Executive summary
Major regulatory tightening hit multiple markets this week. North Salem, New York, now requires conditional use permits and site plan approvals for all STRs with zero grandfathering—existing operators must apply or shut down immediately. Skokie, Illinois, launched a pilot program banning new investor-owned STRs entirely while charging existing operators up to $2,450 in licensing fees, mandating five-day minimum stays, and requiring annual training. Decatur, Alabama, is voting on a hard cap of 135 total STRs citywide with strict density limits of just 3 properties within 1,000 feet in residential zones. Morro Bay, California, is hiking violation penalties from $500 to $5,000 for repeat offenses while maintaining its 175-unit cap with 187 properties on the waitlist. Maryville, Missouri, is cracking down on the over 50% of its 36 identified listings operating without required registration or permits. On the positive side, Kelowna, British Columbia, is pushing for early STR reinstatement ahead of November 2026 after hitting a 6.9% vacancy rate, and San Diego rejected an $8,000 annual tax on vacation rentals. Washington state is considering local optional taxes of 1-4% that municipalities could impose at their discretion.
New Regulations
San Diego, California
Published: January 28, 2026
Regulation Category: Tax (proposed new annual tax - rejected
Summary: San Diego's Rules Committee rejected (3-2 vote) a proposed ballot measure for an $8,000 annual tax on empty second homes and STRs (plus extras for corporate or repeat violators), which targeted over 5,000 empty homes and nearly 6,000 vacation rentals and failed to advance. STR investors avoid this significant new tax burden for now, as the measure died without proceeding to council or ballot, preserving current tax structures.
Source: San Diego vacation home/short term rental ballot measure plan dies in committee
Santa Fe, New Mexico
Published: January 27, 2026
Regulation Category: Tax (collection/reporting software)
Summary: The City of Santa Fe held a meeting on January 27, 2026, to introduce new tax software (developed by Neumo) for collecting lodgers' tax from short-term rentals, including a demonstration of the reporting portal and required forms. STR investors and operators must use this system for tax reporting to ensure compliance, which may streamline processes but increase monitoring and enforcement of accurate tax payments.
Source: City of Santa Fe to hold meeting on new short-term rental tax software
North Salem, New York
Published: January 31, 2026 (approved January 27, 2026)
Regulation Category: Zoning, licensing (conditional use permits, site plan approvals)
Summary: North Salem's Town Board unanimously approved zoning amendments requiring conditional use permits and site plan approvals from the Planning Board for all STRs, with no grandfathering for existing listings on platforms like Airbnb/VRBO; the law takes effect after New York Secretary of State acknowledgment, without a grace period. Existing and new STR investors must apply for and obtain approvals to continue or start operations, aiming to balance tourism with local quality of life but adding significant regulatory hurdles.
Source: North Salem short-term rental law
Skokie, Illinois
Published: January 30, 2026
Regulation Category: Licensing, zoning (owner-occupancy, fees, training)
Summary: Skokie is launching a pilot STR regulation program (through August 2027) requiring mandatory licensing with high initial fees ($2,450 for owner-occupied, $1,200 for investor-owned), primary residence or same-parcel restrictions, five-day minimum stays, annual training, and a ban on new investor-owned STRs (existing ones grandfathered with compliance). New investors face barriers to entry, while existing operators must meet strict occupancy, maintenance, and reporting rules or risk losing permissions.
Source: Skokie prepares to regulate short-term rentals
Decatur, Alabama
Published: January 31, 2026 (effective March 1, 2026 if passed)
Regulation Category: Zoning, licensing, occupancy (caps, density, inspections)
Summary: Decatur's City Council is set to vote on Ordinance No. 26-4633 to cap total STRs at 135 citywide (effective March 1, 2026 if approved), require $500 annual certificates with inspections, enforce strict density (max 3 within 1,000 ft in residential zones), occupancy limits (twice bedrooms, max 4 beds), parking, minimum stay 24 hours, and ban commercial events. Investors face a hard citywide cap, density restrictions, higher compliance costs (inspections, fees), and potential fines, significantly tightening operations in residential areas.
