Gloucester Approves New Short-Term Rental Regulations

On August 27, 2024, the Gloucester City Council voted to add new regulations on short-term rentals. Please see the newly updated requirements and restrictions on short-term rentals in Gloucester below:

• A residential unit can only be rented to one short-term tenant at a time.
• The number of short-term rental occupants cannot exceed two people per bedroom.
• An owner can only operate and register one short-term rental property at a time.
• If the owner/operator lives in the home full time, the residential unit can be offered as a short-term rental 365 days per year. The annual permit fee would be $100.00 for an owner-occupied short-term rental.
• If the owner/operator lives in the residential unit part time (at least six months out of the year), the property can be offered as a short-term rental for a maximum of 180 days per year. The annual permit fee would be $150.00.
• If the owner/operator does not live in the residential unit, the property can be offered as a short-term rental for a maximum of 120 days per year. The annual permit fee would be $300.00 for a non-owner occupied short-term rental unit.
• The number of non-owner occupied short-term rental units permitted in Gloucester is capped at 500.
• Permit fees will be directed to Gloucester’s Affordable Housing Trust.

The effective date of the new short-term rental regulations in Gloucester is January 1, 2025. To read the new short-term rental ordinance in its entirety, please click here. The associated “Article V. Short Term Rentals” begins on page 60.