On October 6, 2026, the Santa Barbara City Council unanimously recommended adopting new rules for short-term rentals (whole units without the owner present) and homeshares (owner present), each for stays under 30 days. The ordinances are not law yet: the final vote is scheduled for October 27, 2026.
The key rules
According to the city, the rules include a two-night minimum stay, one license per owner citywide and only one short-term rental per multi-unit property. The Santa Barbara Independent reports further details:
- Outside the coastal zone, short-term rentals would only be allowed in residential buildings in commercial zones – not in residential zones or high-fire areas.
- ADUs, deed-restricted affordable or employee housing and RVs are excluded.
- Owners cannot be a corporate entity or a real estate trust, and the unit cannot have had a long-term tenant in the past two years.
- Quiet hours are 10 p.m. to 7 a.m., and operators get six months to apply for a license.
In the coastal zone, according to Noozhawk, short-term rentals would only be allowed in non-residential or mixed-use areas such as downtown; homeshares would remain possible in all coastal zones. The coastal rules still need approval from the California Coastal Commission. The inland rules would take effect 30 days after adoption.
What it means for the market
The Independent cites more than 2,300 active listings (AirDNA data) and city staff estimates of up to nearly $3 million a year in lost tax revenue. Noozhawk puts the loss at $2.3 million to $3 million and estimates that about 65 units would remain. Airbnb asked the council to delay the decision for an economic and housing analysis.
What does this mean for you?
If you rent out a home in a residential zone in Santa Barbara, prepare for the end of short stays there: follow the October 27 vote, check your zoning and plan for mid-term rentals of 30 days or more, which these rules don't cover.
For everyone else, this is a reminder that rules can change completely after you buy. Before you invest, look at the local politics, not just today's ordinance – and have a local attorney check the details.
