Adam Boehrer Pacific Sotheby's International Realty

Verified Against City of Dana Point Documents, October 2026

Dana Point short-term rental rules: capped, permitted, and over the day the house sells.

Dana Point allows short-term rentals, including in single-family homes, but it caps the investor permits on both sides of the Coastal Zone line, and the permit does not survive a sale. The City's own rules say the permit "shall expire upon the date the title to such parcel transfers." So a home that books well on Airbnb is selling you a house, not an income. Here is how both programs work, how full they are, and what to check before you write an offer.

The short version

Two rulebooks, two caps, one permit that ends at the sale.

  • 115

    Coastal Zone cap

    For non-primary, multi-family home stay and mixed-use permits. Home stay and primary residence permits are uncapped.

  • 115

    Cap outside the Coastal Zone

    All permit types combined, with no more than 60 for non-primary rentals.

  • 10%

    Transient Occupancy Tax

    Filed quarterly, within 20 days after each quarter ends.

Dana Point allows short-term rentals in any zoning district where residential uses are allowed, including single-family homes. That already makes it more permissive than Laguna or San Clemente. What it controls instead is the count, and which kind of owner gets priority.

The investor version, where the owner lives somewhere else, is the "Non-Primary" permit. It is the one that is capped, and the one that ends the day the house sells.

Where it is allowed

Which side of the Coastal Zone line you are on decides the rulebook.

Dana Point runs two programs. Inside the Coastal Zone, the rules are the Dana Point Coastal Zone Short-Term Rental Program, approved by the California Coastal Commission as Coastal Development Permit A-5-DPT-22-0038. Outside the Coastal Zone, the rules are Dana Point Municipal Code Chapter 5.38, last amended by Ordinance 25-09 on June 17, 2025. A permit is required either way.

The five permit types

  • Non-Primary: any STR that is not one of the four below. This is the second-home and investor permit.
  • Primary Residence: the owner's own domicile, rented while they travel. Limited to 60 days per 12-month period.
  • Home Stay: the owner rents part of the home and lives there during the rental, and must be on site from 10 p.m. to 7 a.m.
  • Multi-Family Home Stay: the owner lives in one unit of a duplex or triplex they own and rents another.
  • Mixed-Use Parcel: a unit on a parcel zoned for commercial and residential use together, such as C/R, R/C-18, P/R or TC-MU.

The caps

Inside the Coastal Zone, 115 permits total for Non-Primary, Multi-Family Home Stay and Mixed-Use Non-Primary rentals. Home Stay and Primary Residence permits have no cap, but each new one issued reduces the 115 by one. No more than 20% of the units in each mixed-use district can convert. Outside the Coastal Zone, 115 permits total for every type, and no more than 60 of them can be Non-Primary.

In any building, five or fewer units means one STR at most. Six or more means 20% at most, and never enough to create a "hotel" of six or more guest rooms. ADUs, junior ADUs, units created as part of a Single-Family Residential Duplex under Zoning Code 9.72, and affordable housing units cannot be permitted at all.

How full is it?

The City's own STR permit list dated September 22, 2026 shows 89 current permits inside the Coastal Zone, 82 of them Non-Primary, and 49 current permits outside it, 30 of them Non-Primary. On paper that sits under both caps. In practice the City runs a waitlist, gives Home Stay, Primary and Mixed-Use applications priority when it pulls from that list, and adjusts the Coastal Zone cap as uncapped permits are issued. So do not read the gap as an open seat. Ask the City where the waitlist stands for that permit type, on that side of the Coastal Zone line, before you count on one. The City also posts a map of permitted STRs.

The part that costs people money

The permit expires on the day title transfers.

Both rulebooks use the same sentence. When a parcel with an STR permit is sold, "the STR Permit shall expire upon the date the title to such parcel transfers, and the STR Permit shall not transfer to the new Property Owner." A buyer who wants to rent short term has to apply for a new permit. That is section 3(d) of the Coastal Zone program and section 5.38.030(c) of the Municipal Code.

The only exception is inheritance, or a family transfer that triggers no new property tax assessment, where the family member can apply to transfer the permit. A normal sale is not that.

And a new permit is not a formality. If the cap for your permit type is full, you go on the waitlist. Your spot is not transferable, you have to reapply every year to keep it, the waitlist fee equals the permit fee, and once you are selected you have 14 days to submit a complete application. One permit per property owner, and anyone holding more than 5% of a trust or business entity that owns the property counts as an owner.

The rule I use: underwrite a Dana Point purchase on what the home is worth as a home. The seller's booking history tells you what the market will pay. It does not tell you that you will be allowed to collect it.

What the City will ask for

The Dana Point rulebook, line by line.

