Washington DC Is Expanding Who Can Host on Airbnb. Here Is What the Bill Actually Says.

Most cities in the United States spent the last two years building higher walls around short-term rentals. Sacramento is weighing a plan that would eliminate 60% of its STR market. Maui passed a full phase-out. Santa Barbara caps permits and makes hosts jump through years of waitlists. Then there is Washington, DC, which just introduced a bill that does the opposite.

On March 13, 2026, Mayor Muriel Bowser and the Department of Licensing and Consumer Protection (DLCP) introduced the Short-Term Rental Regulation Amendment Act of 2026. The bill would open DC’s short-term rental market to renters for the first time, create a licensing pathway for second-property owners, and add a new Special Event license category. It has been transmitted to the DC Council for review.

I have spent the past few weeks buried in proposed ordinances from coast to coast. Most of them read like permission slips that got redlined by an overprotective parent (and yes, I realize only a former law clerk would describe legislation that way). This one reads differently. Let me walk you through what the bill actually says, who it affects, and what it means for the DC market.

What DC’s Current STR Law Requires (and Who It Excludes)

Before we get to the new bill, you need to understand what DC’s existing framework looks like. The current rules come from the Short-Term Rental Regulation Act of 2018 (D.C. Law 22-307), and they are among the more restrictive in the country.

Here is who qualifies under the current law:

• Homeowners only. The property must be owned by an individual and serve as their primary residence. DC defines “primary residence” by eligibility for the Homestead Tax Deduction.
• Host-present stays (Short-Term Rental license): The host must be physically present on the property during the guest’s stay. No cap on nights per year, but each stay is limited to 30 consecutive nights.
• Host-absent stays (Vacation Rental license): The host does not need to be present, but stays are capped at 90 cumulative nights per calendar year. Each stay is still limited to 30 consecutive nights.

Here is who the current law shuts out:

• Renters. If you do not own your home, you cannot get a license. Period. In a city where 59% of households are renter-occupied (roughly 189,000 households, per Census data), that is a significant exclusion.
• Second-property owners. Even if you own two properties in DC, you can only license your primary residence. Your second property cannot be listed as an STR under any circumstance.
• Investment property owners. No investor-owned, non-primary-residence STRs. The Homestead Deduction requirement ensures that.

Picture this: you are a DC renter paying $2,400 a month for an apartment in Columbia Heights. You travel for work three weeks out of every month. Your apartment sits empty. Under the current law, you cannot list it on Airbnb even for a single night. Your neighbor who owns an identical unit next door can. The only difference is the name on the deed.

What the Short-Term Rental Regulation Amendment Act of 2026 Changes

The proposed bill does not tear down DC’s STR framework. It widens the door. Here are the specific provisions.

1. Renters Can Now Host (With Conditions)

This is the headline change. Under the proposed bill, tenants would be permitted to operate a short-term rental at their primary residence, provided two conditions are met:

• The unit is not subject to DC’s Rent Stabilization Program. Rent-stabilized units remain off-limits for STR licensing. This is a deliberate carve-out to protect the city’s affordable housing stock.
• The lease agreement does not prohibit short-term rentals or subletting. If your lease says no, the bill says no. Landlords retain veto power through the lease itself.

For the estimated 59% of DC households that rent, this is a meaningful shift. Not all of them will qualify (rent-stabilized tenants and those with restrictive leases are excluded), but the door that was previously bolted shut is now open for a significant portion of the renter population.

2. Second-Property Owners Get a New License Pathway

Under the current law, if you own a second home in DC, you cannot list it as an STR. The proposed bill changes that by allowing District residents to obtain a short-term rental license for a second property they own in DC.

The restrictions:

• 90-night annual cap. Unoccupied second properties are limited to 90 cumulative nights of STR activity per calendar year. This mirrors the existing cap on host-absent stays at a primary residence.
• Must be a DC resident. Out-of-state investors with DC properties would not qualify. The license is tied to District residency.

This is not a blank check for investment properties. The 90-night cap limits commercial viability, and the residency requirement prevents outside capital from flooding the market. But for DC residents who own a second property that sits vacant part of the year, it creates a legal pathway that did not previously exist.

3. A New Special Event License

The bill creates an entirely new license category: the Special Event license. Here is what it does:

• Allows both homeowners and renters to rent out their space during special events and holidays designated by the Mayor.
• The host does not need to be present on the premises during the guest’s stay. This is a notable departure from the current host-present requirement for standard STR licenses.
• Special Event licenses are available for both primary residences and second properties.

