Bethesda Short-Term Rentals: Night Caps Rules (2026)

Montgomery County Code Chapter 54 limits each licensed short-term rental property to a maximum of 120 rental nights per calendar year. This annual cap is a cornerstone of the county STR regulatory framework, designed to distinguish casual home-sharing from full-time commercial hospitality operations. The 120-night limit applies to the property itself, not the operator, so changing hosts mid-year does not reset the count. All rental nights across all platforms (Airbnb, Vrbo, direct bookings) count toward the single cap. Operators must maintain accurate records of all rental nights and make them available for county inspection. The Department of Permitting Services may audit rental records by cross-referencing booking platform calendars and tax remittance records. If a property reaches 120 nights, it must cease STR operations for the remainder of the calendar year. This cap is stricter than some neighboring jurisdictions and has been a point of advocacy by both pro-STR groups seeking increases and neighborhood groups seeking reductions. Properties found exceeding the cap face license revocation and tax liability for excess nights.