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Short-term rental advisory in Kensington

Kensington’s town code adopts the county short-term rental law by reference as of 2026, so hosts answer to both Town Hall and the county.
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Short-term rental advisory

Short-term rental advisory answers the questions that decide whether an Airbnb actually pays: county licensing and host rules, realistic occupancy and nightly rates, setup costs, and whether a long-term lease would quietly earn more.

Short-term rental rules in Kensington start with a quirk of town law. A town ordinance dated October 29, 1984, carved Kensington out of county laws on subjects the town can regulate, except where it adopts them by reference. Section 5-701 of the town code adopts county Chapter 54, the transient lodging law covering short-term rentals, and both the town and the county keep enforcement power. County material has at times listed Kensington differently. So a host’s first calls go to Town Hall and to Montgomery County’s housing licensing office.

The county’s terms are specific. Any paid stay under 30 consecutive days counts as a short-term rental, and the home has to be where the owner, or a resident the owner authorizes, primarily lives. When the host is away, the cap is 120 nights per calendar year. The license runs $500 a year. Investors buying a second house purely for nightly guests don’t fit that model.

Taxes stack on each booking. Each stay draws Maryland’s 6% sales and use tax as a transient accommodation, plus Montgomery County’s 7% transient tax on the room charge. Booking platforms remit part of this, yet the host still has to confirm what was paid. Insurance deserves a call too, since many homeowner policies exclude paying guests.

Our part is the math on whether hosting pays at all. After platform fees and taxes, nightly income goes up against a furnished monthly lease, a standard year lease and a sale. Short-term rental advisory outlines the service. Year-round leasing is covered on renting out your house in Kensington. Rent levels come from rental price analysis in Kensington. Condo bylaws drive much of Short-term rental rules in Silver Spring. Should hosting look thin, ask our Kensington real estate agent what a sale would net.

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Kensington

Address decides the rulebook here. Houses inside the town limits, around Howard Avenue, the historic district and the streets off Connecticut Avenue, fall under the town code’s adoption of Chapter 54 and town enforcement. North Kensington and South Kensington sit outside the town, so the county alone licenses and inspects. Condo buildings near the train platform often add association minimum-stay rules. Basement suites in owner-occupied ramblers can qualify when the owner lives upstairs. We confirm which rules apply to your address before you list anywhere.
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Answered

Kensington, answered.

Q: Can I run a short-term rental in the Town of Kensington? A: Possibly, with checks on two fronts. Town Code Section 5-701 adopts the county transient lodging law, Chapter 54, and both the town and Montgomery County can enforce it. Call Town Hall and the county housing department before listing, since a Kensington host needs the license path confirmed in writing. Q: How many nights can a Kensington host rent while away? A: Up to 120 nights per calendar year without the owner present, under Montgomery County rules. It also has to be the main home of the owner or an approved resident, and the license costs $500 annually. A Kensington house bought only for nightly guests doesn’t qualify. Q: What taxes apply to Kensington short-term rental bookings? A: Two, on top of the $500 county license. Each booking owes the state’s 6% sales and use tax and the county’s 7% transient tax on the room charge. Platforms remit some of it, so a Kensington host should check each payout statement and file whatever remains.

Sources

Last reviewed October 3, 2026 by Levi Loveless, licensed in Maryland and Virginia. Every rule, rate and figure on this page links to the source we checked.

  1. Town of Kensington Code of Ordinances (amended through September 10, 2025), September 10, 2025
  2. Montgomery County Zoning Ordinance 59-3.3.3
  3. DHCA, Rental Housing License Fees, FY27
  4. Md. Code, Tax-General 11-101, 11-104
  5. Montgomery County Code 52-16, 2016

Confirm the license path before buying furniture.

Email your address and the season you hope to host guests. We check whether it sits inside the town and confirm the license route. You’ll also get net nightly income after taxes set against a monthly lease and a sale.