Is Airbnb Legal in Asheville? 2026 Rules, Permits & Taxes

Permit required

Yes

Taxes on a stay

13%

Fine for hosting without a permit

$500

Listings showing a permit number

0%

Next rule change

Jun 30, 2027

Listing figures: AirROI, 12 months to September 2026. A number on a listing doesn't prove the permit or license is valid, and a missing one doesn't prove there is none.

The rules in brief

Who needs it

Every host who rents one or two bedrooms of the home they live in for under 30 days. Whole-home short-term rentals are not covered by a homestay permit and are allowed only in the Resort zoning district.^{1,11,13,14,15,16}

Issued by

City of Asheville Development Services (Permit Application Center and Compliance Division)

Valid for

According to the city's homestay FAQ, a permit stays valid for as long as the holder maintains it, and a change to the layout needs an amendment. The permit cannot be transferred to a new owner or tenant.

Processing

The city reports a high volume of applications and a longer wait for the required inspection; no fixed processing time is published.

On listings

No number needed on listings

Platform checks

No permit number has to appear on a listing under the homestay ordinance. The city enforces through its Compliance Division, which takes complaints about homestays and vacation rentals through the Asheville App.

Fees

Who qualifies

• The home is in a residentially zoned area
• The host lives in the home full-time, and it is the host's only primary residence
• No more than two bedrooms are rented, each stay is under 30 days, and the host is at the property overnight during every stay
• Two documents from the city's approved list prove residency (for example a voter registration, driver's license or vehicle registration)
• If the owner does not live there, the resident and the owner apply together as co-applicants
• The homestay is not in a detached building (garage, cottage or ADU) unless it was permitted before December 14, 2021
• One permit per person, household or entity, and one homestay per parcel

How to apply

1. 1 Confirm the home is in a residential zone, that you live in it full-time as your only primary residence, and that you will rent no more than two bedrooms for under 30 days at a time.
2. 2 Gather two proofs of residency from the city's approved list and a floor plan that marks the homestay bedrooms, windows and exits, smoke detectors and any kitchen elements.
3. 3 Submit the city's online new homestay application and pay the invoice the city emails; if you rent the home, the owner completes a separate owner form so they can be added to the permit.
4. 4 Schedule the required inspection once the city approves the application; the permit is issued after the home passes.
5. 5 Register for Buncombe County occupancy tax and North Carolina sales tax if you take bookings outside Airbnb, and keep liability insurance that covers the homestay.

Permit rules

A city homestay permit is required

Every homestay needs a permit from the City of Asheville, and the ordinance calls for the homestay to be reviewed annually and inspected for compliance.^1,11

Permit stays valid while you keep it

According to the city's homestay FAQ a permit stays valid for as long as the holder maintains it, and a change to the layout needs an amendment.¹⁴

Permits do not transfer to a new owner

A homestay permit cannot be transferred, so a buyer or new tenant must apply for a permit in their own name.¹⁴

Airbnb collects and remits the taxes

Airbnb collects North Carolina sales tax and all locally imposed occupancy taxes on reservations of under 90 nights, and Buncombe County treats Airbnb sales as taxes already collected by a third party.^10,17,22

Advertised price must be the total price

A federal rule in force since May 12, 2025 requires an advertised short-term rental price to show the total price, including mandatory fees; taxes and government charges may be shown separately.^8,20 In force since May 12, 2025

Homestay: live there full-time, rent one or two bedrooms

Asheville permits a homestay when the host is in a residentially zoned home, lives in it full-time, and rents one or two bedrooms for less than 30 days at a time.^11,12

Whole-home rentals only in the Resort zoning district

Renting an entire house or apartment for less than a month is a short-term vacation rental (STVR), which Asheville allows only in its Resort zoning district.^11,12

The Resort district is for resort and conference uses

Asheville created the Resort District for resort-oriented uses and conference or retreat facilities, so it does not cover ordinary residential neighborhoods.⁴ Applies to: Resort district

Host must be a full-time resident, present overnight

The person running a homestay must be 18 or older, live in the home full-time, and be at the property overnight for the entire time guests stay; short absences for ordinary errands, work or class are allowed.¹

The homestay must be your only primary residence

A person can have only one primary, full-time residence, and a homestay can run only from that home.^1,14

Tenants apply together with the property owner

When the owner does not live in the home, the full-time resident and the owner must apply together as co-applicants, and the permit is issued to both of them.^1,15 In force since December 14, 2021

One homestay permit per person or household

A person, household, LLC, corporation or trust can hold only one homestay permit, and an ownership stake of more than 5 percent in an entity counts toward the limit.^1,14 In force since December 14, 2021

No homestays in detached buildings

New homestays cannot be located in a detached accessory structure such as a garage apartment or backyard cottage; only homestays permitted before December 14, 2021 may continue.^1,14 In force since December 14, 2021

State law lets Asheville zone, not register

North Carolina bars cities from requiring rental registration but lets them set zoning and development standards, which is why Asheville regulates short stays as a zoning use.^9,23 In force since April 5, 2022

Two bedrooms at most

A homestay can use at most two bedrooms, and the application asks for the number of bedrooms (one or two) and the homestay area's square footage.^11,14,15

The rules apply to stays under 30 days

Asheville's homestay and vacation-rental rules cover guest stays of less than 30 days; a homestay can also house residents on longer stays without affecting the permit.^1,11

Liability insurance is required

The homestay owner or operator must carry liability insurance on the property that covers the homestay use and the guests.¹

The homestay area must meet building codes

The part of the home used for the homestay has to comply with the applicable building codes, which the city checks at inspection.¹

Smoke detector in every homestay bedroom

A smoke detector must be located within each homestay bedroom, and the floor plan submitted with the application marks the detectors, the bedroom exits and the kitchen elements.^14,15

