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Bed and Breakfast and Short-Term Rental Regulations in Grass Valley

Jurisdiction: Grass ValleyCode Version: September 23, 2025

In the City of Grass Valley, bed and breakfast inns and short-term rentals are permitted in a variety of residential, commercial, and traditional community zones, though many districts require a Minor Use Permit. These lodging uses are strictly prohibited within Accessory Dwelling Units (ADUs) or second units, and Vacation Rental Homes require the owner or manager to reside within 30 miles of the property. For all such rentals in Grass Valley, off-street parking must be provided at a ratio of one space per guest room plus two spaces for the resident manager or owner.

Bed and Breakfast Inn (B&B) Permissions

The Grass Valley Development Code defines a Bed and Breakfast Inn as a residential structure with one or more bedrooms rented for overnight lodging, where meals may be provided to guests [Section 17.100.020]. The owner or manager must reside on-site and the establishment must obtain a city business license and pay applicable transient occupancy taxes [Section 17.44.040].

The following table outlines where Bed and Breakfast Inns are allowed in Grass Valley:

Zoning District Permission Level
TC (Town Core) Permitted (P)
NC (Neighborhood Center) Minor Use Permit (MUP)
NC-Flex (Neighborhood Center Flex) Minor Use Permit (MUP)
RE (Residential Estate) Minor Use Permit (MUP)
R-1 (Single-Family Residential) Minor Use Permit (MUP)
R-2 (Two-Family Residential) Minor Use Permit (MUP)
R-2A (Medium Density Residential) Minor Use Permit (MUP)
R-3 (Multiple Dwelling Residential) Minor Use Permit (MUP)
C-2 (Central Business District) Permitted (P)
C-3 (Heavy Commercial) Permitted (P)
M-1 (Light Industrial) Permitted (P)
M-2 (General Industrial) Permitted (P)
C-1, OP, CBP Districts Prohibited (—)

[Tables 2.1, 2.2, 2.3, 2-7, 2-10]

Short-Term Rental (STR) Permissions

Grass Valley distinguishes between two types of short-term rentals: Hosted Short-Term Rentals (where the owner/resident is present and rents no more than two rooms) and Vacation Rental Homes (where the owner/resident may not be present) [Section 17.44.205]. Neither type is permitted in the RE (Residential Estate) or R-2A (Medium Density Residential) zones [Table 2-7].

Zoning District Hosted Short-Term Rental Vacation Rental Home
NC-Flex Permitted (P) Minor Use Permit (MUP)
R-1 Permitted (P) Minor Use Permit (MUP)
R-2 Permitted (P)* Minor Use Permit (MUP)*
R-3 Permitted (P)* Minor Use Permit (MUP)*

*In the R-2 and R-3 zones, short-term rentals are only permitted if an existing legally non-conforming single-family dwelling is located on the property. The use becomes void if the single-family home is replaced with a multifamily use [Table 2-7].

Operating Standards and Requirements

Both Bed and Breakfast Inns and Short-Term Rentals must comply with specific operational standards to protect the residential character of Grass Valley neighborhoods.

Prohibitions and Limits

  • One Per Property: Each property in Grass Valley is limited to one short-term rental [Section 17.44.205.A].
  • ADU Restriction: Short-term rentals (both hosted and vacation rentals) are explicitly prohibited from being operated out of Accessory Dwelling Units or carriage houses [Section 17.44.205.A].
  • Residency for Vacation Rentals: The owner or manager of a Vacation Rental Home must live within 30 miles of the unit and be available to respond to telephone calls 24 hours a day [Section 17.44.205.C].

Parking Standards

Off-street parking requirements are uniform for these lodging types in Grass Valley. Parking for short-term rentals may be accommodated through tandem parking [Section 17.44.205.B].

Lodging Type Required Vehicle Spaces
Bed and Breakfast Inn 1 space per guest room + 2 spaces for manager/owner
Hosted Short-Term Rental 1 space per guest room + 2 spaces for manager/owner
Vacation Rental Home 1 space per guest room + 2 spaces for manager/owner

[Table 3-3]

Noise and Safety

  • Noise Control: All rentals must comply with the noise regulations found in Grass Valley Municipal Code Chapter 8.28 [Section 17.44.205].
  • Information Posting: The owner or manager must post up-to-date information in the rented rooms to assist guests with natural disasters, power outages, and other emergencies [Section 17.44.205.B].
  • Commercial Standards: Any B&B with five or more guest rooms must meet current fire and building codes for high-occupancy structures [Section 17.44.040.B].

Sections Cited

  • Table 2.1 - Town Core (TC) Zone Allowed Land Uses
  • Table 2.2 - Neighborhood Center (NC) Zone Allowed Land Uses
  • Table 2.3 - Neighborhood Center-Flex (NC-Flex) Zone Allowed Land Uses
  • Table 2-7 - Allowed Land Uses and Permit Requirements for Residential Zones
  • Table 2-10 - Allowed Land Uses and Permit Requirements for Commercial and Industrial Zone
  • Section 17.44.040 - Bed and breakfast inns (B&Bs)
  • Section 17.44.205 - Short-term rentals
  • Table 3-3 - Parking Requirements by Land Use
  • Section 17.100.020 - Definitions of specialized terms and phrases

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