Cape Charles Council Approves Zoning Changes Allowing ADUs as Short-Term Rentals

CAPE CHARLES, Va. — The Cape Charles Town Council has approved a Comprehensive Plan Amendment and Zoning Text Amendment that removes long-standing restrictions on accessory dwelling units and formally allows ADUs to be used as short-term rentals.

The approved amendments eliminate language that prohibited ADUs from being rented for periods of less than 30 days, bringing them into alignment with the town’s existing short-term rental framework.

Under the changes, accessory dwelling units may now operate as short-term rentals, subject to new limitations intended to control density and occupancy impacts. In a nutshell, approval to operate is based on the size of the ADU, depending on whether it is two bedrooms only, or a 2 + 2 based on square footage or number of rooms.

Council also approved the creation of a new section within Section 4.14 of the zoning ordinance — codified as Chapter 32, Article IV, Section 32-104 — establishing that:

• Only one structure per lot may hold a Short-Term Rental Zoning Permit – only the primary residence or the ADU can be used as an STR at one time and
• Accessory dwelling units, like STRs, adhere to the “plus two” overnight occupancy allowance contained in Article IV, Section 32-104(c)(5).

Town officials said the revisions were designed to provide flexibility for homeowners while preventing the overconcentration of short-term rentals on single properties.

The ordinance changes stem from a proposal originally presented to Town Council during its July 17, 2025 regular meeting by the Cape Charles Historic District Civic League. The civic league requested that the zoning ordinance be amended to allow accessory dwelling units to be used as short-term rentals, citing housing availability, homeowner affordability, and changing residential patterns.

Town officials emphasized that while the changes expand allowable use of ADUs, the new restrictions are intended to preserve neighborhood character and prevent multiple short-term rental operations on a single parcel.

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Wayne Creed

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