New Bill Would Let DC Renters — and Second-Home Owners — Cash In on Short-Term Rentals

• March 15th

by UrbanTurf Staff

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Mayor Muriel Bowser introduced legislation on Friday that would meaningfully broaden who can operate a short-term rental in the District — and under what circumstances.

The Short-Term Rental Regulation Amendment Act of 2026 takes aim at several longstanding limitations in the city's existing short-term rental framework, most notably the restriction that has prevented renters from listing their homes on platforms like Airbnb. Under the proposed bill, tenants would be permitted to operate a short-term rental at their primary residence, provided the unit is not subject to DC's Rent Stabilization Program and the lease agreement does not prohibit it.

Perhaps the most novel provision in the bill is the creation of a new "special event" short-term rental license category. The license would allow District residents — both homeowners and renters — to rent out their space during special events and holidays, without being required to remain on the premises during the guest's stay.

That's a notable departure from the current rules, which require hosts to be present for unlimited-night rentals and cap unhosted stays at 90 nights per year. The bill also creates a pathway for residents to obtain a short-term rental license for a second property they own in the District; if that property is unoccupied, rentals would be capped at 90 cumulative nights annually, though a special event license could be layered on top of that.

The bill also makes several housekeeping changes to the existing regulatory structure. It eliminates the current distinction between "Short-Term Rental" and "Vacation Rental" license endorsements, consolidating them into a single category. It also streamlines the definition of "primary residence" by removing a confusing reference to the District's Homestead Deduction and replacing it with a more straightforward residency requirement. 

The legislation arrives at a moment when DC is actively looking for ways to shore up revenues and create economic opportunity for residents amid a projected budget shortfall. Bowser framed the bill in those terms, noting that the changes would help District residents "build economic opportunity right from their own homes." The bill has been transmitted to the Council for review.

This article originally published at https://dc.urbanturf.com/articles/blog/new_bill_would_let_dc_renters__and_second-home_owners__cash_in_on_short-ter/24419.