Do I need a permit to rent my house on Oak Island, NC?

North Carolina law, G.S. 160D-1207(c), bars local governments from requiring a permit or registration to rent residential property, except for properties with repeated verified violations. Zoning, town standards and occupancy taxes still apply.

Can North Carolina beach towns ban Airbnb?

They cannot require rental registration or permits, but they can use zoning to limit where short-term rentals go, according to the UNC School of Government's analysis of Schroeder v. City of Wilmington.

What is the occupancy tax in Brunswick County, NC?

Brunswick County charges a 1% room occupancy tax. Beach towns add their own; Oak Island charges 5%, as of Oct. 31, 2026.

Brunswick County beach towns and rentals: what N.C. law lets towns require, and what not

Q: What was Schroeder v. City of Wilmington?

A 2022 N.C. Court of Appeals decision that struck down Wilmington's short-term rental registration program under G.S. 160D-1207, while leaving zoning in place.

A Brunswick County beach town cannot require the owner of a residential rental to register it or get a permit to rent it, under North Carolina’s G.S. 160D-1207(c). In 2022, the N.C. Court of Appeals applied that ban to short-term rentals in Schroeder v. City of Wilmington and struck down Wilmington’s rental registration program, according to an analysis by the UNC School of Government.

Towns from Oak Island to Sunset Beach still have tools. Zoning can limit where short-term rentals go, standards such as parking and trash rules can apply, and occupancy taxes are collected: Brunswick County charges 1%, and Oak Island adds 5%, as of Oct. 31, 2026.

What can’t North Carolina towns require of rental owners?

G.S. 160D-1207(c) lists what a city, town or county may not do with residential rental property:

A local government may not	Exception in the statute
Require an owner or manager to get a permit or permission to lease or rent residential property, or to register it	Individual properties with more than four verified violations in a rolling 12 months, or two or more in 30 days, or in the top 10% for crime or disorder problems
Require enrollment in a government program to get a certificate of occupancy	None listed
Levy a special fee or tax on residential rentals that other properties don’t pay	Taxes expressly authorized by general law; fees on the problem properties above, capped at $500 in any 12 months
Make violating a rental registration ordinance a crime	None listed
Require an inspection before the owner gets utility service from the local government	None listed

Source: N.C. General Statutes, G.S. 160D-1207, checked Oct. 31, 2026.

What did the court decide in Schroeder v. City of Wilmington?

The N.C. Court of Appeals struck down Wilmington’s short-term rental registration program and the rules tied to it, including a cap, a distance rule and an amortization period, in Schroeder v. City of Wilmington, 2022 NCCOA 210, according to the UNC School of Government’s April 14, 2022, analysis by Adam Lovelady.

The court did not exempt rentals from all zoning. A footnote quoted in the analysis says “exempting rental properties from all zoning or permitting requirements” is not what the statute does. A permit that works, “in all practical effect,” as a registration could still be challenged, the analysis says.

What can Brunswick County beach towns still regulate?

According to the UNC School of Government analysis of the Schroeder ruling, local governments in North Carolina can still:

Zone: define short-term rentals as a land use and limit them to certain zoning districts.
Set development standards: the court upheld parking requirements, limits on large events, trash management, insurance requirements, posted safety information and a ban on cooking in bedrooms, as long as they are not tied to a registration program.
Use regular zoning permits: the analysis suggests a separation rule or cap might be enforced through standard zoning permits.

Inspections are limited. Older state laws prohibit periodic inspections of residential rentals except in limited cases, and a 2019 amendment applied those limits to properties covered by the state’s Vacation Rental Act, the analysis says.

What occupancy taxes do Brunswick County rentals collect?

As of Oct. 31, 2026, a Brunswick County short-term rental collects these taxes:

Brunswick County: a 1% room occupancy tax on stays of less than 15 days, in effect since Jan. 1, 1998, according to Brunswick County. Contact: 800-442-7033.
Town of Oak Island: 5% of gross receipts, a 3% tourism-related tax plus a 2% beach protection and renourishment tax, on rentals of less than 90 continuous days, according to the Town of Oak Island.
North Carolina sales tax: 6.75% in Brunswick County, state and county combined, according to the N.C. Department of Revenue.

Oak Island’s return is due by the 20th of the following month, even in a month with no rentals. If a rental agency lists the property, the agency is responsible for reporting and paying the town tax, the town says. Late filing generally costs 5% a month, up to 25% of the tax, and up to 50% when the tax was fraudulently misrepresented.

Ocean Isle Beach, Holden Beach, Sunset Beach and the other beach towns set their own occupancy taxes. Call the town hall before setting rates.

How is Brunswick County different from Myrtle Beach?

Across the state line in South Carolina, the City of Myrtle Beach bans rentals of less than 90 days in residential zones that begin with R, except RMV, and requires a business license for every rental, according to the City of Myrtle Beach. North Carolina towns cannot require a rental permit or registration, but they can use zoning to decide where short-term rentals go.

What should I check before buying a Brunswick County rental?

Zoning: whether the town’s zoning allows short-term rentals at that address. Ask the town planning department.
Standards: parking, trash, occupancy and safety postings in the town code.
Taxes: the county occupancy tax, the town occupancy tax and N.C. sales tax accounts.
Association rules: ask the homeowners or condo association for its rental rules in writing.

Own a rental here? Tell us what the rules mean in practice: email our newsroom through the Contact link at the bottom of this page.

This story is information, not financial or legal advice.

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