Montgomery County, MD Short-Term Rentals: Occupancy Limits (2026)

Montgomery County Code Chapter 54 establishes occupancy limits for licensed short-term rentals to prevent residential properties from functioning as de facto event venues or hotels. The maximum number of guests must be declared on the license application and is generally tied to the number of legal bedrooms as determined by building code standards (egress windows, ceiling height, minimum square footage). The 120-day annual cap is a defining feature of Montgomery County STR regulation, limiting the total number of nights a property may be rented as an STR per calendar year. This cap distinguishes casual home-sharing from commercial hospitality operations. Operators must maintain a log of rental nights to demonstrate compliance. The county may audit rental records and cross-reference with booking platform data. Properties that exceed the 120-day cap or approved occupancy face license enforcement action. The occupancy limit includes all overnight guests, and the property must have adequate bathroom facilities and life safety systems (smoke detectors, carbon monoxide detectors, fire extinguishers) for the stated occupancy.