Town Permit Guide

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Short-term rental (Airbnb) rules in Gloucester, Massachusetts

Gloucester, Essex County · Bylaws checked 2026-10-15 · Reviewed · 21 cited sections

Allowed with a permit

Yes, with an annual short-term rental permit from Inspectional Services ($100 for rooms in your home, $150 for your primary residence, $300 for a non-primary unit). A home you don't live in at least six months a year can be rented no more than 120 days a year, each operator may register only one such unit, and the city caps non-primary permits at 500.

Local permitRequired; issued by the Inspector of Buildings, renewed yearly (Jan 1-Dec 31) [3]
Renewal deadlineDecember 1 each year [4]
Annual fee: shared unit (rooms, host present)$100 [5]
Annual fee: primary residence$150 [6]
Annual fee: non-primary unit$300 [7]
Non-primary unit day cap120 days per year [11]
Non-primary units per operator1 [10]
Citywide cap on non-primary permits500 [13]
Max guests2 per guest bedroom plus 2 (septic limits may be lower) [9]
Minimum stay10 consecutive hours; no hourly rentals [12]
Penalty$400 per occurrence; each day a separate offense [14]
Applies whenOffered more than 15 days per calendar year [2]

Who needs a permit

Chapter 5, Article V (effective January 1, 2025, amended February and April 2025) covers any home, room or apartment rented for 30 days or less [1]. It applies once a unit is offered for more than 15 days a year [2]. Operators need a local permit from Inspectional Services in addition to their state DOR registration, renewed every calendar year, with renewals due December 1 [3][4].

Three types and fees

  • Shared unit (rooms in the home you live in, while you're there): $100/year [5], allowed 365 days a year with one bedroom kept for you [18].
  • Primary residence (you live there at least six months of 12): $150/year [6]. The ordinance says the whole home may be offered "for six months" a year [20].
  • Non-primary unit: $300/year [7], capped at 120 days a year [11]. Each operator can register only one [10], and the city caps these permits at 500 [13].

Affordable or income-restricted units and units owned by a corporation can't be short-term rentals; LLCs and trusts qualify only if every member is a natural person [16]. The definition of "residential unit" excludes auxiliary dwelling units, and the ADU zoning section separately bars weekly or daily rental of an ADU or the main home.

Operating rules

One party of guests at a time, no renting separate bedrooms to separate parties [8]. Occupancy is limited to two guests per guest bedroom plus two more [9]. No hourly rentals or stays under 10 consecutive hours, and no weddings or private functions [12]. You must post trash, parking, noise and safety information, list a 24/7 contact, carry the insurance state law requires, and certify working smoke and CO detectors [15]. Units that already held a state DOR registration when the article took effect are exempt from the one-unit, primary-residence and 120-day limits [21] (the text gives the date as April 1, 2025, while the history note says January 1, 2025). Permits don't transfer when the property is sold [19], so a buyer shouldn't count on that exemption; ask Inspectional Services.

Enforcement and taxes

Violations carry a $400 fine per occurrence, with each day a separate offense [14]. Three violations in six months make the property ineligible for six months. Rentals also owe the state room occupancy excise and Gloucester's community impact fee [17].

See how Gloucester compares with 8+ other Massachusetts towns on short-term rentals (airbnb / vrbo) →

Next steps

  1. Register the unit with the Massachusetts Department of Revenue (MassTaxConnect) and get a Certificate of Registration.
  2. Decide which category fits (shared, primary residence, or non-primary) and gather proof of residence or ownership: deed, driver's license or state ID, plus a utility bill or similar document.
  3. Apply for the short-term rental permit with Inspectional Services, 3 Pond Road (978-325-5210); the city uses an online Rental Registry permit.
  4. Clear any open building, sanitary, zoning or fire violations, and certify smoke and CO detectors before you list.
  5. Renew the permit by December 1 each year; keep guest and occupancy records for three years.

Common questions

Do I need a permit for a short-term rental in Gloucester, Massachusetts?
Yes. Any home, room or apartment rented for 30 days or less and offered more than 15 days a year needs an annual short-term rental permit from Inspectional Services, in addition to state DOR registration. Permits run each calendar year and renewals are due December 1.
How much is a short-term rental permit in Gloucester, Massachusetts?
It depends on the type: $100 a year for a shared unit (rooms in the home you live in), $150 for your primary residence, and $300 for a non-primary unit. Violations carry a $400 fine per occurrence, with each day a separate offense.
How many days a year can I Airbnb a second home in Gloucester, Massachusetts?
A non-primary unit, a home you don't live in at least six months a year, can be rented no more than 120 days a year. Each operator may register only one non-primary unit, and the city caps non-primary permits at 500. Units already DOR-registered when the ordinance took effect are exempt, though its effective date is stated inconsistently and permits don't transfer on sale.
How many guests are allowed in a short-term rental in Gloucester, Massachusetts?
Occupancy is limited to two guests per guest bedroom plus two more, and septic limits may be lower. Only one party of guests may stay at a time, stays must be at least 10 consecutive hours with no hourly rentals, and weddings or private functions aren't allowed.

Massachusetts' short-term rental law

Since July 1, 2019, M.G.L. c. 64G has taxed and regulated short-term rentals: stays of 31 days or less in a home, apartment, condo or room booked in advance.

