New Washington DC Airbnb Bill Could Unlock More STRs for Major Events

A new bill in Washington, D.C., could let more residents—including renters and second-home owners—cash in on short-term rentals during major events like the World Cup, presidential inaugurations, and Fourth of July celebrations.

But this isn't just a local rule change. It's a sign that cities are starting to see short-term rentals as critical infrastructure for tourism and events.

Nathan Rotman, Airbnb's director of policy strategy for North America, put it bluntly:

"Throughout the US, cities are looking to unlock more short-term rental supply to recruit major events and ensure that the economic benefits are felt by all residents."

The numbers back him up. In 2023 alone, Airbnb hosts in DC welcomed more than 540,000 guests and contributed an estimated $307 million to the local economy. This bill could grow that impact even more.

What the New DC Bill Proposes

The proposed bill would expand who can host short-term rentals and when. But don't get too excited yet: The plan is not to fully embrace STRs year-round, but to accommodate major events that draw massive crowds to the city.

Key changes include:

• Renters can now host. With written permission from their landlord, tenants could offer short-term rentals—something previously reserved for property owners.
• Second-home owners get a seat at the table. Properties that aren't a host's primary residence could qualify for short-term rental licenses, but only during designated event periods.
• A "special events" permit would temporarily lift the 90-night vacation rental cap during high-demand windows. Think World Cup matches, inauguration week, or July 4th celebrations.

The goal is to ensure DC has enough accommodations to handle surge crowds—and that the economic upside reaches more residents, not just hotel owners.

Why This Matters: STRs as Event Infrastructure

Cities are waking up to something hosts have known for years: Hotels can't handle major events alone.

Montreal stands to lose millions because of STR bans during major events. LA has a 320,000 vacation rental shortage for the Olympics. Washington doesn't want to join the club.

When thousands of visitors pour into a city, they need accommodation. If supply is too tight, prices spike, visitors get priced out, and the whole event becomes harder to sell. It's not just price, some people skip the event when housing isn't available.  Cities lose millions in tourist revenue.

By unlocking more STR supply during peak periods, DC can:

• Keep accommodation affordable and available
• Spread tourism dollars to more neighborhoods
• Make the city more attractive to event organizers and visitors

Airbnb's own data makes a compelling case. With 540,000 guests and $307 million in economic impact from 2023 alone, STRs are already a major player. This bill could amplify that—and position DC as a model for other event-driven and tourism-driven cities.

How Hosts Can Play the Game: Layering the Rules

If the bill passes, savvy hosts could layer different rules to maximize earnings—especially those with access to multiple properties.

Here's how it could work:

• Use your 90-day vacation rental allowance for normal year-round bookings at your primary residence.
• Activate the special events permit during high-demand periods like the World Cup or inauguration. This wouldn't count against your 90-day cap.
• If you're a second-home owner, you could now earn money hosting for up to 90 days and during special events, unlocking income from a property that was previously off-limits.
• Renters with landlord permission could also host during event windows, creating short-term income without needing to own properties.

Opportunity: If allowed, negotiate deals with landlords who have vacant listings to host during special events. That way, you don't need to buy another property that can only be used as an STR for a few months a year.

Is Washington, D.C., STR-friendly now? Far from it. But this slightly more flexible system can reward hosts who plan ahead and understand how to layer their allowances.

Quick Refresh: Washington, D.C.'s Current STR Regulations

Washington, D.C.'s short-term rental rules are some of the most structured in the country.

The basics:

• Only primary residences can be rented short-term. The owner must be eligible for the Homestead Tax Deduction.
• There are two license types:
  • Short-Term Rental License: Host remains on the property during the stay. No annual limit on nights.
  • Vacation Rental License: Entire home rented, host not present. Capped at 90 nights per year.
• Stay duration: Maximum 30 consecutive nights for both types.
• Insurance: Minimum $250,000 liability coverage required.
• License fee: $99 for a two-year license.
• Corporate ownership: Not allowed. Only individual hosts qualify.
• Occupancy limit: Maximum 8 guests, or 2 per bedroom—whichever is greater.

Exemptions exist. Hosts can apply to exceed the 90-night cap if they're temporarily relocated for work or medical reasons.

Enforcement is real. Licenses are publicly searchable via DC's SCOUT database. Unlicensed operators face fines anywhere from $500 to $6,000 for repeat violations.

Taxes: Airbnb collects and remits DC's 14.5% transient lodging tax on behalf of hosts.

Final Thoughts

This bill is still proposed, not law. But it could signal a major shift in how cities treat short-term rentals. DC is a bellwether. If this passes, other event-heavy cities (think: Atlanta for the World Cup, Philadelphia for major conventions) may follow suit.

Some good news: STRs are no longer just the black sheep everyone points to when we discuss the housing crisis.

Lawmakers are recognizing them as a central part of local tourism, events, and community financial well-being.

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