Adam Boehrer Pacific Sotheby's International Realty

Verified Against the Newport Beach Municipal Code, October 2026

Newport Beach short-term rental rules: the cap is full, but the permit can follow the sale.

Newport Beach allows short-term rentals in its multi-unit residential zones and two mixed-use areas, caps the total at 1,550 permits, and is not issuing new ones while the cap is full. The twist is what happens at a sale. A valid Newport permit can transfer to the buyer, if the buyer files within 60 days of title transfer. That makes the permit history worth more than the booking history. Here is how it works.

The short version

Capped, full, and the only permit on this coast that can follow the sale.

  • 1,550

    Total permits citywide

    1,475 in residential districts plus 75 in two mixed-use areas. No new permits until the count drops below the cap.

  • 60 days

    Buyer's window to transfer

    From the date title transfers. Miss it and the permit is deemed abandoned.

  • 2 nights

    Minimum stay

    No rental, listing or agreement for less than two consecutive nights.

Newport Beach is the opposite of its neighbors in one important way. In San Clemente, Dana Point, and for any Laguna permit issued since 2020, the short-term rental permit dies at the sale. In Newport, a valid permit can be transferred to a buyer. That makes a permitted Newport property genuinely different from an unpermitted one next door, because the City is not issuing new permits right now.

It also means the paperwork is the asset. A permit that lapsed, went dark for two years, or missed the 60-day filing is worth nothing, and you cannot tell which kind you are buying from the listing.

Where it is allowed

Multi-unit zones, two mixed-use areas, and not R-1.

Section 5.95.015 of the Newport Beach Municipal Code limits short-term lodging permits to properties in a residential district or multi-use area authorized under Titles 20 and 21. The City's FAQ puts it in zoning terms: a permit is needed when "renting a residential property in a R-1.5, R-2 or RM Zone for thirty (30) consecutive days or less."

Single-unit R-1 is out. Since June 1, 2004, no permit has been issued or renewed for a dwelling on a parcel zoned R-1, or designated single-family in a planned community, specific plan or planned residential district, unless a permit was previously issued for that unit and never revoked. In a building with five or more units, no more than 20% of the units can be short-term lodgings.

The two mixed-use areas are new. Ordinance 2025-15 opened up to 75 permits in the Mixed-Use Water (MU-W2) and Mixed-Use Cannery Village and 15th Street (MU-CV/15th St.) districts, after the Coastal Commission approved the change with modifications in May 2025. The Commission's condition was that the citywide total never exceed 1,550. Ask the City which additional standards apply in those districts before you assume a mixed-use building qualifies.

The map, the permit list and the waitlist

Three City tools answer most questions. The address search checks a property's eligibility. The short-term lodging dashboard maps active permits and shows the total count. The waitlist dashboard shows where entries stand. The City also warns that "HOA/CC&R rules may impose additional restrictions on short-term lodging that are separate from City regulations."

For scale: the Coastal Commission's April 2025 staff report counted 1,482 current permits in residential zones and a 680-person waiting list. When a permit frees up, the City mails the next person on the list, who has 10 calendar days to apply.

The part that costs people money

How a Newport permit survives a sale, and how it quietly dies.

Section 5.95.043 lists who can receive a transfer and how long they have, measured from the date title transfers:

  • A bona fide purchaser for value: 60 days.
  • An heir: 90 days from the date the heir becomes the owner, once the estate is closed and assets distributed.
  • A trust, a business entity, or an immediate family member: 365 days.

Miss the deadline and, in the code's words, "authorization to transfer a valid short term lodging permit shall be deemed waived and the permit abandoned," unless the City finds good cause to extend. A buyer who files on time has priority over everyone on the waiting list. The City's transfer page adds the practical part: permits do not transfer automatically, the permit "must be active and compliant," the seller completes a seller form and the buyer completes a buyer form, and it happens once escrow closes and title updates.

Three ways a permit can already be dead before you buy it

  • Two quiet years. Section 5.95.080(B): the City closes any permit with no short-term lodging activity for two consecutive annual reporting periods, evidenced by $0.00 in transient occupancy tax or unreturned forms. The owner gets one reinstatement. A second closure is final.
  • A missed renewal. Renewal is annual, and section 5.95.030(B) deems a permit abandoned if the renewal is not filed within 30 calendar days of expiration. The City set October 31, 2026 as this year's renewal deadline.
  • A revocation. A property whose permit was previously revoked is not eligible for the waitlist.

So before your contingencies expire, ask the seller for the permit number, the current renewal, and the last two years of TOT filings, then confirm with the Revenue Division that the permit is valid and transferable. Underwrite the house as a house. If the permit checks out and you file inside 60 days, the rental is upside you actually get to keep.

Operating rules

The Newport rulebook, line by line.

