D.C.’s Short-Term Rental Regulation Amendment Act of 2026. Renters Can Now Host. What It Actually Means.

Mayor Muriel Bowser introduced the Short-Term Rental Regulation Amendment Act of 2026 (Bill B26-0647) on March 13, 2026. If passed, it would make D.C. one of the few major U.S. cities to explicitly allow renters to list their primary residence on Airbnb and VRBO. That is a sentence I did not expect to write about a city that only legalized short-term rentals in 2019.

The bill has been referred to the Council’s Committee on Public Works and Operations. It is proposed legislation, not law. But the provisions it introduces, particularly for renters, landlords, and investors already operating in D.C., deserve a close read.

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.

What This Bill Means for D.C. STR Investors Right Now

The short answer: nothing has changed yet. Bill B26-0647 is sitting in committee, and there is no guaranteed timeline for a vote. If you own and operate a licensed STR in D.C. today, your obligations remain exactly what they were yesterday.

The longer answer is worth paying attention to. StaySTRA data shows D.C. currently has over 6,500 active short-term rental listings, a $201 average daily rate, and a 73% last-twelve-month occupancy rate. Annual revenue per listing averages approximately $36,600, with peak season running April through June when occupancy climbs above 80% and ADR reaches $220.

If this bill passes, the potential supply increase is significant. D.C. is roughly 58% renter-occupied. Even if a small percentage of eligible renters obtain STR licenses, industry analysts estimate the city could see anywhere from 2,000 to 5,600 new listings. That represents a potential 30% to 85% increase over current supply. For existing owner-operators, that is a number worth watching, even if the timeline is uncertain.

The bill also introduces a second-property license for owners (capped at 90 nights per year). If you have been considering acquiring a second property in D.C. for STR use, this provision would create a legal pathway that does not currently exist. Our STR Financing Guide 2026 walks through how DSCR loans work for exactly this kind of acquisition.

What the Bill Actually Does

Bill B26-0647 makes four substantive changes to D.C.’s existing Short-Term Rental Regulation Act of 2018.

1. Renters can host. Under current law, only property owners who can demonstrate their home qualifies for the Homestead Tax Deduction (a tax benefit that only applies to owner-occupied properties) are eligible for an STR license. The bill removes that owner-only restriction and allows renters to obtain a license for their primary residence, subject to two conditions outlined below.

2. License consolidation. D.C. currently distinguishes between a “Short-Term Rental” license (host present, unlimited nights) and a “Vacation Rental” license (host absent, 90-night cap). The bill merges these into a single license category. The night caps remain: if the host is present, there is no annual limit. If the host is absent, the property is capped at 90 cumulative nights per calendar year.

3. Special event license. This is the most novel provision. The bill creates a new license category that allows any D.C. resident (owner or renter) to rent their home during special events or holidays designated by the Mayor. The host does not need to be present during the stay. Think inauguration week, Cherry Blossom Festival, or a major concert weekend. The bill as introduced does not specify a night cap for this category.

4. Second property license. Under current law, you can only get an STR license for your primary residence. Period. The bill would allow D.C. residents to obtain a license for a second property they own in the District. That second property would be capped at 90 cumulative nights per year (and would also be eligible for the special event license on top of that cap).

Who Qualifies as a Renter-Host Under This Bill?

Picture this: you rent a one-bedroom in Petworth, your lease says nothing about short-term rentals, and you are wondering whether you could list your place on Airbnb when you travel for work. Under the current law, the answer is no. Under this bill, the answer is maybe.

To qualify as a renter-host, you would need to meet three conditions:

The unit must be your primary residence. The bill simplifies the primary residence definition by removing the current requirement tied to the Homestead Tax Deduction (which only applies to owners). You simply need to live there.

The unit cannot be subject to D.C.’s Rent Stabilization Program. This is a significant exclusion. D.C.’s Rent Stabilization Program covers a substantial portion of the rental housing stock, generally buildings constructed before 1976 with multiple units. If your building falls under rent stabilization, you are not eligible under this bill. The bill as introduced does not specify how a renter would verify this, though DLCP’s licensing portal would presumably handle verification during the application process.