State requirements:

  • Register with the Department of Revenue (DOR) on MassTaxConnect and get a Certificate of Registration for each property. Post it in the unit.
  • 14-day exemption: if you rent a property 14 days or fewer in a calendar year, no tax is due. You still have to register and file DOR's declaration by January 15 each year. Go over 14 days and you owe tax on every day, including the first 14.
  • State room occupancy excise: 5.7% of rent (including cleaning and booking fees).
  • Local taxes on top, if your town has adopted them: a local excise of up to 6% (6.5% in Boston), and a community impact fee of up to 3%. The fee applies to "professionally managed" units (an operator with 2 or more units in a town, other than units in the owner's own 1 to 3 family home) and, by separate vote, to units in an owner-occupied 2 or 3 family house. Barnstable County towns add 2.75% for a regional water fund.
  • Insurance: at least $1 million liability coverage per unit, unless the booking platform provides equal coverage (c. 175, §4F).

Towns may go further (c. 64G, §14). They can require local licenses and inspections, cap the number of days or units, limit where rentals are allowed, or ban them entirely.

State sources: M.G.L. c. 64G, §1 (definitions) · M.G.L. c. 64G, §3 (state excise; 14-day exemption) · M.G.L. c. 64G, §3A (local excise) · M.G.L. c. 64G, §3D (community impact fees) · M.G.L. c. 64G, §14 (local regulation) · M.G.L. c. 175, §4F (STR liability insurance) · DOR, Room Occupancy Excise Tax (updated Apr 8, 2026)

What the bylaw says

Exact text from Gloucester's published bylaws. Section numbers are as printed in the source.

  1. Sec. 5-64, "Short-term rental", Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    Short-term rental" means an owner-occupied or non-owner occupied property including, but not limited to, an apartment, house, cottage, condominium or a furnished accommodation that is not a hotel, motel, lodging house or bed and breakfast establishment, where: (i) at least one room or unit is rented to an occupant; (ii) all accommodations are reserved in advance; provided, however, that a private owner-occupied property shall be considered a single unit if leased or rented as such; and (iii) is rented for a term of 30 days or less.
  2. Sec. 5-65, Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    This article is applicable to a residential unit that is offered for short-term rental for more than 15 days per calendar year.
  3. Sec. 5-66(a)(1), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    After the effective date of this article, new and existing department of revenue registered operators of short-term rental units shall file an application with the inspectional services department for a local permit as required by this article.
  4. Sec. 5-66(a)(3), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    All permits shall be renewed on an annual basis and shall be valid from January 1 to December 31. Renewal applications must be filed by December 1st of each year.
  5. Sec. 5-66(b)(1), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    The annual permit fee for shared residential unit shall be $100.00.
  6. Sec. 5-66(b)(2), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    The annual permit fee for primary residential unit shall be $150.00.
  7. Sec. 5-66(b)(3), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    The annual permit fee for non-primary residential unit shall be $300.00.
  8. Sec. 5-66(c), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    A residential unit offered as a short-term rental shall be rented to only one party of short-term renters at a time, not rented as separate bedrooms, beds, or spaces to separate parties.
  9. Sec. 5-66(d), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    A residential unit offered as a short-term rental shall be limited to two guests per guest bedroom, plus an additional two total except units on septic systems which have deeded occupancy limits shall not exceed two persons per bedroom.
  10. Sec. 5-66(e), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    An operator may only register to operate one non-primary residential unit as a short-term rental.
  11. Sec. 5-66(h), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    Short-term rentals shall not exceed in the aggregate 120 consecutive or nonconsecutive calendar days per year, when the operator is not occupying the residential unit during the entire term of the short-term rental.
  12. Sec. 5-66(i), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    Renting for an hourly rate, or for rental durations of fewer than ten consecutive hours shall not be permitted.
  13. Sec. 5-66(t), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    The number of non-primary residential short term rental units that may be permitted shall be capped at 500.
  14. Sec. 5-67(a), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    Violations of this section shall have a penalty of $400.00 per occurrence. Each day on which a violation exists shall be deemed a separate and distinct offense.
  15. Sec. 5-66(s), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    Functioning smoke and carbon monoxide detectors.
  16. Sec. 5-69(a), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    Short-term rentals are prohibited in dwelling units owned by a corporation. Short-term rentals are permitted in dwelling units owned by an LLC, Trust, or S Corporation only when every shareholder, partner, or member of the legal entity is a natural person, as established by documentation provided by the applicant at the time of registration.
  17. Sec. 5-68, Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    Short-term rentals subject to the provisions of this article are subject to the Room Occupancy Excise under G.L. c. 64G and as allowed by G.L. c. 64G, § 3D(b) a short-term rental community impact surcharge fee as adopted by the City of Gloucester.
  18. Sec. 5-66(f), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    An operator may offer bedrooms within their primary residential unit as a short-term rental 365 days per year. One bedroom in the unit shall be reserved for, and occupied by, the operator during the entire term of the rental.
  19. Sec. 5-66(k), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    The registration does not run with the property; it shall be terminated upon sale or transfer of the property for which the registration has been issued.
  20. Sec. 5-66(g), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    Short-term rental of primary residential unit. An operator may offer a residential unit as a short-term rental for six months provided the operator resides permanently in the residential unit for at least six months out of a 12-month period.
  21. Sec. 5-66(j), Code of Ordinances Chapter 5 - Buildings and Building Regulations (Art. V Short-Term Rentals, Secs. 5-63 ff.; Sec. 5-2 pool fencing)
    Existing unit. Existing primary residences and non-primary residential units that hold a valid, up-to-date Massachusetts Department of Revenue (DOR) Certificate of Registration as of the 4-1-2025 effective date of this article, shall be subject to all sections contained herein, except shall not be subject to section 5-66(e), 5-66(g) and 5-66(h).
This page summarizes Gloucester's posted bylaws as of 2026-10-15. Bylaws are amended, and individual lots can have overlays, subdivision covenants, or HOA rules that are stricter. Confirm with Inspectional Services (Building Commissioner), 3 Pond Road (978-325-5210) before you build. Spot an error?