Rule What the code says Where it says it
Minimum stay At least two consecutive nights. Anything over 30 consecutive days is not an STR. CZ Program 2(p) and 9(a)(12); 5.38.080
Insurance $1,000,000 combined single limit general liability, plus an indemnity agreement covering the City and the Coastal Commission. CZ Program 6(e); 5.38.050
TOT registration A transient occupancy tax registration certificate before the permit issues. CZ Program 6(d); 5.38.050
HOA Proof the STR is not prohibited by legal CC&Rs. Without it, no permit. CZ Program 6(i) and 9(a)(3); City STR page
Inspection The home must pass a City inspection before the permit issues. CZ Program 9(a)(5)
Parking At least two off-street spaces. One guest vehicle for a one-bedroom, two maximum for two or more bedrooms. CZ Program 9(a)(7) and (14)
Occupancy Two per bedroom plus two overnight. Daytime 2.5 times that, capped at 20. CZ Program 9(a)(13)
Guest age The primary renter staying in the home must be 25 or older. CZ Program 9(a)(10)
Complaints Owner or agent acts to abate within 30 minutes of notice. Quiet hours 10 p.m. to 7 a.m. CZ Program 9(a)(19) and (20)
Advertising Permit number in the listing title and description, and on the lower right corner of every photo, map and diagram. CZ Program 9(a)(9)
Neighbor notice The City notifies abutting owners and tenants at issuance and every renewal. It carries no protest or appeal right. CZ Program 9(a)(4)
Renewal Annual, on March 1. A permit with no rentals during the permit year is not renewed, unless under renovation or for good cause. CZ Program 8; 5.38.070
Penalties Third violation means immediate revocation, and the parcel becomes ineligible for any STR permit. CZ Program 11(b)
Taxes 10% transient occupancy tax, remitted quarterly within 20 days after the quarter ends. Chapter 3.25 (rate at 3.25.030)

The table cites the Coastal Zone program; Chapter 5.38 carries matching provisions outside the Coastal Zone. Permit fees are set by City Council resolution, and Home Stay, Primary, Multi-Family Home Stay and Mixed-Use permits pay 75% of the full fee. I did not find a current fee schedule on the City's STR page, so ask for the number.

A note on HOAs inside the Coastal Zone

The City's STR page states the Coastal Commission's position that an HOA may deny an STR only if the rule is "legal," giving examples such as a prohibition that predates 1976 or one covered by a coastal development permit. The City offers HOAs a streamlined coastal development permit application for that purpose. If the property is in an HOA, find out whether the CC&Rs prohibit rentals under 30 days and whether that rule is one the City will honor.

Questions about a specific parcel go to the City's STR program at (949) 248-3565 or [email protected]. The governing rules are the Coastal Zone Short-Term Rental Program (CDP A-5-DPT-22-0038), Dana Point Municipal Code Chapter 5.38, and Chapter 3.25 for transient occupancy tax.

Quick answers

Dana Point short-term rental questions.

Does Dana Point allow short-term rentals?

Yes, with a City STR permit, in any zoning district where residential uses are allowed, including single-family homes, condominiums and multi-family buildings. ADUs, junior ADUs, units created as part of a Single-Family Residential Duplex and affordable housing units are excluded. Inside the Coastal Zone the rules are the Coastal Commission-approved STR Program (CDP A-5-DPT-22-0038); outside it they are DPMC Chapter 5.38.

Is there a cap on Dana Point short-term rental permits?

Yes. Inside the Coastal Zone, a maximum of 115 permits for Non-Primary, Multi-Family Home Stay and Mixed-Use Non-Primary STRs, with Home Stay and Primary Residence permits uncapped but each reducing the 115 by one. Outside the Coastal Zone, 115 permits for all types, with no more than 60 Non-Primary. When a cap is met, applicants go on a waitlist.

Does a Dana Point short-term rental permit transfer when the property sells?

No. The permit expires on the date title transfers and does not transfer to the new owner, who must apply for a new permit (Coastal Zone Program section 3(d); DPMC 5.38.030(c)). The only exception is an inheritance or family transfer with no new property tax assessment.

What is the minimum stay for a Dana Point short-term rental?

Two consecutive nights. An STR is defined as a stay of at least two consecutive nights and no more than 30 consecutive days.

How do I apply for a Dana Point short-term rental permit?

The property owner applies to the Community Development Director with owner and agent contact information, a transient occupancy tax registration certificate, $1,000,000 liability insurance and an indemnity agreement, proof the STR is not prohibited by legal CC&Rs, and primary residence evidence for Home Stay or Primary permits. The home must pass a City inspection. Questions go to the City's STR program at (949) 248-3565 or [email protected].

Is there a list or map of permitted short-term rentals in Dana Point?

Yes. The City of Dana Point posts an STR permit list (dated September 22, 2026 as of this writing) and an interactive map of permitted STRs on its Short Term Rentals page.

What taxes apply to a Dana Point short-term rental?

A 10% transient occupancy tax under DPMC 3.25.030. Short-term rental operators file and remit quarterly, no later than 20 days after the end of each quarter.

Sources

Where every rule on this page comes from.

Verified October 29, 2026 against the City of Dana Point's own code, program documents and pages. Rules change, and the City is the final word on any specific parcel. Call the STR program at (949) 248-3565 and get the answer in writing.

Run it on a real address

Looking at a specific property in Dana Point?

Send me the address. I will check whether it sits inside or outside the Coastal Zone, which permit type you would actually qualify for, where that cap stands on the City's current list, and what the CC&Rs say. If the answer is that the rental income ends at close, that is what I will tell you, and it is better to hear it before the offer than after. Text or email is the easiest way in.

Phone 949.541.8247

Email [email protected]

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