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Shasta Lake, CA
Generally Investor Friendly

Yes, short-term rentals are explicitly allowed in Shasta Lake, CA. The City of Shasta Lake has established a comprehensive permit and licensing process for vacation homes and short-term rentals that took effect October 1, 2020. Under City ordinance, both "Hosted Homestay" and "Vacation Rental" types are permitted, making Shasta Lake a viable market for STR investors.
Shasta Lake hosts earn a median $38,878/year with $210 ADR and 64% occupancy.
Top performers pull in $59,599+ per year.
See the full Shasta Lake market breakdownThe City has implemented a streamlined, one-stop processing system for STR applications through the Development Services Department. Here's the step-by-step process:
Obtain and complete the Short-Term Rental Application Packet from the City of Shasta Lake Permit Center at 4477 Main Street, Shasta Lake, CA, or download from the city website.
Submit your complete application packet to the City of Shasta Lake Permit Center for one-stop processing. The Planning Division will review and approve/deny the permit, while the Building Division coordinates with the Shasta Lake Fire Protection District for Fire Life Safety inspections.
After permit approval, the Shasta Lake Finance Department will send Transient Occupancy Tax forms that must be filed quarterly with corresponding tax payments.
The administrative permit must be renewed annually. The renewal date coincides with business license renewal (effective for twelve months).
Upon approval and TOT ID assignment by Finance Department, your business license and permit will be issued.
Physical Address:
4477 Main Street
Shasta Lake, CA 96019
Mailing Address:
P.O. Box 777
Shasta Lake, CA 96019
Phone Numbers:
Email:
permit@cityofshastalake.org
Key Contact:
Jessaca Lugo, Assistant City Manager
Office Hours: Standard municipal business hours (contact directly for specific times)
This guide provides comprehensive information for STR investors considering the Shasta Lake market, which has explicitly embraced short-term rental operations through clear, well-defined regulations and a structured permitting process.
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Shasta Lake is a small city of roughly 10,000 residents in Shasta County, set in the foothills of Northern California's Cascade Range. It functions as the principal gateway to Shasta Lake, one of the largest reservoirs in the United States and a magnet for houseboating, fishing, and water-sports enthusiasts. The town has an outdoorsy, laid-back character, with streets that hum during the summer recreation season and quieten into the cooler months. It sits about ten miles north of Redding, the nearest sizable city and the commercial hub of the region, and roughly three hours north of Sacramento.
Just minutes from the heart of town, Shasta Dam is one of the tallest concrete dams in the country and the centerpiece of the federal Central Valley Project. Visitors can join guided tours of the dam's interior, walk across its broad crest, and stop in at the visitor center to learn about the engineering and history behind the structure. The reservoir it creates spreads across more than 30,000 acres of forested shoreline threaded with marinas, campgrounds, and houseboat rentals, most of which can be reached in roughly fifteen to twenty minutes from the city.
The surrounding Shasta-Trinity National Forest, the largest national forest in California, blankets the mountains and river canyons around the city in more than two million acres of pines, firs, and rugged terrain. Trailheads, alpine lakes, and developed campgrounds lie within an hour's drive in nearly every direction, giving visitors an easy way to swap lake time for hikes, mountain-bike rides, or a quiet swim in a mountain pool. The forest is a year-round draw, swapping snow play and ski touring for boating and swimming as the seasons change.
A short drive to the southwest brings visitors to Whiskeytown National Recreation Area, a wooded park built around a clear blue reservoir, four swim beaches, and the scenic waterfalls of the Whiskey Creek drainage, including Whiskeytown Falls. Roughly two hours to the east, Lassen Volcanic National Park adds a different layer to the region with steaming fumaroles, boiling mud pots, mountain lakes, and the still-visible scars of early-twentieth-century eruptions.
With one of California's biggest lakes at its doorstep, an enveloping national forest, and a string of well-known parks within a couple of hours' drive, Shasta Lake offers travelers a blend of water-based fun, mountain exploration, and small-town calm. That mix of high-volume lake tourism and steady regional visitation gives the city a dependable rhythm of demand that lends itself naturally to short-term rental use.
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