Wilmington Short-Term Rental Regulations

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

There is no registration or permit for short-term rentals in Wilmington. In Schroeder v. City of Wilmington, 2022 NCCOA 210, the N.C. Court of Appeals ruled April 5, 2022 that state law (G.S. 160D-1207(c)) preempts the city's mandatory STR registration; the city no longer requires registration and refunded prior registration fees. Operators must instead comply with the Land Development Code short-term lodging zoning use standards (Section 18-157): Homestay vs Whole-house definitions, district eligibility, parking, $500,000 liability insurance, posted written notice, no large events, and a 24/7 local operator within 25 miles for whole-house rentals.

Tax Obligations

Combined rate: 13% of gross rental income.

Collection: Operators self-collect and remit. New Hanover County room occupancy tax (6%) is reported monthly via the county Room Occupancy Tax portal to the NHC Finance Department. The 7% State and local sales and use tax is reported to the NC Department of Revenue (Form E-500). Platforms such as Airbnb may collect and remit some of these on the host's behalf.

Filing: Monthly. Room occupancy tax reports must be submitted to the New Hanover County Finance Department by the 20th day after the reporting month.

Rental Limits

Wilmington 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: maximum guest rooms shall be one less than the total number of bedrooms in the dwelling unit, not to exceed three guest rooms. Whole-house: no per-occupant cap stated; a maximum number of overnight occupants must be posted on site.

Zoning & Restrictions

Owner-occupied: Homestay lodging allowed where the host occupies the dwelling as a principal residence. The former 400-foot separation rule and 2% cap between short-term rentals were struck down in Schroeder (2022) and are no longer enforced. Short-term rentals (Homestay and Whole-house) are regulated through the Land Development Code (Section 18-157) zoning use standards rather than registration. Whole-house lodging is limited to certain zoning districts; only mobile home districts are completely banned. The 400-foot separation rule and 2% cap struck down in Schroeder v. City of Wilmington (2022) are no longer in effect.

Insurance & Safety

Insurance

Operators must maintain at least $500,000 each occurrence in liability insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

• Commercial general liability insurance of not less than $500,000 each occurrence must be in force whenever the unit is used as lodging
• Whole-house: a local operator available 24 hours per day and located within 25 miles of the property
• A written notice posted conspicuously on site with host/operator name and phone, address, maximum overnight occupants, garbage collection days, the Wilmington Police Department non-emergency number, and that large gatherings are not permitted
• Parties, events, classes, weddings, receptions, or other large gatherings are not permitted on the premises

Penalties for Non-Compliance

Short-term lodging operating standards are enforced through the Land Development Code by the City's Compliance Department. The room occupancy tax statute provides that reports not submitted on time are subject to civil and criminal penalties. No fixed STR fine schedule is published on the city short-term lodging page.

Compliance Checklist

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

1. Meet safety requirements. Commercial general liability insurance of not less than $500,000 each occurrence must be in force whenever the unit is used as lodging. Whole-house: a local operator available 24 hours per day and located within 25 miles of the property. A written notice posted conspicuously on site with host/operator name and phone, address, maximum overnight occupants, garbage collection days, the Wilmington Police Department non-emergency number, and that large gatherings are not permitted. Parties, events, classes, weddings, receptions, or other large gatherings are not permitted on the premises.
2. Obtain liability insurance. $500,000 each occurrence minimum.
3. Register for tax accounts. Set up lodging tax accounts with New Hanover County Finance Department (room occupancy tax); North Carolina Department of Revenue (sales and use tax).
4. Collect and remit taxes. 13% on all bookings.

Frequently Asked Questions

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

Wilmington does not require a dedicated short-term rental permit, but you must still register for and remit applicable lodging taxes. Confirm local zoning rules still allow short-term rentals at your property before listing.

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

No. Wilmington does not impose a primary-residence requirement, so non-owner-occupied rentals are allowed.

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

Wilmington 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 Wilmington?

Short-term rental stays in Wilmington are subject to a combined 13% in lodging taxes. This combines 6% New Hanover County Room Occupancy Tax + 7% North Carolina State & Local Sales and Use Tax. The host is responsible for collecting and remitting them.