Ocean City Moves Forward with Phased Short-Term Rental Ban

In a closely contested decision, the Ocean City Council voted 4-3 on March 3, 2025, to implement a phased ban on short-term rentals in single-family residential (R-1) and mobile home (MH) districts. This move aims to address concerns about the impact of vacation rentals on the character of residential neighborhoods, with the full ban set to take effect in 2027.

Details of the Vote

The 4-3 vote reflected deep divisions within the council. Council President Matt James, along with Councilmen Tony DeLuca, Larry Yates, and Will Savage, supported the phased-in approach. 

Details of the Phased Ban

The newly adopted ordinance introduces a gradual approach to stricter rental regulations:

• 2025 and 2026 Seasons: A minimum stay of five consecutive nights is required for short-term rentals in R-1 and MH districts.

• Starting January 1, 2027: The minimum stay increases to 31 nights, effectively prohibiting short-term rentals in these areas, as the city defines short-term rentals as stays of 30 days or less.

Existing short-term rental bookings made before March 3, 2025, are exempt from these new restrictions.

Scheduled Protest Against the Ordinance

In response to the council's decision, a group of property owners is organizing a protest to voice their opposition to the new regulations:

• Date and Time: Saturday, March 15, 2025, at 11:00 a.m.

• Location: 50th Street, just off Coastal Highway, on the ocean side opposite the annual St. Patrick's Day Parade route.

The protest is organized by OCMD Property Rights, a group concerned about the potential negative impact of the new regulations on property owners. They argue that the restrictions could devastate the short-term rental industry in Ocean City, citing the national average rental stay of approximately 3.4 days.

In addition to the protest, the group is collecting signatures for a petition to place the issue on the ballot, allowing voters to decide the fate of the new rules. The city solicitor approved the petition on March 10, and the group has 40 days to gather the required signatures from 40% of registered Ocean City voters.

Community Reactions

The ordinance has elicited strong reactions from both supporters and opponents:

• Opponents: Some property owners believe the new requirements will severely harm the short-term rental market, making it difficult for homeowners to generate necessary income.  

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• Supporters: Some residents argue that short-term rentals operate as businesses and should not be permitted in single-family neighborhoods, supporting the council's efforts to preserve the character of these communities.

As Ocean City moves forward with implementing the new regulations, the scheduled protest and potential legal challenges indicate that the debate over balancing community integrity with property rights is ongoing.