North Carolina HOA Short-Term Rentals

Quick-Reference Table

Last verified: July 17, 2026

Section 1: Overview — Can an HOA restrict short-term rentals in North Carolina?

A North Carolina condominium restricts short-term rentals through its recorded declaration under the North Carolina Condominium Act, and a planned community does so through its declaration under the North Carolina Planned Community Act, with any amendment that adds or strengthens a rental restriction subject to the Armstrong reasonableness test. North Carolina is not a covenant-primary state. It has two statutes based on the Uniform Common Interest Ownership Act: the Condominium Act (G.S. Chapter 47C), which governs condominiums created after October 1, 1986,¹ and the Planned Community Act (G.S. Chapter 47F), which governs planned communities created on or after January 1, 1999.³ Condominiums created on or before October 1, 1986 remain governed by the older Unit Ownership Act (G.S. Chapter 47A), except for specified Chapter 47C provisions that reach back.²

The distinctive North Carolina feature is judicial, not statutory. In Armstrong v. Ledges Homeowners Association (2006), the Supreme Court of North Carolina held that "amendments to a declaration of restrictive covenants must be reasonable," and that "[r]easonableness may be ascertained from the language of the declaration, deeds, and plats, together with other objective circumstances surrounding the parties' bargain, including the nature and character of the community."⁷ Meeting the required vote does not by itself make an amendment valid. That reasonableness requirement is central to whether a newly adopted rental restriction binds owners who bought before the amendment.

State law also constrains local governments, not associations. G.S. 160D-1207(c) limits the authority of a local government to require registration of residential rental property,⁴ and in Schroeder v. City of Wilmington (2022), the Court of Appeals struck down Wilmington's short-term-rental registration scheme on that basis, while allowing severable zoning provisions to stand.⁶ Local governments may still regulate through zoning, as Asheville does.¹⁰ Contested enforcement runs through the District or Superior Court, then the North Carolina Court of Appeals, and then the Supreme Court of North Carolina. The sections below detail the framework, the mechanics, and recent activity.

Section 2: The legal framework for HOA short-term rental restrictions

2A. The two UCIOA-based acts and the older condominium statute

North Carolina regulates common interest communities through two separate statutes, both modeled on the 1982 Uniform Common Interest Ownership Act. Condominiums are governed by the North Carolina Condominium Act, G.S. Chapter 47C, which applies to all condominiums created in the state after October 1, 1986.¹ Planned communities (single-family subdivisions and planned developments) are governed by the North Carolina Planned Community Act, G.S. Chapter 47F, which applies in full to planned communities created on or after January 1, 1999.³ These are parallel but textually distinct statutes with their own section numbers, and one chapter's provisions should not be applied to the other form.

Condominiums created on or before October 1, 1986 remain governed by the older Unit Ownership Act, G.S. Chapter 47A. Chapter 47C expressly reaches back to those older condominiums for a defined list of provisions, including G.S. 47C-3-107.1 (fining procedures), G.S. 47C-3-116 (assessment lien), and G.S. 47C-2-103 (construction and validity of the declaration and bylaws), notwithstanding conflicting language in the older documents.² Chapter 47F similarly applies a defined list of provisions to planned communities created before January 1, 1999, including G.S. 47F-2-117 (amendment of declaration), G.S. 47F-3-107.1 (fining procedures), and G.S. 47F-3-116 (lien enforcement).¹⁵ A pre-1999 planned community may also elect to adopt the full chapter by amending its declaration with a 67% vote.¹⁵

Neither chapter addresses short-term rentals by name. Rental authority arises from the recorded declaration, which is the controlling instrument for both forms. Because North Carolina supplies statutory frameworks for both condominiums and planned communities rather than leaving the field to recorded covenants alone, it is not a covenant-primary state. Corporate governance for associations organized as nonprofits is supplied by the North Carolina Nonprofit Corporation Act (G.S. Chapter 55A).¹⁶

