STR vs. LTR in Cary, NC: a practical investor guide to revenue, risk, and compliance

Short-term rentals (STRs) and long-term rentals (LTRs) can both work in Cary—but they perform and behave very differently. This guide lays out how to compare them with Cary-specific context: where demand comes from, what the legal framework requires, how HOA/condo rules change the picture, and how to model operations, insurance, and exit paths. You’ll finish with a checklist and a clear decision path for any address you’re considering.

Cary demand drivers (and why STRs can “pop” near the core)

Two anchors concentrate weekend and evening activity:

• Downtown Cary Park—a 7-acre, event-rich public space that opened November 17, 2023 with a programming plan targeting ~750,000 annual visitors. Listings and stays within a short walk frequently benefit from park calendars, pop-ups, and concerts. downtowncarypark.com
  
  

• Fenton—Cary’s curated mixed-use district, with dining, retail, and year-round activations; Phase 1 opened June 3–4, 2022. STRs within a short drive can capture spillover from dinners, shows, and visiting family traffic. carync.gov
  
  

Those lifestyle magnets don’t replace fundamentals (beds/baths, parking, noise controls), but they help explain why weekend occupancy near downtown can outperform “farther-out” addresses—especially when your listing references official park details and schedule links. carync.gov

Legal framework in North Carolina (and what it means in Cary)

State law for vacation/short stays. North Carolina’s Vacation Rental Act (VRA) governs residential rentals for vacation or leisure shorter than 90 days, and it requires a written vacation rental agreement. The law also provides an expedited eviction path for stays 30 days or less when certain violations occur—important protection for hosts. Read the statute sections directly before you launch. ncleg.net+2ncleg.gov+2

Local rules in Cary. At the time of writing, Cary does not publish a stand-alone “STR ordinance”. That does not mean “anything goes.” You must still comply with (1) state law (VRA), (2) zoning/Land Development Ordinance (LDO) use permissions, and (3) recorded HOA/condo covenants. Many third-party blogs summarize Cary as having “no specific STR regs,” but the responsible approach is to check (and save) the current LDO and relevant use tables for your property’s zoning—rules do evolve. carync.gov+3BNB Calc+3files.amlegal.com+3

Practical step: Pull zoning from Cary’s Property Research page, then confirm if transient lodging/short-term use is allowed in that district (by right, with special approval, or not at all). Save a PDF of the LDO and the permitted-use reference in your underwriting file. carync.gov

Taxes for STRs. Gross receipts from the rental of accommodations are subject to NC sales and use tax and any local occupancy tax. In Wake County (Cary), a 6% room occupancy tax is collected on STRs, including those booked through platforms like Airbnb/Vrbo. Know what the platform collects on your behalf and what you still must register/remit. ncdor.gov+1

HOA/condo documents. Associations may restrict or prohibit short-term leasing, impose minimum lease lengths (e.g., 6–12 months), limit the number of units that may be leased, require lease addenda, and regulate parking or noise. Always review recorded covenants, rules, and any rental caps during due diligence; if you can’t confirm permissibility in writing, underwrite the deal as an LTR. (Cary’s LDO is separate from private covenants; you must satisfy both.) carync.gov

Revenue models: ADR × occupancy vs. monthly rent

Short-Term Rental (STR) model

• Top line: Average Daily Rate (ADR) × occupied nights. ADR is extremely address-sensitive in Cary—units that are walkable to Downtown Cary Park and a quick drive to Fenton generally command a premium on peak weekends and during events. downtowncarypark.com+1
  
  

• Platform & tax: Platform service fees plus sales and occupancy taxes reduce net revenue; some platforms collect/remit portions of tax, but owners remain responsible for correct registration and any untaxed portions (e.g., direct bookings). ncdor.gov
  
  

• Variable costs: Cleaning/turnover, consumables, utilities (electric, water, internet), lawncare or HOA fees, minor repairs, platform photography, and dynamic-pricing tools. Cleaning is both a cost center and a review driver—budget for post-stay quality checks.
  
  

Rule of thumb: A “healthy” urban/suburban STR often needs ~60–70% annualized occupancy at a defensible ADR to surpass an LTR’s annual net. Demand in Cary is weekend-heavy, so you’ll model seasonality and event spikes (park programming, holidays, graduations).

Long-Term Rental (LTR) model

• Top line: Single monthly rent with far fewer vacancy days.
  
