Regulations

Short-term rental regulations by state

STR laws vary by state, county, and city. This guide covers the 20 most active short-term rental markets and what they require for insurance and compliance.

Why regulations matter for your business

Operating without the right permits or coverage can mean fines, forced shutdowns, or personal liability. And regulations are changing fast — over 200 U.S. cities updated their STR rules in the last 2 years.

Fines and penalties
Cities like NYC and New Orleans impose fines of $1,000 to $25,000 per violation for unpermitted STRs.
Rules vary by block
Two properties in the same city can have different rules depending on their zoning district.
Insurance as compliance
An increasing number of jurisdictions require proof of commercial insurance as part of the permit process.

Regulations by state

A snapshot of the top 20 STR markets. Regulations change frequently — contact us for the latest requirements in your area.

California
CA
Varies by locality

Regulations vary widely by city. Los Angeles, San Francisco, and San Diego each have distinct permitting and occupancy rules.

Local permits required in most major cities
Florida
FL
Insurance required

State-level licensing through DBPR required for all vacation rentals. Local taxes and safety inspections apply.

State vacation rental license (DBPR)
Texas
TX
Varies by locality

No state-level STR regulation. Cities like Austin, San Antonio, and Dallas have their own permit systems.

City-level permits in major metros
Colorado
CO
Insurance required

Denver requires licenses. Mountain towns like Breckenridge and Steamboat Springs have cap systems and insurance mandates.

License + insurance in many resort towns
Hawaii
HI
Insurance required

Strict zoning laws. Many areas prohibit STRs entirely. Maui County and Honolulu have aggressive enforcement.

Zoning compliance + registration
Tennessee
TN
Varies by locality

Nashville requires permits with a 3% cap in some zones. State law allows cities to regulate STRs.

Nashville permit with zone-based caps
Arizona
AZ
Recommended

State law prohibits outright STR bans but allows cities to regulate safety, noise, and insurance requirements.

State preemption with local safety rules
New York
NY
Insurance required

NYC requires registration and limits rentals under 30 days when the host is not present. Significant fines for violations.

NYC registration + host-present rule
Oregon
OR
Varies by locality

Portland limits STRs to primary residences with a 95-night annual cap. Other cities have their own rules.

Primary residence + night caps in Portland
Washington
WA
Varies by locality

Seattle limits STRs to primary residences. Other jurisdictions vary. State collects lodging taxes.

Primary residence rule in Seattle
Georgia
GA
Varies by locality

Savannah has a strict permit system with zone limitations. Atlanta requires registration and hotel/motel tax collection.

Permits in Savannah, registration in Atlanta
South Carolina
SC
Recommended

Charleston requires business licenses and limits STRs in some zones. Beach communities have their own rules.

Business license + zone rules in Charleston
North Carolina
NC
Recommended

Outer Banks and Asheville are major markets with local regulations. State collects occupancy tax.

Local permits + state occupancy tax
Nevada
NV
Insurance required

Clark County (Las Vegas) requires permits, insurance, and a 30-day minimum in many zones. Other areas are less regulated.

Permit + insurance in Clark County
Louisiana
LA
Insurance required

New Orleans has one of the most detailed STR regulatory frameworks in the country, including insurance and occupancy limits.

NOLA permit + $1M liability insurance
Montana
MT
Recommended

Popular resort areas like Big Sky and Whitefish are adopting permit systems. State has limited regulation.

Emerging local permit requirements
Utah
UT
Varies by locality

Park City has strict STR regulations with zone caps and permit requirements. Salt Lake City has lighter rules.

Zone caps + permits in Park City
Virginia
VA
Varies by locality

State allows localities to regulate. Virginia Beach, Arlington, and Richmond each have distinct approaches.

Local regulation varies by jurisdiction
Michigan
MI
Recommended

Traverse City and other lake communities are increasingly regulating STRs. State passed enabling legislation in 2024.

Growing local permit requirements
Massachusetts
MA
Insurance required

State requires registration and a community impact fee. Cape Cod towns have additional local rules.

State registration + community impact fee

Insurance requirements are growing

More cities are requiring proof of commercial insurance as a condition of permitting. Here's what that typically looks like.

Common requirements

  • Commercial general liability: $300K to $1M per occurrence
  • Certificate of insurance naming the city or county
  • Proof of coverage before permit is issued
  • Annual renewal with updated COI
  • Additional insured endorsements for property owners

How Velaris helps

  • Coverage limits that meet or exceed local requirements
  • COIs generated instantly from your dashboard
  • Cities and counties added as additional insureds at no cost
  • Regulatory change monitoring for your portfolio
  • Compliance documentation for audit and renewal

Frequently asked questions

Do all states require insurance for short-term rentals?

No. Insurance requirements vary by state and often by city or county. Some jurisdictions mandate specific liability limits (like New Orleans, which requires $1M), while others have no insurance requirement at all. Even where it's not legally required, carrying coverage is standard practice for professional property managers.

What kind of insurance do STR regulations typically require?

Most regulations that mandate insurance specify commercial general liability coverage with minimum per-occurrence limits, typically between $300,000 and $1,000,000. Some also require proof of property damage coverage or business interruption insurance.

How do I know what's required in my area?

Check your city or county's planning and zoning department. Regulations change frequently — what was allowed last year may require a permit now. We track regulatory changes across all 50 states and can help you understand what's required for your specific properties.

Can Velaris help with compliance?

Yes. We generate COIs that meet the specific requirements of your jurisdiction, including named additional insureds, minimum coverage limits, and endorsements. If a city requires proof of $1M liability coverage, your Velaris COI will reflect that.

What happens if regulations change after I'm already operating?

You'll need to comply with the new rules, which may mean obtaining a permit, increasing your coverage limits, or adjusting your operations. We monitor regulatory changes and notify you when something affects your portfolio.

Talk to us about compliance in your state

We track STR regulations across all 50 states and can help you understand what's required for your portfolio.

Contact Us