Short-Term Rental Laws in Wilmington, North Carolina

Wilmington's STR regime was reset after the Schroeder v. City of Wilmington decision (NC Court of Appeals 2022) struck down the city's registration cap + 400-foot separation lottery as exceeding municipal authority under NC GS 160A-424. The current (post-Schroeder) framework: STRs permitted in most zoning districts subject to a 2-tier registration system: Whole-Home STR (non-owner-occupied) requires registration + zoning permit and must comply with a 400-ft separation rule from other whole-home STRs in single-family residential zones; Homestay STR (owner-occupied) has lighter requirements and no separation rule. The separation rule survives the Schroeder ruling because it's zoning-based (parcel-eligible), not a fixed-cap-by-lottery.

Whole-Home STR is permitted as a use in most zoning districts (R-3, R-5, R-7, R-10, R-15, R-20, RB, CB, etc.) BUT in R-3, R-5, R-7, R-10, R-15, R-20 single-family residential zones must maintain a 400-foot separation from any other Whole-Home STR measured property-line to property-line. The separation rule does NOT apply in multi-family or commercial/mixed-use zones. Wrightsville Beach, Carolina Beach, and Kure Beach are SEPARATE jurisdictions adjacent to Wilmington with their own (varying) STR rules — confirm exact city boundaries.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Wilmington Planning + Code Compliance enforce post-Schroeder. Registration applications cross-checked against the 400-ft separation map. Operating without a Whole-Home registration in a zone requiring one: civil penalties starting at $500 per violation, stacking daily. The 400-ft rule is the binding investment-eligibility test in single-family neighborhoods — if a neighboring property holds an active Whole-Home registration, the parcel cannot get one until that registration lapses.

Combined short-term lodging tax in Wilmington is approximately 13.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

NC State sales tax 4.75% + New Hanover County local option 2.25% + New Hanover Room Occupancy Tax 6% — combined ~13.0% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.