The short answer: In California, usually not. State law requires rentals longer than 30 days for state-mandated ADUs, JADUs and SB 9 units, and lets cities require terms of 30 days or longer for ADUs approved under a local ordinance. Many cities add their own short-term rental rules on top. Other states differ: Oregon, Colorado and Arizona let cities tie short-term rentals of ADUs to owner occupancy, and Portland’s fee waiver bans them for 10 years.
Last verified: October 28, 2026 · Written by Marc
This guide summarizes state laws and city rules verified on October 28, 2026. It is general information, not legal or tax advice. Short-term rental rules change often, so check your city’s current ordinance before you list a unit.
An ADU looks like a perfect nightly rental: private, small and next to your home, so you can manage it yourself. That is exactly why so many states and cities restrict it. Their goal for ADUs is long-term housing, and the law reflects that. This guide explains the California rules for each type of unit, the difference between “30 days or longer” and “longer than 30 days,” how other states handle it and what to check before you plan around nightly income.
The California rules by type of unit
California sets the minimum rental term in four different sections, depending on how the unit was approved.
| Type of unit | Rental rule | Source |
|---|---|---|
| ADU approved under a local ordinance | The city “may require” rentals of terms 30 days or longer | Gov. Code § 66315 |
| State-mandated ADU (approved under § 66323) | The city “shall require” a rental term longer than 30 days | Gov. Code § 66323(e) |
| JADU | The ordinance must require a rental term longer than 30 days | Gov. Code § 66333(g) |
| Unit created through an SB 9 lot split | The city shall require a rental term longer than 30 days | Gov. Code § 66411.7(h) |
Two words make the difference. For a state-mandated ADU, a JADU or an SB 9 unit, the law says the city shall require a term longer than 30 days: it is not optional. For an ADU approved under a local ordinance, the city may require it. Many do, but it depends on your city.
Most backyard ADUs in California are approved under section 66323 or under a local ordinance, so the practical answer for most owners is the same: no nightly or weekly rentals.
Common mistake: listing the ADU because “the state only bans short-term rentals for JADUs.” State-mandated ADUs carry the same longer-than-30-days rule, and most local ordinances add one. Ask your city which section your permit was issued under before you list it.
30 days or longer, or longer than 30 days?
The statutes use two different phrases, and the difference is one day.
- “Terms 30 days or longer” (§ 66315): a 30-day stay is allowed.
- “A term longer than 30 days” (§§ 66323, 66333 and 66411.7): a 30-day stay is too short; the minimum is 31 days.
San Diego applies the stricter version to ADUs: an ADU may not be leased for less than 31 consecutive days, and a JADU must be rented for longer than 30 days with no short-term occupancy.
If you plan monthly furnished rentals, for traveling nurses or relocating workers for example, write the lease for at least 31 days. It keeps you inside the rule whichever section applies.
City rules on top of state law
State law sets the minimum, and cities add their own short-term rental ordinances. Two California examples show how far they go:
- Los Angeles: under the Home-Sharing Ordinance, an ADU built since January 1, 2017 can be home-shared only if it is the host’s primary residence, with a 120-night annual cap unless the host gets an extended registration. Units under the Rent Stabilization Ordinance are excluded.
- San Diego: an ADU may not be leased for less than 31 consecutive days, and a JADU must be rented for longer than 30 days.
Fee programs can add their own restrictions. Outside California, Portland’s ADU SDC waiver requires a covenant that bans short-term rental of the ADU and the house for 10 years, and breaking it costs 150% of the SDCs in force at the time. Our guide to Portland ADU costs explains that trade-off.
Other states: owner occupancy is the price of a short-term rental
Outside California, most state ADU laws protect long-term housing and leave short-term rentals to local rules. The common pattern is that a city cannot require owner occupancy for an ordinary ADU, but can require it for a short-term rental.
| State | Long-term rental | Short-term rental |
|---|---|---|
| Oregon | Owner occupancy cannot be required | Cities may regulate vacation occupancy separately, including owner occupancy or parking |
| Colorado | Owner occupancy cannot be required in covered jurisdictions | Cities may require owner occupancy to obtain a short-term rental license |
| Arizona | Long-term rentals must be allowed in covered cities | Operators may need to live on site for newer ADUs; cities can impose owner-occupancy rules |
| Washington | Owner occupancy cannot be required inside urban growth areas | Local short-term rental ordinances still apply |
| Massachusetts | Owner occupancy cannot be required for protected-use ADUs | Towns may restrict or prohibit short-term rentals |
If your business plan depends on nightly rentals, the state ADU law will rarely help you. Our guide to owner-occupancy rules for ADUs compares the states in more detail.