Think inauguration weekends, Cherry Blossom Festival, major concerts at Nationals Park. DC is a city that runs on events, and this provision lets residents capitalize on demand spikes without committing to year-round hosting.

4. License Consolidation

The current system maintains separate “Short-Term Rental” and “Vacation Rental” license endorsements. The bill merges these into a single, consolidated framework. From a compliance standpoint, this simplifies the process. Fewer forms, one licensing pathway instead of two categories with different rules that confused more hosts than they helped.

5. Primary Residence Definition Simplified

The current law defines “primary residence” through the Homestead Tax Deduction, which created complications for hosts who qualified as residents but had not filed for the deduction. The bill simplifies this: the host must reside at the property. The Homestead Deduction reference is removed.

What This Means for DC’s STR Market

StaySTRA data shows the Washington, DC short-term rental market currently has approximately 6,560 active listings. The breakdown: 5,296 entire-place listings, 1,005 private rooms, 228 hotel rooms, and 31 shared rooms. The average daily rate sits at $204, with an occupancy rate of 72% and average monthly revenue of approximately $3,142 per listing. (Note: StaySTRA market data reflects the most recent available period through November 2025.)

Curious what DC STR revenue looks like for your property? Run it through the StaySTRA analyzer to see revenue projections for the Washington, DC market.

Those numbers tell a story of a market that is performing well. A 72% occupancy rate puts DC ahead of many major metro STR markets, and the $204 ADR reflects the city’s status as a year-round destination for business travel, tourism, and government-adjacent activity.

If the bill passes, the supply side could shift. How much depends on two unknowns: how many DC renters have leases that permit subletting, and how many second-property owners would pursue a 90-night license. The 59% renter-household figure (189,000 households) sets the theoretical ceiling, but the rent-stabilization exclusion and lease-permission requirement bring it down considerably.

How DC Compares to Other Cities That Allow Renter Hosting

DC would not be the first city to let renters host. But it would be joining a short list, and doing so at a time when the national trend runs the other direction.

San Francisco allows renters to host their primary residence as short-term rentals. Unhosted stays are capped at 90 nights per year (sound familiar?). Renters must register with the city and comply with the same rules as homeowners.

Los Angeles permits renter hosting with landlord approval. The cap is 120 nights per year, and hosts must obtain a Home Sharing Registration. The landlord-approval requirement mirrors DC’s proposed lease-permission condition.

Denver allows primary-residence STR hosting for both owners and renters, with the requirement that the host live at the property for at least 180 days per year.

The pattern across these cities: renter hosting is always conditional. Lease permission, night caps, and primary-residence requirements are standard guardrails. DC’s proposed bill follows this template closely.

On the deregulation side, Idaho just signed HB 583 into law, which preempts local governments from restricting STRs entirely. DC’s approach is more measured. It is not deregulating. It is widening who qualifies within an existing regulatory framework.

What Happens to Existing DC License Holders

If you already hold a DC short-term rental or vacation rental license, the bill does not revoke or change your status. The consolidation of license types into a single category means your license would likely be migrated or renewed under the new structure, but existing hosts are not losing anything.

The operational rules that apply to current hosts (30-night maximum per stay, 90-night annual cap for unhosted stays) remain intact. The bill expands who can participate. It does not change the rules of participation for those already in the game.

Bill Status: Where It Stands Right Now

As of March 2026, the Short-Term Rental Regulation Amendment Act of 2026 has been transmitted to the DC Council for review. It has not been voted on. It has not passed. Mayor Bowser introduced it, and DLCP Director Tiffany Crowe has publicly supported it, framing it as a way to help “DC residents benefit from tourism” while “strengthening consumer protections and supporting neighborhood stability.”

The bill will go through the standard DC Council review process, which includes committee referral, hearings, and markup before any floor vote. There is no published timeline for a vote.

I am not going to speculate on whether it passes. What I can tell you is that the bill has executive-branch backing (the Mayor introduced it), and the provisions are structured to address common objections: rent-stabilized units are protected, landlords retain lease-based veto power, and second-property stays are capped. Whether that is enough to move the Council depends on factors that go beyond what the text says.

This article provides general information and should not be construed as legal advice. Consult a qualified attorney in your jurisdiction for advice specific to your situation.

We do our best to keep our regulatory guides accurate and up to date, but ordinances change and we are only human. Always verify current requirements directly with your local municipality before making business decisions.

Run the Numbers for DC

Whether you are a DC renter weighing whether this bill could open the door for you, or a property owner curious about what a 90-night license might be worth, the starting point is the same: understand what the market actually pays.

Try the StaySTRA analyzer to see revenue projections, occupancy rates, and comparable property data for the Washington, DC market.