Chico Real Estate Market Trends & Forecast 2026

In Chico, CA, Short Term Rentals (STRs) are regulated by the city's Municipal Code. Here are some key regulations that an investor should be aware of before purchasing a property for STR purposes:

1. Permit Requirement: In Chico, property owners are required to obtain a Short Term Rental permit before operating an STR. The permit application process includes submitting an application, paying a fee, and meeting certain requirements set by the city.

2. Occupancy Limits: The city of Chico has specific occupancy limits for STRs, which vary depending on the size of the property. It is important for investors to ensure that their property complies with these occupancy limits to avoid any penalties or fines.

3. Noise Regulations: Chico has noise regulations in place to ensure that STRs do not disturb the peace and quiet of residential neighborhoods. Investors should be aware of these regulations and take steps to minimize noise disturbances from their property.

4. Parking Requirements: The city of Chico has specific parking requirements for STRs, including the number of parking spaces required per property. Investors should ensure that their property meets these requirements to avoid any issues with parking violations.

5. Transient Occupancy Tax: Chico imposes a Transient Occupancy Tax (TOT) on short term rentals, which is collected from guests and remitted to the city. Investors should be aware of their TOT obligations and ensure that they are in compliance with the city's tax regulations.

6. Neighborhood Compatibility: Chico has regulations in place to ensure that STRs are compatible with the surrounding neighborhood. Investors should be mindful of the impact that their property may have on the community and take steps to be good neighbors.

Overall, investors looking to purchase a property for Short Term Rental purposes in Chico, CA should familiarize themselves with the city's regulations and ensure that their property complies with all requirements to avoid any potential legal issues or fines.