Chapel Hill, NC Short-Term Rentals: Short-Term Rental Permits (2026)

LUMO Sec. 6.27.4 requires an STR permit for each residential dwelling unit used as a primary residence or dedicated short-term rental for more than 14 days in a calendar year, and Sec. 4.9.8 separately makes clear that no dwelling unit shall be used for short-term rentals until that permit has been issued. Each permitted STR gets a permit number that must appear in every rental advertisement, giving code enforcement and neighbors a way to identify registered properties. Permits are not permanent: they must be renewed annually before their expiration date, and failure to renew on time can let the permit lapse, though the Town Manager may allow a grace period.

Sec. 6.27.4(c) caps dedicated STRs inside any multifamily development, defined as a building or group of buildings with three or more dwelling units on one zoning lot, at no more than two units or 3 percent of the total units, whichever number is greater, preventing an entire apartment building from converting into short-term rentals. The Town Manager can deny a permit application outright if it is incomplete or if the proposed rental fails to meet any standard in the LUMO, and an applicant denied a permit may appeal to the Board of Adjustment under LUMO Sec.

4.10. Once issued, a permit can be revoked under Sec. 4.9.5 if the operator violates the permit's conditions, and operating without a valid permit is itself a distinct violation under Sec. 4.9.8.