Gloucester, Mass., Code of Ordinances ch. 5, art. V (2026) § 5-69
Prohibitions
Operative Text
(a) Corporate ownership. Short-term rentals are prohibited in dwelling units owned by a corporation. Short-term rentals are permitted in dwelling units owned by an LLC, Trust, or S Corporation only when every shareholder, partner, or member of the legal entity is a natural person, as established by documentation provided by the applicant at the time of registration. (b) Affordable housing dwelling units. Short-term rentals are prohibited in dwelling units designated as affordable or otherwise income-restricted, which are subject to an affordability restriction or are otherwise subject to housing or rental assistance under local, state, or federal programs or law.
Gloucester Code of Ordinances ch. 5, art. V § 5-69 establishes two categories of dwelling units where short-term rentals are flatly prohibited. First, units owned by a standard corporation cannot be used as short-term rentals under any circumstances; units held by an LLC, Trust, or S Corporation are only eligible when every member or shareholder is an individual human being, verified through documentation at registration. Second, any dwelling unit that carries an affordability restriction or receives housing or rental assistance under local, state, or federal programs is entirely off-limits for short-term rental use, regardless of ownership structure.
Plain English — not legal advice.
Operators subject to Gloucester Code of Ordinances ch. 5, art. V § 5-69 generally ensure that the ownership entity for any short-term rental property is not a standard corporation, and that if an LLC, Trust, or S Corporation holds the unit, documentation confirming that all members or shareholders are natural persons is prepared and submitted at the time of registration. Compliant operators also review whether any unit they intend to list is subject to an affordability covenant, income restriction, or any form of housing or rental assistance program before listing it as a short-term rental. Maintaining clear ownership records and affordability status documentation is a routine part of operating within this framework.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Gloucester Code of Ordinances ch. 5, art. V § 5-69, tenants living in affordable or income-restricted units, or units receiving housing assistance, have a basis to understand that their dwelling cannot lawfully be converted to or operated as a short-term rental. If a tenant believes their unit is being used as a short-term rental in violation of this provision, they may consider raising the issue with the relevant local municipal authority or code enforcement office in Gloucester. Tenant-rights organizations familiar with local ordinances can help residents understand what documentation or complaint processes may be available to them.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 11, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.