Durham allows long-term rental of an ADU without restriction under UDO Section 5.4.2. Short-term rental (transient occupancy under 30 days) is regulated separately by the city's Short-Term Rental ordinance and is treated as a distinct land use, not a permitted use of an ADU itself in every district. Standard North Carolina Residential Rental Agreements Act (NCGS Chapter 42) and the NC Vacation Rental Act (NCGS Chapter 42A) apply. The ADU cannot be sold separately from the primary residence.
UDO 5.4.2 does not restrict long-term rental of an ADU. The owner may rent the ADU on a 30-day-or-longer lease without a city rental registration, with the relationship governed by NCGS Chapter 42 (Residential Rental Agreements Act). Short-term rental, defined as lodging for less than 30 consecutive days, is a separate land use in Durham and is regulated through dedicated short-term rental provisions in the UDO and city code. Owners must verify their underlying zoning permits whole-house or hosted short-term rental and may need a zoning compliance permit; some single-family districts allow homestay short-term rental only when the owner is present. The NC Vacation Rental Act (NCGS Chapter 42A) and state sales/occupancy tax obligations apply to short stays. The ADU itself cannot be sold or conveyed separately from the primary residence because the property remains one legal lot. Durham has not enacted a separate ADU rental ban; the restrictions that exist are short-term rental zoning controls that apply equally to any dwelling unit, including an ADU.
Operating a short-term rental in a district that does not permit it is a UDO violation enforced under Article 16, beginning with a Notice of Violation and escalating to civil penalties. Failure to remit state occupancy tax is referred to the NC Department of Revenue. Long-term rental violations (e.g., unsafe housing) are handled by Durham Neighborhood Improvement Services. Confirm current penalties with Durham Development Services Center at 919-560-1500.
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See how Durham's adu rental restrictions rules stack up against other locations.
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