Source: Decatur may tighten short-term rental rules
Morro Bay, California
Published: January 26, 2026 (proposed vote January 27, 2026)
Regulation Category: Enforcement/penalties (violation fees)
Summary: Morro Bay is proposing to significantly raise penalties for illegal STR operations under SB 60, increasing fines from $100/$200/$500 to $1,500/$3,000/$5,000 for successive violations within a year, especially for health and safety issues; the city maintains a 175-unit cap on residential STRs (with current active numbers reduced to 146 total and a long waitlist of 187). Investors face much higher financial risks for non-compliance or operating illegally, as the changes aim to strengthen enforcement amid ongoing permit pauses and neighborhood concerns.
Source: City of Morro Bay looking to increase short-term rental violation fees
Maryville, Missouri
Published: January 30, 2026
Regulation Category: Enforcement (registration, taxes, permits)
Summary: Maryville is increasing enforcement on its 2019 STR ordinance due to widespread non-compliance, with over half of 36 identified Airbnb/Vrbo listings unregistered and many lacking required special use permits in certain zones; regulations require registration, 5% transient guest tax payment, and permits in non-allowed zones via neighbor input and council approval. Investors risk penalties, fines, or shutdowns if operating without registration or permits, prompting a crackdown to ensure compliance and revenue collection.
Source: City looking to enforce short-term rental regs
Developing Regulations
Albuquerque, New Mexico
Published: January 26, 2026 (updated January 27, 2026)
Regulation Category: Zoning (density/spacing restrictions)
Summary: Albuquerque City Councilors are proposing a bill to prohibit new short-term rental permits within 330 feet of existing ones, particularly targeting concentrations in historic neighborhoods like Old Town and areas with majority people of color to address housing shortages; the bill is in proposal stage with a council hearing scheduled for February 2, 2026, and potential amendments to reduce the distance requirement. For STR investors, this could restrict new permits and expansion in high-demand areas, affecting unregistered operators (over half of current ones) and potentially limiting income opportunities if passed.
Source: Albuquerque City Councilors Proposing Rules Again to Limit Short-Term Rentals
Kelowna, British Columbia, Canada
Published: January 26, 2026
Regulation Category: Licensing/permissions (provincial restrictions and exemptions)
Summary: The Kelowna Chamber of Commerce is advocating for early reinstatement of short-term rentals (ahead of the November 1, 2026 exemption date) after meeting the provincial 3% vacancy threshold with a 6.9% rate, as current BC Short Term Rental Accommodation Act limits STRs to primary residences and attached suites. Investors could benefit from potential early spring approval to capitalize on summer events like the Memorial Cup, boosting accommodation demand and revenue opportunities in this tourism area.
Source: Kelowna Chamber of Commerce pushes province for early short-term rental approval
Evanston, Illinois
Published: January 27, 2026
Regulation Category: Licensing, zoning (density, spacing, manager requirements)
Summary: Evanston City Council tabled a proposed STR ordinance until February 9, 2026, after an 8-0 vote, with current 78 licensed units (mostly owner-occupied) out of 135 identified; proposed rules tighten manager proximity (to within 3 miles), raise STR limits to 1 per 100 long-term rentals, increase spacing to 600+ feet, and require platforms to collect hotel taxes. For investors, this indicates a cautious reopening with stricter controls on non-owner-occupied units, density, and compliance, potentially limiting growth but clarifying rules for registered operations.
Source: Evanston not quite ready to reopen the door on 'vacation rentals'
Washington (statewide)
Published: January 31, 2026
Regulation Category: Tax (local optional tax)
Summary: Washington state legislators are considering a bill allowing local governments to impose a 1-4% tax on short-term rentals (with funds for affordable housing), not a statewide mandate; Airbnb is opposing via significant PAC spending, calling it a "vacation tax." If passed, local jurisdictions could add this tax at their discretion, potentially increasing operating costs for STR investors depending on municipality decisions.
Source: Airbnb fights short-term rental tax in Washington