Renting in Ocean City: the 2026 owner's guide

Last updated: 13 October 2026

• Maryland's new safety law is already in effect. Since October 1, 2026, House Bill 1221 requires a short-term rental host to conspicuously post an evacuation diagram and a list of emergency telephone numbers, and to provide a working fire extinguisher and working smoke and carbon monoxide alarms in the unit.¹
• Interconnected smoke alarms are the biggest change. If multiple smoke alarms are required in a unit, the bill requires each one to be interconnected so that one going off sets off all of them, unless an alternative authorized by the State Fire Marshal applies.¹
• Inspections come later. On or before July 1, 2028, each county must require annual inspections of short-term rental units.¹
• The Ocean City rental license still applies. It renews every year before May 1, and short-term rentals pay a $50 short-term rental fee on top of the base license, about $246 in total for most units. Confirm the current amount with the Town.^{2 3}

This page explains the rules as we read them on 13 October 2026. It is not legal advice; for your unit, check the bill text and the Town of Ocean City, or ask a Maryland attorney.

• October 1, 2026: Maryland HB 1221, the Jillian and Lindsay Wiener Short-Term Rental Safety Act, took effect. The posting and equipment rules apply from this date.¹
• Before May 1, every year: Town of Ocean City rental licenses renew for the license year that runs May 1 to April 30.³
• In effect since October 1, 2026: booking services such as Airbnb and Vrbo must notify their hosts of the bill's fire-safety requirements and require hosts to provide each unit's inspection compliance documentation.¹
• On or before July 1, 2028: each Maryland county must, by local law or regulation, require annual inspections of all short-term rental units and report to the State Fire Marshal.¹

Maryland House Bill 1221, the Jillian and Lindsay Wiener Short-Term Rental Safety Act, was signed on April 14, 2026 and took effect on October 1, 2026.¹ It applies to a unit offered for short-term rental for less than 30 consecutive days, which covers licensed vacation rentals in Ocean City and the rest of the state.¹

What the bill requires in every unit:

1. An evacuation diagram, conspicuously posted. The bill requires it to identify all exits from the unit and, if applicable, the exits from the building the unit is in.¹
2. A list of emergency telephone numbers, conspicuously posted, for law enforcement and fire rescue services.¹
3. A working fire extinguisher in the unit.¹
4. Working smoke alarms and carbon monoxide alarms, installed and maintained in accordance with state, county, and municipal fire codes.¹

• Interconnected smoke alarms. If multiple smoke alarms are required to be installed and maintained in the unit, the bill requires each smoke alarm to be interconnected with the others, so that the activation of one smoke alarm activates all of them, or to comply with an alternative requirement authorized by the State Fire Marshal.¹
• Loud enough to be heard. When activated, a smoke alarm or carbon monoxide alarm must sound an alarm that is clearly audible in all sleeping rooms and sleeping areas, loud enough to be heard over background noise and with all doors closed between the sleeping rooms and the alarm.¹
• Replace any alarm that stops functioning, is more than 10 years old based on the production date marked on the back of the device, or has no production date on the back of the device.¹

• Booking services. The bill (§9-1104) requires a booking service, such as Airbnb or Vrbo, to electronically notify all hosts that use it of the fire-safety requirements, and to require each host to provide the compliance documentation a unit receives when it passes inspection.¹
• Annual county inspections. On or before July 1, 2028, each county and Baltimore City must, by local law or regulation, require annual inspections of all short-term rental units for compliance with the bill's requirements, and report to the State Fire Marshal. A county may set a fee to cover the cost of inspections and may delegate them to certified third-party inspectors; an inspector who finds a unit in compliance gives the host a certificate or other documentation.¹

Any home or condo rented in Ocean City, for any length of time, needs an annual rental license and a Noise Control Permit from the Town before it is rented. Short-term rentals of 30 or fewer consecutive days also need the Town's Short-Term Rental Housing Unit License.² The state safety law adds to these local rules; it does not replace them.

1. Apply with the Town. Applications and renewals run through the Town's online Rental License Portal, and renewal opens about a month before your license expires.² Have the property address and unit number, the number of bedrooms you rent, the on-site parking available to renters, and your contact details ready.³
2. Name an emergency contact. The Town requires a contact who can respond to the property within 60 minutes and is authorized to accept legal notices and address code violations.² If your primary home is more than 60 miles from Ocean City, that means naming a local agent.³
3. Expect an inspection. New licenses must schedule a rental inspection within 30 days, and licensed properties are inspected on a random five-year rotation.²
4. Pay the annual fee. About $246 per unit per year for most short-term rentals: the $196 base license, which includes the Noise Control Permit, plus the $50 short-term rental fee. Confirm the current amount with the Town before you apply.²
5. Renew every year before May 1. The license year runs May 1 to April 30, and licenses do not transfer when a property sells.³

Room tax. Stays under 120 days are subject to room tax, which rose to 6% in January 2026, and owners register with the Worcester County Treasurer (an Application for Room Tax) and file a Room Tax Report with payment each month, even in months with no bookings.⁴ The filing duty stays with the owner even when Airbnb or Vrbo collects the tax.³

For the homes we manage, cleaning, inspections, maintenance, and the details between stays are handled by our team. Small things like batteries and bulbs we just handle. Anything bigger, you approve it and you pay for it, and we tell you what it needs and what it costs before any work is done.

1. Maryland General Assembly, House Bill 1221 (2026 Regular Session), the Jillian and Lindsay Wiener Short-Term Rental Safety Act. Signed April 14, 2026 (Chapter 9); in effect October 1, 2026.
2. Town of Ocean City, Rental and Business Licenses.
3. Coastal Resort Sales, How to Get Your Ocean City, MD Vacation Rental License: A Step-by-Step 2026 Guide.
4. Worcester County, Maryland, Room Tax (Treasurer’s Office).

This page explains the rules as we read them on 13 October 2026. It is not legal advice; for your unit, check the bill text and the Town of Ocean City, or ask a Maryland attorney.