Everything You Need to Know About Short-Term Rentals (STRs) in Orange County

by Rick Lee

🏡 Everything You Need to Know About Short-Term Rentals (STRs) in Orange County

Short-term rentals (STRs) have become a popular investment strategy across Southern California—and Orange County is no exception. Whether you’re looking to host a vacation rental on Airbnb or operate a furnished unit on VRBO, understanding the local rules and regulations is critical to avoid fines, permit issues, or costly mistakes. With over 30 cities in Orange County, each with its own short-term rental laws, it’s essential to know where STRs are legal, where they’re banned, and how to apply for the proper licenses.

From popular tourist hotspots like Newport Beach, Laguna Beach, and Huntington Beach to family-friendly suburbs like Fullerton and Orange, the rules vary widely. Some cities still issue STR permits under specific conditions, others have capped or frozen new applications, and several—including Anaheim and Irvine—have outright banned new short-term rentals entirely. If you’re a real estate investor, homeowner, or homebuyer exploring STR opportunities in Orange County, this guide will help you navigate city-by-city laws, application steps, and the pros and cons of each market.

✅ Cities Permitting Short-Term Rentals (With Restrictions)

Anaheim

Status: Permitted for existing STR operators; new permits are not issued.
Key Regulations:
- Minimum stay of 3 nights.
- Permits are non-transferable.
- Strict enforcement of noise and occupancy standards.
Resources: Anaheim STR Program

Huntington Beach

Status: Permitted with restrictions.
Key Regulations:
- Owner-occupied STRs allowed citywide with a permit.
- Unhosted STRs permitted only in Sunset Beach (Zone 2) if a permit was obtained by March 1, 2022.
- Compliance with noise ordinances and local contact requirements.
Resources: Huntington Beach STR Information

Fullerton

Status: Permitted with restrictions.
Key Regulations:
- STR permits required; capped at 100 permits.
- Permits are non-transferable.
- Adherence to Good Neighbor Guidelines.
Resources: Fullerton STR Program

Orange

Status: Permitted with restrictions.
Key Regulations:
- STR permits required; capped at 125 permits (currently full).
- Minimum two-night stay.
- Off-street parking required.
- Quiet hours from 10:00 p.m. to 9:00 a.m.
Resources: City of Orange STR Information

Newport Beach

Status: Permitted with restrictions.
Key Regulations:
- STR permits required; capped at 1,550 permits (currently full).
- Permitted in R-1.5, R-2, and RM zones.
- Annual permit renewal required.
Resources: Newport Beach STR Program

Laguna Beach

Status: Permitted in specific zones.
Key Regulations:
- STRs allowed in LB/P, C-N, C-1, CH-M, CBD-1, CBD-2, CBD Central Bluffs, CBD Office, and CBD Visitor Commercial Districts.
- STRs not permitted in residential districts.
- Citywide cap of 300 STR units.
Resources: Laguna Beach STR Information

San Clemente

Status: Permitted with restrictions.
Key Regulations:
- STR permits required.
- Compliance with city regulations and neighbor notification.
Resources: San Clemente STR Program

Dana Point

Status: Permitted with restrictions.
Key Regulations:
- STR permits required; capped at 115 permits in the Coastal Zone and 115 outside the Coastal Zone.
- Sub-cap of 60 for Non-Primary STRs.
- Compliance with city regulations and inspection requirements.
Resources: Dana Point STR Program

Placentia

Status: Permitted with restrictions.
Key Regulations:
- STR permits required.
- Compliance with city regulations outlined in Ordinance No. O-2019-06.
Resources: Placentia STR Information

San Juan Capistrano

Status: Permitted in specific zones.
Key Regulations:
- STRs permitted in Multi-Family and Very High-Density Residential zones.
- Not permitted in single-family residential zones.
Resources: San Juan Capistrano STR Information

Unincorporated Orange County

Status: Permitted with restrictions.
Key Regulations:
- STR permits required; application through myOCeServices.
- Occupancy limited to two persons per bedroom plus two additional persons.
- Compliance with noise ordinances and parking requirements.
Resources: Orange County STR Handout

🚫 Cities Prohibiting Short-Term Rentals

Irvine: STRs are banned in all residential zones.
Garden Grove: All STRs are prohibited.
Laguna Niguel: STRs are not allowed.
Lake Forest: STRs are prohibited.
Villa Park: STRs are not allowed; advertising on platforms like Airbnb and VRBO is also prohibited.
Westminster: STRs are currently not permitted.
Santa Ana: STRs have been banned to address neighborhood impacts.
Costa Mesa: STRs are prohibited to curb neighborhood disruptions.
Fountain Valley: STRs are banned to maintain neighborhood integrity.

⚠️ Cities with Unclear or Pending Regulations

Seal Beach: The city’s municipal code does not explicitly address STRs. It’s recommended to contact city staff or relevant associations for guidance.
Mission Viejo: No specific STR ordinance; homeowners should consult their HOA for regulations.
Laguna Hills: The municipal code does not explicitly address STRs; contact city staff for clarification.
Laguna Woods: While the city code is silent on STRs, most residents live in Laguna Woods Village, which has its own regulations.
La Palma: No explicit STR regulations; it’s advisable to consult city staff or relevant associations.
Los Alamitos: The municipal code does not specifically address STRs; contact city staff for information.
Rancho Santa Margarita: No STR ordinance; homeowners should consult their HOA for guidance.

Note: Regulations are subject to change. It’s crucial to consult the respective city’s official website or contact city officials directly for the most current information.

If you need assistance identifying cities in Orange County with more favorable STR regulations or have other questions, feel free to ask.

Rick J. Lee

Realtor® @ ΓEA⅃ Broker

📱 (714) 943-1598

📧 rickjleehomes@gmail.com

DRE #02130981

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