Guide · California
The most Airbnb-friendly cities in California.
California leaves short-term rental rules to each city and county, and the results range widely. Of the 7 California markets we track, the mountain and desert towns are the most open to investor-owned rentals, San Diego, South Lake Tahoe and Palm Springs cap them, and Los Angeles and San Francisco allow hosting only in your own home.
The ranking
7 California markets, most to least open
Ranked by how open each place is to investor-owned, whole-home rentals, then by how much local registration it takes. This compares rules only, not returns, prices or demand.
| Market | Rules |
|---|---|
| 1. Big Bear Lake | Allowed, no citywide cap Registration: $635 a year per property, with an inspection. Combined tax: 13% (10% TOT + 3% tourism district) |
| 2. Joshua Tree | Allowed under a county permit, 1–2 per owner Registration: $1,144 new county permit; renewals from $550. Combined tax: 7% county TOT |
| 3. South Lake Tahoe | Open in the Tourist Core; residential zones waitlisted Registration: $548 application + $285 inspection, plus an annual fee by occupancy. Combined tax: 12%–14% TOT plus a per-night tourism fee |
| 4. San Diego | Whole-home licenses capped; Mission Beach full Registration: $41 application + $1,129 license (whole-home), every 2 years. Combined tax: 11.75%–13.75% TOT by tax zone |
| 5. Palm Springs | Capped at 20% of homes per neighborhood Registration: Annual certificate: $1,046 standard, $523 Junior (fees being confirmed). Combined tax: 12.5% (11.5% TOT + 1% tourism district) |
| 6. Los Angeles | Primary residence only, 120 days a year Registration: $89 Home-Sharing registration; Extended Home-Sharing from $850. Combined tax: 14% TOT |
| 7. San Francisco | Permanent residents only; 90 un-hosted nights Registration: $925 OSTR certificate (2 years) plus a business registration. Combined tax: 14% TOT (plus a tourism district assessment in some areas) |
Market by market
What each place allows
1. Big Bear Lake, CA
| Short answer | Allowed, no citywide cap The City of Big Bear Lake licenses vacation rentals with no owner-occupancy rule and no citywide numeric cap, though one owner can hold no more than two licenses and certain dwellings are prohibited. Occupancy is the lesser of two adults per bedroom, one person per 200 square feet, or 16, and owners and their 24/7 response agents must pass an annual city exam. Big Bear City, Sugarloaf and Fawnskin are unincorporated and follow San Bernardino County's program instead. |
|---|---|
| Registration | $635 a year per property, with an inspection |
| Combined tax | 13% (10% TOT + 3% tourism district) |
| Full rules | Short-term rental rules in Big Bear Lake Verified September 27, 2026 |
2. Joshua Tree, CA
| Short answer | Allowed under a county permit, 1–2 per owner Joshua Tree is unincorporated, so San Bernardino County's Mountain and Desert program applies. Investor-owned rentals are allowed, but each owner can hold at most two permits, and a parcel under 2 acres can have only one. It has the lowest lodging tax of the California markets we track, but operating without a permit can cost $1,000 a day. |
|---|---|
| Registration | $1,144 new county permit; renewals from $550 |
| Combined tax | 7% county TOT |
| Full rules | Short-term rental rules in Joshua Tree Verified September 27, 2026 |
3. South Lake Tahoe, CA
| Short answer | Open in the Tourist Core; residential zones waitlisted Vacation home rentals have no cap in the Tourist Core, commercial and recreational zones. Residential zones are capped at 900 permits, and since August 21, 2026 new residential applications go onto a waitlist with no timeline. The cap replaced the Measure T ban, which a court struck down in March 2025. |
|---|---|
| Registration | $548 application + $285 inspection, plus an annual fee by occupancy |
| Combined tax | 12%–14% TOT plus a per-night tourism fee |
| Full rules | Short-term rental rules in South Lake Tahoe Verified September 27, 2026 |
4. San Diego, CA
| Short answer | Whole-home licenses capped; Mission Beach full San Diego's four-tier STRO system caps whole-home licenses outside Mission Beach at 1% of housing units; about 807 remained as of September 25, 2026. Mission Beach is fully allocated, with new licenses only from a lottery-ordered waitlist. Licenses can't be transferred with a sale, so buying a licensed home doesn't buy the license. |
|---|---|
| Registration | $41 application + $1,129 license (whole-home), every 2 years |
| Combined tax | 11.75%–13.75% TOT by tax zone |
| Full rules | Short-term rental rules in San Diego Verified September 27, 2026 |
5. Palm Springs, CA
| Short answer | Capped at 20% of homes per neighborhood Investor-owned rentals are allowed on single-family homes, but standard certificates are capped at 20% of dwelling units in each organized neighborhood, and permit holders can book only a limited number of separate rental contracts a year (26 for new permittees). Junior and Homeshare certificates offer lower-volume paths where a neighborhood is full. |
|---|---|
| Registration | Annual certificate: $1,046 standard, $523 Junior (fees being confirmed) |
| Combined tax | 12.5% (11.5% TOT + 1% tourism district) |
| Full rules | Short-term rental rules in Palm Springs Verified September 26, 2026 |
6. Los Angeles, CA
| Short answer | Primary residence only, 120 days a year Los Angeles allows short-term rentals citywide, but only in the host's primary residence, lived in more than six months a year. Standard registration allows 120 days of hosting a year; more needs an Extended Home-Sharing registration. Investor-owned units can't be registered. |
|---|---|
| Registration | $89 Home-Sharing registration; Extended Home-Sharing from $850 |
| Combined tax | 14% TOT |
| Full rules | Short-term rental rules in Los Angeles Verified September 27, 2026 |
7. San Francisco, CA
| Short answer | Permanent residents only; 90 un-hosted nights Only a permanent resident who lives in the unit at least 275 nights a year can host, and only in that one unit. Hosted stays have no night limit, but un-hosted, entire-home stays are capped at 90 nights a year. ADUs and JADUs are excluded. |
|---|---|
| Registration | $925 OSTR certificate (2 years) plus a business registration |
| Combined tax | 14% TOT (plus a tourism district assessment in some areas) |
| Full rules | Short-term rental rules in San Francisco Verified September 27, 2026 |
State law
The California rules behind the ranking
| Who sets the rules | Cities, and counties for unincorporated areas There is no statewide short-term rental license and no state law limiting local bans like Florida's or Arizona's. Each city or county sets its own permits, caps and occupancy rules, and its own transient occupancy tax (TOT). |
|---|---|
| City vs county | A town name doesn't tell you whose rules apply Joshua Tree, Big Bear City, Sugarloaf and Fawnskin are unincorporated and follow San Bernardino County's program, while the City of Big Bear Lake has its own. Check whether an address is inside city limits before relying on a city's rules. |
| Platform data | SB 346 lets cities require platforms to share listing data Under California SB 346, cities that opt in can require booking platforms to report listing addresses and related data, which makes unregistered rentals easier to find. Palm Springs adopted it in 2026. |
| Taxes | Local TOT of 7% to 14%, plus tourism district fees in some places Platforms collect TOT in some cities but not all, so check each market page. See also cities that banned or restricted Airbnb and the Florida ranking. |
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The ranking compares local rules for investor-owned, whole-home rentals in the jurisdiction each market page covers. It isn't investment advice and doesn't weigh prices, occupancy or returns. General information only, not legal or tax advice; HOA and condo rules can be stricter. Airbnb is a trademark of Airbnb, Inc.; Rental Rule Book is independent and not affiliated with any booking platform. See also all guides.