Short-term rental (Airbnb) rules in Sierra Madre, California
Yes, with a permit. Sierra Madre treats a short-term rental (30 days or less) of your home as a home occupation, so you need a Home Occupation Permit and an annual city business license. The code ties the rental to guest counts of two per bedroom (standard ministerial permit) or three per bedroom (discretionary permit), and an ADU or junior ADU can't be used as a short-term rental. The code describes home occupations as run by the home's inhabitants, so confirm with Planning whether you must live there.
| What counts as a short-term rental | A residence or part of one rented for 30 days or less [1] |
| Permits required | Home Occupation Permit plus annual business license [2] |
| Guest limit, ministerial permit | 2 persons per bedroom (condition for the floor-area exception) [3] |
| Guest limit, discretionary permit | 3 persons per bedroom (condition for the floor-area exception) [4] |
| Permits per home | One home occupation permit and business license per dwelling unit [5] |
| ADUs and JADUs | Not allowed as short-term rentals; 30-day minimum [7] |
How the City classifies short-term rentals
The zoning code defines a short-term rental as renting a residence or part of one to a tenant for 30 days or less [1]. There is no separate STR ordinance in the sources we reviewed. Instead, the home occupations chapter (Ch. 17.85) expressly covers "a short-term rental for the sole purpose of transient occupancy" and sets guest limits for it.
Permits
No home occupation may operate without a Home Occupation Permit and an annual business license under Title 5 [2]. If the business license lapses, the home occupation permit becomes void.
Guest limits and review level
The guest limits appear as exceptions to the floor-area cap that applies to other home businesses: a short-term rental is exempt from the ministerial cap (the greater of 25% of the floor area or 400 sq ft) when guests don't exceed two per bedroom [3]. It must still meet the other ministerial standards, such as generating no extra traffic or street-parking impact, no exterior signs, and only one home-occupation business license per home. If you can't meet all of those, you can apply for a discretionary permit, where the same exception applies with up to three guests per bedroom [4]. Because the ministerial standards bar any added traffic or street-parking impact, many rentals may end up in discretionary review. For discretionary applications the City mails notice to owners within 300 feet and takes comments for at least 14 days, and the director may send the application to the Planning Commission. Only one home occupation permit and license is issued per dwelling unit [5].
Who can operate
The code defines a home occupation as a business run "by the inhabitants" of the property [6]. That suggests the host must live in the home, but the code doesn't spell out a primary-residence rule for rentals, so confirm with Planning.
ADUs
An ADU or junior ADU can be rented only for terms of 30 days or more and can't be used or advertised as a short-term rental [7].
Taxes
The sources we reviewed don't address transient occupancy tax; ask the City's finance office.
See how Sierra Madre compares with 8+ other California towns on short-term rentals (airbnb / vrbo) →
Next steps
- Call Planning & Community Preservation at (626) 355-7135 or email CityPlanner@sierramadreca.gov to confirm a short-term rental qualifies as a home occupation at your address.
- Apply for a Home Occupation Permit through the Accela Citizen Portal (Planning > Create an Application for Entitlement), stating the number of bedrooms and maximum guests.
- After approval, apply for the annual City business license in Accela (Licenses > Home Occupation) and renew it every year.
- Ask the City about any transient occupancy tax registration before taking bookings.
Common questions
- Are short-term rentals allowed in Sierra Madre, California?
- Yes, with a permit. Sierra Madre treats a short-term rental of 30 days or less as a home occupation, so you need a Home Occupation Permit and an annual city business license. The code describes home occupations as run by the home's inhabitants, so confirm with Planning whether you must live there.
- How many guests can a short-term rental have in Sierra Madre, California?
- The code ties rentals to two persons per bedroom under a standard ministerial permit, or three per bedroom under a discretionary permit. Only one home occupation permit and license is issued per dwelling unit.
- Can I Airbnb my ADU in Sierra Madre, California?
- No. An ADU or junior ADU can be rented only for terms of 30 days or more and can't be used or advertised as a short-term rental.
- Is there a transient occupancy tax for Airbnb in Sierra Madre, California?
