Boone Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental Zoning Permit — Homestay Rental

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

Short-Term Rental Zoning Permit — Vacation Rental (whole home)

This permit type does not require primary residence. Zoning restriction: Whole-home vacation rentals (up to 6 bedrooms) are permitted only in the B1DC, B1DI, B2, and B3 business districts and only outside a 75-foot transitional zone from protected residential districts (R1, R1A, RR, R2, RA); a vacation rental within 75 feet of those districts requires a Special Use Permit from the Board of Adjustment. Vacation rentals are not allowed in residential districts.

Application Process

Submit the Annual Short-Term Rental Permit Application to the Town of Boone Planning & Inspections Department with the $530 fee, proof of insurance covering the rental use and renters, and (for vacation rentals) a scaled site plan showing required parking; homestay applicants submit two documents proving full-time residence. Each application gets two reviews; additional reviews are charged at 50% of the original fee. Renewals require the same items plus evidence that prior years' occupancy taxes were paid. The permit is not transferrable and no use may commence until the permit is issued. This Short-Term Rental program was created by the December 8, 2021 UDO amendment.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 12.75% of gross rental income.

Collection: Operator self-remits. The Watauga County Room Occupancy Tax is filed with the Watauga County Tax Administration; North Carolina State and Watauga County sales & use tax is filed with the NC Department of Revenue. Operators must remit through their online platform service or personally, and the Town requires evidence of payment of occupancy taxes as part of the application and renewal process.

Filing: Monthly. The Watauga County Room Occupancy Tax is due the 15th of each month and is considered late after the 20th.

Rental Limits

Boone does not impose an annual cap on the number of nights you can rent. Each individual stay must be 29 days or fewer per stay.

Occupancy & Density Limits

Homestay rentals: maximum 2 bedrooms and 4 adults plus any number of children. Vacation rentals: dwellings of up to 6 bedrooms; in multi-unit buildings no more than 5% of units or 2 units (whichever is greater) may be vacation rentals.

Zoning & Restrictions

Homestay rentals (owner-occupied — full-time resident leasing up to 2 bedrooms) are Permitted Subject to Limitations (UDO Section 15.05) by right in RA, R1, R1A, RR, R1S, R2, R4, MH, R3, R5, OI, B1DC, B1DI, B2, B3, WD, and M1. Whole-home Vacation Rentals (UDO Section 15.14) are permitted only in the B1DC, B1DI, B2, and B3 business districts and carry a 75-foot transitional zone (denoted LT75); a vacation rental within 75 feet of a protected residential district (R1, R1A, RR, R2, RA) requires a Special Use Permit from the Board of Adjustment. Vacation rentals are not allowed in residential districts.

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

• Comply with all applicable State and local fire and building codes
• Smoke-detecting equipment required
• Carbon monoxide-detecting equipment required
• Comply with applicable housing codes
• No cooking facilities permitted in any bedroom
• Occupancy limit posted prominently within the rental and in any advertising
• Permit number conspicuously posted on the property and in all advertisements
• Required dedicated off-street parking (homestay: one space per bedroom or per two adult renters, beyond the two spaces for the dwelling; vacation rental: at least one space per guest bedroom)
• Operator or agent available to respond to complaints and emergencies within two hours while a rental is occupied (vacation rentals)

Penalties for Non-Compliance

Enforcement is through the Town Code Verified Violation process. Sanctions include civil penalties, administrative fees, corrective measures, or cessation of activities. Providing false information voids and revokes the permit, and the Administrator shall revoke a permit upon a written determination of specified criminal convictions (e.g., human trafficking, prostitution, violent felony) on the premises, or two or more Verified Violations of zoning, noise (Chapter 82), or nuisance (Chapter 80) regulations within a 365-day period. Specific civil penalty dollar amounts are not published on the cited Town pages.

Platform Requirements

The permit number authorizing the rental must be conspicuously posted on all advertisements for short-term rentals (including online platforms) and on the subject property in a location viewable from the exterior.

Compliance Checklist

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

1. Determine your permit type. Boone has 2 permit types. Identify which applies to your property (Short-Term Rental Zoning Permit — Homestay Rental, Short-Term Rental Zoning Permit — Vacation Rental (whole home)).
2. Meet safety requirements. Comply with all applicable State and local fire and building codes. Smoke-detecting equipment required. Carbon monoxide-detecting equipment required. Comply with applicable housing codes. No cooking facilities permitted in any bedroom. Occupancy limit posted prominently within the rental and in any advertising. Permit number conspicuously posted on the property and in all advertisements. Required dedicated off-street parking (homestay: one space per bedroom or per two adult renters, beyond the two spaces for the dwelling; vacation rental: at least one space per guest bedroom). Operator or agent available to respond to complaints and emergencies within two hours while a rental is occupied (vacation rentals).
3. Obtain liability insurance. Required for property's use as a short-term rental.
4. Apply for your STR permit. Submit application + $530 fee. See permit types above to determine which applies.
5. Register for tax accounts. Set up lodging tax accounts with Watauga County Tax Administration (room occupancy tax); North Carolina Department of Revenue (state & local sales and use tax).
6. Display your permit number. Include your permit/license number in all listings and advertisements.
7. Collect and remit taxes. 12.75% on all bookings.
8. Renew annually. $530 renewal fee.

Frequently Asked Questions

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

Yes. Boone requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.

Are there major restrictions on short-term rentals in Boone?

Yes — Whole-home Vacation Rentals (UDO Section 15.14) are permitted only in the B1DC, B1DI, B2, and B3 business districts and carry a 75-foot transitional zone (denoted LT75); a vacation rental within 75… Review the full rules above before listing.

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

A short-term rental permit in Boone costs $530.

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

It depends on the permit type. At least one Boone permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.

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

Boone does not cap the total number of nights per year, but each individual stay must be 29 days or fewer.

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

Short-term rental stays in Boone are subject to a combined 12.75% in lodging taxes. This combines 6% Town of Boone Room Occupancy Tax + 4.75% North Carolina State Sales & Use Tax + 2% Watauga County Local Sales & Use Tax. The host is responsible for collecting and remitting them.

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

Enforcement is through the Town Code Verified Violation process.