Nevada City Sends Short-Term Rental Cap to November Voters
City Council • Nevada CityJuly 23, 2026
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Nevada City voters will decide Nov. 3, 2026, whether to replace a decade-old, uncapped short-term rental law with stricter rules that limit whole-home rentals and add penalties. The City Council placed the measure on the ballot in a 4-0 vote after more than an hour of debate. It also started the legal process for the first water rate increases since 2017.
- Short-term rental overhaul heads to Nov. 3 ballot after a 4-0 vote; whole-home permits would be capped at 2% of housing stock
- Neighbors split: Most commenters wanted whole-home rentals phased out, while a part-time owner asked for a permit path
- Voters, not council, hold the pen: Rejecting the measure would freeze changes for about two years
- Water and sewer rate hikes advance 4-0; a typical water bill would rise from about $36 to $46 a month in year one
- Countywide Culture Forward arts plan adopted 4-0 as the mayor presses for concrete funding asks
Why it matters: Whole-home rentals make up about three-quarters of the city's short-term rental permits. Neighbors say these unhosted units are draining housing stock and disrupting blocks.
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