What it means for your numbers
A short-term rental plan that the rules do not allow is a budget risk, not an upside. Lenders also look at documented, long-term income: Freddie Mac counts at most 75% of a documented lease, capped at 30% of qualifying income. A nightly rental plan does not fit that model. Our guide to ADU rental income and loan qualification explains what lenders count.
Taxes are a separate question. Under IRS Publication 527, if you use a unit as a home and rent it for fewer than 15 days in the year, the rent is not reported, and the rental expenses are not deducted. That is different from the zoning rules: it does not make occasional nightly rentals legal where your city bans them. Our guide to ADU rental income taxes covers the federal rules.
Practical tip: Model your ADU budget with a long-term lease at a market rent first. If the project works at that rent, any furnished monthly or seasonal income the rules allow is a bonus rather than a requirement.
How to check before you list an ADU
- Find out which section approved your ADU: a local ordinance, section 66323 (state-mandated), a JADU or an SB 9 lot split. The building permit or the city planner can tell you.
- Read your city’s ADU ordinance for any minimum rental term.
- Read the city’s short-term rental ordinance, which is often in a different chapter of the code.
- Check any fee waiver or grant you used for rental restrictions, such as covenants or deed restrictions.
- Check your HOA documents, which may restrict rentals separately.
- Write leases of at least 31 days if any longer-than-30-days rule applies.
- Get the answer in writing from the city before you advertise.
Frequently asked questions
Can I rent my ADU on Airbnb in California?
Usually not for stays of 30 days or less. A city must require rentals longer than 30 days for state-mandated ADUs, JADUs and SB 9 units, and may require 30-day minimums for ADUs approved under a local ordinance. Cities such as San Diego and Los Angeles add their own rules. Monthly stays of 31 days or more are generally allowed, and listing platforms can be used for them.
Can I rent a JADU short term?
No. Government Code section 66333(g) requires a JADU ordinance to require that a rental of a JADU be for a term longer than 30 days. A JADU sits inside the main home, and its owner-occupancy rule also depends on whether it shares sanitation with the house. San Diego’s guidance repeats the rule: a JADU must be rented for longer than 30 days, with no short-term occupancy.
Does the 30-day rule apply to units built with an SB 9 lot split?
Yes. Section 66411.7(h) says a local agency shall require that a rental of any unit created through an urban lot split be for a term longer than 30 days. The same section also requires the applicant to sign an affidavit of intent to live in one of the units for three years. Our guide to SB 9 versus an ADU compares the two routes.
Can I live in the main house and rent the ADU short term outside California?
Sometimes. In Oregon, Colorado and Arizona, state ADU law bars owner-occupancy requirements for ordinary housing but lets cities require owner occupancy for short-term rentals, so living on site can be the condition for a permit. Your city’s short-term rental ordinance decides whether a permit is available at all. Check it, and any licensing rules, before you list.
Do I still pay taxes on occasional nightly rentals?
It depends on the days. Under IRS Publication 527, if you use a unit as a home and rent it for fewer than 15 days in the year, the rent is not reported and the rental expenses are not deducted. Longer rental use is generally reported on Schedule E. Tax treatment does not change zoning: check that the rental is allowed before you rely on the tax rule.
The bottom line
ADU short-term rental rules in California leave little room for nightly rentals. State-mandated ADUs, JADUs and SB 9 units must be rented for longer than 30 days, and cities may require 30-day minimums for ordinance ADUs, with local rules such as Los Angeles’s Home-Sharing Ordinance on top. In other states, short-term rentals are usually allowed only where the city permits them, often with owner occupancy.
Your next step is to find out which section approved your ADU and read your city’s short-term rental ordinance before you plan any nightly income. Then model the project on a long-term lease with our ADU budget breakdown and the rules in California ADU laws in 2026.
Sources
- Cal. Gov. Code § 66315
- Cal. Gov. Code § 66323
- Cal. Gov. Code § 66333
- Cal. Gov. Code § 66411.7
- City of San Diego: Information Bulletin 400
- City of Portland: ADU SDC waiver
- IRS Publication 527, Residential Rental Property
General information, not financial or tax advice. Rules change; confirm every figure with a qualified professional.
Cover photo: “LED lights strategically placed in the base of the house and deck help the University of Wisconsin-Milwaukee’s home illuminate” by U.S. Department of Energy Solar Decathlon, public domain, via Wikimedia Commons.
Questions or a correction?
If something in this guide is unclear, out of date or does not match what your city told you, send me a message. Include the source if you have one.