Executive Summary
Maui County delivered the week's biggest blow to investors, banning legal short-term rentals in apartment-zoned areas and potentially forcing over 7,000 units (averaging $500,000 each) into long-term housing that many locals can't afford. Meanwhile, Dallas investors caught a break as appeals courts continue blocking the city's STR restrictions, keeping single-family neighborhood rentals operational for now. Ocean City, Maryland, voters narrowly rejected an STR ban, while Ocean City, NJ pushed through a 3% tax on platform bookings that Airbnb is challenging. On the flip side, Nantucket's enforcement pause gives non-owner-occupied operators breathing room while legal appeals play out, though the underlying court ruling still threatens their business model in certain residential zones.
New Regulations
Maui, Hawaii
Published: July 24, 2025
Regulation Category: Zoning
Summary: The Maui County Council's 6-3 vote to pass Bill 9 bans short-term rentals in apartment-zoned areas, aiming to convert over 7,000 units to long-term housing, significantly reducing STR availability. Investors face potential financial losses as these units, averaging $500,000, may not be affordable for local residents, and legal challenges are anticipated.
Source: Maui County Council Approves Bill to Ban Short-Term Rentals
Dallas, Texas
Published: July 23, 2025
Regulation Category: Zoning
Summary: A state appeals court upheld an injunction against Dallas' 2023 restrictions on short-term rentals in single-family neighborhoods, allowing STR operations to continue without zoning limitations for now. Investors benefit from this ruling but should monitor ongoing legal battles that could shape future regulations.
Source: Appeals court weighs in, again, on whether Dallas can restrict Airbnb, Vrbo rentals
Developing Regulations
Nantucket, Massachusetts
Published: July 24, 2025
Regulation Category: Zoning
Summary: A Massachusetts Land Court ruling determined that Nantucket's zoning bylaw does not permit short-term rentals (less than 31 days) in certain residential districts unless owner-occupied, prompting a pause in enforcement as the town appeals. This could significantly impact non-owner-occupied STR investors, potentially limiting their operations pending further legal clarification.
Source: Deal Reached To Pause Enforcement Of Judge's Ruling In Short-Term Rental Case
Ocean City, Maryland
Published: July 24, 2025
Regulation Category: Zoning
Summary: Ocean City voters rejected a proposed ban on short-term rentals in single-family and mobile home districts by a narrow margin, preserving STR operations for now. Investors can continue operations without immediate zoning restrictions, but the close vote suggests potential future regulatory debates.
Source: Short-term rental ban shot down in special election
Ocean City, New Jersey
Published: July 25, 2025
Regulation Category: Tax
Summary: Ocean City approved a 3% tax on short-term rentals booked through online platforms like Airbnb, expected to generate $1.8 million annually, but it requires state approval and faces legal challenges from Airbnb. STR investors using online platforms may face increased costs, potentially affecting profitability if the tax is implemented.
Source: Airbnb questions legality of Ocean City's 3% tax on online rentals
Melrose Township, Michigan
Published: July 24, 2025
Regulation Category: Licensing
Summary: Melrose Township is revising a proposed ordinance to regulate short-term rentals, focusing on licensing enforcement and penalties for violations to balance economic benefits with community concerns. STR investors may face stricter compliance requirements, potentially increasing operational costs and administrative burdens.
Source: Melrose Township Debates Short-Term Rental Ordinance Impact on Community Livelihoods
Georgia, Vermont
Published: July 23, 2025
Regulation Category: Licensing
Summary: Georgia's selectboard is proposing STR regulations to create a property database and address issues like over-capacity, potentially increasing oversight for investors. With fewer than 20 STRs currently, the impact is limited, but growing numbers could lead to stricter rules affecting operational flexibility.
Source: Georgia Considers Short-Term Rental Regulations