandatory life-safety inspection by Inspectional Services prior to registration, and every 5 years or upon change of ownership/operator. Unit must comply with State Building and Sanitary Code requirements for occupancy, including ceiling height, ventilation, room size/light, life safety devices, and egress. Emergency-exit diagram posted in each bedroom used for owner-adjacent short-term rental and on all egresses. Certificate of Registration must be posted in the STR unit.
3. Obtain liability insurance. Required for property's use as a short-term rental.
4. Apply for Certificate of Registration (Short-Term Rental). Submit application + $500 fee.
5. Register for tax accounts. Set up lodging tax accounts with Massachusetts Department of Revenue (DOR).
6. Collect and remit taxes. 14.45% (state 5.7% + Cambridge local 6.00% + convention center 2.75%); up to 17.45% if the Short-Term Rental Community Impact Fee (up to 3%) applies on all bookings.
7. Renew every 5 years. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Cambridge?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Cambridge requires a Certificate of Registration (Short-Term Rental).

How much does a short-term rental permit cost in Cambridge?

A Certificate of Registration (Short-Term Rental) in Cambridge costs $500 per year.

Does Cambridge require a short-term rental to be your primary residence?

Yes. Every Cambridge permit type requires the property to be your primary residence, so investment or non-owner-occupied rentals generally are not eligible.

How many days a year can you short-term rent in Cambridge?

Cambridge does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Cambridge?

Short-term rental stays in Cambridge are subject to a combined 14.45% in lodging taxes. This combines 5.7% Massachusetts State Room Occupancy Excise + 6.00% Cambridge Local Room Occupancy Excise + 2.75% Convention Center Funding Tax + up to 3% Short-Term Rental Community Impact Fee (professionally-managed units, and owner-occupied 2-3 family dwellings, which Cambridge has voted to include). The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Cambridge?

Operating without a permit can cost up to $300/day.