Montgomery County imposes a 120-night annual cap on short-term rentals under County Code Chapter 54. Hosts may rent their primary residence for a maximum of 120 nights per calendar year. This cap applies whether the host is present or absent during the rental period.
Montgomery County Code Chapter 54 limits short-term rental activity to 120 nights per calendar year per licensed property. This cap was established by County Bill 41-19 to balance housing availability with hosting opportunities. The 120-night cap applies regardless of whether the host is present during the rental (hosted stays) or absent (unhosted stays). Each booked night counts toward the cap even if the guest checks out early. Platforms are required to share booking data with the county to assist in monitoring compliance. Once a host reaches 120 nights, they must stop accepting bookings for the remainder of the calendar year. The counter resets on January 1 each year. Hosts operating beyond the cap are subject to fines and license revocation. The 120-night limit positions Montgomery County in the middle range nationally — stricter than jurisdictions with no cap but more permissive than cities like New York (which requires host presence). Exceeding the cap suggests the property is being used as a commercial lodging operation rather than occasional home sharing.
Operating beyond 120 nights carries fines up to $500 per additional night. Persistent violations result in license revocation and potential prohibition from future STR licensing.
See how other cities in Montgomery County handle night caps.
See how Gaithersburg's night caps rules stack up against other locations.
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