Executive Summary
Dearborn Heights, Michigan, implemented an immediate and absolute ban on short-term rentals under 27 days with a $5,000 daily fine for violations and $1,000 for maintaining online listings. Monterey County, California, finalized new ordinances creating three distinct categories of short-term rentals with specific operational limits in coastal zone areas, fundamentally altering how properties can be used in high-tourism markets. Norfolk, Virginia, is considering a tax restructuring from a flat $3 per night to $3 per bedroom, which could significantly increase costs for larger properties. Buchanan, Michigan, restricted short-term rentals to downtown corridors while banning them entirely in single-family residential districts, though 15 existing properties were grandfathered and 15 additional permits will be available in non-single-family zones. Solvang, California, confirmed short-term rentals will remain confined to the downtown village mixed-use zone with no citywide expansion, while drafting stricter enforcement measures and transient occupancy tax compliance requirements.
New Regulations
Monterey County, California
Published: September 24, 2025
Regulation Category: Zoning
Summary: The Monterey County Board of Supervisors adopted an ordinance categorizing short-term rentals into three types with specific limits in coastal zone areas, aiming to balance tourism benefits with resident housing needs and local economy impacts. Short-term rental investors in affected coastal properties should prepare for new operational restrictions that could alter property usage and profitability in high-tourism zones.
Source: Monterey County STR Regulations
Dearborn Heights, Michigan
Published: September 26, 2025
Regulation Category: Licensing (ban)
Summary: Dearborn Heights City Council unanimously banned short-term rentals of 27 days or less in all residential neighborhoods, effective immediately, with $5,000 daily fines for violations and $1,000 for online listings, closing prior legal loopholes to protect quality of life from noise and parking issues. Unlike neighboring Dearborn, which permits them downtown, this citywide prohibition eliminates short-term rental viability, requiring new landlords to acknowledge the ban for occupancy certificates.
Source: Dearborn Heights STR Ban
Buchanan, Michigan
Published: September 23, 2025
Regulation Category: Zoning
Summary: Buchanan City Commission approved a short-term rental ordinance allowing operations primarily in the downtown corridor while prohibiting them in single-family residential districts, grandfathering 15 existing properties and permitting 15 more in non-single-family areas following a March moratorium. This zoning-focused regulation addresses community concerns over school district impacts and property sales, potentially limiting expansion opportunities outside designated zones for investors.
Source: Buchanan STR Ordinance
Developing Regulations
Norfolk, Virginia
Published: September 24, 2025
Regulation Category: Tax
Summary: Norfolk City Council delayed a vote on raising the short-term rental tax from a flat $3 per night to $3 per bedroom, as recommended by a city study group to fund community reinvestments in areas like Ocean View and East Beach, pending a required public hearing. While unrelated to ADU approvals, this potential tax hike could increase operational costs for short-term rental investors by tying fees to property size.
Source: Norfolk STR Tax Proposal
Weatherly, Pennsylvania
Published: September 26, 2025
Regulation Category: Zoning
Summary: Weatherly Borough Council discussed potential short-term rental regulations modeled after Jim Thorpe's ordinance, considering zoning-based approaches like special exceptions or conditional use permits to address concerns over noise, parking, and 'party house' issues. The matter was tabled for further review with possible action next month, signaling upcoming hurdles for investors seeking to establish or expand operations in this trail-connected tourism area.
Source: Weatherly STR Regulations Discussion
Solvang, California
Published: September 25, 2025
Regulation Category: Zoning and tax
Summary: Solvang City Council is revisiting the short-term rental limits to the downtown village mixed-use zone without citywide expansion, directing staff to draft updates to the 2015 rules focusing on enforcement, underused permits, minimum-stay requirements, and stricter transient occupancy tax compliance. Investors with properties outside the VMU zone face potential bans or new permitting hurdles, while those within could see caps on permits and fees to prioritize long-term housing preservation.
Source: Solvang STR Policy Updates