  

• Expenses: Landlord (dwelling) insurance, HOA dues (if any), property taxes, maintenance/CapEx, leasing costs, and occasional turn expenses.
  
  

Rule of thumb: LTR yields are steadier and less labor-intensive. In Cary’s higher-income submarkets, LTRs often shine when the purchase basis is high (townhomes/condos with no STR allowed or when STR ADR is average), or when an investor values low volatility and minimal time-on-task.

Expense and wear-and-tear comparison

STRs:

• High turnover → higher cleaning and consumables costs; more frequent minor repairs (handles, blinds, scuffs).
  
  

• Utilities + furnishings are owner-paid; you’ll also carry Wi-Fi and streaming.
  
  

• Insurance needs are different (see below).
  
  

• Tax compliance and bookkeeping are more complex (multiple stays, multiple taxes). ncdor.gov
  
  

LTRs:

• Lower turnover (ideally 12+ month leases) → reduced make-ready costs and fewer service calls.
  
  

• Tenant-paid utilities (usually) and minimal furnished inventory.
  
  

• Simpler accounting (12 payments, occasional maintenance).
  
  

Insurance and liability: don’t gloss over this

Standard homeowners policies typically aren’t designed for regular rentals. For LTRs, a landlord/dwelling policy is appropriate and typically costs more than a primary-residence policy because it covers tenant-occupied risk. III

For STRs, confirm in writing that your carrier covers short-term/paid occupancy (many do not under a standard HO-3). You may need a home-sharing endorsement or a dedicated short-term rental policy. Platform protections (e.g., AirCover) are not insurance and have exclusions/limits—plan as if they don’t exist. When in doubt, discuss with your agent and the NC Department of Insurance resources; some owners use dwelling policies paired with endorsements to match usage. Investopedia+1

Tip: If you hold title in an LLC or trust, ensure the named insureds match the ownership structure and your policy endorsements reflect that structure properly. (Carrier forms vary; review before closing.) ncrb.org

Operations: what it really takes to run each model

STR operations:

• Pricing: dynamic tools + manual adjustments for park/Fenton event weeks. downtowncarypark.com+1
  
  

• Housekeeping: same-day turns, QC checks, linen logistics, and damage documentation.
  
  

• Guest relations: messaging cadence, arrival instructions, quiet hours, and parking clarity (critical in HOAs).
  
  

• Compliance: post your tax ID/registration as required, remit sales and occupancy taxes, and keep a binder with VRA agreement templates and house rules. ncdor.gov
  
  

• Neighbors: noise monitoring, exterior cameras that comply with privacy rules, and 311 escalation awareness for non-emergency issues (Cary’s 311 operates 7 a.m.–7 p.m. Mon–Fri). carync.gov
  
  

LTR operations:

• Leasing: fair-housing compliant advertising, written lease with addenda (pets, HOA rules), documented move-in/move-out.
  
  

• Maintenance: seasonal HVAC service, guttering, termite/moisture checks, irrigation (clay soils can be unforgiving), and HOA architectural compliance for exterior changes.
  
  

• Renewals: annual rent review vs. market; consider minor upgrades between terms to protect asset value.
  
  

Compliance and policy checks (do this before you wire EMD)

1. State law (VRA) ready?
   Keep a copy of the statute sections on written agreements and expedited eviction in your file. If you plan to rent under 30 days, have your notice and filing playbook ready. ncleg.net+1
   
   

2. Zoning & LDO fit
   Verify zoning, then consult the Permitted Uses & Setbacks page and the current LDO (updated as recently as May 22, 2025). If your intended use is ambiguous, ask the Town for written guidance and keep the email. carync.gov+1
   
   

3. HOA/condo rules
   Read recorded covenants and current rules. Look for minimum lease terms, guest/parking limits, and any “business use” language. Absence of an explicit STR ban ≠ permission—seek clarification from the board/manager.
   
   

4. Taxes
   Register for NC sales and use tax on accommodations and understand the Wake County 6% occupancy tax obligations; confirm what platforms remit vs. what you must file. Save guidance in your ops binder. ncdor.gov+1
   
   

5. Insurance
   Get a written binder showing coverage for your actual use (STR vs. LTR), liability limits, and loss-of-rents where applicable. III+1
   
   

6. Operations
   For STRs: set cleaning SLAs, replenish schedule, guest rules, and emergency contacts; for LTRs: set renewal cadence and vendor list.
   
