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North Highlands, CA

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STR Regulations for North Highlands, California

Overview and Allowability

Short-term rentals are allowed in North Highlands, which is located in unincorporated Sacramento County. STRs are permitted on an accessory basis for stays of 29 days or less, subject to a Short-Term Rental Permit (STRP), a Business License, and Transient Occupancy Tax (TOT) registration through Sacramento County’s designated portal (RentalScape). STR use must remain secondary to the property owner’s or long-term renter’s full-time occupancy; it may not become the primary use.

ADUs may be used for STRs only if legally permitted before January 1, 2020; ADUs permitted on or after that date cannot be used for STRs.

Source: planning.saccounty.net/applicants/Pages/Short-Term-Rental-Permits.aspx

What do Airbnb hosts actually earn in North Highlands?

North Highlands hosts earn a median $22,774/year with $149 ADR and 61% occupancy.

Top performers pull in $35,422+ per year.

See the full North Highlands market breakdown

How to Start a Short-Term Rental in This Market

  1. Confirm eligibility

    • The property must be in unincorporated Sacramento County (North Highlands). Incorporated cities may have different rules—confirm your address status before proceeding.
    • The property owner or long-term renter must live on-site at least six months per year.
    • The STR must remain an accessory use; rentals may not exceed 29 consecutive days.

  2. Prepare your application via RentalScape

    • Apply online at sacramento-ca-str.deckard.com/.
    • Application steps include providing property details, owner/occupant verification, intended occupancy, and uploading required documents (see “Required Documents” below).
    • Complete Business License and TOT registration during the same process.

  3. Pay fees

    • Total non-refundable application fee: $452.66 (covers both the STR Permit and the Business License). TOT registration itself has no fee.

  4. Receive approval and comply

    • Once approved, operate strictly within permit conditions (see “Specific Regulations”).
    • Use only approved booking channels and ensure TOT remittance.
    • Renew STR permits and Business License via RentalScape; the County does not accept in-person, mail, fax, or email applications for STRs.

Note on older permits: Any STR permits approved prior to February 2, 2023 that included occupancy restrictions applied only to adults 18+; minors were not counted in guest occupancy limits.

Source: planning.saccounty.net/applicants/Pages/Short-Term-Rental-Permits.aspx

Required Documents, Permits, Licenses, and Guidelines

  • Short-Term Rental Permit (STRP)
    • Proof of ownership or long-term lease.
    • Proof that the applicant (owner or long-term renter) occupies the property ≥ six months/year (e.g., driver’s license, lease, utility bills, or other residence verification).
    • Property details: parcel number/APN, address, unit type, floor plan or occupancy info, ADU status and permit date (for ADU eligibility).
    • ADU eligibility note: ADUs permitted after 1/1/2020 are ineligible for STR use.
  • Business License
    • Issued via RentalScape as part of the STR application.
  • Transient Occupancy Tax (TOT) Registration
    • Completed via RentalScape; no separate fee. Requires collecting and remitting TOT on all bookings.
  • Permitting references
    • Zoning Code Section 3.9.3.AA (page 3-136) and Section 6.5.6 (page 6-58) set standards and findings for STRs.
    • STR Permit FAQ Handout (v6.1) provides eligibility and compliance details.

Sources:

Specific Regulations in This City/County/State

  • Accessory use requirement
    • STR must remain accessory to full-time occupancy; not a standalone commercial lodging operation.
  • Occupancy and stay limits
    • Maximum stay: 29 consecutive days or less.
    • Guest occupancy caps (where applicable) apply only to adults 18+; minors are not counted.
  • ADU restriction
    • ADUs permitted after January 1, 2020 cannot be used as STRs.
  • Permitting and taxation
    • STR Permit + Business License required; TOT registration required for tax collection/remittance.
  • Application and renewals
    • All applications and renewals must be submitted via RentalScape. The County does not accept in-person, mail, fax, or email STR applications.
  • Fees
    • $452.66 total fee (non-refundable), covering STRP and Business License; TOT registration has no fee.
  • Zoning compliance
    • Operate in compliance with Sacramento County Zoning Code Section 3.9.3.AA and Section 6.5.6.
  • State context
    • TOT is a standard California transient occupancy tax that jurisdictions impose on short-term lodging; County implementation here requires registration and remittance through RentalScape.
  • Enforcement
    • County code enforcement is active for illegal STR operations; ensure compliance with all permit conditions to avoid penalties.

Sources:

Contact Information

Links to Source Pages

Practical Notes for Investors

  • Verify your property’s unincorporated status; incorporated neighboring cities may have stricter or different rules.
  • Confirm ADU permit dates; post-2020 ADUs cannot be used for STRs in Sacramento County.
  • Maintain clear records of owner/occupancy verification and TOT remittance.
  • Monitor permit conditions and occupancy caps (adults only) to stay compliant.
  • Plan for nonrefundable application fees and annual renewals via RentalScape.
  • Consider HOA bylaws; HOA opposition can be a factor in discretionary decisions even if County approval is obtained.

This guide reflects Sacramento County’s unincorporated area standards applicable to North Highlands and relies exclusively on the provided sources above.

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North Highlands

Market Saturation Score

036912
Moderate Saturation
7/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full North Highlands Market Analysis

Photos of North Highlands

Overview of North Highlands

North Highlands is an unincorporated community in Sacramento County, California, situated in the northern part of the Sacramento Valley. With an approximate population of around 45,000, it is one of the larger suburban communities in the Sacramento metropolitan area. The neighborhood has a working-class, residential character defined by mid-century homes, broad tree-lined streets, and a steady, lived-in feel rather than a tourist-town atmosphere. It is best known as an affordable, well-located base within easy reach of California's capital city, lying roughly ten miles northeast of downtown Sacramento.

The American River Parkway is a long greenbelt that follows the American River from Folsom Lake northwest into Sacramento, and North Highlands sits within a few minutes of several of its trailheads. The corridor offers paved walking and cycling paths, river beaches, fishing spots, and shaded picnic areas beneath a canopy of oaks and cottonwoods. For visitors and locals alike, it functions as the backyard wilderness of the region, providing a free and easy way to spend a day outdoors without ever leaving the metro area.

Old Sacramento State Historic Park is a Gold Rush-era waterfront district a short drive southwest of North Highlands, about fifteen to twenty minutes depending on traffic. Wooden boardwalks, period storefronts, the California State Railroad Museum, and riverboat excursions along the Sacramento River make it the city's most concentrated cluster of historic attractions. The district draws families, school groups, and visitors looking for a tangible sense of 1849 California just a few miles from a modern commuter community.

Folsom Lake State Recreation Area lies roughly thirty miles northeast of North Highlands, or about a forty-minute drive. The reservoir is a popular spot for sailing, kayaking, swimming, and stand-up paddleboarding, and its shoreline has more than seventy miles of hiking and biking trails. In the warmer months it acts as a natural-air-conditioning counterpoint to the valley heat, and the small historic town of Folsom nearby adds an easy stop for coffee or a meal after a day on the water.

For short-term rental investors, North Highlands offers an unusual combination of Sacramento-metro convenience and reasonable operating costs. Visitors who do not need to stay in the city core can save on nightly rates while remaining within a short drive of Old Sacramento, the State Capitol, the American River Parkway, and Folsom Lake. The community's central location also places it within reach of day trips to Lake Tahoe, the Sierra foothills, and the wine country of Napa and Sonoma. It is the kind of place that rewards travelers who want a quieter home base with the entire Northern California region at their door.

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