- The sources we reviewed don't address transient occupancy tax, so ask the City's finance office before taking bookings.
California state rules for short-term rentals
California has no statewide short-term rental license or registry. Your city or county decides whether and how you can rent on Airbnb or VRBO, including permits, caps, primary-residence rules and minimum stays.
Taxes: cities and counties may levy a transient occupancy tax (TOT) on stays of 30 days or less (Rev. & Tax. Code §7280). Rates and registration are local, and the county rate applies only in unincorporated areas.
New platform reporting law: since January 1, 2026, a city or county can adopt an ordinance requiring platforms like Airbnb and VRBO to report the address of each short-term rental (Gov. Code §50990 et seq., SB 346). Where a city has opted in, listings must also show the local license number and TOT certificate.
ADUs and SB 9 units: state law lets cities require that ADUs be rented for 30 days or longer. It requires that for by-right ADUs, junior ADUs and units built under SB 9 lot splits (see ADUs).
Coastal zone: in a December 2016 letter, the Coastal Commission said:
- STR rules in the coastal zone must be adopted through the city's Local Coastal Program or a coastal development permit, and bans adopted any other way are likely not enforceable there.
- The Commission has not historically supported blanket STR bans, finding they unduly limit public access to the coast.
- It has supported reasonable limits, such as caps on the number of rentals, occupancy limits, and limits on which housing types can be rented.
What the ordinance says
- Sec. 17.08.020 ("Short-term rental"), Municipal Code Title 17 Ch. 17.08 Definitions (incl. household pets), p. 1
"Short-term rental" refers to a rental whereby a residence or a portion of a residence is rented to a tenant for a period of thirty days or less.
- Sec. 17.85.030(A), Municipal Code Title 17 Ch. 17.85 Home Occupations (ministerial and discretionary home occupation permits; short-term rentals as home occupations), p. 1
No home occupation may be established and conducted without first obtaining a home occupation permit pursuant to the provisions of this chapter, and an annual business license pursuant to the provisions of Title 5 of the Sierra Madre Municipal Code.
- Sec. 17.85.040(G), Municipal Code Title 17 Ch. 17.85 Home Occupations (ministerial and discretionary home occupation permits; short-term rentals as home occupations), p. 1
Except when a home occupation is for a short-term rental for the sole purpose of transient occupancy for periods of no more than thirty consecutive days and where guest count does not exceed two persons per bedroom, that not more than the greater of (i) twenty-five percent of the total floor area of all structures on the property directly associated with the dwelling unit where the home occupation will occur, excluding the garage, or (ii) four hundred square feet will be occupied for the "home occupation."
- Sec. 17.85.050(F), Municipal Code Title 17 Ch. 17.85 Home Occupations (ministerial and discretionary home occupation permits; short-term rentals as home occupations), p. 1
Except when a home occupation is for a short-term rental for the sole purpose of transient occupancy for periods of no more than thirty consecutive days and where guest count does not exceed three persons per bedroom, that not more than fifty percent of the total floor area of all structures on the property directly associated with the dwelling unit where the home occupation will occur, excluding the garage, will be occupied for the "home occupation."
- Sec. 17.85.090(A)(6), Municipal Code Title 17 Ch. 17.85 Home Occupations (ministerial and discretionary home occupation permits; short-term rentals as home occupations), p. 1
No more than one home occupation permit and associated annual business license shall be issued for the dwelling unit;
- Sec. 17.85.020, Municipal Code Title 17 Ch. 17.85 Home Occupations (ministerial and discretionary home occupation permits; short-term rentals as home occupations), p. 1
"Home occupations" means any ongoing or repetitive business or professional use, activity or utilization of residentially zoned and improved property, by the inhabitants of said property, which is incidental and accessory to the primary residential use and does not generate an adverse impact to the surrounding neighborhood.
- Sec. 17.22.130, Municipal Code Title 17 Ch. 17.22 Accessory Dwelling Units, p. 1
No accessory dwelling unit or junior accessory dwelling unit shall be used or advertised as a short-term rental.