🎯 STRisker: Bulletin - Sacramento, CA
Sacramento Eyes Big Changes to Airbnb Rules—Goodbye, Absentee Hosts?
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Sacramento Eyes Big Changes to Airbnb Rules—Goodbye, Absentee Hosts?
SACRAMENTO, Calif. — Sacramento may soon hit the reset button on its short-term rental rules in a big way. In an effort to cool off neighborhood tensions and prioritize housing for locals, city officials have proposed a full-scale overhaul of how Airbnbs and other short-term rentals operate—particularly those run by absentee owners.
According to a recent presentation to the city’s Law and Legislation Committee, nearly 60% of the 558 STR permits issued this year went to properties where the owner doesn’t live. That’s more than double what it was in 2020—and city officials say those units are responsible for most of the complaints, including unauthorized listings and party-house mayhem.
The proposed reforms would flip the script on Sacramento’s STR market:
✅ Ban short-term rentals at properties where the owner doesn’t reside.
âś… Require that only property owners can apply for STR permits.
âś… Cap each person at one STR permit to avoid portfolio-style hosting.
âś… Demand stronger data-sharing from platforms like Airbnb and VRBO to improve enforcement.
One noteworthy change: Accessory Dwelling Units (ADUs) could still qualify as STRs—if the owner lives on-site at least 184 days a year. This tweak would offer a middle ground for owners wanting flexibility, but it’s already raising red flags. Councilmember Roger Dickinson cautioned the move could “incentivize STRs over long-term rentals” at a time when housing affordability is front and center.
Currently, non-owner-occupied rentals can only operate 90 days a year, while there’s no limit for owner-occupied ones. The proposed changes would effectively phase out year-round, investor-run listings altogether.
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Residents seem cautiously optimistic. One local, Kyle Wyatt, admitted he’s “on the fence” about STRs but acknowledged, “There’s a critical housing problem here—both in availability and cost.” Another resident said any effort to ease the housing crunch is “worth a look.”
Councilmember Cathy Maple suggested one potential softening of the rules—asking whether owners of small multi-unit properties (four or fewer) might be allowed to rent additional units on a short-term basis. It’s unclear if that will be added to the final proposal.
The reforms haven’t gone to a vote yet—the next stop is the full City Council, though a hearing date hasn’t been set. Still, it’s clear that Sacramento is ready to take a hard look at how short-term rentals are shaping life—and housing—in the city. The “Airbnb effect” in Sacramento could be heading for a serious reality check.
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