Thinking about listing your Cambridge home for short stays? Cambridge allows short‑term rentals, but only in narrow situations and with clear steps you must follow. If you want to host without stress, you need to understand what is allowed, how to register, and what taxes and insurance apply. This guide breaks it all down so you can move forward with confidence. Let’s dive in.
Cambridge STR basics
Cambridge treats a short‑term rental as any rental of a dwelling unit or bedroom for fewer than 30 consecutive days, regulated by the Inspectional Services Department (ISD) under Section 4.60 of the Zoning Ordinance. You must register with the City and comply with state law. Start with the City’s overview and application materials on the ISD page for short‑term rentals. Review Cambridge’s STR rules and registration process.
What’s allowed in Cambridge
Cambridge permits short‑term rentals only when you meet specific residency conditions. The City recognizes two main paths:
- Operator‑occupied home share. You live in the unit as your primary residence and may rent up to three legal bedrooms while you remain on site.
- Owner‑adjacent whole‑unit. You live in a separate unit in the same small building and you own all other units in that building, which can have no more than four total dwelling units. The STR unit must be rented as a whole unit, not by the room.
Tenant and condo approvals
If you are a tenant, you may host only with the owner’s written permission. In many condominiums, you will also need an affidavit or board approval that allows STR use. ISD’s application packet includes the forms and proof‑of‑residency requirements.
What’s off‑limits
Absentee investor STRs are not permitted. The ordinance is designed to prevent conversions of long‑term housing into hotel‑style operations. If you do not live in the unit and do not meet the owner‑adjacent rules for a small building you own, you should not list as a short‑term rental.
How to register with the City
Before you host, you must register with ISD and pass a life‑safety inspection.
- Confirm eligibility. Make sure you meet operator‑occupied or owner‑adjacent criteria, and verify your lease or condo bylaws allow STRs.
- Complete the ISD application. Provide proof of primary residence, owner and association approvals when required, and a floor plan. Use the City’s inspection checklist to prepare.
- Schedule inspection. ISD checks egress, smoke and CO detectors, wiring, and sanitary conditions before issuing your certificate of registration.
- Keep records current. Maintain your certificate, inspection reports, and any required logs. Cambridge maintains a public list of registered STRs.
For forms and the most current steps, use the City’s STR page. Access the ISD registration guide and forms.
Taxes and the 14‑day rule
Massachusetts applies a room occupancy excise to short‑term rentals and requires registration with the Department of Revenue through MassTaxConnect. The state rate is 5.7 percent. Cambridge may also apply local option taxes and, for Cambridge, a 2.75 percent Convention Center fee can apply. See the state’s room occupancy excise guidance.
If you rent 14 days or fewer in a calendar year, you may claim the state’s 14‑day exemption. You still need to register and must claim the exemption in MassTaxConnect by January 15 each year. If you exceed 14 days, tax is due on all rentals, including the earlier stays. If a platform collects payment, confirm whether the platform remits taxes for you and keep your registration details for reporting.
Insurance and safety
State law requires at least 1,000,000 dollars in liability insurance per short‑term rental, unless a hosting platform provides equal or greater coverage. You must notify your insurer that you plan to operate an STR. Read the Massachusetts STR statute.
Cambridge inspections emphasize life‑safety items, including clear egress and working smoke and carbon monoxide detectors. Local reporting has highlighted the City’s focus on these safety standards during STR inspections. Learn more from recent reporting on Cambridge enforcement and inspections.
Compliance and enforcement
Cambridge actively enforces its STR rules. The City uses inspections, registration checks, and third‑party monitoring to identify unregistered listings. Media coverage in 2025 noted that fines in the region can stack, with daily penalties reported around 300 dollars in some cases, along with potential registration revocation. See reporting on enforcement trends and fines.
Planning tips for buyers, owners, and tenants
- Owner‑occupants. If you live in your Cambridge home, the operator‑occupied path may fit. Confirm that you have no lease or condo restrictions and that you can meet the inspection checklist.
- Small‑building owners. If you own a 2–4 unit building and live in one unit, you may be eligible for an owner‑adjacent whole‑unit STR. Verify you own all the units and that condo or tenancy documents allow it.
- Tenants. Get the owner’s written permission before you apply. Review your lease to ensure STRs are not restricted.
- Condo owners. Check bylaws, rules, and any STR affidavits. Many associations limit short‑term use, and the City can require association approval with your application.
Watch for 2025 updates
The City Council has been considering amendments to Section 4.60 to clarify definitions, tighten life‑safety conditions, require booking information on request, and strengthen enforcement. Similar regional policies often discuss caps on unhosted whole‑unit stays. Track the docket and hearing notices for the final language. Follow Cambridge’s public meeting calendar for STR updates.
Quick strategy checklist
- Confirm you qualify as operator‑occupied or owner‑adjacent.
- Review lease or condo bylaws and secure required approvals.
- Prepare the unit with egress, smoke and CO detectors, and safety equipment.
- Register with ISD, complete inspection, and keep your certificate.
- Register with the DOR, understand the 14‑day exemption, and decide who remits taxes.
- Secure at least 1,000,000 dollars in liability insurance and notify your insurer.
- Keep booking and occupancy records. Include your registration number where required.
Ready to map out a compliant hosting plan or evaluate a purchase with STR potential? Get local, practical guidance from the Steph Crawford Group. We help you understand the rules, assess property fit, and align your strategy with your broader real estate goals.
FAQs
Can I rent a Cambridge unit I do not live in?
- Generally no. Cambridge limits STRs to operator‑occupied home shares or owner‑adjacent whole‑unit rentals in small buildings you own entirely, with few exceptions. See the City’s STR overview.
Do I need to register with both the City and the State for an STR?
- Yes. Register with Cambridge ISD for your certificate and with the Massachusetts DOR through MassTaxConnect for room occupancy tax compliance. Review DOR’s guidance.
What taxes will guests pay on a Cambridge short‑term stay?
- Expect the 5.7 percent state excise, plus Cambridge’s local option and a 2.75 percent Convention Center fee that applies in Cambridge. Platforms may collect and remit, but you are responsible for compliance. See the state tax details.
What insurance is required to host legally in Cambridge?
- Massachusetts law requires at least 1,000,000 dollars in liability coverage per STR unless your platform provides equal or greater coverage, and you must notify your insurer. Read the statute.
What happens if I operate an STR in Cambridge without registering?
- You risk inspections, fines that can accrue daily, and possible registration revocation. The City is increasing detection of unregistered listings. See recent enforcement reporting.
Is there a cap on nights for whole‑unit STRs in Cambridge?
- The City has discussed updates that could add limits and stronger enforcement. Check current agendas and ordinance text for any adopted changes. Monitor Cambridge’s meeting calendar.
