Daily Regulatory Notes 02/03/2026

Kentucky

Kentucky lawmakers are considering Senate Bill 112, which would block local governments from regulating short-term rentals through zoning and permitting requirements.

26RS SB 112

Kentucky Legislative Research Commission

Officials in Nelson County and La Grange say STRs are economically beneficial but stress that local oversight helps ensure responsible operation. They warn the bill could eliminate basic visibility into where rentals operate.

Decatur, AL

The Decatur City Council approved a new short-term rental ordinance in a 4–1 vote, establishing stricter rules for Airbnb and similar properties.

The ordinance requires operators to register annually, pass inspections, maintain a 24/7 local contact, and comply with new density limits and a citywide cap of 135 rentals. A three-strike enforcement policy allows the city to revoke certificates for properties with repeated complaints. The rules take effect April 1, with a 90-day grace period before fines and full enforcement begin.

Saratoga, CA

Saratoga is moving toward a full ban on short-term rentals, with the City Council voting 4–1 on Jan. 21 to prohibit both STRs and the advertising of listings on platforms like Airbnb and Vrbo.

The ordinance includes fines starting at $1,500 and rising to $5,000 for repeat violations, and would rely on third-party monitoring to identify illegal listings. Final adoption is expected at the Feb. 4 council meeting.

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Cape Coral, FL

Cape Coral has implemented an updated Residential Rental Registration Program requiring all long-term and short-term rental properties to register and renew annually under Ordinance 53-25 and Resolution 279-25.

Short-term rentals, defined as leases of six months or less, now face a higher annual fee of $350 compared to $35 for long-term rentals, along with steeper fines for noncompliance.

Sterling Heights, MI

Sterling Heights is weighing tougher action on short-term rentals, which are currently prohibited in residential zones but continue to operate across the city. Officials estimate 70 to 100 listings appear daily, some generating complaints about noise, parking, and quality-of-life issues.

City staff outlined three paths forward: maintain the current prohibition, formally ban STRs in the zoning code, or allow them under new regulations such as licensing, caps, and owner-occupancy rules. A full report is expected in the coming months as the city rewrites its zoning code.

Grand Traverse County, MI

Grand Traverse County commissioners are scheduled to vote Feb. 4, 2026, on housing policy changes that would restrict short-term rentals in projects receiving county tax incentives.

The proposed guidelines require at least 20% of units to serve households earning under 100% of area median income and ban short-term rental use to preserve long-term housing. Rent and income restrictions would apply for at least 10 years or the length of the tax reimbursement period.

Omaha, NE

Omaha City Councilman Ron Hug is exploring a potential ordinance to regulate short-term rentals following a fatal overdose at a rental near 52nd and A streets.

Hug held a neighborhood meeting to gather input, noting that current state law prevents the city from banning short-term rentals leaving residents feeling powerless. He suggested using Lincoln’s licensing-based regulations as a model. While no ordinance has been formally introduced, Hug has asked the city’s legal department to draft a proposal.

Worcester County, MD

Worcester County officials are considering rewriting short-term rental parking rules after a staff error led some homeowners in The Landings, West Ocean City, to receive licenses they didn’t technically qualify for.

The county had required three parking spaces for rentals built after Jan. 1, 2020, but permits were mistakenly issued to homes with only two spaces, creating inequities. A recent reinterpretation of the rule revoked roughly 20 licenses, angering homeowners who say they relied on incorrect guidance when purchasing their properties

In case you missed it:

STRisker Release Notes // February 2, 2026

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