The Complete Asheville Homestay Permit Guide for Homeowners and Buyers

Asheville’s steady tourism, cultural scene, and mountain setting attract many buyers hoping to combine a place to live with an income-producing asset. But in Asheville, short-term rental rules are strict and nuanced. One misstep could cost you your ability to legally host.

Before you buy, you need to understand:

• How Asheville defines and regulates homestays versus STVRs (short-term vacation rentals)
• The history of Asheville’s STVR ban and what “grandfathered” status means
• The 2021 homestay ordinance update and its key rules
• How to apply for a Homestay Permit
• HOA and Buncombe County implications
• Answers to frequently asked questions (with a link to the city’s FAQ doc)

Let’s walk through it.

Homestays vs. STVRs in Asheville

Short-Term Vacation Rentals (STVRs):

• This refers to renting out an entire dwelling unit (house, condo, etc.) for fewer than 30 days, with no resident living there during guest stays.
• Under Asheville zoning, new STVRs are prohibited in most residential districts (they’re only allowed in the “resort” zoning district).
• If a property was legally operating as a whole-home vacation rental before January 2018, it may enjoy grandfathered (nonconforming) status. Otherwise, you generally cannot start a new STVR in most parts of the city.

Homestays:

• A homestay allows a full-time resident to rent up to two bedrooms within their dwelling to overnight guests (less than 30 days). The host lives there during guest stays.
• Homestays are permitted in residentially zoned areas, subject to meeting safety, zoning, and permit requirements.
• Homestay permits must be renewed annually.

In short: if you buy a property in Asheville and hope to host guests while you live there, your path is likely via a homestay.

If you want to rent out the whole home, you’re better off looking outside of Asheville city limits and finding property that isn’t subject to HOA restrictions. But alas, it’s not always that simple. For example, the town of Woodfin recently put in place short term rental restrictions, so even if you’re outside the city of Asheville, there’s more due diligence that needs to be done.

The 2018 STVR Ban & Grandfathered Status

In January 2018, the City of Asheville moved to ban new whole-home vacation rentals (STVRs) in most residential zones. ([Citizen Times][2]) Before that, whole-home rentals were more common across many neighborhoods.

Properties already operating as vacation rentals before the ban were allowed to continue under nonconforming / grandfathered status.

Because grandfathered STVRs are limited in number, they tend to command a premium in the market. Always confirm the legal status of a listing claiming to be a “vacation rental” inside city limits.

2021 Homestay Ordinance Update: What Changed

At the end of 2021, Asheville amended the Homestay Ordinance to clarify ambiguity and tighten certain rules. Some of the key changes include:

• Accessory / detached structures (guest houses, detached units) are not allowed for new homestays (unless a homestay permit for that structure existed before December 14, 2021, and the permit is continuously maintained). ([American Legal Publishing][4])
• A homestay host must reside full-time at the property and affirm that this is their only primary residence. Proof of residency is required (two acceptable documents).
• Each dwelling is limited to one homestay permit per lot and one permit per person / household / legal entity.
• No signage for homestays is permitted.
• Exterior lighting must be residential in nature and comply with lighting rules in the Unified Development Ordinance (UDO).
• Liability insurance covering the homestay use and guests is required.
• Homestays may not be located in detached accessory structures (unless grandfathered).
• The homestay area must comply with applicable building and safety codes, including fire, egress, smoke detectors, etc.
• The ordinance clarified that the homestay host can live in any part of the dwelling and rent a portion (still limited to two bedrooms).
• Kitchens: The new ordinance permits a homestay to include a full kitchen only if the homestay space is internally connected (i.e. between the homestay and resident-occupied portions there is an internal connection). If the homestay portion is accessed only externally, a full kitchen is typically disallowed.

These changes were intended to balance flexibility for homeowner-hosts with protections for neighborhoods and clarity in enforcement.

How to Apply for a Homestay Permit in Asheville

Thinking of running a homestay? Here’s a step-by-step guide to applying, based on the City’s official process:

1. Visit the City’s Homestay Permit Page
   Start with the City of Asheville’s official Apply for a Homestay Permit page:
   https://www.ashevillenc.gov/service/apply-for-a-homestay-permit/ (Asheville NC)
2. Prepare Required Documents & Fees
   The application generally requires:

• Proof of residency (two acceptable forms)
• A floor plan showing your home layout, rooms to be rented, egress, doors/windows, etc. (Jotform)
• Details about the homestay area: number of bedrooms, dimensions, fixtures (sinks, refrigerators, stoves if applicable) (Jotform)
• A zoning / technology application fee (around $208) — you’ll receive an invoice after application submission. (Jotform)
• If you’re not the property owner, an owner’s consent/co-applicant form may be needed. (Jotform)

1. Submit Application & Pay Fees
   Use the City’s online JotForm or portal to submit the application. Once submitted, the city sends you an invoice for the zoning/technology fee. (Jotform)
2. Inspections / Review
   After the application review, the city may schedule inspections to verify safety, egress, smoke detectors, etc. (Asheville.com)
3. Permit Issuance & Annual Renewal
   If approved, you receive your homestay permit. You must renew it every 12 months. (Asheville NC)
4. Maintain Compliance

• Carry liability insurance covering the homestay use. (American Legal Publishing)
• Comply with building, fire, and safety codes. (American Legal Publishing)
• No signage, use residential lighting, no detached accessory structures (unless grandfathered). (American Legal Publishing)

Because application volume can be high, expect some delays. (Jotform)

FAQ Section (with Link to City FAQ Doc)

Below are some commonly asked questions. For the full, official FAQ maintained by the city, see this Google Doc:
https://docs.google.com/document/d/e/2PACX-1vSmhVhuIWLfbv87C_GRObY3Bd15Q2Wxnq1GENlrrKDPgWhXQ3hiLeS1fgsSgVi1sdovwne6llkTuGU-/pub

For more detailed answers, see the full city-hosted FAQ document linked above.

HOA & County Considerations (Reminder)

• Even if outside city limits, HOA rules may restrict or prohibit short-term renting. Always review HOA covenants before purchase.
• In unincorporated Buncombe County, STRs are generally allowed but are subject to county zoning rules. Prior to Hurricane Helene, the county was considering stricter short-term rental rules; this effort was put on pause in light of recovery priorities. (BPR)
• If the county revisits its amendment, new restrictions could emerge down the line.

Key Takeaways & Recommendations

• Inside Asheville city limits: whole-home STVRs are mostly banned unless grandfathered or in resort districts/special zoning. Homestays are the primary legal path for short-term renting by owner-occupants.
• The 2021 ordinance cleaned up many gray areas — know the rules around detached structures, kitchens, permit limits, and insurance.
• To apply for a homestay permit, follow the City’s official process via their permit page (linked above).
• Always check HOA rules, local township/city rules, and county zoning before making an offer to purchase — even if city rules allow something, your HOA or county may not.
• Before buying, confirm permit history, legal status, and host eligibility (especially in listings claiming to be STVRs).