2B. Restricting rentals, the Armstrong test, amendments, and grandfathering

An association adds or strengthens a rental restriction by amending its declaration under the applicable chapter's amendment provision. For condominiums, G.S. 47C-2-117(a) requires the affirmative vote or written agreement of unit owners holding at least 67% of the association votes, or a larger majority if the declaration specifies.⁸ For planned communities, G.S. 47F-2-117(a) sets the same 67% threshold.⁹ The condominium statute adds a further constraint: under G.S. 47C-2-117(d), an amendment changing "the uses to which any unit is restricted" requires the unanimous consent of unit owners unless another chapter provision permits otherwise, which can make a use-based rental restriction difficult to adopt in a condominium over dissent.⁸

Meeting the vote threshold is not the end of the analysis. Under Armstrong v. Ledges Homeowners Association, 360 N.C. 547 (2006), a declaration amendment must be reasonable in light of the contracting parties' original intent, judged from the declaration, deeds, plats, and the nature and character of the community.⁷ The Court in Armstrong noted directly that "it may not be reasonable to retroactively prohibit rentals in a mountain community during ski season or in a beach community during the summer."⁷ That reasoning was applied in Mileview LLC v. The Reserve II at Sugar Mountain Condominium Owners' Association (2024), where the Court of Appeals affirmed that a condominium amendment banning short-term rentals for part of the year was unreasonable because the original declaration expressly contemplated rentals and short-term rentals had long been commonplace.¹⁷

Because both chapters are based on the 1982 UCIOA rather than the 2008 amendments, neither contains the 2008 rental-restriction owner-protection provision found in some other states. There is therefore no North Carolina statutory shield that automatically exempts existing owners from a validly adopted rental restriction. Grandfathering instead runs through the declaration, the Armstrong reasonableness test, and North Carolina common law. A Florida-style or California-style statutory grandfathering shield should not be imported into a North Carolina analysis; the practical protection for a pre-amendment owner comes from Armstrong reasonableness, not from a rental-specific statute.

2C. State law, the local-registration limit, tax, and the local layer

North Carolina restricts what local governments may require of rental owners. G.S. 160D-1207(c) provides that a local government may not, in general, require an owner or manager of residential rental property to obtain a permit to lease or rent, or to register the property with the local government, subject to narrow exceptions for properties with repeated verified violations.⁴ In Schroeder v. City of Wilmington (2022 NCCOA 210), the Court of Appeals held that "Wilmington's registration requirements for rentals, and those provisions of the ordinance inseparable from them, are prohibited by state statute and therefore invalid," while ruling that severable zoning-style provisions (such as off-street parking and the restriction of whole-house lodging to certain zoning districts) could stand.⁶ The decision limits local registration; it does not preempt local short-term-rental regulation entirely. Asheville regulates strictly through zoning, prohibiting whole-home short-term rentals in most residential districts and permitting owner-occupied homestays subject to conditions.¹⁰

Rentals of accommodations are taxed. Under G.S. 105-164.4 and related provisions, gross receipts from the rental of an accommodation are subject to the general State and applicable local and transit rates of sales and use tax, and to any local room occupancy tax imposed by a city, county, or special jurisdiction.⁵ The State sales and use tax base rate is 4.75%, and, per the North Carolina Department of Revenue, the base rate plus mandatory local and transit rates yields a combined rate ranging from 6.75% to 7.5% by county (for example, both New Hanover and Buncombe counties are at 7.00%).¹⁸ The tax does not apply to an accommodation supplied to the same person for 90 or more continuous days. Dare County (the Outer Banks) levies a 6% room occupancy tax on gross receipts from accommodations "including private residences and cottages rented to transients," on top of the sales tax.¹⁹

This local layer is important to keep separate from association authority. Local zoning and the occupancy tax govern the relationship between the owner and the government. They neither grant nor remove an association's power to restrict rentals. An owner who satisfies Asheville's zoning and pays the occupancy tax may still violate a declaration that limits leasing, and an owner who complies with the declaration may still violate a local zoning ordinance or fail to remit the occupancy tax. The two systems operate independently, and compliance with one does not establish compliance with the other.

