City Watch
Short-term rental rules in Highlands, NC
How Highlands regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- residential-zone exclusion — STRs not allowed in R-1 and R-2 single-family districts (UDO Use Table Sec. 6.2.2)
- amortization phases out existing nonconforming STRs in R-1/R-2 by September 15, 2027
- STR defined as an independent commercial use, limited (L) in R-3 and B-1 through B-4 only
- occupancy cap of two persons per bedroom plus two (Sec. 6.5.18)
Based on: Town of Highlands UDO Sec. 6.2.2 Use Table + Sec. 6.5.18 Short-term rentals; UDO text-change ordinance adopted
Summary of the rule
Use Table (Sec. 6.2.2) row 'Short-term rentals': R-1 = X, R-2 = X, R-3 = L, B-1 = L, B-2 = L, B-3 = L, B-4 = L, GI = X. KEY: 'X = NOT ALLOWED', 'L = LIMITED'. STRs are not allowed in the R-1 and R-2 single-family residential districts.
View the ordinance source ↗✓ Verified
Last reviewed Sep 20, 2026 · Sources · Report an error
Pending legislation
Monitoring Highlands · 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.