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Newport Beach, CA Short-Term Rentals: Night Caps (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Citywide permit cap
1,550 total STL permits
Residential district cap
1,475 permits
Multi-use area cap
75 permits
Multi-unit building limit
20% of units, rounded down
Waiting list response window
10 calendar days
Governing section
NBMC § 5.95.042

Summary

Newport Beach limits the total number of short term lodging permits citywide to 1,550. Residential districts are separately capped at 1,475 permits and the multi-use area at 75, with a further rule limiting multi-unit buildings of five or more units to 20 percent short term lodging conversion. Once a cap is hit, new applicants join a City waiting list.

The maximum number of short term lodging permits in a residential district shall be limited to one thousand four hundred seventy-five (1,475) permits at any time. … To avoid wholesale conversion of existing and new housing complexes into short term lodgings within the residential district, multi-unit developments with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). … The maximum number of short term lodging permits in the multi-use area shall be limited to seventy-five (75) permits. … The total number of short term lodging permits in the City shall not exceed one thousand five hundred fifty (1,550).

Full Breakdown

042 sets three separate ceilings on short term lodging (STL) permits. Subsection (A) caps permits in residential districts at 1,475 at any time; if the City already held more than that count as of the effective date of Ordinance No. 2025-15, existing owners can still renew, reinstate or transfer their permits, but no new permit goes to anyone on the waiting list until the residential count drops back to 1,475. To stop entire apartment or condo complexes from converting to nightly rentals, subsection (A) also limits multi-unit developments of five or more units to a maximum of 20 percent of their total units operating as short term lodgings, rounded down to the nearest whole unit.

Subsection (B) sets a separate 75-permit ceiling for the multi-use area, and subsection (C) caps the combined citywide total at 1,550. When the City has issued the maximum permits available, the Administrative Services Director (and, under subsection (G), the Finance Director) must keep a waiting list; a spot opens by mailed notice, and the person notified has only 10 calendar days to apply before losing their place, unless the Director extends the deadline for good cause. 043 jump the waiting list ahead of new applicants.

Violations & Fines

There is no fine tied to the cap itself: it is enforced by simply refusing to issue new permits once a zone's ceiling is reached. An owner who lets a permit lapse past its 30-day renewal window, or who misses the 10 calendar days to respond to a waiting-list notice, is treated as abandoning the slot under §§ 5.95.030(B) and 5.95.042(D) and drops to the back of the line.

Frequently Asked Questions

How many short-term rental permits can Newport Beach issue?
No more than 1,550 total, per NBMC § 5.95.042(C). Within that citywide ceiling, residential districts are separately capped at 1,475 permits and the multi-use area at 75, so an opening in one zone does not free up room in the other.
What happens once Newport Beach reaches its rental permit cap?
The Administrative Services Director stops issuing new permits and opens a waiting list under § 5.95.042(D). When a permit becomes available, the City mails the next person in line a notice; that applicant has 10 calendar days to apply or the spot passes to the next name.
Can an apartment complex convert all its units to short-term rentals?
No. Section 5.95.042(A) caps multi-unit developments of five or more units at 20 percent of total units operating as short term lodgings, rounded down to the nearest whole number, specifically to prevent wholesale conversion of housing stock.

Sources & Official References

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