Milpitas, CA Short-Term Rentals: Permit Requirements (2026)

On March 3, 2020 the Milpitas City Council adopted the ordinance that created the City's short-term rental (STR) program, codified in the Milpitas Zoning Code under Section 13 (Special Uses), Section XI-10-13.17. Before this ordinance took effect in July 2020, all short-term residential rentals in Milpitas were illegal. To operate legally, a host must complete two steps in order: first register the business and obtain a Home Occupation Business License from the Milpitas Business License Center (the City advises listing the business type as 'Short-Term Rental,' SIC code 6519001), and second submit the General Application with supplemental forms to the Planning Department at shorttermrentals@milpitas.gov to receive the STR permit. Only after both the business license and the Planning permit are issued may a host advertise or accept bookings. A short-term rental is defined as a furnished, self-contained single-family residence, apartment, or room rented for up to 30 consecutive days. Eligible properties include single-family dwellings, multi-family units, maid's quarters, and apartments (or portions thereof). Accessory dwelling units (ADUs), junior ADUs, single-room occupancy units, below-market-rate (BMR) and other income-restricted affordable housing, pool houses, outdoor sleeping areas, RVs, shipping containers, and commercial or industrial spaces are not eligible. The permit is valid annually on a rolling basis and expires each December 31, so hosts must renew it every year along with the business license.