Section 3: Operational mechanics and enforcement

A. Adopting a valid restriction (the tools)

The most common restriction is a minimum-lease-term requirement written into the declaration, for example a 30-day, six-month, or one-year minimum, which functionally eliminates nightly and weekly rentals without banning leasing outright. North Carolina sets no statewide statutory minimum lease term for associations, so any minimum comes from the declaration, not from Chapter 47C or 47F. Rental caps that limit the number or percentage of units that may be leased are likewise a creature of the declaration rather than the statutes; neither chapter authorizes or prohibits a cap by its own terms. Any such tool must be adopted by amendment at the applicable threshold (67% under G.S. 47C-2-117(a)⁸ or G.S. 47F-2-117(a)⁹, and unanimous consent for a use-based restriction in a condominium under G.S. 47C-2-117(d)⁸), and it remains subject to the Armstrong reasonableness test.

An association may also impose internal administrative requirements that do not depend on any local-government registration, such as requiring owners to register tenants, provide owner and occupant contact information, or file copies of leases with the association. These are governing-document mechanisms and are not limited by G.S. 160D-1207, which restrains local governments rather than associations.

B. Enforcement

Before fining an owner for a rental violation, an association must follow the statutory fining procedure. For condominiums, G.S. 47C-3-107.1 requires that, unless the declaration provides a specific procedure, a hearing be held before the executive board or an adjudicatory panel, with the owner given notice of the charge, an opportunity to be heard and to present evidence, and notice of the decision.¹¹ G.S. 47F-3-107.1 imposes the same requirement for planned communities.¹² Both statutes apply to pre-1986 condominiums and pre-1999 planned communities respectively. A fine not exceeding $100 may be imposed for a violation, and fines become assessments secured by the association's lien.¹²

Available remedies are fines after a hearing, injunctive relief to stop a prohibited rental, and the assessment lien under G.S. 47C-3-116¹³ or G.S. 47F-3-116.¹⁴ A contested enforcement action proceeds in the District or Superior Court depending on the amount and relief sought, with appeal to the North Carolina Court of Appeals and discretionary review by the Supreme Court of North Carolina. Association enforcement is separate from local-government enforcement: a city or county may pursue a zoning violation through its own processes at the same time an association pursues a declaration violation, and the outcomes do not bind one another.

Section 4: Recent legislative and judicial activity

A. Recent bills

Two bills from the 2025-2026 session are relevant, and neither has been enacted.

B. Recent rulings

C. Active legislative or local debates

Buncombe County and coastal jurisdictions continue to weigh tighter short-term-rental zoning as the Outer Banks and mountain markets grow, and the stalled S291 reflects continuing pressure to limit municipal short-term-rental regulation statewide. These debates concern the owner-to-government relationship and do not alter association authority under Chapters 47C and 47F.

Section 5: National positioning and related coverage

North Carolina sits among the comprehensive-coverage states rather than the covenant-primary ones: it regulates condominiums and planned communities through two separate UCIOA-based statutes, the Condominium Act (Chapter 47C) and the Planned Community Act (Chapter 47F). Its defining feature is judicial. The Armstrong reasonableness test subjects every declaration amendment, including rental restrictions, to a reasonableness inquiry that other states leave to statute or ignore. On the local side, North Carolina limits local rental registration while allowing zoning, a posture different from states that preempt local short-term-rental bans (such as Florida and Arizona) and from states that cap HOA rental authority through a single statutory provision (such as California's Civil Code and Arizona's condominium statute). Local regulation and the occupancy tax restrain local governments and owners, not associations. For a multi-state operator entering North Carolina, the practical points are three: two parallel statutes to apply by form, the Armstrong reasonableness test on any amendment, and a large coastal and mountain vacation-rental market where rental-restriction amendments draw close judicial scrutiny.

HOA Weekly's North Carolina Short-Term Rentals coverage updates quarterly as the General Assembly, the North Carolina Court of Appeals and the Supreme Court of North Carolina, and local governments act. Federal frameworks (the FHA, ADA, FDCPA, SCRA, and OTARD rule) also apply to North Carolina associations regardless of the state framework.

