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Fenwick Island

Delaware · United States
Active
Last updated: 2026-07-02  ·  Last verified: 2026-07-02  ·  Region: US

At a Glance — Fenwick Island Airbnb & STR Rules

RuleDetails
Regulatory StatusPermitted with registration
Permit / License RequiredYes — annual Town of Fenwick Island STR License; $185/year
Tax RateDE State 4.5% + 8% Gross Rental Receipts Tax (quarterly) = 12.5% total — highest in Delaware
Permit Fee$185/year; $100 late fee if property rented before license obtained
PenaltiesLicense denial; fines; HOA enforcement possible
Primary Residence RequiredNo
Occupancy LimitMaximum 12 persons per dwelling (hard cap regardless of bedroom count)
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Fenwick Island Airbnb & Vacation Rental Regulation Overview

Fenwick Island Short-Term Rental Regulations Overview

Short-term rental operations in Fenwick Island, Delaware are permitted under an active regulatory framework as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes — annual Town of Fenwick Island STR License; $185/year. The associated permit fees are $185/year; $100 late fee if property rented before license obtained.

Tax Requirements for Airbnb Hosts in Fenwick Island

Short-term rental operators in Fenwick Island should be aware of these tax obligations: DE State 4.5% + 8% Gross Rental Receipts Tax (quarterly) = 12.5% total — highest in Delaware.

Hosting Rules and Restrictions in Fenwick Island

Key operational rules for vacation rental hosts in Fenwick Island include: Primary residence requirement: No. Occupancy limit: Maximum 12 persons per dwelling (hard cap regardless of bedroom count).

Zoning and Location Requirements in Fenwick Island

Zoning considerations for short-term rentals in Fenwick Island: General town zoning; HOA/CC&R restrictions common.

Penalties for Non-Compliance in Fenwick Island

Hosts who fail to comply with Fenwick Island's short-term rental regulations may face enforcement action. License denial; fines; HOA enforcement possible.

Platform Obligations in Fenwick Island

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Fenwick Island: License required; Gross Rental Receipts Tax paid quarterly.

Full Regulatory Details

Regulatory Status
Active
License / Registration
Yes — annual Town of Fenwick Island STR License; $185/year
Tax Registration
Yes
Permit Fee
$185/year; $100 late fee if property rented before license obtained
Primary Residence Rule
No
Occupancy Limit
Maximum 12 persons per dwelling (hard cap regardless of bedroom count)
Tax Rate
DE State 4.5% + 8% Gross Rental Receipts Tax (quarterly) = 12.5% total — highest in Delaware
Zoning Restrictions
General town zoning; HOA/CC&R restrictions common
Platform Obligations
License required; Gross Rental Receipts Tax paid quarterly
Compliance Notes
Fenwick Island has the HIGHEST combined STR tax rate in Delaware at 12.5%. Hard 12-person occupancy cap regardless of bedroom count. Local 8% gross rental receipts tax paid quarterly. HOA/CC&R restrictions very common.
Effective Date
Current
Key Notes
12.5% combined tax (highest in DE); hard 12-person cap; $185/year license; 8% quarterly local tax.
Penalties
License denial; fines; HOA enforcement possible
Additional Context
Sussex County, DE. Southernmost Delaware beach town; shares border with Maryland Ocean City.
📋 Apply / Register with the Official Authority

Apply for your STR permit or registration directly through the official government portal.

Official Source ↗

Frequently Asked Questions

Is Airbnb legal in Fenwick Island?

Yes, Airbnb and short-term rentals are legal in Fenwick Island with proper registration and permits. Fenwick Island has the HIGHEST combined STR tax rate in Delaware at 12.5%. Hard 12-person occupancy cap regardless of bedroom count. Local 8% gross rental receipts tax paid quarterly. HOA/CC&R restric

Do you need a permit for Airbnb in Fenwick Island?

Yes. Fenwick Island requires the following for short-term rental operation: Yes — annual Town of Fenwick Island STR License; $185/year.

What taxes apply to short-term rentals in Fenwick Island?

Short-term rental hosts in Fenwick Island are subject to the following tax obligations: DE State 4.5% + 8% Gross Rental Receipts Tax (quarterly) = 12.5% total — highest in Delaware.

What are the penalties for illegal Airbnb hosting in Fenwick Island?

Hosts who operate without proper permits in Fenwick Island may face enforcement. License denial; fines; HOA enforcement possible.

What are the key STR compliance requirements in Fenwick Island?

12.5% combined tax (highest in DE); hard 12-person cap; $185/year license; 8% quarterly local tax.

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