Cary allows long-term ADU rentals without a town license. Short-term rentals (under 30 days) operate under Cary's general use regulations because the town has no STR-specific permit program. The NC Court of Appeals decision in Schroeder v. City of Wilmington (2019) bars local governments from outright banning short-term rentals. Wake County collects a 6% room occupancy tax; NC sales taxes also apply to short stays.
Cary distinguishes long-term and short-term rental scenarios for ADUs. Long-term rentals (30+ days): No town license or registration is required. NC Residential Rental Agreements Act (NCGS Chapter 42) governs the lease. Cary does not maintain a general rental registry; under NCGS 160D-1207, mandatory rental registration is restricted and proactive inspection is limited to properties with documented substantial code violations. Short-term rentals (under 30 days): The Town of Cary does not currently maintain an STR permit or registration program. Under Schroeder v. City of Wilmington, 217 N.C. App. 384 (2019, ratified through NC General Assembly action), North Carolina municipalities may not categorically prohibit short-term rentals through zoning. STR hosts must collect and remit: (1) NC state sales tax of 4.75%; (2) Wake County local option sales tax of 2.5%; (3) Wake County Room Occupancy Tax of 6%; major platforms collect some but not all of these. Hosts must register with the NC Department of Revenue and Wake County Tax Administration. ADUs used as STRs must comply with Cary Fire Department residential occupancy standards and the NC Residential Code. HOA covenants in Cary's many deed-restricted subdivisions frequently prohibit STR use as a private contract restriction.
Operating an STR without paying occupancy tax is a tax violation with interest and penalties from Wake County and NC DOR. Cary Code Enforcement may cite zoning use violations under the LDO with civil penalties. HOA covenants are enforceable through civil action in Wake County Superior Court.
Cary, NC
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Cary, NC
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Cary, NC
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Cary, NC
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Cary, NC
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Cary, NC
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