Durham

Household living versus overnight stays

The UDO defines household living as residential occupancy of a dwelling unit by a household on a month-to-month or longer basis.[1] It defines overnight accommodations as residential units arranged for short term stays of less than 30 days for rent or lease, with hotels, motels, inns, extended-stay facilities and bed and breakfasts as principal uses.[1]

Where it is allowed

The use table marks hotels, motels and extended stay residences as not allowed in the RR, RS, RS-M, RU, RU-M and RC districts, and allowed with limits in several other districts.[2] Bed and breakfasts are allowed in those six districts with limits.[2] We found no separate short-term rental use in the table, and the city's UDO text amendment list for 2022 to 2026 has none on short-term rentals.[2, 8]

Bed and breakfast standards

A bed and breakfast must keep an approved floor plan on file with the Inspections Department and have an owner or manager living on site.[3] Rooms can't have cooking facilities, and parking isn't allowed in any street yard.[3]

City code

We found no short-term rental permit, registration or cap in the City of Durham's Code of Ordinances.[4] The only short-term lease or rental provisions we found there are gross receipts taxes on vehicles and heavy equipment.[4]

Housing code

The city's housing code says an owner can't lease, or permit subletting of, a vacant dwelling or dwelling unit that doesn't comply with that article.[9]

Occupant duties

The housing code puts cleanliness, pest control, garbage disposal and heating upkeep duties on occupants, and requires them to give access for repairs.[9] Items stored in a habitable part of a dwelling can't create dangerous, unsafe or hazardous conditions.[9]

Owner duties

Owners of multi-unit buildings must maintain common areas, manage pest control, provide adequate garbage receptacles and keep exterior spaces clear of hazards.[9]

State vacation rental law

North Carolina's Vacation Rental Act applies to a landlord or real estate broker who rents or manages residential property for vacation rental.[10] It defines that as a rental for fewer than 90 days to someone whose permanent home is elsewhere.[10]

Sales tax

North Carolina taxes the gross receipts from renting an accommodation at the general state rate plus applicable local and transit rates, and any local occupancy tax.[11] The state's rate table lists 7.5% for Durham County, and an asterisk marks that rate as including the 0.50% transit tax.[5]

County room occupancy tax

Durham County levies a Room Occupancy Tax of 6% on gross receipts from renting any room, lodging or accommodation furnished by a hotel, motel, inn or similar place within the county.[6] Returns are due by the 20th of the month after the tax accrues, and accommodations furnished to the same person for at least 90 consecutive days are exempt.[6] We could not confirm whether the county applies it to a whole-home rental, so ask the county tax office.

Who collects state tax

The retailer who collects the payment for the rental owes the state tax, and that can be the accommodation provider or an accommodation facilitator.[7]

Stays of 90 or more days

An accommodation supplied to the same person for 90 or more continuous days is exempt from the state tax.[7]

Inspections on cause

The city's rental inspection article lets the administrator or housing inspector inspect when there is reasonable cause to believe unsafe, unsanitary, hazardous or unlawful conditions exist.[12] That includes three or more verified housing code or unsafe building law violations in a 12-month period, or a complaint.[12]

Targeted areas

The code also requires periodic inspections of residential buildings in areas the council specifies, and that program focuses only on rental property.[12]

Short-term rentals and the article

The article covers a dwelling, dwelling unit or rooming unit that is leased or offered for lease.[12] It doesn't say whether short-term rentals count.[12]

No short-term rental fines found

We found no fines or revocation rules written for short-term rentals in the city code.[4]

Pending state bill

Senate Bill 291 would bar cities from banning short-term rentals, requiring owner occupancy or capping their number, and would limit a permit fee to $25.[13] Its last action was Mar 17, 2025, when it was referred to the Senate Rules committee.[14]