No signs for a homestay

A homestay may not have signage, and no displays of goods, products or advertising may be visible from outside the dwelling.¹

No extra parking for a homestay

A homestay does not need additional off-street parking, while a vacation rental in the Resort district must provide off-street parking under the city's parking standard.¹

Resort-district vacation rentals need an annual zoning permit

A short-term vacation rental that is allowed in the Resort district is reviewed annually and inspected for compliance with its annual zoning permit, and the owner must carry liability insurance and meet building codes.¹ Applies to: Resort district

Hosts must pay occupancy and sales taxes

The ordinance makes the homestay owner or operator responsible for paying the applicable occupancy and sales taxes to the right government.¹

State law requires smoke detectors and a carbon monoxide alarm

Under the Vacation Rental Act the landlord must provide operable smoke detectors and at least one operable carbon monoxide alarm per rental unit per level.⁵

Human trafficking awareness training

Property managers of vacation rentals first offered before July 1, 2025 must complete the state's human trafficking awareness training by June 30, 2027; rentals first offered on or after that date need it before listing.⁵ In force since July 1, 2025

Median nightly rate, booked nights

$175

Taxes on that night (13%)

$23

Guest pays, before Airbnb and cleaning fees

$198

What the host still handles

• A Buncombe County occupancy tax account with the county Finance Department for bookings taken outside Airbnb; returns are due by the 20th of the month after the stay
• A North Carolina sales tax certificate of registration with the Department of Revenue for bookings taken outside Airbnb (no fee)
• The City of Asheville homestay permit, and liability insurance that covers the homestay^17,18,19,22

• Unpermitted lodging use, including renting a dwelling unit for under a month where lodging is not allowed or running a homestay without meeting the rules, carries a civil penalty of $500 per day; the city must first send a written notice with a chance to correct the violation.^2,3
• Process: the city sends a written notice of violation with time to cure, may grant one extension of up to 30 days on written request, and then serves a written fine citation.³
• Unpaid Buncombe County occupancy tax: a late return draws a penalty of 5% of the tax for each month, up to 25%, and late payment draws a 10% penalty.¹⁷
• Willful failure to file or pay a tax is a Class 1 misdemeanor under North Carolina law.^6,7
• State human trafficking training rule: the Department of Labor may fine a property manager $500 for a first willful violation, $1,000 for a second and $2,000 for the third and each later one.⁵

1. June 30, 2027 Upcoming
   Training deadline for existing vacation rentals

   Property managers and staff of vacation rentals first offered before July 1, 2025 must finish the human trafficking awareness training by June 30, 2027.⁵

2. July 1, 2025
   State human trafficking training rule starts for new vacation rentals

   Property managers of vacation rentals first offered on or after July 1, 2025 must have a reporting procedure and complete training before listing; platforms must collect their certification.⁵

3. April 5, 2022
   Court bars rental registration; Asheville's renewal requirement ends

   The North Carolina Court of Appeals held that state law bars a registration requirement for short-term rentals while allowing zoning standards; the city's homestay renewal form now states that renewal is no longer required.^16,23

4. December 14, 2021
   City Council tightens homestay standards

   On December 14, 2021 the Asheville City Council changed the homestay rules in Section 7-16-1: a non-resident owner must apply together with the resident as co-applicant, and new homestays are no longer allowed in detached structures.^1,14,15

Estimate what an Asheville home could earn

1. 1. Sec. 7-16-1. Uses by right, subject to special requirements (Asheville Unified Development Ordinance) · City of Asheville Code of Ordinances (American Legal Publishing)
2. 2. Sec. 7-18-2. Penalties for violations · City of Asheville Code of Ordinances (American Legal Publishing)
3. 3. Sec. 7-18-3. Notice of violation and citation procedure · City of Asheville Code of Ordinances (American Legal Publishing)
4. 4. Sec. 7-8-14. Resort District · City of Asheville Code of Ordinances (American Legal Publishing)
5. 5. North Carolina General Statutes Chapter 42A - Vacation Rental Act · North Carolina General Assembly
6. 6. G.S. 153A-155 - Uniform provisions for room occupancy taxes · North Carolina General Assembly
7. 7. G.S. 105-236 - Penalties · North Carolina General Assembly
8. 8. 16 CFR Part 464 - Rule on Unfair or Deceptive Fees · Electronic Code of Federal Regulations
9. 9. G.S. 160D-1207 - Periodic inspections · North Carolina General Assembly
10. 10. G.S. 105-164.4F - Accommodation rentals · North Carolina General Assembly
11. 11. Apply for a homestay permit · City of Asheville
12. 12. Homestays and Short Term Rental Violations · City of Asheville Development Services, Compliance Division
13. 13. City of Asheville Fees and Charges Manual (current year) · City of Asheville Finance Department
14. 14. Homestay Frequently Asked Questions (FAQs) · City of Asheville Development Services
15. 15. New Homestay Permit Application · City of Asheville
16. 16. Homestay Permit Renewal · City of Asheville
17. 17. Buncombe County Occupancy Tax Monthly Remittance Form · Buncombe County Finance Department
18. 18. Current Sales and Use Tax Rates · North Carolina Department of Revenue
19. 19. Sales and Use Tax Registration · North Carolina Department of Revenue
20. 20. The Rule on Unfair or Deceptive Fees: Frequently Asked Questions · Federal Trade Commission
21. 21. Homestay Permits View (city permit data layer) · City of Asheville GIS
22. 22. Occupancy tax collection and remittance by Airbnb in North Carolina · Airbnb Help Center
23. 23. Short-Term Rental Regulations after Schroeder · UNC School of Government