Are short-term rentals legal again in South Lake Tahoe?

Yes. After a court struck down Measure T in March 2025, the City of South Lake Tahoe adopted a new Vacation Home Rental ordinance, effective April 23, 2026, that allows VHRs in residential areas again, subject to a 900-permit citywide cap and other operating rules.

What happened to Measure T in South Lake Tahoe?

A judge struck down Measure T on March 13, 2025, ruling that its permanent-resident exception for vacation home rentals was unconstitutional. The City of South Lake Tahoe did not appeal and instead adopted a new Vacation Home Rental ordinance.

Is there a cap on short-term rental permits in South Lake Tahoe?

Yes. The current Vacation Home Rental ordinance, effective April 23, 2026, caps permits in residential areas at 900, with a waitlist once that cap is reached. As of the ordinance's effective date, the cap had not yet been filled.

North Lake Tahoe STR Regulations · South Lake Tahoe

South Lake Tahoe just reopened. Most investor content hasn't caught up.

For seven years, most of residential South Lake Tahoe was closed to short-term rentals under Measure T. A court struck it down in March 2025, and the city's new Vacation Home Rental ordinance — a fresh 900-permit cap — took effect April 23, 2026. This is the biggest opportunity shift in the Basin right now, and I'm flagging it early because it hasn't fully hit the market yet.

The numbers I check before I write an offer

900 — new permit cap in residential areas, replacing the old 150-ft buffer rule

Not full — first-come, first-served; waitlist opens once the cap fills

25 — minimum age to rent a VHR

Yes — attached condos now eligible, unless the HOA prohibits it

The backstory, briefly

In November 2018, voters passed Measure T, phasing out vacation rentals in residential neighborhoods by the end of 2021 and confining them to the Tourist Core. A narrow exception let permanent residents rent up to 30 days a year. On March 13, 2025, an El Dorado County judge struck the whole thing down — the "permanent resident" exception was ruled unconstitutional and inseparable from the rest of the law. The city didn't appeal. What followed: a 45-day moratorium, an interim ordinance favoring prior permit holders, and finally a rewritten ordinance — Ordinance 2026-1203 — effective April 23, 2026.

What changed

The old 150-foot buffer is gone, replaced by a citywide cap of 900 residential permits. Attached condos are now eligible unless the building's HOA says otherwise — a real shift from the old rule restricting condos to a small legacy group. No more than one VHR per parcel. No commercial events — weddings and receptions are explicitly barred.

What actually happens when you buy

The city's own guidance is direct: with permits now capped, there's no guarantee a given property will get one, even outside the old restricted zones. I confirm current permit availability and property-specific eligibility directly with the city (vhr@cityofslt.gov) before writing any offer here — this ordinance is young enough that a general guide, including this one, isn't a substitute for a direct check.

Bottom line

South Lake Tahoe went from the most restricted market on the lake to a genuinely open one, with a cap that — unlike Placer or El Dorado — is brand new and nowhere near full. That's a real window. The discipline it requires: verify permit status property-by-property with the city, not from market chatter, because even local agents and lenders are still catching up on the specifics.

More county rules: All counties at a glance → · El Dorado County → · Placer County →

Run your own numbers on the STR calculator →

Public regulatory information as of mid-2026, for general planning. This ordinance is newly effective and subject to further change — confirm current status with the City of South Lake Tahoe (vhr@cityofslt.gov) before writing an offer. Not legal advice.