Downey Night Caps Rules (2026): What You Need to Know

Unlike cities such as Long Beach or Los Angeles that cap short-term rental nights at specific annual thresholds (e.g., 90 unhosted nights per year), Downey imposes no such cap because the city has not authorized short-term rentals in the first place. Downey Municipal Code Section 9312.08 prohibits any residential property from being used for commercial purposes, and the City has interpreted and enforced this to include transient lodging arrangements marketed through platforms like Airbnb and VRBO.

The practical effect is that the permitted number of STR nights is zero. There is no distinction in Downey between hosted rentals (where the owner is present) and unhosted rentals — both are subject to the same commercial-use prohibition. Rentals of 30 or more consecutive days are treated as standard long-term residential leases and are not subject to the STR prohibition or the Transient Occupancy Tax.

The City's 13% Transient Occupancy Tax (passed via Measure D in November 2022) technically applies to all rentals under 30 consecutive days, but the existence of this tax provision does not create a lawful pathway for STR activity. Residents considering short-term rentals should be aware that even hosting one night could trigger a code enforcement complaint and cease-and-desist action.