11 verified short-term rentals rules for Chico, California, sourced directly from the municipal code and official government pages.
Verified from official government sources
Chico requires STR operators to obtain (1) a city business license, (2) a TOT registration, and (3) an administrative permit from the Department of Development Services. The municipal code defines a 'hotel' to include short-term home-sharing and vacation rental units rented for under 31 days, per Chico Municipal Code Chapter 3.52 (TOT).
Short-term rental guests in Chico are bound by CMC Chapter 9.38 (Noise), which sets specific decibel limits and prohibits unreasonable noise that disturbs the peace, plus general nuisance provisions in CMC Title 9 (Public Peace, Morals & Welfare). Operators are responsible for guest conduct and may face a citation under the city's loud-and-unruly-gathering enforcement, which is concentrated in the Cal State Chico south-campus area.
Chico imposes a Transient Occupancy Tax (TOT) on lodging stays of 30 days or less under authority of Cal. Rev. & Tax. Code §7280, collected by the operator and remitted to the City Finance Department. Short-term rental operators must also obtain a City of Chico business license (Chico Municipal Code Title 5 — Business Taxes, Licenses & Regulations). The fee schedule is set annually by City Council resolution rather than fixed in the code.
STR guest parking in Chico is governed by CMC Title 10 (Vehicles and Traffic) for on-street parking and CMC Title 19 (Land Use & Development Regulations) for off-street parking minimums tied to the dwelling. Chico does not publish a stand-alone 'one off-street space per bedroom' STR rule, but Title 19 sets parking ratios for residential uses, and any condition on a Title 19 use permit for the STR is binding.
Chico does not publish a stand-alone overnight-guest cap for short-term rentals in its municipal code. STR occupancy is governed by the California Building Code/Title 24 occupancy load for the unit and by CMC Title 16 (Buildings & Construction) and CMC Title 19 (Land Use). Operators must also respect any cap set by the use permit or zoning approval issued for the property under CMC Title 19.
Chico's municipal code does not require short-term rental operators to carry a specific commercial liability insurance policy or name the City as additional insured. Insurance obligations come from the operator's homeowner's/landlord policy, any HOA CC&Rs, and the indemnity terms of the hosting platform (Airbnb AirCover, Vrbo Liability Insurance). State law does not preempt cities from setting STR insurance minimums; Chico has simply not adopted one in CMC Title 5 or Title 19 to date.
Chico has not adopted an annual night cap (e.g., 90-night or 120-night ceiling) on short-term rentals in its municipal code. STRs operate under CMC Title 19 zoning and CMC Title 5 business-license rules without a hosted-vs-unhosted day limit. California does not preempt cities from adopting night caps, but Chico has not exercised that authority to date.
Every STR operator in Chico must register with the city Finance Department for a Transient Occupancy Tax certificate and obtain a business license (renewed annually) before accepting bookings. TOT is collected at 10% of rent for stays of 30 days or fewer per CMC Chapter 3.52.
Chico does NOT require the operator/host to be physically present during STR stays. Instead, the administrative permit framework requires a designated local property manager available 24 hours a day, 7 days a week to respond to guest issues, noise complaints, or code violations.
Chico does NOT impose a citywide primary-residence-only rule on short-term rentals. The administrative permit framework and Title 19 zoning allow non-owner-occupied STRs, though performance criteria (local property manager, occupancy caps, parking) apply. Single-family residential (RS) zone applications historically have been the most constrained.
County ordinances apply to unincorporated areas and may supplement Chico city rules.
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