Wilmington permits long-term ADU rentals without a city license. Short-term rentals (under 30 days) are governed by the LDC and by Schroeder v. City of Wilmington (2019) - the controlling NC Court of Appeals case (literally named after Wilmington) that held cities cannot use zoning to outright ban short-term rentals as a registration mechanism. Hosts must collect New Hanover County 6% room occupancy tax plus NC sales taxes.
Wilmington's experience defines NC STR law. In Schroeder v. City of Wilmington, the NC Court of Appeals (2019) struck down Wilmington's STR registration and inspection ordinance to the extent it operated as a permitting/registration scheme that effectively banned non-compliant STRs, holding that NCGS 160A-424 (now codified at NCGS 160D-1207) limited cities to inspecting properties with documented substantial code violations rather than imposing general STR registration. The decision substantially constrained NC cities' ability to ban or heavily license short-term rentals. Wilmington consequently regulates STRs through use-classification in the LDC rather than registration. Long-term rentals (30+ days): No city license required. NC Residential Rental Agreements Act (NCGS Ch. 42) governs the lease. Short-term rentals (under 30 days): The LDC classifies STRs as a lodging use subject to zoning compliance. Hosts must collect and remit: (1) NC state sales tax of 4.75%; (2) New Hanover County local option sales tax of 2.25%; (3) New Hanover County Room Occupancy Tax of 6%. Total tax burden on STR stays exceeds 13%. Hosts must register with the NC Department of Revenue and New Hanover County Tax Office. ADUs operated as STRs must comply with NC Fire Code occupancy standards and the 2018 NC Residential Code. CAMA Area of Environmental Concern properties (beachfront, sound-front, and adjacent inland AECs) face additional state-level permitting on substantial alterations. HOA covenants frequently restrict STRs and are enforceable under NCGS 47F-3-121.
Operating an STR without registering for room occupancy tax is a violation of NC tax law with interest and penalties. LDC use-type violations are cited by Code Enforcement with civil penalties. HOA covenants enforceable via private suit. Insurance non-renewal common for unpermitted STRs.
Wilmington, NC
Wilmington permits construction from 7 AM to 7 PM on weekdays and 8 AM to 5 PM on Saturdays. Sunday construction in residential areas is restricted.
Wilmington, NC
Wilmington regulates noise under Chapter 10, Article IV of the City Code. Unreasonable noise that disturbs the peace is prohibited with stricter enforcement ...
Wilmington, NC
Wilmington regulates RV and boat storage in residential areas. Vehicles must be stored properly and not create a nuisance.
Wilmington, NC
Wilmington regulates on-street parking through posted signs and general ordinances. Vehicles must be registered and may not remain in the same spot for exten...
Wilmington, NC
Wilmington restricts large commercial vehicles in residential zones. Semi-trucks and heavy equipment may not be stored in residential areas.
Wilmington, NC
Wilmington generally does not require building permits for standard residential fences up to 6 feet. Fences must comply with zoning requirements.
See how Wilmington's adu rental restrictions rules stack up against other locations.
Help us keep this page accurate. If you notice an error or outdated information, let us know.