Furnished Short-Term Rentals in DC: Rules and Tax Levers

Washington DC treats a furnished short-term rental as a licensed, primary-residence-only activity, and it splits that activity into two categories on one question: are you physically present during the stay. A “short-term rental” is hosted, meaning you offer fee-based lodging at your primary residence while you are present on the property (a bedroom in your home, for example). A “vacation rental” is unhosted, meaning you offer the place at your primary residence without being present (source: DC DLCP, retrieved July 2026). Both require a license. Neither is a path to running a furnished unit you do not live in.

If you operate furnished inventory in DC and want room past the short-term caps, the only lever is length of stay. A booking of 31 or more continuous nights sits outside the short-term rental licensing threshold, and a single continuous stay longer than 90 days is not “transient” occupancy, so it falls outside the District’s 15.95% transient lodging tax (source: D.C. Official Code § 47-2001(v-1), retrieved July 2026). That is the furnished mid-term play. The catch: exiting the STR rules does not exit all regulation, and the longer-stay obligations are a separate question you must confirm before you pivot.

TL;DR:

• DC has two STR license types, split by host presence: hosted “short-term rental” and unhosted “vacation rental.” Both need a basic business license with the matching endorsement, and the property must be your primary residence (Homestead-eligible).
• Three different numbers, do not conflate them: each stay caps at 30 or fewer continuous nights (licensing); an unhosted vacation rental cannot exceed 90 nights per calendar year (operating cap); and for tax, a stay longer than 90 continuous days is not “transient.”
• License cost is $99 for two years. Transient lodging tax is 15.95% through March 30, 2027, usually collected by the booking platform.
• The furnished mid-term lever is length of stay: 31+ nights exits STR licensing, 90+ continuous days exits the transient tax. But longer-term rentals may trigger separate DC housing obligations. Verify with DC DLCP and DHCD before pivoting.

Two license types, split by whether you are home

DC’s licensing turns on presence, not on the type of building or the platform you list on. Hosted stays use the “Short-Term Rental” endorsement; unhosted stays use the “Short-Term Rental: Vacation Rental” endorsement (source: D.C. Official Code § 30-201.02, retrieved July 2026). The statute is explicit: “A short-term rental shall require a valid basic business license with a Short-Term Rental endorsement.”

The bigger constraint is who can hold the license. The property must be your primary residence, and you must be eligible for the DC Homestead Tax Deduction (source: D.C. Official Code § 30-201.02(d), retrieved July 2026). In plain terms: DC’s STR framework is built for resident hosts renting their own home, not for operators running furnished units they do not occupy. Verify current eligibility with DLCP.

The three numbers operators conflate

Three separate limits use the numbers 30 and 90, and mixing them up is the most common DC mistake. Keep them distinct.

• 30-night per-stay limit (licensing). Each individual short-term or vacation rental stay is limited to 30 or fewer continuous nights (source: DC DLCP, retrieved July 2026). This is the line that separates STR activity from mid-term furnished stays.
• 90-night annual cap (operating, unhosted only). A vacation rental “shall operate as a vacation rental for no more than 90 nights cumulatively in any calendar year” (source: D.C. Official Code § 30-201.06(e), retrieved July 2026). This cap applies only to unhosted vacation rentals. Hosted short-term rentals, where you are present, are not subject to the 90-night cap.
• 90-day tax threshold (transient definition). For DC lodging tax, a “transient” occupies for “a period of 90 days or less during any one continuous stay” (source: D.C. Official Code § 47-2001(v-1), retrieved July 2026). A single continuous stay longer than 90 days is not transient, and falls outside the transient lodging tax.

What the license costs and requires

The total cost for either license is $99.00 for a two-year license (source: DC DLCP, retrieved July 2026). Beyond the fee, DLCP requires unobstructed egress from the rental, working smoke and carbon monoxide detectors, a portable fire extinguisher on site, the license posted conspicuously inside the property, and a 24-hour emergency telephone number that a guest can reach at any time during a stay (source: DC DLCP, retrieved July 2026). Applications also require a Certificate of Clean Hands issued within the last 30 days, and, for co-ops, condos, or HOA-governed properties, an attestation about bylaws or HOA permission (source: DC Short-Term Rental Portal / DLCP, retrieved July 2026).

