Mayor Bowser Announces New Short-Term Rental Legislation to Create More Economic Opportunities for District Residents

(Washington, DC) - Today, Mayor Muriel Bowser and the Department of Licensing and Consumer Protection (DLCP) announced the introduction of the Short-Term Rental Regulation Amendment Act of 2026, a bill designed to make the District's short-term rental laws clearer and provide additional economic opportunities for District residents looking to rent out their space as short-term rentals.

"Washington, DC is a city of homeowners, renters, and entrepreneurs - and this legislation works for all of them," said Mayor Bowser. "The Short-Term Rental Regulation Amendment Act of 2026 opens new doors for District residents to build economic opportunity right from their own homes, whether they rent or own. We're cutting through the confusion, strengthening consumer protections, and making sure DC residents benefit from the tourism that makes this city great."

The Short-Term Rental Regulation Amendment Act of 2026 gives DC renters the ability to rent out their spaces as short-term rentals-a change that better aligns the District's laws with the rest of the region. It also creates a new special event license category so residents can rent out their spaces during special events designated by the Mayor, and allows residents to obtain a short-term rental license for a second property they own in the District. Additionally, the bill refines key definitions, consolidates existing license categories, and updates operational requirements to make it easier for District residents to operate short-term rentals in their homes.

Together, these changes will make the law clearer for homeowners and renters while also strengthening consumer protections and supporting tourism activity and neighborhood stability.

"For many homeowners, their home is their most valuable possession and their most valuable asset. We want to make it easier for DC families to build, keep, and transfer wealth," said DLCP Director Tiffany Crowe.

Key provisions in the bill include:

Makes Renters Eligible to Operate Short-Term Rentals

• The legislation changes the law to allow renters to operate a short-term rental at their primary residence, unless the property is part of the District's Rent Stabilization Program, or if short-term rentals are restricted by their lease agreement.

Consolidates Endorsement Categories

• The bill eliminates a distinction in current law between Short-Term Rental and Vacation Rental licenses, making the rules clearer for everyone.

Creates a New Short-Term Rental Special Event License

• The legislation creates a new short-term rental license to allow District residents to rent their space during special events and holidays designated by the Mayor, without having to be present during the stay.

Simplifies the "Primary Residence" Definition

• The bill simplifies guidance on primary residence requirements, removing a potentially confusing reference to the District's Homestead Deduction and clarifying that a short-term rental host must reside at the primary residence being rented out.

Allows District Residents to Obtain a Short-Term Rental License for a Second Property

• The new legislation allows District residents to obtain a short-term rental license for a second property they own in the District.
  • Unlike a short-term rental in a primary residence, the second property does not need to be owner-occupied.
  • If unoccupied, the property cannot be rented for more than 90 cumulative nights per year.
  • A special event license can also be obtained for the second property, offering additional short-term rental opportunities.

Read the Short-Term Rental Regulation Amendment Act of 2026.

To learn more about short-term rental regulations in the District, visit dlcp.dc.gov.

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