Thinking about using a property near Raleigh’s Village District for rental income, but not sure if nightly or monthly stays make more sense? You’re not alone. With strong walkability and quick access to downtown and NC State, this area attracts both weekend visitors and month‑plus guests. In this guide, you’ll learn how Raleigh defines each option, the rules and taxes that apply, and a clear way to decide which path fits your goals. Let’s dive in.

Short‑term vs. mid‑term: what Raleigh means

Short‑term rental (STR). In Raleigh, a short‑term rental is lodging for 30 nights or fewer. STRs require a city zoning permit and must follow the Unified Development Ordinance standards, including posting the permit number and keeping guest records. See the definition and standards in the Raleigh UDO and the City’s STR permit page for details.

• Read the UDO definition and rules: Raleigh UDO
• City permit guidance: Short‑Term Rentals in Raleigh

Mid‑term rental (MTR). In industry practice, mid‑term rentals are furnished, turnkey stays of 30 days to several months. They often serve traveling nurses, relocating professionals, grad students, and remote workers. In many places, including Raleigh, stays of 31 days or more are typically handled like standard residential leases rather than STRs. Learn more about the MTR model here: mid‑term furnished rentals primer.

Why the 30‑day line matters: In Raleigh, crossing below 30 days means you are in the STR permit regime. Choosing 31+ day stays can avoid STR permitting, though you still must follow landlord‑tenant laws and applicable taxes. Confirm the specifics in the Raleigh UDO.

What the rules say near Village District

City permits for short stays

STRs are allowed as a Limited Use in many Raleigh residential and mixed‑use zones. You must obtain a zoning permit before hosting, post the permit number on your listing and at the property, keep a lodger list for three years, avoid exterior advertising signs, and follow event restrictions. In multi‑unit buildings, only a limited share of units can operate as STRs. Refer to the City and UDO for the current standards and application steps.

• City permit guidance: Short‑Term Rentals in Raleigh
• Use standards and enforcement: Raleigh UDO

Permit fees and timing change over time, so check the City’s portal for the latest application packet, fees, and processing times: Short‑Term Rentals in Raleigh.

Taxes you must plan for

• State sales tax: North Carolina’s state rate is 4.75 percent. Learn more here: NC sales tax overview.
• Local occupancy tax: Wake County is authorized to levy a room‑occupancy tax up to 6 percent on lodging. See the enabling law: Wake County occupancy tax authority.
• Registration and filings: Platforms may collect some taxes, but owners are responsible for compliance, registration, and remittance. Start with the N.C. Department of Revenue and confirm any county requirements.

HOA and condo restrictions

Many associations set minimum lease lengths, ban short‑term rentals, or cap the number of units that can rent. These private rules can be stricter than city rules and are enforceable. Always read the recorded covenants and bylaws, request written guidance from the HOA, and confirm any rental caps before you buy or list.

Who rents here and why

Location advantages

Village District, formerly Cameron Village, sits about two miles west of downtown and roughly 1.5 to 2.5 miles from NC State, depending on the exact address. It blends shopping, dining, and residential options in a highly walkable setting, which supports both STR and MTR demand. Get the neighborhood context here: Village District overview.

Nearby ZIP 27605 includes a high share of multifamily homes and renters, a signal of steady housing demand and turnover that can support furnished options. See ZIP‑level housing signals: 27605 profile.

Short‑term vs. mid‑term demand segments

• STR demand often comes from downtown visitors, wedding weekends, and guests who want a walkable hub near restaurants and events.
• MTR demand commonly includes traveling medical staff, relocating professionals, grad students, visiting academics, interns, and remote workers. The MTR model is built around 30–90+ day furnished stays. Learn more about MTR audiences: mid‑term furnished rentals primer.

Seasonality and occupancy patterns

STRs tend to be more seasonal, with higher turnover and weekend spikes. MTRs typically deliver steadier occupancy with fewer gaps and simpler operations. You trade some peak nightly revenue for more predictability and lower turnover costs over the year.