On insurance, DC sets a floor: the host must carry current liability insurance of at least $250,000 (source: DC DLCP, retrieved July 2026). Coverage supplied through a booking service can satisfy this if it meets the minimum, but confirm the applicable requirement for your setup with DLCP.

Two operational duties are easy to miss. First, taxes: hosts must pay all applicable transient lodging taxes, which booking services collect and remit on the host’s behalf (source: DC DLCP / § 30-201.06, retrieved July 2026). The rate is 15.95%, in effect from April 1, 2023 through March 30, 2027 (source: DC OTR Tax Notice 2023-01, retrieved July 2026). Do not assume it lapses on that date; confirm the current window with DC OTR before relying on any end date. Second, records: you must retain records of each booking for two years and produce them on request (source: D.C. Official Code § 30-201.06(c), retrieved July 2026).

If you are unhosted and the 90-night cap is the binding constraint, DC allows a narrow exemption. You may apply if you (or your spouse or domestic partner) have an employer that requires work outside DC for more than 90 cumulative days in a calendar year, or if you must leave DC to receive or provide care for a serious health condition for more than 90 cumulative days (source: D.C. Official Code § 30-201.06(f), retrieved July 2026). Exemption requests go through the DC Short-Term Rental Portal.

The furnished mid-term lever, and its real risk

Here is the operator move. STR licensing keys on the 30-night per-stay limit; the transient tax keys on the 90-day continuous-stay line. Furnished mid-term rentals target the gap. Price and market for 31+ night stays and you step outside the short-term rental endorsement scheme. Push a single continuous stay past 90 days and you step outside the 15.95% transient tax. For a furnished unit in a corporate, medical, or relocation submarket, longer bookings can mean lower turnover cost, fewer platform fees, and less exposure to the STR caps.

That is the upside stated honestly. Now the downside, stated just as honestly: leaving the short-term rental framework does not mean you are unregulated. Longer furnished rentals in DC can implicate separate obligations, potentially including different housing business licensing, the DC Rental Housing Act and its registration or exemption requirements, rent stabilization, and zoning. Nightlydata has not verified which of these apply to your specific unit and lease length, and this article will not guess. Before you pivot furnished inventory to mid-term, verify the longer-term rental requirements with DC DLCP and the DC Department of Housing and Community Development (DHCD).

For the strategic case, timing, and P&L logic of moving part of a furnished portfolio from short-term to mid-term, see our short-term to mid-term portfolio pivot analysis. For the general tax mechanics operators lean on, see the short-term rental tax angle explained.

Key facts (as of July 2026)

• Two license types, by host presence: hosted “short-term rental” (you are present) and unhosted “vacation rental” (you are not) (source: DC DLCP).
• License requires a basic business license with the matching STR endorsement (source: § 30-201.02(a)).
• Primary residence is mandatory; the host must be eligible for the Homestead Tax Deduction (source: § 30-201.02(d)).
• Per-stay limit: 30 or fewer continuous nights (source: DC DLCP).
• Annual cap (unhosted only): 90 nights cumulatively per calendar year (source: § 30-201.06(e)).
• License cost: $99.00 for two years (source: DC DLCP).
• Transient lodging tax: 15.95%, April 1, 2023 through March 30, 2027; verify the current end date with DC OTR (source: OTR Tax Notice 2023-01).
• Tax “transient” threshold: a single continuous stay of 90 days or less; longer stays fall outside the transient tax (source: § 47-2001(v-1)).
• Liability insurance minimum: at least $250,000; confirm the requirement for your setup with DLCP (source: DC DLCP).
• 24-hour emergency phone: a reachable emergency telephone number is required for guests during a stay (source: DC DLCP).
• Record retention: two years per booking (source: § 30-201.06(c)).

Information current as of July 2026; verify before acting.

This article is general information for STR operators, not legal, tax, or accounting advice. DC licensing, tax rates, and housing rules change, and several figures here carry effective-date windows or reported discrepancies flagged in the text. Confirm every requirement with the primary source and, for anything involving longer-term or mid-term rentals, with DC DLCP and DHCD before making operating or financial decisions.