Wilmington, NC Short-Term Rentals: Occupancy Limits (2026)

The City of Wilmington regulates short-term rentals in Land Development Code Chapter 18, Article 6 (Supplemental District Regulations), within the homestay and whole-house short-term lodging provisions. The operational standards limit overnight occupancy to two adults per bedroom plus two additional adults, so a three-bedroom whole-house rental, for example, may host a maximum of eight adults overnight; children under a stated age are not counted toward the cap, but the maximum guest count must be conspicuously posted on the city-required guest information flyer inside each unit, along with the local responsible-party contact, the non-emergency police number, and trash collection details. The occupancy cap is enforced as an operational standard rather than a registration requirement, which matters after Schroeder v. City of Wilmington, 274 N.C. App. 569 (2022): the North Carolina Court of Appeals held that NCGS 160D-1207(c) preempts municipal registration and permit requirements for residential rentals tied to building or housing code enforcement, but the court expressly preserved development standards, including occupancy limits, insurance requirements, parking, and prohibitions on weddings or large gatherings. The City has accordingly stopped enforcing the registration requirement and the 2% city-wide cap and 400-foot separation rule, but it continues to enforce occupancy, parking, insurance, posted-flyer, and nuisance standards through Code Enforcement and Planning. Whole-house short-term rentals are also restricted by zoning district to areas where transient lodging is allowed, and large-gathering prohibitions limit any single event of more than the posted maximum occupancy. New Hanover County imposes a 6% room occupancy tax on rentals of fewer than 90 continuous days, in addition to NC state and local sales and use tax under NCGS 105-164.4F.