City Watch
Short-term rental rules in Santa Cruz, CA
How Santa Cruz regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- Primary-residence / owner-occupancy requirement for all permitted STRs (Hosted only; owner must reside in the home >6 months/year and hold a Santa Cruz County Assessor's Homeowners Exemption)
- Non-Hosted (whole-home, owner-absent) STRs are being phased out: no new Non-Hosted permits issued; citywide Non-Hosted cap reduced through attrition as permits are vacated/revoked
- Hard numeric cap of 250 Hosted STR permits citywide
- ADU exclusion: properties with a single-family home plus an ADU cannot receive an STR permit for either unit (limited grandfathering)
- Coastal-zone restriction is durable — adopted as an LCP amendment (Part 18) reviewed/certified by the CA Coastal Commission (LCP-3-STC-17-0073-2), so the supply constraint is in force in the coastal zone
Based on: Santa Cruz Municipal Code Ch. 24.12, Part 18 — Residential Short-Term Rentals (Ordinance No. 2017-18, adopted 2017/2018)
Summary of the rule
Only Hosted STRs are permitted for new applicants; the host/owner must reside in the dwelling more than 6 months per year and provide a Santa Cruz County Assessor's Homeowners Exemption plus two additional residency documents.
View the ordinance source ↗✓ Verified
Last reviewed Sep 9, 2026 · Sources · Report an error
Pending legislation
Monitoring Santa Cruz · system last checked Oct 25, 2026
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City Watch tracks changes from public sources — council agendas, state bills, local news — not a complete legal compendium.
A city permit is not the whole picture — HOA, condominium, deed, or lease rules may be stricter.
City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.