Cities That Allow or Deny Airbnb, VRBO & STRs in Orange County

Although VRBO and Airbnb started out as ways to make money off of the unused rooms in your house, they quickly became full-fledged income streams for many aspiring entrepreneurs. However, this has led to issues in areas like Orange County, where the tourist season is busy and the housing market is competitive. If you’ve considered buying a property specifically for use as a short-term rental, it’s important to know the restrictions and requirements of your cities of interest before investing any real time or money.

*UPDATED 6/15/2026 – Confirmed all policies and valid links to city resources.

Orange County has one of the most established tourism industries in California, making it an obvious choice for those interested in short-term rental investment properties. In 2019, there were 50.2 million visitors to Orange County, bringing in a total of $9.2 billion. All of those visitors need to stay somewhere—perhaps your Airbnb or VRBO?

Discussing your plans with an Orange County real estate attorney should be high on your priority list if you plan on a short term rental business in OC. Your attorney can help you understand the potential issues you’ll face and show you different ways to protect yourself. Use our real estate lawyer listings to start your search.

What Orange County, California Cities Allow Airbnb, VRBO and Short Term Rentals?

Garden Grove: Banned

The city of Garden Grove came down hard on short-term rentals after short-term rental led to disruptions throughout many of the city’s family-friendly neighborhoods. The city completely forbids short-term rentals in residential zones, and allocates a substantial amount of resources to enforcing this ban. Violations could lead to up to $1,000 per day in fines, six months in jail, or both.

Irvine: Banned

The city of Irvine has also banned all short-term rentals in residential zones. Those who operate a short-term rental may face fines of $1,500 per day and be charged with a misdemeanor.

Huntington Beach: Allowed, But Only in Certain Areas

Per Huntington Beach’s ordinance 4224 hosted, owner-occupied short-term rentals are permitted in Zones 1 and 2, while unhosted rentals are allowed only in Sunset Beach and must generally have been permitted by March 1, 2022. Permits must be renewed annually, cannot be transferred, and require a 24-hour local contact who can respond within one hour. Operators are also subject to a 10% transient occupancy tax and a 6% tourism business improvement district assessment. Violations may result in penalties of up to $1,000 per day, and three violations within a 12-month period can lead to permit revocation. Review Huntington Beach STR regulations.

Fullerton: Allowed, But With Restrictions

The city of Fullerton requires Short-Term Rental Permits for all operators. However, on May 20, 2025, Fullerton adopted a 45-day moratorium on approval of new short-term rental permits. The city reported identifying 173 apparently unpermitted listings and said it was evaluating revisions to its regulations. Rentals must follow Good Neighbor Guidelines, which include accommodating designated trash collection days, overnight parking restrictions, safety policies, and noise limitations. The city initially limited the amount of STRs in Fullerton to 325, but chose to reduce that number further to 100 in 2021. All approved Short-Term Rental Permits are Non-transferable and will be null and void upon property ownership transfer.

Anaheim: Allowed for Current STR Operators, but Not for New Ones

Although short-term rentals were banned in Anaheim in 2016, that policy was reversed in 2019 and there are now 222 permitted short-term rentals in Anaheim. However, only current short-term rental operators are allowed to maintain a rental in Anaheim. Current policies forbid the allowance of new short-term rentals. Here are additional requirements in Anaheim: 1) A three-night minimum stay; 2) Annual permit renewal; A business license; 4) additional restrictions on permit transfers following ownership changes.

Orange: Allowed, But the Current Limit for Short-Term Rentals Has Already Been Reached

Orange implemented a Short-Term Rental ordinance in June of 2021. The city currently only allows 125 STRs to operate. They have reached that number and now maintain a waitlist for those who would like to operate a short-term rental. Those who run an STR must have a short-term rental permit and a business license.

Laguna Beach: Allowed, But With Restrictions

The city of Laguna Beach has some of the most complicated regulations for short-term rentals in Orange County.

Laguna Beach allows short-term lodging only in designated commercial, mixed-use and Downtown Specific Plan districts, as well as the SLV zoning district, subject to an Administrative Use Permit or Conditional Use Permit. New short-term rentals are prohibited in the R-1, R-2, R-3 and VC residential districts, although qualifying rentals legally permitted before October 2020 may continue as legal nonconforming uses. The city limits conventional short-term lodging to no more than 20% of eligible rental units and a maximum of 300 units citywide, excluding up to 165 additional home-share units.

Under Chapter 5.84, which took effect July 1, 2025, with enforcement beginning October 1, 2025, operators must obtain a Short-Term Lodging Unit License, maintain an annual city business license, secure the required use permit and register to collect transient occupancy taxes. Operators must also display their city license number in all advertisements and maintain a 24-hour local contact who can respond to complaints within 60 minutes. Violations may result in fines beginning at $1,000, suspension or revocation of the license, and a three-year prohibition on applying for another short-term lodging license following revocation.

These requirements are confirmed by Laguna Beach’s current short-term lodging guidance and Municipal Code Chapters 5.84 and 25.23 as linked above.

Newport Beach: Allowed, But With Restrictions

Short-term rentals are currently permitted in Newport Beach, but the city has taken steps to ensure that the needs of residents are prioritized.

Newport Beach permits short-term lodging in the R-1.5, R-2 and RM residential zoning districts and, under regulations adopted in 2025, certain existing residential units within the MU-W2 Mixed-Use Water and MU-CV/15th Street mixed-use districts. The city maintains a maximum of 1,550 active short-term lodging permits, with up to 1,475 permits allocated to eligible residential districts and 75 permits available in the designated mixed-use districts. Property owners must obtain an annual Short-Term Lodging Permit and city business license, register to collect and remit transient occupancy taxes and applicable visitor fees, and comply with occupancy, parking, noise, advertising and nuisance-response requirements. Permit renewals are due by October 31 each year, and when the applicable permit cap has been reached, prospective operators must join the city’s waiting list. Violations may result in administrative fines, permit suspension or revocation.

You can get on the Newport Beach STR waitlist here.

Considering Investing in a Short-Term Rental Property in Orange County? Find the Right Lawyer for You

When you want to add a short-term rental to your real estate portfolio, make sure you meet all legal requirements and regulations—fines of $1,000 or more per day can leave you financially wiped out and lead to the loss of your STR license.