TL;DR: Airbnb regulations vary significantly across US cities, and non-compliance can cost you your license. Most cities now require hosts to obtain permits or business licenses, stick to primary-residence-only rules, and cap the number of rental nights per year. Stricter cities like New York, LA, and San Francisco have the toughest restrictions, while cities like Nashville and Austin are more host-friendly. Always research local rules before investing in a new rental property.
Starting as a home-sharing initiative, Airbnb has gradually grown into the leading platform for short-term rentals. These days, being a short-term rental host is a viable business model in its own right.
In 2024, there were 45,595 Airbnb listings in Los Angeles, 39,719 in New York, and thousands of STR options in other US cities*. Yet the rapid growth of Airbnb rentals couldn’t last forever. The impact on housing availability and prices was too noticeable, which made city councils adopt Airbnb local regulations. These regulations introduce permits, licensing, zoning, rental duration, number of people allowed, and other rules.
Here, you’ll find out what limitations might apply to you and which US cities allow or partially ban short-term rentals.
What Airbnb city regulations may apply?
Lately, dozens of STR regulations have appeared globally and in the US, changing the established rental practices. These laws are designed to re-establish Airbnb as a home-sharing solution rather than a way for large property management companies to make money.
These are the main kinds of laws and requirements that may apply:
- Business license. Even STR-friendly cities may require business owners to get an STR license before starting a business. You may need to officially register your short-term rental as a business and pay a fee.
- Short-term rental permissions. Property owners who want to rent their place short term must get permission. Such permissions are usually granted for a specific period (e.g., 120 rental days/ year), and you must renew them annually.
- Building standards. Local governments often specify which buildings are suitable for rentals and which aren’t. Learn the requirements regarding residential and non-residential uses, habitability, safety, design, and maintenance to make sure your property is suitable for Airbnb.
- Zoning rules. Airbnb zoning laws are common in tourist cities and locations with severe housing shortages to limit where properties can be rented on a short-term basis.
- Taxes. Cities that allow Airbnb often require hosts to collect overnight taxes and pay taxes for running a rental business. In some jurisdictions, Airbnb automatically gathers and remits certain taxes.
- Limited duration of stay. Every city with Airbnb local regulations has its own limits on the number of days you can rent your property during a calendar year. The nightcap may also vary depending on the permission type.
- Primary residence requirement. Many recent STR regulations require a rental property to be the host’s primary residence. You cannot rent an apartment where you don’t live.
- Insurance. You may need a special damage protection service adapted to short-term rentals to rent out your property by the law. Such insurance also makes you much better protected from guest damage and force majeure events.
Many Airbnb-banning cities and cities where Airbnb is legal but regulated will have limitations like these. Your goal is to clarify the local regulations and calculate whether the return on investment is worth renting there.
US cities with Airbnb restrictions and bans
Before investing in short-term rentals, you must know where is Airbnb legal. You must also understand what limitations apply and how it will affect your income.
Below, you’ll find out which cities have the harshest Airbnb restrictions, so you know what you’re getting into. You still can rent a property here, but you must be extra careful with local regulations.
Airbnb regulations in Denver, CO
In 2016, the Denver City Council enacted an ordinance that regulates the use of platforms like Airbnb. Since then, you can rent your primary residence only and follow the 180-day rule, which means you must live there for over 180 days annually.
Besides, all hosts must have a Lodger’s Tax ID, business license, and registration with Denver’s Permitting and Licensing Center. The license application fee is $150, while annual renewal costs $100. You must also be ready to pay local taxes, including a 10.75% lodger’s tax and sales tax. Read a detailed guide to Denver Airbnb rules for more information on mandatory insurance, safety standards, and other details.
Airbnb regulations in Las Vegas, NV
Las Vegas, known for its bustling nightlife, is one of the cities where starting an Airbnb business may be challenging. It has zoning laws that introduce a 660-foot density limit, regulating the number of short-term rentals in certain residential areas.
Hosts must also get a rental license, arrange a property inspection, and explain how the property will be used. The annual fee is $500. Speaking of taxes, the federal 14-day rule means rental income may not need to be reported if you rent for 14 days or fewer per year — but Nevada and local taxes apply separately, so check your obligations carefully. The Transient Lodging Tax applies to rentals over 14 days and other rules are detailed in our Airbnb law guide for Las Vegas.
Airbnb regulations in New York, NY
People often call the New York STR restrictions an Airbnb ban, but that’s not quite right. New York City allows short-term rentals with a bunch of requirements based on Local Law 18.
Firstly, you must register your place and get a unique verification number to include in every listing. Rentals under 30 days require the host to be present throughout the stay — the 30-day threshold is what triggers these requirements, not a cap on how long guests can stay. The primary residence requirement also applies to NYC, meaning you must live in the rented property for at least 183 days per year.
Airbnb regulations in Los Angeles, CA
The primary legislation for LA hosts is the Home-Sharing Ordinance that came into effect in 2019. It requires you to register with the city planning department, get a registration number, and rent your primary residence only. You can register one rental unit at a time.
There are two categories of STR permits in LA, and the registration fee is $199. The standard permit allows sharing a property for up to 120 days annually. The extended one waives the nightcap, but you must meet additional requirements like hosting guests for at least 60 days.
