Is Rental Arbitrage Legal in Baltimore City, MD?
STR defined as rental under 90 nights. Only HOSTED (owner-occupied) properties eligible for new licenses since 2020. NO new unhosted licenses issued. License fee $200, expires every 2 years with formal renewal application. Application through baltimoremddhcd.viewpointcloud.com. Governed by Baltimore City Code Article 15, Subtitle 48.
Can a renter do rental arbitrage here? No. Renters cannot get a short-term rental license here. Only owners can host.
Requirements
- Property must serve as primary residence (180 days annually, documented via driver's license, voter registration, or homestead tax credit). Deed in individual name (not LLC/business entity). No outstanding code violations. Maryland State Use and Sales Tax Number required. One dwelling unit per application (rooming units separate). If ownership recently transferred, attach HUD-1/Settlement Sheet. Application account setup with secure password (min 8 chars: 1 uppercase, 1 lowercase, 1 number). Hosted units: owner must reside in property with guests during stay.
Restrictions
- NO new unhosted (whole-unit) licenses issued since 2020; only existing holders may renew. Only hosted (owner-occupied) properties eligible for new applications. Property must be primary residence with 180 days/year occupancy requirement. Individual deed ownership only (no LLCs). Definition: under 90 nights (not 30 days). One dwelling unit per license. Misdemeanor violation: up to $500/day for unlicensed operation. Platforms must verify licenses before advertising. License denial, suspension, or revocation available for violations. Maryland fire safety law effective October 1, 2026.
Taxes and Fees
- Maryland state sales tax 6% (platforms collect). Baltimore Hotel Room Tax 9.5% (platforms collect). Combined 15.5% in occupancy taxes.
Next Step
Legal is one half of the decision. The other half is whether the deal earns enough to be worth the risk.