Financial and operational tradeoffs

Revenue and costs compared

• STR potential: You can target higher nightly rates around peak demand, but you should expect higher operating costs like frequent cleanings, guest supplies, dynamic pricing tools, and more wear and tear.
• MTR stability: You usually earn below peak STR rates but above unfurnished long‑term rents, with fewer turnovers and lower guest acquisition costs. The model supports more predictable cash flow for many owners. Explore the model here: mid‑term furnished rentals primer.

Financing and insurance

Lenders categorize loans by use: primary residence, second home, or investment. Investment loans often require larger down payments, higher rates, and cash reserves. If you plan to rely on rental income to qualify, lenders handle it differently by product, so start that conversation early. See an overview: lender underwriting considerations.

Standard homeowner policies usually exclude business and paying‑guest exposures. STRs often require a specialized policy that covers liability and guest damages. MTRs typically need landlord or dwelling coverage with proper endorsements. Talk with a licensed insurance professional and disclose your rental use: insurance considerations for short‑term rentals.

Compliance and enforcement

Raleigh can revoke STR permits for violations, and the city monitors compliance. STR owners must post permit numbers, keep records, and follow safety and event rules. MTRs avoid STR permits but remain subject to landlord‑tenant laws, safety codes, and income‑tax obligations. Review the Raleigh UDO and the City’s STR page for standards and enforcement.

How to choose the right strategy

Use this quick checklist before you commit:

• Verify zoning and STR eligibility for the exact address using the City’s guidance: Short‑Term Rentals in Raleigh.
• Review HOA or condo covenants and ask for written confirmation of rental rules and any lease‑length minimums.
• Confirm loan requirements for STR or MTR use with your lender, especially if you need rental income to qualify.
• Get insurance quotes for STR coverage vs. landlord coverage and confirm liability limits.
• Register for applicable state and local taxes. Begin with the N.C. Department of Revenue. For occupancy tax authority, see Wake County occupancy tax.
• Build a conservative pro forma: compare STR nightly ADR and occupancy to furnished MTR monthly rates using platform comps and your property’s features. A helpful explainer on MTR pricing: mid‑term furnished rentals primer.

Example scenarios near Village District

• If you want maximum rate potential and are comfortable with frequent turnovers, compliance steps, and guest messaging, STR can work well near shops and dining. Just budget for higher cleaning and supply costs and plan for seasonality.
• If you prefer steadier occupancy with fewer turnovers and simpler operations, a furnished 3 to 6‑month MTR can be a strong fit for traveling medical staff or relocating professionals who value walkability and access to NC State and downtown.
• If your building or HOA restricts short terms, a 31+ day furnished strategy may be your cleanest path to income while staying compliant.

Your next step

Choosing the right rental approach starts with local knowledge, clean due diligence, and a property‑specific plan. If you want a clear, side‑by‑side look at STR and MTR numbers for a specific address near Village District, we’re here to help with zoning checks, HOA review, and a custom income comparison. Connect with the Saccoh Realty Team for bespoke guidance and a calm, concierge‑level experience.

FAQs

What is the difference between short‑term and mid‑term rentals in Raleigh?

• Short‑term rentals are 30 nights or fewer and require a city permit with specific rules. Mid‑term rentals are generally 31+ day furnished leases handled under landlord‑tenant law. See the Raleigh UDO and City STR page.

Do I need a permit to rent my condo for three months near Village District?

• For a 3‑month stay, you typically do not need an STR permit because the lease length is 31+ days, but you must still follow HOA rules, building codes, and applicable taxes.

What taxes apply to short‑term stays in Wake County?

• Expect state sales tax of 4.75 percent and a local room‑occupancy tax authorized up to 6 percent, with platforms sometimes remitting part of the taxes. See state tax info and Wake occupancy tax authority.

Can I switch between nightly STR and monthly MTR depending on demand?

• Yes, but dropping below 31 days requires an STR permit and full compliance. Always check HOA rules for minimum lease lengths before switching. See the City STR guidance.

How does the Village District location affect demand?

• The area’s walkable mix of retail and dining, plus proximity to downtown and NC State, supports both weekend visitors and month‑plus guests. Learn more about the area: Village District overview.