Airbnb regulations in San Diego, CA
San Diego cuts the share of short-term rentals to 1% of available housing stock, considerably limiting Airbnb hosts. San Diego’s Short-Term Residential Occupancy and Hosting Platforms Law, enacted on August 10, 2022, also brought many other restrictions, such as the host license requirement.
Hosts who rent their properties short-term (from 1 to 30 days at a time) must get a Transient Occupancy Tax (TOT) number and a short-term residential occupancy license (STRO). The license has four tiers for different types of properties, with the costs ranging from $125 to $1070, depending on the cap and area. Read more about the Airbnb regulations in San Diego.
We interviewed Paul Becker, a member of the San Diego Short-Term Rental Alliance, about the current STR regulations in the city.
Airbnb regulations in Chicago, IL
Chicago adopted the Shared Housing Ordinance on June 22, 2016, to make hosts register their properties and start tracking STR units. It also introduced the Prohibited Building list, which includes properties banned from short-term rentals.
Since then, people who rent property for 1 to 31 days at a time must obtain a short-term rental registration number and include it in their listings. The shared housing registration fee is $125, and $25 for an annual renewal if you rent your primary residence. According to Chicago Airbnb laws, you’re allowed to rent a non-primary residence. Just make sure to get a separate non-owner-occupied license.
Airbnb regulations in San Francisco, CA
Airbnb regulations in San Francisco are on the stricter side. Be ready to obtain a business registration certificate from the Office of the Treasurer & Tax Collector and then apply for a Short-Term Residential Rental Certificate from the Office of Short-Term Rentals. The city also has the primary residency requirement, requiring hosts to live in a property for at least 275 days per year. Like in many other cities, you can only have one primary residence.
If you’re home overnight (this is called a “hosted” rental) there’s no annual limit on how many nights you can rent your property. If you’re not present (”un-hosted”), you can only rent your property for up to 90 days.
You’ll also need at least $500,000 of liability insurance. If you’re only listing on Airbnb, that’s already included in AirCover. Just be sure to get additional cover if you take direct bookings or use other channels as well.
Airbnb regulations in Atlanta, GA
According to Atlanta Airbnb laws, you need a short-term rental license which is displayed wherever you advertise your property. Unlike San Francisco, you can get a license for one additional dwelling as well as your primary residence (two units in total).
The City of Atlanta Short-Term Rental Ordinance also requires hosts to ensure guest safety, provide adequate parking, prevent disorderly behaviour, and comply with state taxes.
Airbnb regulations in Seattle, WA
To start short-term rentals in Seattle, you must get a business license tax certificate, meet basic housing maintenance requirements, and obtain an operator’s license. Seattle Airbnb regulations also require hosts to operate up to two units, with one being their primary residence.
Read about these and other Seattle short-term rental laws.
Airbnb regulations in San Jose, CA
As a host in San Jose, you don’t need a separate rental license, but you can only rent out your primary residence. And you must have a business tax certificate, while paying 10% Transient Occupancy Tax.
San Jose’s short-term rental laws require hosts to live in the property for at least 60 consecutive days per year. Un-hosted rentals are limited to 180 nights per year, and there’s an occupancy limit that varies depending on the size of your unit.
Short-term rental-friendly cities
Even though the list of cities with no Airbnb regulations gets shorter year by year, some cities have more lenient regulations. These are usually the places with lower demand for property and fewer tourists compared to places like NYC or Las Vegas.
Airbnb regulations in Fort Collins, CO
The Short-Term Rental Ordinance with Land Use Code Amendment is the core regulation to comply with when renting in Fort Collins. It’s relatively easy to follow compared to other Airbnb regulations by city.
You can rent a room or an entire house as long as you have a short-term rental license. Short-term rentals are stays of up to 30 days. The application costs $150, with $100 for annual renewal. There are two types of licenses, depending on whether or not the property is your primary residence.
Airbnb regulations in Nashville, TN
In Nashville, hosts must receive a permit from the Metro Codes Department before listing their properties. You can choose between an owner-occupied and non-owner occupied permit depending on whether you live in the rental property or not. The application process happens online, which is very convenient for hosts. The permit is valid for 365 days. Nashville also has zoning restrictions, which mainly apply to non-owner occupied short-term rentals. Overall, the STR rules here are easy to follow.
Airbnb regulations in Austin, TX
All STRs in Austin must be licensed under section 25-2-791 of the City Code. There are three types of short-term rental properties with varying licensing requirements. You can rent an owner-occupied unit, an entire dwelling, or part of a multi-family or condominium residential unit. The only drawback of short-term rentals in Austin is the cost of the license — $779.14 for the first time and $437 for renewal.
Know your Airbnb regulations by city
Often, cities with housing issues and high property prices, like NYC, Los Angeles, Las Vegas, or San Francisco, have stricter short-term rental regulations. Places with fewer tourists and more residential units available for long-term rentals don’t limit hosts as much.
Most municipalities now ask hosts to get business licences or short-term rental permits. You might also be limited to renting your primary residence for a certain number of days. Take time to research the local rules in detail and make sure you’re compliant before investing in new property.
When you’re ready to start your business, Truvi can help by offering guest screening services and damage protection. After researching all those regulations and applying for licenses, you’ll be glad to know your investment won’t get hit by unexpected cleaning or repair costs.
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