Costa Mesa, California Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Costa Mesa?

No, short-term rentals are explicitly prohibited in Costa Mesa, California.

The City Council adopted Ordinance 2021-17 on November 2, 2021, which prohibits all short-term rentals (STRs) throughout the City of Costa Mesa. A short-term rental is defined as the rental of a residential dwelling unit (or portion thereof) to paying occupants for less than 30 days. This prohibition is comprehensive and applies citywide, making Costa Mesa an off-limits market for traditional STR investment strategies.

What do Airbnb hosts actually earn in Costa Mesa?

Costa Mesa hosts earn a median $46,587/year with $193 ADR and 86% occupancy.

Top performers pull in $65,115+ per year.

See the full Costa Mesa market breakdown

How to Start a Short-Term Rental Business in This Market

STRs are not permitted in Costa Mesa, so starting an STR business is not legally possible. However, there are limited alternatives:

Legal Alternatives:

Home Sharing: Owner-occupied home sharing may be allowed, where the property owner resides on-site and rents out portions of their primary residence
Long-term rentals: Properties can be rented for 30 days or longer, which falls outside STR regulations
Accessory Dwelling Units (ADUs): While ADUs are permitted, they cannot be used as short-term rentals (less than 31 days) due to land use restrictions

Market Strategy:

Given the prohibition, potential investors should consider:

Purchasing properties for traditional long-term rental income
Exploring adjacent markets like Newport Beach or Huntington Beach where STRs may be permitted
Investigating hotel or hospitality development opportunities

Required Documents, Permits, Licenses, and Guidelines

Since STRs are prohibited, no permits or licenses are issued for STR operations in Costa Mesa. However, the city maintains detailed information for compliance and reporting:

For Property Owners:

No STR permits are available or issued
Home sharing operations should ensure compliance with zoning and residential use requirements
ADU owners must adhere to minimum 31-day rental periods

For Reporting Violations:

Property owners operating illegal STRs should expect enforcement action
Residents can report violations through official channels

Specific Regulations for Short-Term Rentals

City-Level Regulations (Costa Mesa):

Complete Prohibition: Ordinance 2021-17 prohibits all non-hosted short-term rentals
Home Sharing Exception: Owner-occupied home sharing may be permitted but is subject to restrictions
ADU Restrictions: Accessory Dwelling Units cannot be rented for less than 31 days
Enforcement: The city operates primarily on a complaint-driven enforcement model

Penalties for Violations:

Fines: Up to $1,000 per day for verified violations
Additional Enforcement: Criminal charges and nuisance abatement actions may be pursued
Platform Compliance: Online advertising platforms are expected to remove illegal listings

Recent Policy Developments:

January 2025: The City Council considered but rejected a temporary exception for LA fire victims, maintaining the comprehensive prohibition
The council discussed potential time-limited and geographic-specific exceptions but ultimately preserved the existing ordinance

County-Level Regulations:

Orange County does not have county-wide STR regulations
Each city within Orange County has its own ordinances
Costa Mesa's prohibition aligns with several other Orange County cities (Irvine, Garden Grove, Laguna Niguel, Lake Forest, Villa Park, Westminster, Yorba Linda)

State-Level Regulations:

California state law does not prohibit STRs at the state level
Local municipalities maintain authority over land use and zoning decisions
State housing laws (SB 477, SB 1211, AB 2533, AB 1033) have influenced local ADU regulations but do not override local STR prohibitions

Contact Information

Primary Contact:

City of Costa Mesa

Address: 77 Fair Drive, Costa Mesa, CA 92626
Phone: (714) 754-5000
Website: www.costamesaca.gov
City Hall Hours: Monday-Friday, 8 a.m. to 5 p.m. (alternating Fridays closed)

Code Enforcement:

Community Improvement Division

Phone: (714) 754-5638
Online Reporting: MYCOSTAMESA portal at www.costamesaca.gov/community/costa-mesa-311-report-issues

Municipal Code and Ordinances:

Full municipal code available at: www.costamesaca.gov/community/municipal-code
Specific ordinance documentation available through city clerk

Additional Resources:

City Council meetings: Available at www.costamesaca.gov/government/city-transparency/public-meeting-information
Public records requests: Available through city clerk's office

Important Considerations for Investors

Market Limitations:

Costa Mesa represents a zero-opportunity market for STR investment
The city's firm stance suggests minimal likelihood of policy reversal in the near term
The 2025 council discussion about LA fire relief showed openness to temporary exceptions but ultimately maintained the prohibition

Investment Alternatives:

Long-term rental properties: Legal and potentially profitable given the housing shortage
Hospitality development: Hotel and extended-stay properties may be viable alternatives
Adjacent markets: Newport Beach, Huntington Beach, and other Orange County cities with different regulations

Risk Assessment:

Operating an illegal STR in Costa Mesa carries significant financial and legal risks
The city's enforcement capabilities include substantial fines and criminal prosecution
Online platforms have been cooperative in removing illegal listings when notified

Links to Source Pages

Conclusion

Costa Mesa, California maintains one of the most restrictive short-term rental environments in Orange County, with a comprehensive prohibition on non-hosted STRs. While the city allows for home sharing by owner-occupants, the market is essentially closed to traditional STR investment. Potential investors should consider adjacent markets or alternative investment strategies within Costa Mesa's legal framework. The city's firm position, reinforced by council action in 2025, suggests this prohibition will remain in place, making compliance essential for any property-related investment in the city.

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Ask the AI Advisor about Costa Mesa

Costa Mesa is a city of roughly 110,000 residents in Orange County, California, situated in the heart of the coastal region between Los Angeles and San Diego. With a sunny Mediterranean climate, a dense suburban fabric, and a noticeably creative streak in its dining and arts scenes, it has long served as both a commercial hub for the southern part of the county and a gateway to some of Southern California's most popular beaches. It lies about 40 miles southeast of downtown Los Angeles and just a few minutes inland from the Pacific Ocean, making it an unusually convenient base for travelers who want urban amenities and coastal access in equal measure.

Perhaps the city's most famous landmark is South Coast Plaza, a sprawling luxury shopping center that draws visitors from across the region and from international tourism markets. Known for its concentration of high-end designer boutiques, flagship department stores, and fine-dining restaurants, the property sits at the intersection of Bristol Street and the San Diego Freeway, just minutes from anywhere in Costa Mesa, and has been a defining feature of the city for decades.

Just across the freeway, the Segerstrom Center for the Arts anchors Costa Mesa's cultural identity. The campus hosts performances by the Pacific Symphony, touring Broadway productions, ballet, and contemporary dance, and its distinctive arc-glass façade has become a recognizable part of the skyline. Theatergoers coming from the coast or from John Wayne Airport, which sits adjacent to the city, can typically reach the center in under fifteen minutes.

Families and event travelers are often drawn to the OC Fair & Event Center, home to the annual Orange County Fair as well as year-round concerts, expos, and the Costa Mesa conference scene. The grounds are centrally located and easy to reach from any part of the city. A short drive west, meanwhile, puts visitors on the sand in Newport Beach or Huntington Beach, where the Pacific Coast Highway curves along some of the most photographed coastline in California.

For short-term rental investors, Costa Mesa offers a particularly attractive combination. It sits next to John Wayne Airport, a short drive from Disneyland, and within easy reach of both Los Angeles and San Diego, while its own South Coast Plaza, Segerstrom Center, and fairgrounds generate a steady stream of leisure and business travelers year-round. The result is a market that benefits from broad regional demand and from the city's own identity as a dining, shopping, and arts destination in its own right.