   

7. Community relations
   Draft a neighbor letter (contact info, quiet hours), and post rules in the home. If you’re downtown-adjacent, highlight park event nights when traffic/noise may be higher and set expectations accordingly. carync.gov
   
   

Modeling STR vs. LTR: side-by-side

Revenue:

• STR: ADR × occupancy (seasonal), plus cleaning fees (which often pass through to guest). Revenue volatility tied to events and reviews.
  
  

• LTR: Predictable monthly rent; infrequent vacancy; fewer surprises.
  
  

Costs:

• STR: Cleaning/turns, utilities/furnishings, platform fees, higher insurance, sales + occupancy tax compliance. ncdor.gov
  
  

• LTR: Lower operating overhead; periodic turns and routine maintenance; landlord insurance.
  
  

Risk & management load:

• STR: Operationally intensive; regulatory drift risk (local changes are possible even if there’s no stand-alone ordinance today). Third-party summaries currently describe Cary as having no specific STR ordinance, but you must keep watching the LDO and any Town updates. BNB Calc+1
  
  

• LTR: Lower time burden; tenant quality and property age become primary risk drivers.
  
  

Resale/exit:

• STR: If HOA or LDO changes restrict STRs, exit may depend on LTR numbers. Underwrite the property as an LTR “floor” scenario from day one.
  
  

• LTR: Clean rental history and lower wear-and-tear are positives for resale; long-term tenants can sometimes complicate showing access—plan lease language accordingly.
  
  

When does each win in Cary?

Choose STR when:

• The address is walkable to Downtown Cary Park or a quick hop to Fenton, has off-street parking, and HOA/condo docs explicitly allow short-term stays. You’ve confirmed zoning/LDO compatibility and you’re prepared to manage tax, cleaning, and guest ops at a professional standard. carync.gov+2carync.gov+2
  
  

Choose LTR when:

• Covenants prohibit STRs or the use table is gray; the purchase basis suggests modest ADR headroom; or you prefer steady cash flow with minimal day-to-day involvement.
  
  

Hybrid approach:

• Start as STR to capture near-term event demand, but structure your furnishings and insurance so you can pivot to LTR without a major reset if rules or revenue shift.
  
  

A word on “no ordinance” headlines

You will find blog posts claiming “Cary has no STR regulations.” Treat that as incomplete, not as permission. Cary’s Code of Ordinances and LDO—which control uses, development, and enforcement—are updated; your use must fit. Keep a habit of checking the LDO recent updates page and saving a copy to your deal folder. American Legal Publishing+1

Your address-level STR/LTR checklist (print this)

1. Zoning confirmed + permitted-use table checked (screenshots saved). carync.gov
   
   

2. HOA/condo rules obtained (look for lease length, rental caps, guest/parking, quiet hours).
   
   

3. VRA compliance: written agreement template, notice language for expedited eviction (if <30 days). ncleg.net+1
   
   

4. Tax registrations: NC Sales & Use for accommodations + Wake County 6% occupancy process; verify what the platform remits. ncdor.gov+1
   
   

5. Insurance: landlord/dwelling policy for LTR or STR-capable coverage/endorsement for short stays (in writing). III+1
   
   

6. Ops plan: cleaners, maintenance, spare linens/consumables, noise/parking plan, 24/7 contact; or for LTR, leasing, renewals, vendor cadence.
   
   

7. Demand hooks: list the park/Fenton distances with links to official pages; plan seasonal pricing and content around those event calendars. carync.gov+1
   
   

8. Exit plan: model the asset as an LTR to ensure the debt still pencils if STR rules or performance change.
   
   

Bottom line

STRs in Cary can outperform when walkability and programming (Downtown Cary Park) or destination dining/entertainment (Fenton) elevate weekend demand—and when you run them like a business (VRA-compliant leases, correct taxes, STR-ready insurance, and professional ops). LTRs provide steadier cash flow with less work and fewer moving parts—and often make more sense in HOA-constrained or non-core locations.

If you’re on the fence for a specific address, we can produce a Cary Rental Strategy Report: we’ll (1) pull the LDO use tables for that zoning, (2) review HOA/condo documents, and (3) deliver side-by-side STR vs. LTR pro formas that include sales/occupancy tax, insurance, and realistic cleaning/turnover loads—so you can buy with confidence and a Plan B.

Ready to discuss your real estate needs? Contact Be Sunshine Realty Group Brokered by EXP today for a confidential consultation. Call (919) 583-6895 or visit www.livinginraleighnow.com to connect with Raleigh Triangle's most trusted real estate team.