Footnotes

1. N.C. Gen. Stat. Chapter 47C, North Carolina Condominium Act (see G.S. 47C-1-101 short title and G.S. 47C-1-102 applicability), North Carolina General Assembly ↩
2. N.C. Gen. Stat. § 47C-1-102(a)–(b) (application to condominiums created after October 1, 1986; enumerated sections reaching pre-1986 condominiums governed by Chapter 47A, Unit Ownership Act), North Carolina General Assembly ↩
3. N.C. Gen. Stat. Chapter 47F, North Carolina Planned Community Act (see G.S. 47F-1-102 applicability), North Carolina General Assembly ↩
4. N.C. Gen. Stat. § 160D-1207(c) (limits on local rental permits and registration), North Carolina General Assembly ↩
5. "Rentals of Accommodations," North Carolina Department of Revenue (gross receipts subject to State and local sales and use tax and any local occupancy tax; 90-continuous-day exclusion) — G.S. 105-164.4 ↩
6. Schroeder v. City of Wilmington, 2022 NCCOA 210 (COA21-192), North Carolina Court of Appeals (registration requirements invalid under G.S. 160D-1207(c); severable zoning provisions upheld). Published opinion available via appellate.nccourts.org ↩
7. Armstrong v. The Ledges Homeowners Association, Inc., 360 N.C. 547, 633 S.E.2d 78 (2006), Supreme Court of North Carolina (declaration amendments must be reasonable; resort/seasonal-rental example). Opinion via North Carolina Judicial Branch / appellate.nccourts.org ↩
8. N.C. Gen. Stat. § 47C-2-117 (amendment of declaration; 67% threshold in subsection (a); unanimous consent for change to "the uses to which any unit is restricted" in subsection (d)), North Carolina General Assembly ↩
9. N.C. Gen. Stat. § 47F-2-117(a) (amendment of declaration; 67% threshold), North Carolina General Assembly ↩
10. "Asheville homestay and short-term rental update," City of Asheville (whole-dwelling short-term rentals prohibited in residential districts; homestays permitted in residential zones subject to requirements) ↩
11. N.C. Gen. Stat. § 47C-3-107.1 (procedures for fines and suspension; notice of charge, hearing, opportunity to be heard, notice of decision), North Carolina General Assembly ↩
12. N.C. Gen. Stat. § 47F-3-107.1 (procedures for fines and suspension; hearing, notice, and fine not to exceed $100 secured by lien under G.S. 47F-3-116), North Carolina General Assembly ↩
13. N.C. Gen. Stat. § 47C-3-116 (lien for assessments; enforcement), North Carolina General Assembly ↩
14. N.C. Gen. Stat. § 47F-3-116 (lien for sums due the association; enforcement), North Carolina General Assembly ↩
15. N.C. Gen. Stat. § 47F-1-102(c)–(d) (enumerated provisions applying to pre-January 1, 1999 planned communities; election to adopt full chapter by 67% amendment), North Carolina General Assembly ↩
16. N.C. Gen. Stat. Chapter 55A, North Carolina Nonprofit Corporation Act, North Carolina General Assembly ↩
17. Mileview LLC v. The Reserve II at Sugar Mountain Condominium Owners' Association, COA23-603 (N.C. Ct. App. Feb. 20, 2024) (unpublished; amendment prohibiting short-term rentals unreasonable under Armstrong), North Carolina Court of Appeals / appellate.nccourts.org ↩
18. "Current Sales and Use Tax Rates," North Carolina Department of Revenue (4.75% state rate plus applicable local and transit rates; combined county rates) ↩
19. "Occupancy Tax," Dare County, North Carolina (6% occupancy tax on gross receipts, including private residences and cottages rented to transients; 90-continuous-day and under-15-day exclusions) ↩
20. House Bill 444, "Homeowners Association Reform Bill" (2025-2026 Session), North Carolina General Assembly (last action: Re-ref Com On Judiciary 1, May 6, 2025; proposed G.S. 47C-2-117.1A and 47F-2-117.1) ↩
21. Senate Bill 291, "Regulation of Short-Term Rentals" (2025-2026 Session), North Carolina General Assembly (referred to Com On Rules and Operations of the Senate, March 17, 2025) ↩
22. Bryan v. Kittinger, COA21-98 (N.C. Ct. App. Apr. 5, 2022) (published; written-agreement amendment under G.S. 47F-2-117 must be signed by all owners of a lot), North Carolina Judicial Branch / appellate.nccourts.org ↩