Northampton County Advances Short-Term Rental Ordinance for Review; Minor Differences Emerge with Cape Charles Policy

NORTHAMPTON COUNTY, Va. — A proposed short-term rental (STR) ordinance is moving forward in Northampton County following action by the Board of Supervisors this week, setting the stage for further review by the Planning Commission and additional public input before a final vote.

Supervisors voted to advance the draft ordinance for deeper examination, initiating a process that will include work sessions, public hearings and opportunities for community feedback. The proposal represents a comprehensive update to how STRs are defined, permitted and enforced across the county.

At the core of the draft is a distinction between two types of rentals: “residency” STRs, where the owner occupies the property, and “non-residency” STRs, where the property is rented without the owner present. That classification would determine how and where rentals are allowed.

Under the proposal, owner-occupied STRs would generally be permitted by right in most zoning districts. Non-owner-occupied rentals, however, could face additional scrutiny, including the requirement for a minor special use permit in certain areas such as Hamlet/Residential and Waterfront districts.

A Shift Toward Tiered Regulation

The county’s approach reflects a growing trend in local governments to differentiate between homeowners renting a portion of their residence and investors operating full-time rental properties. By tying regulatory requirements to occupancy, the proposal aims to balance tourism-related economic activity with neighborhood character and housing concerns.

If adopted, the ordinance would introduce a more structured framework for approvals and enforcement, potentially adding layers of oversight for non-residency STR operators.

Comparison: Cape Charles Takes a Different Path

The proposed county framework contrasts in several key ways with the STR ordinance already in place in the Town of Cape Charles, where officials have focused less on occupancy status and more on lot-based limits, permitting, and operational controls.

In Cape Charles:

• One STR per lot per year is permitted under current zoning rules, a cap designed to limit density regardless of whether the property is owner-occupied.
• STR operators must obtain an annual zoning permit, with a streamlined online portal introduced for registration and compliance.
• The town imposes a 4% Transient Occupancy Tax (TOT) along with a per-night fee, and has shifted reporting requirements to a quarterly system.
• Recent amendments allow accessory dwelling units (ADUs) to be used as STRs, though they are excluded from certain occupancy allowances.

Notably, Cape Charles does not formally distinguish between owner-occupied and non-owner-occupied rentals in the same way the county proposal does. Instead, the town regulates STRs through caps, permitting, and enforcement mechanisms that apply broadly across property types.

Key Differences at a Glance

• Occupancy Distinction
  • County proposal: Clear separation between owner-occupied and non-owner-occupied STRs
  • Cape Charles: No primary regulatory distinction based on occupancy
• Approval Process
  • County proposal: Non-residency STRs may require special use permits in certain districts
  • Cape Charles: STRs require zoning permits but are governed by town-wide caps
• Density Controls
  • County proposal: Managed through zoning and permitting layers
  • Cape Charles: Explicit limit of one STR permit per lot
• Policy Focus
  • County proposal: Zoning-based differentiation and land-use compatibility
  • Cape Charles: Compliance, data collection, and operational oversight

What Comes Next

The Northampton County Planning Commission will now review the draft ordinance, with public hearings expected in the coming months. Officials have indicated that community input will play a significant role in shaping the final version before it returns to the Board of Supervisors.

As debate continues, the contrast with Cape Charles highlights two distinct regulatory philosophies emerging on the Eastern Shore: one centered on occupancy-based classification, the other on permit limits and administrative control. How Northampton County ultimately balances those approaches could shape the region’s evolving short-term rental landscape.

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Wayne Creed

Administrator

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