Voters in Ocean City, Maryland, rejected an ordinance that would have put restrictions on short-term rental properties. 

The ordinance failed during a special election Tuesday, with 800 votes for and 834 votes against the measure,

Proposed short-term rental restrictions

, passed by the mayor and city council in March, would have initially imposed a minimum five-night stay for homes rented in certain single-family neighborhoods or mobile home communities. These changes would have gone into effect for 2025 and 2026.

By January 2027, the measure would have required a minimum 31-night stay for homes rented in those designated communities. 

The ordinance would have impacted Ocean City's R-1 single-family districts and MH mobile home district. 

Currently, there are five R-1 districts in the city, and one mobile home district. More than 4,000 homes would have been affected by the ordinance. 

Petition leads to special election 

After it was passed by city leaders last year, the rental ordinance received sharp criticism, especially from Ocean City Maryland Property Rights Inc. 

"Residents challenged the council's initial justifications of parking and noise complaints," said Robert Knauer with OCMD Property Rights Inc. "Police statistics revealed these concerns were negligible, prompting the council to shift their argument, claiming short-term rentals violated zoning laws. This reasoning ignored the long-standing role of our communities, many of which have always permitted vacation rentals."

The group that led to the special election. In it, advocates claimed the changes to short-term rentals would threaten property rights and lessen Ocean City's appeal as a vacation destination. 

"A ban on short-term rentals in Ocean City won't just hurt hosts," the group said in their petition. "It will hurt Ocean City's economy, its appeal to family vacationers, and its community spirit."

The petition encouraged residents to vote against the ordinance and gained 1,327 signatures.

"This outcome safeguards homeowners' property rights and protects a vital segment of Ocean City's tourism industry, which would have been severely impacted had the ordinance stood," Knauer said after the special election. "The community's united effort not only overturned this misguided policy but also demonstrated our commitment to finding realistic solutions that enhance the quality of life for all residents and visitors."

WJZ has reached out to the mayor's office for comment. 

• Ocean City Maryland