Downey Permit Requirements Rules (2026): What You Need to Know

Downey does not have a stand-alone short-term rental ordinance, but the city's existing zoning code effectively prohibits short-term rental activity in residential zones. Downey Municipal Code Section 9312.08 states that no lot, building, or structure shall be used or appear to be used for commercial purposes in a residential zone, and shall not involve the conduct of a business nor contain commercial or industrially rated equipment not customarily used in connection with a residential occupancy. The City has applied this provision to short-term rentals listed on platforms such as Airbnb and VRBO, issuing enforcement orders requiring hosts to immediately remove their listings.

Because Downey has not created a formal STR permit program, there is no legal pathway for most short-term rental activity. Residents who operate or have operated short-term rentals have received notices of violation citing Section 9312.08(b)(1). Unlike cities that regulate but permit STRs, Downey's current posture is effective prohibition through the general commercial-use ban.

Downey voters approved Measure D in November 2022, raising the Transient Occupancy Tax from 9% to 13% and expanding its application to short-term rentals. Any host operating a short-term rental is technically required to collect and remit this 13% TOT to the City Finance Department on a quarterly basis, though doing so does not legitimize an otherwise unpermitted rental operation. Prospective hosts should consult a land use attorney and contact the Downey Planning Division before listing any property.