DC Is Expanding Short-Term Rentals. The Fine Print Is What Matters.
Mayor Bowser's Short-Term Rental Regulation Amendment Act of 2026 rewrites the rulebook for Airbnb and Vrbo hosts in DC. Three new license categories, a second-property option, renters now eligible, and a $49 inauguration license. Here is what the bill actually says.
The press release calls it "creating more economic opportunities for District residents." That is not wrong. But the Short-Term Rental Regulation Amendment Act of 2026 is more specific, more consequential, and more complicated than the headline suggests. If you own property in DC, or rent and have thought about listing on Airbnb, this bill changes your options. Read the bill, not just the announcement.
Here is what it actually does.
Three New License Categories Replace the Old System
The existing law had two categories: a Short-Term Rental license and a Vacation Rental license. The bill eliminates the Vacation Rental category entirely and replaces the whole structure with three new endorsements.
Short-Term Rental: Primary Residence. Authorizes a host to rent their primary residence. Host presence is not required during a guest's stay. Subject to a 90-night-per-year cap, with exemptions for nights the host is actually present and for special event nights if the property holds the Special Event endorsement.
Short-Term Rental: Secondary Residence. The new provision. A DC resident who owns their primary residence in the District can now obtain a license to rent a second DC property they own. The host does not need to be present. The 90-night cap applies, but nights during which a "year-round occupant" is present at the secondary property do not count toward the limit.
Short-Term Rental: Special Event. A new category tied to specific events: presidential inaugurations, the National Cherry Blossom Festival, Independence Day, and any other occasion the Mayor designates. Maximum 30 nights per year. No host presence required. The listing window opens 7 days before each event and must be removed no later than 7 days after. The fee for a two-year license is $49.
The Second Property Provision Is the Most Significant Change
Under current law, short-term rentals must be at a host's primary residence. Full stop. This bill creates a path for DC property owners to STR a second DC-owned property, which is a structural expansion of who can legally participate in the short-term rental market.
The conditions: your primary residence must be in the District, you must own both properties, and the secondary property is subject to the 90-night annual cap. If you stop maintaining your primary residence in DC, your secondary residence license becomes void.
The practical read: if you own a DC row home as your primary residence and also own an investment property or a second unit in the same building, you can now rent that second property on Airbnb for up to 90 nights per year. At current DC short-term rental rates, 90 nights on a two or three-bedroom row home in a central neighborhood can generate $20,000 to $40,000 in annual gross revenue.
Renters Are Now Eligible. With a Catch.
Tenants can now obtain a short-term rental license for their primary residence, provided they get written authorization from their landlord. The bill makes this explicit: a renter must submit written owner authorization as part of the license application.
The catch is in section (h): rent-stabilized units are categorically excluded. A rental unit subject to DC's rent stabilization program cannot be offered or operated as a short-term rental, and no license will be issued for it.
This matters because rent stabilization covers a significant portion of DC's older rental housing stock. The tenants most likely to benefit from this change are those in newer, market-rate apartments. The tenants in rent-stabilized units are excluded from this particular income opportunity.
The $49 Inauguration License
The special event endorsement is priced at $49 for a two-year license. That is not a typo. A two-year basic business license in DC typically carries fees well above $49 depending on the license category. The special event endorsement is priced at the low end.
The economics of an inauguration in DC are well documented. The city hosts roughly 1.5 to 2 million visitors for a presidential inauguration. Hotel rooms sell out months in advance. Short-term rental rates in central DC can reach $1,000 per night or more during inauguration weekend. A $49 two-year license that covers the next inauguration cycle is, by any measure, an extremely low barrier to entry.
The bill caps special event rentals at 30 nights cumulatively per year, which limits repeat use. But for a row home owner near the Mall, the Capitol, or a major parade route, a $49 license and a single inauguration weekend could generate more than the license fee in the first hour of a booking.
New Requirements for Platforms Like Airbnb and Vrbo
The bill adds a compliance obligation that has been absent from DC's STR framework: booking services must now obtain a DC basic business license to operate. They must also include the host's license endorsement number in every listing.
This is enforcement infrastructure. The existing system had a gap where platforms could continue facilitating unlicensed rentals with limited accountability. Requiring platforms to hold a DC license and display host credentials creates legal exposure for the platforms themselves, not just the hosts. Whether DLCP has the staffing to enforce this is a separate question, but the mechanism is now in the law.
What the Bill Does Not Address
The 90-night cap is the central constraint on the secondary residence provision. The bill does not explain how DLCP will track cumulative nights across properties or how booking platforms will be required to report booking data. The exemption system for the 90-night cap, which allows hosts to exceed the limit if their employer sends them out of DC or if they leave for medical reasons, relies on self-reporting and attestation.
The bill also does not resolve the tension at the center of DC's housing debate. Every night a DC property operates as a short-term rental is a night it is not providing long-term housing. The secondary residence provision specifically expands STR eligibility to properties that could otherwise be offered to long-term tenants. The administration's framing is that this creates economic opportunity for property owners. Housing advocates will argue it reduces rental supply in an already supply-constrained market.
Both arguments are correct. They just prioritize different things.
What This Means for DC Property Owners
For owners of a primary residence with a second DC property: this is a new revenue option that did not exist under the previous law. The 90-night ceiling is real, but 90 nights at a competitive nightly rate on a two-bedroom row home in a central neighborhood is meaningful income.
For renters in market-rate apartments: you can now list your unit if your landlord agrees. That authorization requirement will be the practical limiting factor. Most landlords will decline. Some will not.
For rent-stabilized tenants: no change.
For everyone with a primary residence near the Mall, the Capitol, or a major parade route: the $49 special event endorsement is worth understanding before the next inauguration cycle.
The bill is proposed legislation, not law. It requires Council approval and congressional review before taking effect. But the direction is clear. DC is loosening the rules around short-term rentals, and the details of how you qualify, and what you can earn, are in the bill itself.
This article is based on the bill text of the Short-Term Rental Regulation Amendment Act of 2026, introduced at the request of Mayor Bowser. It is not legal advice. Consult an attorney before making decisions based on proposed legislation.