Northampton County, VA

Cape Charles, VA short-term rental permit

Bedroom by bedroom, square footage sets the guest limit of a permitted rental in Cape Charles. A 70-square-foot room sleeps one lodger, 100 square feet two, and 150 square feet three. Since January 15, 2026, a legal accessory dwelling unit may be the rental in place of the main house.[5]

Every rule below links to the official source it comes from, verified October 1, 2026.

Can you rent short term in Cape Charles?

Get a permit first

What you apply for: Short-term rental zoning permit

Seasonal homes
398
Housing units
1,185
Residents
1,201

U.S. Census Bureau, 2024 ACS 5-year estimates

  • City rulePermit required
  • City fee$450
  • Tax on each stay10.3%
  • Seasonal homes336 per 1,000

Cape Charles short-term rental permit

Before a Cape Charles rental opens, the owner needs an annual short-term rental zoning permit and a town business license. The town bundles them, with a certificate of occupancy, into an STR Certificate. The base administration fee is $450 a year. Business license tax is added, calculated on gross annual revenue. The Building Department inspects the rental for occupancy and safety. Zoning checks that site plans, bedroom floor plans and a parking plan are on file.[5]

What Cape Charles asks of you

  • Town Council adopted the short-term rental zoning ordinance on November 21, 2024.[6]

  • A rental cannot operate until the Planning Department issues an STR zoning permit. The department has 90 days to act on an application.[6]

  • An annual town business license, issued by the Finance Department, is also required before operating.[6]

  • A rental that held a business license and a rental occupancy certificate in the 12 months before the ordinance, with lodging taxes paid, is grandfathered.[6]

  • The $450 base fee covers finance review, code enforcement inspection and zoning authorization.[5]

  • Only one bedroom may hold more than two lodgers. It can take four if it reaches 200 square feet.[5]

  • Under Ordinance 2026115B of January 15, 2026, a legal accessory dwelling unit can now be rented short term. A property permits either the main dwelling or the ADU.[5]

  • Applications, renewals and payments for the 2026 season go through the town's STR customer portal, Rentalscape, software by Deckard. Quarterly lodging tax returns are filed there too.[5]

Apply on the Cape Charles site

What Virginia asks wherever you host

These rules apply at this address whatever the city decides.

  • Virginia hosts need no state license. State law lets each city, county or town keep an annual registry, with a penalty of up to $500 per violation for an unregistered rental.[1]

  • Every stay owes Virginia sales tax on the total charge. When a guest books through a platform, the platform reports that tax on the entire transaction.[3]

  • The sales tax rate follows the locality. It runs from 5.3% across most of Virginia to 7% in James City County, Williamsburg and York County.[4]

  • A platform that facilitates the booking also collects the local transient occupancy tax. Each month it sends the locality the property addresses and gross receipts of the stays it handled.[2]

Virginia short-term rental rules

What a guest pays on top of your nightly rate in Cape Charles

Each layer is set by a different authority, and not all of them are collected by the platform.

Short-term rental tax layers in Cape Charles
LayerRateRemitted to
Virginia sales tax[4]6.3%The state revenue department
Cape Charles transient occupancy tax[7]4%The city
Total on a taxable stay10.3%

On top of the 4% rate, the town charges $4 per night for each vacation rental home.[7]

Airbnb taxes for hosts

What the census counts

How much of Cape Charles is already a second home

The Census Bureau counts 398 of Cape Charles's 1,185 homes as vacant for seasonal, recreational or occasional use. That is 336 out of every 1,000. It ranks Cape Charles 2nd of the 5 Virginia cities on this site for the share of its housing stock kept for part-year use.

Rank in the state
2nd of 5
Share of housing
336 per 1,000
Median home value
$640,600

U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.

Nearby and comparable

Where Cape Charles sits among its neighbors

Colonial Beach, VA

Permit required

526 seasonal homes, 210 per 1,000 housing units.

Colonial Beach short-term rental rules

Richmond, VA

Permit required

457 seasonal homes, 4 per 1,000 housing units.

Richmond short-term rental rules

Chincoteague, VA

No city ordinance

2,452 seasonal homes, 540 per 1,000 housing units.

Chincoteague short-term rental rules

Virginia Beach, VA

Allowed by zone

2,856 seasonal homes, 15 per 1,000 housing units.

Virginia Beach short-term rental rules
StatewideEvery Virginia city on this site, in one tableState law, the tax stack and every city we cover in Virginia, with what each one asks of a host.Virginia short-term rental rules

FAQ

Cape Charles short-term rental questions

What does a Cape Charles short-term rental permit cost?

Expect a $450 base administration fee each year. Business license tax comes on top, based on the rental's gross annual revenue.[5]

Can I rent my ADU short term in Cape Charles?

Yes, since the town adopted Ordinance 2026115B on January 15, 2026. A property can permit either the main dwelling or the ADU.[5]

How many guests can a Cape Charles rental sleep?

It depends on bedroom size. One lodger needs a room of 70 square feet, two need 100, and three need 150.[5]
Read nextHow to start an AirbnbThe six steps in order, starting with the permit check.Read the guide

Sources

  1. Code of Virginia § 15.2-983, Creation of registry for short-term rental of property, Virginia Legislative Information System, read on October 1, 2026
  2. Code of Virginia § 58.1-3826, Scope of transient occupancy tax, Virginia Legislative Information System, read on October 1, 2026
  3. Retail Sales Tax on Accommodations, Virginia Department of Taxation, read on October 1, 2026
  4. Retail Sales and Use Tax, rates by locality, Virginia Department of Taxation, read on October 1, 2026
  5. Short Term Rentals, Vacation Rentals, Town of Cape Charles, Planning and Zoning, read on October 1, 2026
  6. Zoning Text Amendment (ZTA) 2024-02, Town of Cape Charles, read on October 1, 2026
  7. Taxes, Fees and Rates, Town of Cape Charles, Treasurer, read on October 1, 2026

This page is not legal advice. It summarizes the official sources listed on this page as they read on October 1, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.

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