City Watch
Short-term rental rules in Bald Head Island, NC
How Bald Head Island regulates short-term rentals: the rules that apply, their sources, and pending changes.
Short-term rentals here are subject to registration, a lodging tax, or a small number of operating rules.
- Incorporated Village of Bald Head Island (Brunswick County); municipal code governs within NC limits.
- Only STR-specific municipal measure is a 6% occupancy tax with GovOS tax-remittance reporting — general/process, not an STR permit or supply cap.
- Zoning code expressly defines a 'Rental unit' (dwellings offered for rent on an annual or seasonal basis) as NOT commercial for purposes of the chapter — seasonal/short-term rental is a permitted residential use townwide.
- No zoning-district exclusion of transient/STR use and no minimum-stay in residential districts; nothing to survive-or-fail under Schroeder.
- Car-free ferry-access resort island where vacation rental is the housing economy.
Based on: Village of Bald Head Island Code of Ordinances ch. 32 (Zoning); 6% occupancy tax on rentals <90 days remitted via GovOS
Summary of the rule
The Village of Bald Head Island (incorporated) itself levies a 6% Village occupancy tax on gross rental fees for accommodations rented <90 days to the same person; operators register with the Village and remit to the Village. Governing jurisdiction (the Village) levies its own STR-touching lodging tax.
View the ordinance source ↗✓ Verified
Active litigation / open question
Schroeder v. City of Wilmington (N.C. Ct. App., 2022-NCCOA-210, decided Apr. 5, 2022) — Statewide NC lens (not a Bald Head Island suit): struck a city STR registration + density cap as beyond municipal zoning/regulatory authority; NC cities generally cannot register or cap STRs absent express legislative authority. No local BHI STR litigation found. Source ↗
Reported as fact only, reflecting the code as currently in effect — not legal advice, and not a prediction of the outcome. Verify current status before relying on it.
Last reviewed Sep 9, 2026 · Sources · Report an error
Pending legislation
Monitoring Bald Head Island · system last checked Oct 25, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.
