Short-term rental advisory in Potomac
Short-term rental advisory
Short-term rental rules in Potomac cap how much of a big house you can actually rent. The 2020-2024 Census survey counts 5,878 Potomac homes with five or more bedrooms, 35.0% of the stock. Montgomery County’s zoning code limits a short-term rental to six overnight guests aged 18 or older, and two per bedroom. Under that rule, a six-bedroom house hosts no more adults than a three-bedroom one. That changes the revenue math before you buy a single bed.
Residency is the bigger rule. The county treats a short-term rental as part of a home someone lives in: it must be where the owner, or someone the owner authorizes, actually lives. With 84.8% of Potomac’s occupied homes owner-occupied, that fits how most houses here are used, but it rules out buying a second house to run as a nightly rental. When the owner isn’t present, the cap is 120 days a calendar year.
License fees and taxes follow. As of FY27, the county license costs $500 a year. Guests owe the county’s transient tax of 7% plus Maryland’s sales tax of 6% on lodging. Ask your platform which of them it collects. One off-street parking space per booking is required unless the listing prohibits parking. Add cleaning, furnishing and platform fees, and the margin narrows. A lease often nets more with far less work.
We model nightly income against a standard lease before you commit. Short-term rental advisory explains the service. The long-term alternative is laid out in renting out your house in Potomac, and lease pricing in rental price analysis in Potomac. Should a sale look better on paper, ask a Potomac real estate agent to price it. Short-term rental advisory in Bethesda deals with a market full of non-resident owners.
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Last reviewed October 2, 2026 by Levi Loveless, licensed in Maryland and Virginia. Every rule, rate and figure on this page links to the source we checked.
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