Fullerton Night Caps Rules (2026): What You Need to Know

Fullerton's short-term rental regulations include annual booking limits designed to prevent the conversion of long-term housing stock into de facto hotels. Non-owner-occupied whole-home rentals — where the property owner is not present during guest stays — are subject to a maximum of 100 rental nights per calendar year. A rental night is defined as any night during which the property is occupied by a paying short-term rental guest.

Owner-occupied hosted rentals, where the property owner resides on-site during all guest stays, are exempt from the annual night cap. This distinction incentivizes the hosted rental model, which the city considers less disruptive to neighborhoods and more compatible with residential character.

Fullerton limits each property owner to one STR permit within the city, preventing the accumulation of multiple short-term rental properties by a single investor. Similarly, only one STR unit may operate on any given parcel, even if the parcel contains multiple dwelling units (such as a duplex or triplex with an ADU).

Operators are required to maintain accurate booking records — including dates, guest counts, and rental income — and must provide these records to the city upon request for compliance verification. The city may audit booking records against platform data to verify night-cap compliance. Operators who reach the 100-night limit must cease accepting new bookings for the remainder of the calendar year. The night-cap counter resets on January 1 of each year.

Fullerton's approach reflects the city's concern about housing affordability and availability in a market where the presence of Cal State Fullerton drives significant rental demand. By capping whole-home STR nights, the city aims to keep residential units available for long-term tenants.