City Watch
Short-term rental rules in Holden Beach, NC
How Holden Beach 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.
- STR/vacation rental is a PERMITTED use townwide in every residential district (R, R-1, R-2) — no zoning-district exclusion of transient/STR use, no density cap, no separation requirement.
- No STR registration or permit program (consistent with NC's Schroeder ceiling — NC municipalities cannot register or cap STRs absent express authority).
- Only STR-specific rule is a zoning-embedded 2-overnight-stay minimum (§157.058/060/061): sub-2-night 'transient occupancy' is deemed inconsistent with domestic residential use and barred — a genuine, low-friction land-use measure, not a supply/exclusion device.
- §157.061(A)(1)-(2) (R-2) and §157.060(A)(1)-(2) (R-1): vacation rental of one-, two- and multi-family homes is permitted residential use requiring a minimum of two overnight stays, and 'transient occupancy not consisting of at least two overnight stays shall be considered to be inconsistent with domestic residential usage and is not allowed.' This minimum stay is part of the definition of permitted residential use (not a registration scheme), so it survives Schroeder.
- General revenue only otherwise: 6% Brunswick County occupancy tax + 6.75% sales tax; general/process, does not move the rating.
Based on: Holden Beach Code of Ordinances §§ 157.058(A) (Rural R), 157.060(A) (Residential R-1), 157.061(A) (Residential R-2)
Summary of the rule
Vacation rental of 1-, 2- and multi-family dwellings is a permitted use in all residential districts (R, R-1, R-2); no district excludes transient/STR use. §157.060(A)(1) (R-1) and §157.061(A)(1) (R-2): 'nothing in this section shall preclude one-, two- and multi-family homes from being used as a vacation rental home.'
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-lens case (not a Holden Beach suit): struck a city STR registration + density cap (2% / separation) as beyond municipal zoning authority. Establishes the NC ceiling applied here — no local Holden Beach 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 Holden Beach · 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.