Short-Term Rental Restrictions


According to the 2016 NAR Investment and Vacation Home Buyers Survey, most respondents purchased a vacation property for personal use, but, of investment buyers, 50% purchased with the intent of renting to others. Renting out a vacation home can offset the costs of this investment until retirement. But what happens when a community acts to restrict short-term rentals?

Political Advocacy

Current Legislation/Regulation

None at this time.


Issue summary
NAR Federal Issues Tracker

Legislative Contact(s):

Adriann Murawski,

Russell Riggs,

Regulatory Contact(s):

Adriann Murawski,

Russell Riggs,

What is the fundamental issue?

Many localities in areas across the country are considering or adopting ordinances that limit or prevent the ability of property owners to rent out properties on a short-term basis. The dynamics of this issue are complex. The infringement upon property rights is a common theme when local governments limit the use of property. Property ownership includes the right to gain income from property; whereas local governments are granted the legal authority to regulate land use within their jurisdiction by police powers and/or zoning regulations. The natural complexities of short-term rentals also create a division of positions among NAR’s membership.

I am a real estate professional. What does this mean for my business?

Rental property especially in vacation destinations may become less desirable to buyers and investors if restrictions are placed upon the amount of time property may be rented or short-term rentals are banned all together.

NAR Policy:

NAR has not adopted an official position on this issue; however, state and local REALTOR®associations may adopt official positions for short-term rental ordinances and/or laws.

Legislative/Regulatory Status/Outlook

There are no federal legislative or regulatory proposals.

NAR Committee:

State and Local Issues Policy Committee


We've already done the research for you.

Before you search elsewhere, take advantage of the research we've already done for you. Formerly known as Field Guides, References tabs contain links to external articles, titles from the NAR Library eBooks collection, websites, statistics, and other material to provide a comprehensive overview of perspectives on each topic. EBSCO articles (E) are available only to NAR members and require a password.

Short-Term Rental Conundrum

A Grander Vision for Short-Term Rentals, (REALTOR® Magazine, Mar. 2017).

How Airbnb Is Spurring Innovation In Luxury Travel, (Time, Mar. 28, 2017).

The Airbnb Factor, (REALTOR® Magazine, Jan. 2016)

The Next Property Rights Frontier, (REALTOR® AE, Oct. 20, 2015)

How Airbnb Combats Middle Class Income Stagnation, (Gene Sperling for AirBNB, Jun. 2015)

Do Airbnb-style short-term rentals destroy neighborhoods — or save them?, (Uptown Messenger, Jan. 15, 2015)

The Basics of Legal Short-Term Rentals, (Curbed Chicago, Apr. 5, 2013).

Win, Lose, Com​promise

Chattanooga may establish special district for short-term vacation rentals, (Times Free Press, Mar. 29, 2017).

Short-term rental rule-breaker? Doral is cracking down, (Miami Herald, Mar. 28, 2017).

Inside New Orleans short-term rental applications, (The New Orleans Advocate, Mar. 24, 2017).

How To Save Airbnb From Local Governments, (Forbes Opinion, Feb. 1, 2017).

Airbnb Is Crashing the Neighborhood, (REALTOR® Magazine, Dec. 2015)

Articles, Surv​eys & More From NAR

2016 NAR Investment and Vacation Home Buyers Survey, (National Association of REALTORS®, 2016).

Residential Rentals: The Housing Market, Regulations, and Property Rights, (Robinson & Cole LLP, prepared for the National Association of REALTORS®, Oct. 14, 2015). 

Websites & Othe​r Resources

Learn About ​the Short-Term Rental Industry

Short Term Rental Advocacy Center — The Short Term Rental Advocacy Center (STRAC) was created by Airbnb, HomeAway, TripAdvisor, and FlipKey to engage with policymakers on behalf of community members. STRAC has several local chapters across the U.S., and educates communities on short term rental best practices and ways to get involved. 

Protect Vacation Rentals — A collection of articles posted by "professionals against the legislation banning short-term rentals in New York City". See this site for articles, legislation, and more with a New York focus.

Community from HomeAway — HomeAway ( connects travelers with short-term rental properties, and Community from HomeAway is a member-driven site with topic forums, resources, groups, and blogs for both travelers and property managers.

Locate Short-Term Rental Listings — aggregates vacation and short-term rental listings from several sources (AirBnB, HomeAway, and FlipKey) and shows listings on a full-screen map. For a bit more information on, see this AGBeat article.


Check out more short-term rental websites: AirBnB  FlipKey  HomeAway


Tax Topic 415 - Renting Residential and Vacation Property, IRS

Publication 527 (2016), Residential Rental Property, IRS

Sales Tax Formulas for Vacation Rentals, Community from HomeAway

Sales Tax Requirements for Vacation Rental Homes, Community from HomeAway

State Sales Tax Offices, Community from HomeAway

* Please check with local government in your rental property area for information on permits, taxation, and regulations.


The following eBooks and digital audiobooks are available to NAR members:

The Complete Guide to Real Estate Finance for Investment Properties (Adobe eReader)

How a Second Home Can Be Your Best Investment (Adobe eReader)

The Real Estate Investor's Tax Strategy Guide (Adobe eReader, Kindle)

Retire Rich from Real Estate: A Low-Risk Approach to Buying Rental Property for the Long-Term Investor (Adobe eReader)

Buying a Second Home: Income, Getaway or Retirement (Adobe eReader)

Complete Guide to Investing in Rental Properties (Adobe eReader)

How a Second Home Can be Your Best Investment (Adobe eReader)

How to Succeed and Make Money with Your First Rental House (Kindle, Adobe eReader)

Leases & Rental Agreements (Adobe eReader)

Second Homes for Dummies® (Kindle, Adobe eReader)

The Unofficial Guide to Managing Rental Property (Adobe eReader)

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The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.


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