Can You Airbnb a Home in Costa Mesa? What Buyers and Investors Need to Know
If you're considering buying a Costa Mesa property with plans to operate it as an Airbnb or other short-term rental, there is one important fact to understand before you run the numbers:
Traditional short-term rentals are prohibited in Costa Mesa.
Unlike neighboring Newport Beach, which allows short-term rentals through a regulated permit system, Costa Mesa adopted Ordinance 2021-17 in November 2021 prohibiting short-term rentals throughout the city.
That means there isn't a permit you can acquire from a seller, a waitlist you can join, or a particular Costa Mesa neighborhood where buying the right property automatically makes a traditional Airbnb legal.
There is, however, an important exception for certain forms of home-sharing.
For buyers looking at Costa Mesa as an investment market, understanding that distinction should happen before an offer is written—not after closing.
This is where investors familiar with Newport Beach can get tripped up.
Newport Beach regulates short-term lodging through permits, zoning restrictions and permit caps. Costa Mesa took a different approach.
The City Council adopted Ordinance 2021-17 prohibiting short-term rentals throughout Costa Mesa. Under the ordinance, residential properties generally cannot be rented, offered for rent or advertised as short-term rentals for stays of 30 days or fewer.
So if you're looking at a Costa Mesa listing advertised as having Airbnb potential, don't assume there is a city permit available to make that strategy work.
For a traditional whole-home short-term rental, there isn't.
Costa Mesa's ordinance contains an exception for qualifying home-sharing.
This distinction matters.
The ordinance defines home-sharing around a natural person offering part of their primary residence for short-term occupancy while continuing to occupy the property during the rental period.
In practical terms, this is very different from buying a Costa Mesa house as a dedicated Airbnb investment.
A qualifying homeowner may have a path to renting a portion of the residence while continuing to live there, but an investor generally cannot purchase a house, furnish it, list the entire property on Airbnb or VRBO and operate it as a conventional vacation rental.
That difference should be built into your investment analysis from day one.
This is where buyers need to be particularly careful.
Seeing an active Airbnb or VRBO listing does not establish that the property's use complies with Costa Mesa's rules.
Neither does a seller's rental history.
If a property is generating attractive short-term rental revenue, verify exactly how it is being operated and whether that use falls within the city's home-sharing exemption.
An existing booking calendar shouldn't be treated as evidence that you can continue the same operation after purchasing the property.
This is especially important when evaluating investment properties based on seller-provided income statements. Historical revenue only matters to your valuation if you can legally reproduce that revenue after closing.
Costa Mesa is particularly clear when it comes to accessory dwelling units.
ADUs cannot be used as short-term rentals in Costa Mesa.
The city's current guidance states that ADUs are subject to a land-use restriction preventing rentals of less than 31 days.
That means a property with a detached ADU, converted garage or newly constructed backyard unit may still offer valuable rental potential—but you shouldn't underwrite that additional unit using nightly Airbnb rates.
For investors, the more appropriate analysis may be a 31+ day furnished rental or conventional long-term lease, depending on the property and applicable regulations.
Costa Mesa generally defines a short-term rental as a residential dwelling unit, or portion of one, rented to paying occupants for a short period.
The ordinance prohibits these short-term rental operations throughout the city except for qualifying home-sharing.
This prohibition isn't limited to Airbnb.
Advertising a prohibited short-term rental can itself create a compliance issue, regardless of whether the property is marketed through Airbnb, VRBO, another booking platform or independently.
Buying first and figuring out the regulations later is a poor strategy in Costa Mesa.
The city states that verified violations can result in fines of up to $1,000 per day. The ordinance also allows other enforcement mechanisms, potentially including nuisance-abatement actions and criminal or infraction proceedings.
That makes STR compliance more than a technical due-diligence item.
If your purchase only makes financial sense at $300, $400 or $500 per night and the city doesn't allow you to operate the property that way, you don't have an STR investment with a compliance problem.
You have the wrong investment model.
The short-term rental prohibition doesn't mean Costa Mesa should be ignored by investors.
It means the property needs to be evaluated using the right strategy.
Costa Mesa sits immediately inland from Newport Beach and provides access to employment centers, restaurants, shopping, beaches and much of coastal Orange County. Depending on the property, investors may want to evaluate several alternatives:
The right strategy depends heavily on the property, neighborhood, purchase price and buyer's objectives.
Two properties located only a few miles apart can have completely different short-term rental economics simply because one sits in Costa Mesa and the other in Newport Beach.
Newport Beach allows short-term lodging subject to zoning, permits, caps and other regulations.
Costa Mesa generally prohibits traditional STRs and does not offer investors a conventional STR permit to obtain.
That's why evaluating Orange County investment properties purely from Airbnb revenue projections can be misleading. Municipal boundaries matter.
A property in Eastside Costa Mesa may sit just minutes from Newport Beach while operating under an entirely different set of rental rules.
If rental income is an important part of your purchase, determine the legal rental strategy before deciding what the property is worth.
For a Costa Mesa property, we recommend verifying:
That last question is usually the most important.
Don't pay an "Airbnb premium" for a Costa Mesa property unless the income strategy you're valuing is actually legal and reproducible.
Can you buy a house in Costa Mesa and operate it as a traditional Airbnb? Generally, no.
Costa Mesa prohibits traditional short-term rentals throughout the city under Ordinance 2021-17. Qualifying home-sharing is treated differently, but that exemption should not be confused with permission to purchase and operate a dedicated whole-home vacation rental.
For investors, that changes the underwriting.
Instead of asking, "How much could this property make on Airbnb?" the better question is:
"What is the highest and best legal rental strategy for this particular property?"
That's the analysis that should happen before you decide what to offer.
The Rogina Group works with buyers and investors throughout Costa Mesa and coastal Orange County to evaluate properties from both a real estate and investment perspective. If you're considering a property and rental income is part of the equation, send us the address. We can help you evaluate the property, neighborhood and potential rental strategies before you write the offer.
Are Airbnb rentals legal in Costa Mesa?
Traditional short-term rentals are prohibited. Costa Mesa provides a limited exemption for qualifying home-sharing.
Can I buy an existing Costa Mesa Airbnb and continue operating it?
You should not assume so. An existing Airbnb listing or rental history does not establish that the use is legal or that a buyer can continue operating the property in the same manner.
Does Costa Mesa have an STR permit waitlist?
No. Unlike Newport Beach, Costa Mesa does not operate a conventional permit-and-waitlist system for traditional short-term rentals.
Can I Airbnb an ADU in Costa Mesa?
No. The city states that ADUs cannot be rented for periods of less than 31 days.
Can I rent a Costa Mesa property furnished for more than 30 days?
Costa Mesa's STR prohibition focuses on short-term occupancy. A 31+ day rental is therefore materially different from an STR, although buyers should still review other applicable city, state, lease and HOA requirements before proceeding.
What happens if someone operates an illegal STR?
Costa Mesa states that verified violations can result in fines of up to $1,000 per day, along with other potential enforcement actions.
By Tyler Rogina, Broker Associate | Rogina Group at Compass
August 31, 2026
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