🎯 STRisker: Bulletin - Ocean City, MD

A Deep Dive into Your Area’s STR Updates — Helping You Navigate the Ever-Changing Rental Landscape.

Short-Term Rental Regulations Headed to Ballot in July

Ocean City voters are gearing up for a summer election that could reshape the city’s short-term rental (STR) landscape.

A special referendum on July 22 will let residents vote on Ordinance 2025-04, the city’s newly passed rule that would ban STRs in single-family home (R1) and mobile home (MH) zones by 2027. The law is already stirring debate between those trying to protect neighborhood charm and those relying on rental income to make ends meet.

This ballot measure was triggered by a successful petition opposing the ordinance, which gathered over 1,300 signatures. After verifying that 1,090 were valid, well above the 991 required, city officials scheduled a vote rather than wait until the 2026 election — a delay that would have paused enforcement.

As it stands, the ordinance sets a gradual timeline for restrictions: rentals must meet a five-day minimum stay in 2025 and 2026 eventually shifting to a 31-day minimum in 2027, effectively banning short stays in R1 and MH areas.

Homeowners who oppose the measure argue that the ban strips them of vital income. During public hearings, many testified that short-term rentals help them afford their homes — especially in a market where second homes and investment properties are common. Critics see the ordinance as punishing responsible hosts for the behavior of a few bad actors.

But long-term residents, especially in single-family zones, tell a different story. They’ve grown tired of dealing with noisy guests, overflowing driveways, and weekend chaos. Supporters of the ban say neighborhoods should be just that — neighborhoods, not tourist hubs. The Planning Commission and council majority agreed, citing the city’s comprehensive plan, which restricts commercial activity in residential zones.

Importantly, the ordinance doesn’t affect townhomes, condos, or multi-family units (R2 and R3 zones), so those operating STRs outside of R1 and MH aren’t impacted — for now.

The July election is a rare mid-summer vote, but city code allows for it after a valid referendum petition. Voting now keeps the ordinance in place pending the outcome, whereas delaying would have suspended it.

What happens next is up to the voters.

Will Ocean City stick with the ban, or roll it back in favor of property owner flexibility? STR owners and neighbors alike should mark their calendars and prepare for a pivotal decision.

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