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More DC residents could host short-term rentals under proposed bill

Legislation would broaden who can leverage accommodation option, including for special events
The Short-Term Rental Regulation Amendment Act of 2026 would allow more D.C. residents to offer their homes as short-term rentals. (Jessica Livoni/CoStar)
The Short-Term Rental Regulation Amendment Act of 2026 would allow more D.C. residents to offer their homes as short-term rentals. (Jessica Livoni/CoStar)

City leaders in Washington, D.C., are considering rules to expand who is allowed to operate a short-term rental in the nation’s capital as the District prepares to see an influx of tourists this summer.

On Friday, Mayor Muriel Bowser introduced legislation that would allow more homeowners and a wide swath of renters in the city to offer their residences short-term on platforms such as Airbnb.

If passed by the D.C. Council, the Short-Term Rental Regulation Amendment Act of 2026 would grant residents an opportunity to generate income and create more accommodation options for visitors to the city, with major events like the country’s 250th birthday bash on the horizon.

“Washington, DC is a city of homeowners, renters, and entrepreneurs — and this legislation works for all of them,” Bowser said in a statement. “We’re cutting through the confusion, strengthening consumer protections, and making sure DC residents benefit from the tourism that makes this city great.”

While D.C. may consider loosening short-term rental regulations, other cities across the United States have gone in the opposite direction in recent years. In New York, for example, the Short-Term Rental Registration Law placed significant restrictions on Airbnb and similar alternative-accommodations platforms.

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The D.C. bill, in short, would change the law to allow renters, with some exceptions, to operate short-term stays at their primary residence. It would also allow residents to obtain a short-term rental license for a second property they own in the city. If unoccupied, the property may not be rented for more than 90 cumulative nights per year.

Plus, the legislation would create a new short-term rental license to allow residents to rent out their eligible space during special events and holidays designated by the mayor — such as the Fourth of July, a presidential inauguration or the National Cherry Blossom Festival — without having to be present during the stay.

“Throughout the US, cities are looking to unlock more short-term rental supply to recruit major events and ensure that the economic benefits are felt by all residents,” Nathan Rotman, a director of policy strategy for North America at Airbnb, said on LinkedIn. For context, Airbnb has said its hosts in the District welcomed more than 540,000 guests and contributed an estimated $307 million to the local economy in 2023.

There are more than 5,100 short-term and vacation rentals in Washington, according to the city’s Department of Licensing and Consumer Protection website.

News | More DC residents could host short-term rentals under proposed bill