Here's an overview of the current STR laws, revenue potential, and overall feasibility for short term rentals in the many different Triangle suburbs. I use Airdna Data, my experience as a local investor and real estate professional, and personally dove into the Unified Code Ordinances of each City. Hopefully this can save you some time and maybe some money.
✅ Great Markets for Airbnb:
Durham
City Rules: Legal w/ business license.
Permit Cost: ~$100 for business license.
Zoning: Most residential zones allow it, as long as housing code compliance is met.
HOAs: Lower HOA density vs Cary/Chapel Hill so less likely to run into trouble.
AirDNA Score: 77/100 with great seasonality.
Why I like it: High demand from hospital travelers, visiting profs, and weekend events. Slightly older housing, and some neighborhoods are better or worse than others, but high growth in Durham overall going forward and cheaper real estate.
Specifically: Southpoint/East Durham near Brier Creek
Why I like it: Rising demand here, and lots of workforce travelers in RTP. Closer to Brier Creek Shopping, Airport, and East Durham's becoming a new construction haven for this side of the triangle.
N/NW Raleigh (outside I-440)
City Rules: Raleigh requires a permit as well, but it's not hard to get.
Permit Cost: $200 one-time fee.
Zoning: Allowed in R-4 to R-10, RX, OX, NX, CX, and DX. Most SFH will allow it.
HOAs: Look for older neighborhoods = more wiggle room. Still plenty without an HOA. And some older HOAs that do allow it (not my preference..)
AirDNA Score: 96/100 !!! Growth is great here.
Why I like it: There’s still strong demand from relocators and families visiting, established nice overall neighborhoods, may attract more MTR renters here if you ever want to transition to that. N to NW is your best bet for staying close to airport, while still 15 or less to North Hills and downtown.
Note: My first house hack with STR turned furnished MTR is here and I'm happy with it!
Overall these areas are not as highly seasonal, which helps the AirDNA Scores you see.
🤔Areas that Work (With Strategy):
Apex
City Rules: Relatively ignores STR.
HOAs: Apex has a high prevalence of Homeowners Associations (HOAs), many of which have covenants that restrict or prohibit STRs. Still you can find older ones without them, especially near the older side of Apex. Watch out for railroad tracks in that part of Apex!
AirDNA Score: 89/100. This reflects strong demand and limited supply, leading to higher occupancy rates and revenue potential. And still attracts RTP folks, Cary visitors, and downtown visitors.
Why It's Tricky: While market data suggests Apex is a lucrative area for STRs, prices can still be high enough to kill deals. May take some time to find one that works well. Appreciation here tends to be strong however!
Garner
City Rules: STRs are mentioned in the UDO (Unified Development Ordinance) and specifically does not allow STRs in any residential zoning by default. You would need to apply for a special use permit OR go illegally at your own risk.
HOAs: Good chance at finding a non-HOA.
AirDNA Score: 98/100 primarily thanks to revenue growth and seasonality. Not properly accounting for the regulatory risk in my opinion.
My Thoughts: The Airdna data also doesn’t account for appreciation being overall lower and more variable here versus markets like N Raleigh or Cary. But the prices are low and still attracts both students, working professionals, downtown visitors, etc. So might be worth the risk if you need cheap real estate?
Wake Forest
City Rules: Short-term rentals are generally accepted by the city in residential and mixed residential.
HOAs: Many neighborhoods have HOAs that may restrict or prohibit STRs. Still, better options than Cary/Morrisville and better prices.
AirDNA Score: 76/100. Demand exists, especially during local events, but growth is slower and it is further than ideal from RTP/Airport/Downtown.
What I Like: Wake Forest is growing pretty quickly in population and house prices. It’s on the path of progress for the Triangle.
Inside the Beltline (ITB) Raleigh
Zoning: Same as N Raleigh with some things to think about (below).
Permit Cost: $200 one-time.
HOAs: Many older neighborhoods that don't have them, BUT restrictive covenants can be an issue here regardless of HOA. Also, neighbors tend to be very vocal if they don't like STRs. And watch out for historic rules, too!
AirDNA Score: 89/100
Consider: You can easily buy an expensive house that's much older than N Raleigh homes (needs more maintenance) and not be able to STR it long term! So just do your homework. ITB can be more transitional so choosing the right neighborhood that makes financial sense AND is a good investment going forward can be tricky.
⚠️ Risky / Difficult Areas
Chapel Hill
City Rules: Requires STR permit and restricts where you can operate. Many zones now disallow entire home rentals as of recent changes. Now it is very difficult to get a permit here and many are operating illegally (at their own risk)
Permit Cost: Varies, but the process is bureaucratic.
HOAs: Higher HOA density
AirDNA Score: 73. Closer to UNC does best.
Why it’s tricky: Even if you're legal, the town leans anti-STR and they don't always grandfather in after changes, too. The Airdna data does not account properly for the regulation risk. However, fewer competition isn't always a bad thing if you find a way to make it work.
Cary/Morrisville
City Rules: No formal Airbnb ordinance, but STRs exist in a gray area.
Zoning: Not clearly defined — town is currently considering bans...
HOAs: Almost every subdivision has an HOA that restricts STR.... that's the big issue here.
AirDNA Score: 94/100. Seems super appetizing, right?. And it has been for STR owners... Demand exists 100%, but supply is very limited, competition has increased a ton. Prices are very competitive here (even for fixer-uppers) and regulations are a big concern. Proceed with caution.
Holly Springs
City Rules: Short-Term Rentals allowed in most zoning. They only state that you cannot have more than 4 verified complaints for any ordinance violation, like noise ordinance. And you cannot have a STR where the property has been determined by the Chief of Police as being within the top 10% of properties with crime or disorder problems within the Town.
Permit: No license or permit currently.
HOAs: Good chance at finding non HOA here (still check for restrictions put on by the developer!). Most homes in newer subdivisions have an HOA, however, and those do come with restrictions.
AirDNA Score: A brutal 51/100. Due to growth and revenue.
Why I avoid it: People love looking here for the prices, but you might get what you pay for being this far out with no attractions.
Knightdale
City Rules: STRs are not explicitly addressed, just hotels and b&bs. This is the case for many cities, and a b&b is likely the closest match here.
Permit Cost: The fee for a Zoning Compliance Permit is $100. I am not sure how much they enforce this but many cities are using something similar.
HOAs: Some have them, many don’t.
AirDNA Score: 43/100. Low rental demand and low growth leads to this score.
If you’re looking to buy an STR in the Triangle:
- Raleigh is possible—just get the right zoning, avoid the stringent areas (unless you’re savvy and okay with risk) and avoid HOAs if at all possible!
- Durham and Raleigh are the best combo of STR-friendly city policy and solid RevPAR.
- Avoid newer suburbs unless you love reading restrictive covenants and losing sleep over neighbor complaints.
Let me know what you're seeing in your market. Anyone else here actively hosting in the Triangle? Feel free to chime in.