Rule What the code says Where it says it
Permits required Short Term Lodging Permit plus a City business license for the separate business of operating the unit. 5.95.030(A)(3); City FAQ
Cap 1,475 in residential districts, 75 in the MU-W2 and MU-CV/15th St. areas, 1,550 total. Separate waitlists for each. 5.95.042(A) to (C), (G)
Minimum stay No rental for less than two consecutive nights. 5.95.045
Guest age No rental to a transient user under 25. 5.95.045(A)
Local contact Lives within 25 miles and responds to any call about the unit within 30 minutes, 24 hours a day. 5.95.045(A)
Noise No amplified sound outside or audible at the property line from 10 p.m. to 10 a.m. 5.95.045(A)
Advertising City permit number on every advertisement. Guest told the TOT and visitor service fee before booking. 5.95.045(A)
Parking All on-site spaces, including garage, carport, driveway and tandem, available to guests. 5.95.045(A)
HOA Application certifies the CC&Rs permit short-term use at the location. 5.95.030(A)(8)
Taxes Transient occupancy tax of 10% of the lease amount, plus a visitor service fee under Chapter 3.28. City FAQ; Chapters 3.16 and 3.28
Fees Initial permit $649, renewal $607, reinstatement $377, effective July 1, 2026. City Latest Information page
Holiday weekends Fines tripled inside Safety Enhancement Zones over Memorial Day, Fourth of July and Labor Day weekends. Ord. 2025-3; City Latest Information page

Newport Island has its own tighter program: a 20-permit cap plus booking-frequency, occupancy, parking and owner-management rules certified by the Coastal Commission in 2021. If the property is on Newport Island, ask the City for those conditions specifically.

I could not confirm the current visitor service fee rate from a City source, so ask the Revenue Division for it when you run numbers. Questions go to the Revenue Division at 949-718-1997 or [email protected]. The governing code is Newport Beach Municipal Code Chapter 5.95 (Short Term Lodging Permit), most recently amended by Ordinance 2026-14 on September 8, 2026, along with Title 21 section 21.48.115 in the certified Local Coastal Program.

Quick answers

Newport Beach short-term rental questions.

Does Newport Beach allow short-term rentals?

Yes, with a Short Term Lodging Permit and a City business license, for properties in an eligible residential district (the City lists R-1.5, R-2 and RM zones) or in the MU-W2 and MU-CV/15th St. mixed-use areas. No permit has been issued or renewed in R-1 single-unit zones since June 1, 2004 unless one was previously issued and not revoked. NBMC 5.95.015.

Is there a cap or waitlist for Newport Beach short-term rental permits?

Yes. NBMC 5.95.042 caps permits at 1,475 in residential districts and 75 in the mixed-use areas, with a citywide total that cannot exceed 1,550. The City says no new permits are being issued until the active count drops below the cap, and it keeps separate waitlists. Selected applicants are notified by mail and have 10 calendar days to apply.

Does a Newport Beach short-term rental permit transfer to a buyer?

It can. Under NBMC 5.95.043, a valid permit that has not been abandoned may be transferred to a bona fide purchaser who files a transfer application within 60 days of the date title transfers. Heirs have 90 days and trusts, business entities and immediate family members have 365 days. Missing the deadline means the permit is deemed abandoned. Permits do not transfer automatically.

Where is the Newport Beach short-term rental map and permit list?

The City of Newport Beach publishes an address eligibility search, a Short Term Lodging dashboard mapping active permits and the total count, and a separate waitlist dashboard, all linked from the Revenue Division's short-term rental pages.

What is the minimum stay for a Newport Beach short-term rental?

Two consecutive nights. NBMC 5.95.045 prohibits renting, advertising or agreeing to rent a lodging unit for less than two consecutive nights.

What taxes and fees apply to a Newport Beach short-term rental?

The City's FAQ states a transient occupancy tax of 10% of the lease amount, and the permit conditions also require collecting a visitor service fee under Chapter 3.28. Effective July 1, 2026, the City lists an initial permit fee of $649, renewal of $607 and reinstatement of $377.

Can a Newport Beach short-term rental permit be lost?

Yes. The City closes any permit with no short-term lodging activity for two consecutive annual reporting periods (NBMC 5.95.080), a renewal not filed within 30 days of expiration is deemed abandoned (NBMC 5.95.030), and a transfer not filed within the deadline is deemed abandoned (NBMC 5.95.043).

Sources

Where every rule on this page comes from.

Verified October 29, 2026 against the City of Newport Beach's own code and Revenue Division pages, plus the California Coastal Commission's staff report on the 2025 amendment. Rules change, and the City is the final word on any specific parcel. Ask the Revenue Division at 949-718-1997 and get the answer in writing.

Run it on a real address

Looking at a specific property in Newport Beach?

Send me the address. I will check whether the property is in an eligible zone, whether it holds an active permit on the City's dashboard, and what the seller needs to hand over so the transfer can be filed inside 60 days. If the permit has gone quiet or lapsed, that is what I will tell you, and it is better to hear it before the offer. Text or email is the easiest way in.

Phone 949.541.8247

Email [email protected]

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