OCEAN CITY, Md. - Ocean City leaders voted 4-3 on Tuesday to extend the pause on new short-term rental licenses in single-family (R-1) and mobile home (MH) neighborhoods through January 2027.
The Mayor and Council members also approved, 6-1, a move to bring “length of stay” limits back for a future discussion.
The moratorium keeps new licenses on hold in R-1 and MH. Existing license holders may continue operating under current rules, and applications that were filed before the start of the original pause remain subject to previously stated exceptions. The Planning and Community Development Department, along with the Fire Marshal and police, said inspection and complaint tracking will continue while policy work proceeds.
Supporters of the extension argued that the extra time allows the town to draft guardrails aimed at neighborhood stability. Ideas mentioned during public comments and prior staff briefings include occupancy limits, defined parking standards, quiet hours, and a requirement that owners list a local contact who can respond quickly to issues.
Property-rights advocates pressed the council to let the moratorium expire. Before the meeting, supporter Terry Miller said the town should target problem properties instead of maintaining a broad pause. “You enforce the rules that are on the books. If there is a problem property, deal with that owner. Fix the problem, stop taking rights,” Miller said. After the vote, she called the decision disappointing and said the numbers presented do not justify an extension.
Town officials noted that the “length of stay” discussion will return at a later meeting. No date was set. That agenda item is expected to explore whether minimum or maximum stay rules could address turnover, parking and noise concerns without reopening license issuance in R-1 and MH.
For now, the extension means no new short-term rental licenses in single-family and mobile home neighborhoods. City staff will continue inspections and track complaints as potential changes are drafted. The mayor said the council could revisit the decision if a viable package of regulations gains support.