City Watch
Short-term rental rules in Kure Beach, NC
How Kure Beach 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.
- Every residential district permits dwellings as a use by right — RA-1 permits 'One-family dwellings'; higher-density residential districts (RA-2, RA-3, RA-3A) permit one-, two- and multi-family dwellings/townhouses/condominiums. There is NO STR registration, STR permit, minimum-stay, density cap, or explicit short-term-rental exclusion anywhere in the operative in-force zoning.
- DECISIVE definition: the code defines 'Family' as a building/dwelling '...used, intended, or designed to be used, rented, leased, let or hired out to be occupied for living purposes' — with NO minimum-duration qualifier. Renting/letting a one-family dwelling for living purposes is therefore within the permitted 'one-family dwelling' use; short-term whole-home rental is a residential use, not a separate device.
- 'Tourist lodgings (7011 and 7021)' is a SEPARATELY-defined hotel-type commercial use — hotel/motel/boarding house/rooming house/bed-and-breakfast, multi-room sleeping accommodations with individual units no larger than 425 sq ft, hotel-type services, and a 5%/90-day cap — expressly 'distinguished from a residential dwelling.' A whole single-family dwelling rented to a family group does not meet this definition, so the tourist-lodgings/residence dichotomy does NOT operate to exclude whole-home STR; tourist lodgings is merely channeled (permitted or Special-use) to certain districts (RA-3A, one district as (S), and B-1/B-2/B-3).
- New Hanover County levies a 6% room occupancy tax on rentals under 90 days — a general revenue/process instrument that does NOT move the rating.
- A March 2020 town STR ban was an explicitly time-limited COVID-19 emergency measure (Mar 28-Apr 22, 2020), long expired — not a durable land-use device.
- Schroeder preserves severable zoning devices, but Kure Beach has enacted NONE that reach STR — no minimum-stay, no exclusion of whole-home dwelling rental. Under the NC lens, whole-home STR is a permitted residential use townwide.
Based on: Town of Kure Beach Code, Chapter 15 Zoning Regulations (official CivicPlus codification, municipalcodeonline).
Summary of the rule
The Town of Kure Beach (incorporated) itself levies its own municipal room occupancy tax of 6% on rentals <90 days (effective July 1, 2004), authorized by local act S.L. 2002-138; it is a separate Town levy administered via the New Hanover County room-occupancy portal (distinct from the New Hanover County levy). Governing jurisdiction (the Town) 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 — struck a neighboring New Hanover County city's STR registration + density-cap scheme as beyond municipal authority, but the invalidation was of the registration/cap provisions; severable zoning and operating provisions were PRESERVED. Controls the NC ceiling: a town cannot register/cap STRs absent express authority, yet CAN maintain durable zoning-based use restrictions. Not a suit against Kure Beach; cited as governing precedent. (This corrects the prior record's categorical reading that no lawful supply device is possible.) 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 Kure Beach · system last checked Oct 25, 2026
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