Chelsea, MA Short-Term Rentals: Occupancy Limits (2026)
Key Facts
- Occupancy cap
- 2 persons per bedroom
- Child exemption
- Under-12 dependents excluded from count
- Eligible unit types
- Limited-share or owner-adjacent unit only
- Limited-share max bedrooms rented
- Up to 3, operator present
- Fine for violation
- $300 per violation per day
Summary
Chelsea caps short-term rental occupancy at two people per bedroom under Code of Ordinances § 6-5(c)(2), though children under 12 related to or wards of an adult occupant don't count toward the limit. Short-term rentals are allowed only in a host's own limited-share room or a qualifying owner-adjacent unit.
Limited share unit means a residential unit that is the owner-occupied unit of an operator, a portion of which is offered as a short-term rental, but only while the operator is present. One bedroom must be reserved for the operator. And, no more than three bedrooms may be utilized for the short-term rental. ... (c)Short term rentals allowed in Chelsea.(1)Short-term rentals shall be allowed only if they meet the definition of a limited-share unit or an owner-adjacent unit in an owner-occupied condominium or owner-occupied one, two or three family home.(2)A short-term rental occupancy shall be limited to two persons per bedroom, although children under 12 related to, or the legal ward of, either bedroom occupant shall not be counted for purposes of this limit.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 26).
Full Breakdown
Section 6-5 permits a short-term rental, defined as renting a residential unit for fewer than 30 consecutive days for a fee, only in two configurations: a 'limited share unit,' the operator's own owner-occupied home with one bedroom reserved for the operator and up to three bedrooms rented while the operator is present, or an 'owner-adjacent unit,' a separate unit within an owner-occupied two- or three-family building that must be rented as a whole to a single party rather than by separate bedrooms. Within either configuration, section 6-5(c)(2) limits occupancy to two persons per bedroom, though children under 12 who are related to, or the legal ward of, a counted bedroom occupant are excluded from that count.
Units that do not meet the limited-share or owner-adjacent definitions cannot be listed at all, and neither can units that are income-restricted, subject to affordability covenants or housing assistance, or that carry three or more findings of violations of the short-term rental section, or three or more violations for noise, trash, disorderly conduct or similar conduct, within a one-year period. A unit previously rented to a Section 8 voucher holder or subject to an affordability restriction is ineligible until one year has passed since that restriction or tenancy ended.
Violations & Fines
Offering a short-term rental that exceeds the two-persons-per-bedroom cap, or that does not meet the limited-share or owner-adjacent eligibility rules, exposes the operator to a fine of $300.00 per violation per day under section 6-5(h)(1), and the city can also seek a court injunction against continued operation. Repeated violations can also make the unit ineligible to be re-listed for a year.
Frequently Asked Questions
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Sources & Official References
Other rules in Chelsea
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Occupancy Limits in Nearby Cities
How other cities in this county handle occupancy limits.