The short version
- What: the Cayman Islands Public and Affordable Housing Policy and 10-Year Strategic Plan, tabled in Parliament in April 2026, with 98 recommendations.
- For short-term rentals it suggests: studying a cap (7% of housing units is the example), limiting ownership by foreign corporate entities, and restricting or pausing new licences in areas where rentals squeeze housing.
- Status: proposals only. In May 2026 DoT said the measures had not been adopted by Cabinet; in June 2026 the housing minister said the ministry was still deciding which recommendations to prioritise this term.
- What to do: be licensed, file every month, keep clean records. If limits ever arrive, the proposals as written work through licences.
What the housing policy is
The policy is the government's first national housing plan. It was tabled in Parliament by Johany "Jay" Ebanks, Minister for Planning, Lands, Agriculture, Housing and Infrastructure, and announced on 29 April 2026. The full document and a summary are published on gov.ky.
Most of it is about building more homes: faster permitting, subsidies, a housing authority, help for first-time buyers. Short-term rentals appear in section 5, "Curbing the Impact of Real Estate Speculation on the Residential Housing Market", under the heading "Regulate Short-Term Rental Properties and Limit Ownership by Foreign Entities".
The document's own description of the market: about 1,100 apartments and condos registered as short-term rentals; short-term rentals making up about half of all visitor accommodation; and the Development and Planning Regulations allowing guest houses - which the policy equates with short-term rentals - in every residential district. It says stakeholders reported that Airbnb-style rentals have significantly reduced the supply of long-term rentals.
What it proposes for short-term rentals
There are two recommendations, each with a suggested two-year process that starts with studies and consultation, not with new rules.
| Recommendation | What it says | Suggested timing |
|---|---|---|
| 5.2.1 - Evaluate a cap | Count all residential units and short-term rentals first (there is no baseline count today). Then, if the evaluation supports it, limit short-term rentals to a share of housing stock, "such as a (proposed) cap of 7%". Once a cap is reached, licences could be made non-transferable. | Year 0–1 study and consultation; year 1–2 a policy if supported. |
| 5.2.2 - Ownership and location | Map where rentals are concentrated. Then limit the number of licences in areas where housing demand outstrips supply, potentially with a moratorium on new licences where guest houses are shown to hurt availability and affordability, and cap the number of short-term rentals one foreign corporate entity can run. | Year 0–1 evaluation and consultation; year 1–2 regulations. |
The stated aim is to let small and local owners keep earning from rentals while limiting large corporate holdings. DoT would keep licensing and inspecting short-term rentals and would enforce any new limits. Elsewhere in the same section the policy also floats a fee on vacant residential land held by non-resident foreign owners, and exploring limits on how many properties foreign nationals with less than five years of residency can buy.
Note what is not in it: no change to the 13% tax, no change to the CI$250 licence fee, and no rule that applies to existing licences today.
What has actually happened since
As of mid-October 2026 we could find no Cabinet decision or new law adopting any of the short-term rental measures. The public record, in date order:
- 29 April 2026 - policy tabled in Parliament.
- 14 May 2026 - the Cayman Compass reported that DoT said the measures, including the 7% threshold, were policy suggestions not yet adopted by Cabinet, and that government had not said which of the 98 recommendations it would implement or when.
- 24 June 2026 - answering a parliamentary question, the minister said the ministry was working with stakeholders to decide which recommendations to prioritise this term, that Cabinet had approved drafting instructions for the islands' first Housing Act, and that the recommendations carry timelines of roughly two to ten years. The answer did not single out short-term rentals.
- 13 July 2026 - a Cayman News Service viewpoint noted that the cap and ownership limits were "still framed as studies rather than action".
If the suggested process is followed, the first step is a count of housing units and public consultation - so hosts should hear about any concrete proposal before it takes effect.
Licensed versus listed: the numbers behind it
The pressure for tighter rules comes partly from the gap between rentals that are licensed and rentals that are advertised.
| Figure | Source and date |
|---|---|
| 1,015 licensed short-term rental properties at end of 2022; 1,240 at end of 2024 | Hotels Licensing Board data, reported by the Cayman Compass, 14 May 2026 |
| About 1,100 apartments and condos registered as short-term rentals | Housing policy, April 2026 |
| About 1,270 licensed properties | DoT figure cited by Cayman News Service, 13 July 2026 |
| More than 1,500 active listings on Grand Cayman | AirDNA, cited by Cayman News Service, 13 July 2026 |
Listings and licensed properties are not counted the same way - one property can have several listings - so the gap is an indication, not a precise number of unlicensed rentals. The same CNS piece reported, from a freedom-of-information request, that DoT's process for unlicensed operators has been little more than an email inviting them to apply.
What current hosts should do now
The practical advice is the same as before the policy, with more reason to follow it.
- Get licensed if you are not. The proposals as written count and limit licences - a cap, a moratorium on new licences, possibly non-transferable licences. Being licensed is the position to be in, though nothing in the policy promises existing licences would be protected. Operating unlicensed already carries a penalty of $100 a day per guest. See the licence guide or, if you are starting from scratch, how to start an Airbnb in the Cayman Islands.
- Renew on time. Licences expire on 31 August. A lapse means applying again - which is exactly where a moratorium would bite.
- File every month and keep records. A clean history of Tourist Accommodation Tax returns, including nil returns, is your evidence of a legitimate, compliant operation if rules or enforcement change.
- Check how you own the property. If it is held through a company owned outside Cayman, the proposed limits on foreign corporate ownership could be relevant. Ask your attorney; it is too early to restructure on the basis of a proposal.
- If you are buying, factor in that a licence does not transfer with a sale, and that the policy discusses limiting new licences in some areas.
- Watch for consultation. The policy calls for public consultation with residents, property owners and tourism operators. That is when hosts can be heard.
Hosts.ky keeps the part you control in order: a correctly filled DoT return for every month, and reminders before each deadline and your licence renewal.