Your lease cannot prohibit it. The bill explicitly defers to lease terms. If your lease says no subletting, no short-term rentals, or no commercial activity, the bill does not override that language. Your landlord’s lease controls.

One thing that has not changed: only natural persons (not LLCs, not corporations, not your cousin’s trust) can hold an STR license in D.C.

The Licensing Requirements Renters Need to Know

If the bill passes, renter-hosts would go through the same licensing process that owner-hosts currently use. Based on D.C.’s existing framework (which the bill modifies but does not replace), that means:

• License fee: $99 for a two-year license, renewable.
• Liability insurance: A minimum of $250,000 in coverage. Your renter’s insurance almost certainly does not meet this threshold. You would need a separate short-term rental insurance policy or a rider.
• Certificate of Clean Hands: Issued by D.C. within 30 days of your application. This confirms you do not owe outstanding debts to the District (yes, that parking ticket from 2019 could be a problem).
• Safety requirements: Working smoke detectors, carbon monoxide detectors, a portable fire extinguisher, and unobstructed egress. Standard requirements, but you would be surprised how many applications get held up on these.
• Booking records: Maintained for two years. Platforms like Airbnb handle most of this automatically, but you are still responsible.
• Guest cap: 8 guests maximum, or 2 per bedroom, whichever is greater.

The $99 fee is refreshingly low compared to other major cities. Houston charges $275 annually, and Miami’s combined fees exceed $300.

What Your Landlord Needs to Know

If you are a D.C. landlord, this bill does not force you to allow short-term rentals in your units. The bill explicitly requires that the lease not prohibit STR activity. If your lease is silent on the topic, that creates a gray area the bill does not fully resolve.

A few practical considerations for landlords and property managers:

• Review your lease language. If you do not want tenants operating STRs, add explicit prohibitions now. A general “no subletting” clause may or may not cover short-term rental activity depending on how D.C. courts interpret it.
• Insurance implications. Your landlord insurance policy likely excludes commercial activity. If a tenant operates an STR and a guest is injured, the liability chain gets complicated quickly.
• Rent-stabilized buildings are excluded. If your property is covered by D.C.’s Rent Stabilization Program, your tenants are ineligible regardless of what the lease says.

How D.C. Compares to New York City

New York City is the natural comparison, and the contrast is stark. NYC’s Local Law 18, fully enforced since 2023, requires hosts to be physically present during every guest stay and caps guest count at two. The result: active listings dropped from over 22,000 to fewer than 3,000. New York chose restriction. D.C., with this bill, is choosing expansion.

D.C.’s proposed framework is notably more permissive. Renters could host without being present (subject to the 90-night cap). The guest cap is 8, not 2. And the special event license creates a category NYC does not have at all.

The approach is closer to what Denver and Nashville have implemented, where the regulatory framework centers on licensing and compliance rather than outright restriction. The difference is that neither Denver nor Nashville explicitly carved out a renter-host pathway the way D.C. is proposing.

What Happens Next

Bill B26-0647 has been referred to the Council’s Committee on Public Works and Operations. As of April 2026, no hearing date has been publicly scheduled. The bill is at approximately 25% progression in the legislative process.

This is proposed legislation. It could be amended significantly in committee, it could stall, or it could pass largely as introduced. Mayor Bowser’s office has signaled support, and DLCP Director Tiffany Crowe has framed the bill as an economic opportunity measure. But committee support and a full Council vote are separate questions.

For renters considering hosting: do not apply for a license yet. The current law still requires property ownership. Wait for the bill to pass (if it does) and for DLCP to update its licensing platform and application process.

For investors and existing operators: the supply implications are worth modeling, but they remain speculative until the bill moves forward. The more immediate takeaway may be the second-property license provision, which could unlock investment strategies that D.C.’s current one-property rule blocks.

We covered the initial introduction of this bill in our earlier analysis of D.C.’s STR expansion proposal. This article provides a deeper look at the specific provisions and their practical implications.

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 D.C.

Whether you are a renter exploring your first listing or an investor evaluating a second-property strategy, the data matters more than the headlines. StaySTRA’s free analyzer tool gives you market-level revenue projections, occupancy trends, and comparable property data for D.C. and hundreds of other markets.