Understanding R1 Rental Restrictions in Ocean City, MD
Hot topic alert! If you're a local, a second homeowner, or just someone who loves Ocean City, chances are you've heard the buzz about the new rental restrictions for homes in R1 and MH districts.
Before we dive in, let’s be clear: YES, you can still come to Ocean City for a weekend getaway. These new rules only apply to single-family homes and mobile homes located in R1 and MH zoning districts. There are still plenty of great condo rentals available all over OCMD.
We’re writing this blog because there’s a lot of misinformation floating around. A colleague recently told us that a Pennsylvania radio station reported you now have to stay in OC for 31 days or more—which is totally incorrect.
When the facts get misrepresented like that, it hurts Ocean City’s reputation as a vacation destination. People may decide to skip town altogether based on false info. So, let’s set the record straight.
What Are the R1 Rental Restrictions in Ocean City, MD?
Here’s what the Town of Ocean City has implemented so far regarding R1 and MH zoning:
- Current Moratorium: A pause on issuing new short-term rental licenses for homes zoned R1 & MH.
- Reservations Made After March 3, 2025: Rentals in R1 & MH districts will require a minimum stay of 5 nights.
- Effective January 1, 2027: That minimum stay increases to 31 consecutive nights.
To be crystal clear: These rules do not apply to condos or other zoning districts. They only affect single-family and mobile homes in R1 & MH zoned areas.
How This Impacts Property Owners in OCMD
There’s no doubt these ordinances will impact homeowners in R1 and MH neighborhoods. We can think of countless clients we’ve helped buy in these areas who rely on short-term rentals to help offset ownership costs.
This change removes a basic right—using your own home as you see fit—and it shrinks the pool of potential buyers. When you can’t rent for a few weekends or peak weeks, fewer people are willing (or able) to buy. That can lead to lower property values and less flexibility for current owners.
We also worry this will attract more year-round investors, who may rent to large groups over longer terms. That’s unlikely to increase full-time residency, which we believe is the town’s goal. Instead, it may just change who owns and rents these homes.
How This Impacts Ocean City
Misinformation or confusion about these restrictions could cause visitors to look elsewhere. That hurts everyone—from restaurants, bars, and shops to every other business that depends on tourism.
Ocean City thrives on tourism. While we understand the town’s desire to address concerns from neighbors, we don’t believe these changes will deliver the desired result.
To read more about how these ordinances affect property owners, visit ocmdpropertyrights.org and scroll to “How This Ban Will Impact People’s Lives.”
Real Estate Market Implications
As we mentioned, restricting short-term rentals in R1 and MH zones makes homeownership less affordable. Many buyers count on summer rental income to cover property taxes or HOA dues. It’s not about profit—it’s about being able to keep and enjoy their home a few times a year.
Removing that opportunity may deter future buyers and make it harder for current owners to hold onto their properties.
What Can You Do?
If you’d like to oppose these restrictions, you can sign the petition in person:
6200 Coastal Hwy, Ste 101, Ocean City, MD 21842
Monday–Friday | 8:00 AM – 4:00 PM
You can also stop by Oceans Edge Vacations at the Gold Coast Mall next to the liquor store on 115th Street on the weekends.
For updates and community discussion, check out the OCMD Property Rights Facebook page.
Wrapping It Up
We understand what the town is trying to achieve—but we don’t believe this ordinance will have the impact they're hoping for.
Yes, there are occasional issues with short-term renters, but the vast majority of vacationers in Ocean City are respectful families making memories. Unfortunately, a few bad apples might ruin it for everyone.
If you own a property in an R1 or MH zone, we encourage you to stay informed, sign the petition, and make your voice heard.
Have questions about how these changes could affect your property? Want to chat about buying, selling, or renting in Ocean City? We’re here to help.
Check out our YouTube Channel here!
Looking for the best local company to help rent your beach home? Contact Central Reservations!
Grant Fritschle
Email: grant@grantf.com
Cell: 410-430-5880
Office: 410-524-6400
Jon Barker
Email: jon@markf.com
Cell: 410-935-3810
Office: 410-524-6400
See you at the beach soon!