Oakley's New Short-Term Rental Pilot Targets Downtown Revitalization

Oakley is moving forward with a limited short-term rental experiment. The city council voted 4-0 on Aug. 11 to allow up to 10 unhosted vacation rentals in the downtown area, a strategy to attract visitors and boost local spending.

Pilot Program Limited to Downtown

The new program applies only to properties inside the Downtown Specific Plan (DSP) area. Unhosted stays, where the owner is off site during the rental, remain banned elsewhere in the city. Each property may host only one rental agreement at a time, and the total number of active permits is capped at 10.

Under the program, an owner who uses the home as a primary residence may rent the entire unit without remaining on site. The one-rental-agreement limit also means that if a property contains more than one unit, the additional units cannot be rented to separate parties.

Staff initially recommended 15 permits. The council reduced the number to 10 during the meeting. Council Member Shannon Shaw said the city was approaching the program carefully.

“I want the residents to know that we’re taking this with kid gloves right now, making sure that this is what it’s meant to do, which is to revitalize our downtown,” Shaw said.

Why Oakley Is Proceeding

The city expects tourism events to create demand for overnight stays. According to a staff report cited by contracosta.news, the 2026 Bass Angler Magazine Tournament Series could generate between $453,000 and $472,000 in direct economic activity in Oakley. The tournament is expected to bring participants who stay an average of five days, with lodging spending estimated at $150 per participant per day. A significant portion of this spending is tied to overnight accommodations, representing a substantial share of overall visitor spending. The Pro-Am and Scholastic events alone are expected to account for more than 200 of those participants.

City officials first presented those projections at an April 28, 2026 council meeting, according to the staff report.

Officials said the rentals would accommodate guests who attend local events and may spend money at nearby businesses. The city says the main purpose of the zoning text amendment is to encourage further economic development within the city.

Rules and Oversight

Vacation rentals in the pilot cannot host weddings, auctions, commercial functions or similar events. They also cannot provide parking for buses or limousines. Owners must obtain an annual permit and follow operational standards covering emergency vehicle access, noise and disorderly conduct.

The City Manager may notify property owners within 500 feet of a proposed rental. If the city receives more applications than available permits, a waiting list will be maintained by the Planning Division in the order received.

Enforcement is expected to improve under Senate Bill 346. The law requires companies like Airbnb to report listing data, including license and transient occupancy tax numbers, as often as once a quarter.

Local California Context

Oakley sits in eastern Contra Costa County, about 45 miles east of San Francisco. The downtown area contains roughly 200 units. The pilot is the city's first attempt to allow unhosted vacation rentals in a specific neighborhood.

According to the staff report, about half of those units are in the DSP-RCCO subdistrict, with most of the remaining units in the DSP-DS. Only a limited number of units are in the DSP-DC, and most are likely part of a mixed-use building.

Council Member Shaw referenced a past house party in the Vintage Parkway neighborhood that “got out of hand.” She said the city needs to monitor the program to make sure it does not harm residents.

Background

Before this change, Oakley's short-term rental ordinance prohibited unhosted stays and vacation rentals citywide. The staff report and council discussion covered both hosted and unhosted stays within the DSP, but the new amendment creates a narrow exception for unhosted vacation rentals in the Downtown Specific Plan area. The pilot will run for one year before the council reviews a report on its results.

Conclusion

Oakley's downtown pilot is a cautious step toward expanding tourist lodging while keeping restrictions elsewhere. If successful, the program could influence future decisions on short-term rentals across the city.