Can you run an Airbnb or do rental arbitrage here? What the city requires: permits, taxes, safety rules and enforcement.

Fullerton has frozen new short-term rental approvals: the council adopted a moratorium on May 20, 2025,[1] and a draft extension adds 22 months and 15 days from July 2, 2025, which runs to about mid-May 2027 by our count.[2] A local news report says the council enacted the extension on July 15, 2025.[3] Whole-house permits are also capped at 100.[4]
Our verdict, based on the sources at the end of this guide.
Fullerton has frozen new short-term rental approvals. The council adopted a moratorium on May 20, 2025,[1] and a draft ordinance extends it by 22 months and 15 days from July 2, 2025, to about mid-May 2027 by our count.[2] Whole-house permits are capped at 100,[4] permits can't be transferred to a new owner,[6] and the city reported 173 unpermitted listings in June 2025.[1]
The council adopted Urgency Interim Ordinance 3342 on May 20, 2025, a 45-day moratorium on new short-term rental approvals.[1] The draft extension covers pending and new short-term rentals and adds 22 months and 15 days to the moratorium set to expire on July 2, 2025.[2] A local news report says the council enacted it on July 15, 2025, and we did not find the adopted text.[3]
The owner or the owner's authorized representative needs a short-term rental permit and a city business registration before renting or advertising.[6] The permit is valid for three years unless revoked, and you apply to renew at least 30 days before it expires.[6] The council set fees of $425 to apply and $85 to renew in December 2020.[7]
An application needs the owner's written approval, plus the homeowners association's or property manager's approval where one applies.[6]
The council capped whole-house permits at 100.[4] A whole-house rental is one where the owner doesn't live in the unit, and the code allows one whole-house permit within 300 feet of another unless the Director approves less spacing.[6] A July 2025 staff report says an April 2021 amendment barred whole-house rentals without the owner present, so ask the city which rule applies.[5]
Units in a multi-family development are not subject to the 300-foot whole-house spacing rule.[6]
Permits don't transfer to other properties or future owners, and if the home is sold the permit is void and the new owner must apply.[6]
A local contact person, either the owner or an authorized representative, must be reachable by phone whenever the unit is occupied.[6] Tell adjacent properties and the city about any change within 72 hours or before the next rental, whichever is sooner.[6]
Quiet hours run from 10 p.m. to 7 a.m., trash cans stay off the street until 24 hours before pickup, and parking should be on site where possible.[6]
Weddings, auctions, commercial filming (unless allowed under Chapter 3.80) and similar events are prohibited, and there can be no visible advertising on site.[6]
The city mails notice to neighbors who share a property line when it receives a complete application, and it considers written comments received within 10 calendar days.[6] Renewal also needs a notice to adjacent properties with the local contact's details.[6]
Guests pay a transient occupancy tax of 10% of the rent you charge, and the tax chapter covers short-term rentals as well as hotels.[8] The code defines a transient as someone staying 30 consecutive calendar days or less.[8]
The guest pays the tax to you as the operator when the rent is paid.[8] The city's page links to a portal for renewing your permit or paying your tax.[9]
The permit application needs proof of a city business registration for the rental business.[6] We did not read the registration fee.
A staff report says the city averages about $300,000+ a year in tax collections from short-term rentals, and that a fiscal review found enforcement costs exceed the revenue.[5]
A city audit identified 173 unpermitted short-term rental listings in Fullerton as of June 2025.[1] The city also opened 36 code enforcement cases for short-term rental violations between June 18, 2024 and June 18, 2025.[1]
A staff report says an audit found 77 previously denied applicants had manipulated their listings to appear compliant.[5]
Hosts, anyone who helps them break the rules and hosting platforms that violate the code face administrative fines and penalties under Chapter 6.01.[6] The Director can revoke or change a permit for false information or code violations, you have 10 calendar days to appeal, and the city can subpoena listing records.[6]
Neighbors can submit a complaint on the city's page or call (714) 650-8685.[9]
A July 2025 staff report says the city is working on a revised framework with mandatory inspections, stricter neighborhood compatibility standards and updated permit procedures, with a policy expected by January 2026.[5] We did not find a replacement ordinance.
Skip Fullerton for now. Check back after the moratorium, since the city planned to rewrite its rules.
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