Short‑Term Rentals in Fremont: Permit Rules and ROI

Thinking about turning your Fremont home into a short-term rental? You are not alone, and the rules here are very specific. With a clear plan, you can stay compliant, set realistic expectations, and decide if the numbers make sense. This guide explains permit rules, taxes, and a simple way to model ROI with local inputs so you can make a confident choice. Let’s dive in.

Fremont STR definition

A short-term rental in Fremont means renting a dwelling or portion of it for fewer than 30 consecutive days. The City’s ordinance took effect in February 2024 and created a permit process for hosts. You can review the adoption and resources from the City and the full municipal code for details on definitions and enforcement.

• See the City’s update on the ordinance and resources in the Fremont news announcement.
• Read the full Short-Term Rental ordinance.

Permit rules at a glance

Fremont requires a no‑cost STR permit before you host. Operating without one is unlawful under the municipal code.

Who can host

• Primary residence only. You must host in your primary residence and show documentation.
• One STR per host and per dwelling. You cannot hold more than one STR anywhere in Fremont.
• No ADUs or affordable units. STRs are prohibited in ADUs, JADUs, accessory structures, and in affordable units as defined by code.

Reference: Fremont STR ordinance.

Operating limits

• Occupancy generally follows two persons per bedroom. Check the ordinance for any total caps or exceptions.
• Parking must be on site, such as driveway, garage, or carport. Some transit areas may differ.

Reference: Fremont STR ordinance.

Safety and neighbor duties

• Post required materials inside the unit, including the permit number, local contact, and Good Neighbor Guidelines.
• Maintain smoke and carbon monoxide detectors and a fire extinguisher.
• After permit approval, notify properties within 100 feet with your permit number and a 24/7 local contact.

Get forms and guidance from the City’s Short‑Term Rental Permit portal.

Enforcement and penalties

Violations can be treated as a public nuisance with fines, and the City can suspend or revoke a permit. Permits are not transferable. Review the code for grounds, processes, and penalties in FMC §5.100.

Taxes and business setup

Budget for taxes and registration before you host.

• Transient Occupancy Tax (TOT): Fremont’s TOT is 10% of rent for stays of 30 nights or fewer. Hosts are responsible for registering and remitting. See FMC §3.10.
• Business tax/license: The City classifies STR activity under rental of transient accommodations. Register as required under FMC §5.05.
• Platform collection: Some platforms may collect taxes, but you must still confirm collection, register with the City, and file reports. Guidance is on the permit portal.
• Other costs: STR insurance endorsements, utilities, supplies, turnover cleaning, and platform fees. Airbnb’s host fee model can vary, so confirm your account’s current fee in the Airbnb fee overview.

How to get permitted

Follow the City’s steps and keep records organized.

1. Confirm your property is eligible. It must be your primary residence and not an ADU or affordable unit.
2. Gather proof of primary residence, such as driver’s license, vehicle registration, or utility bills.
3. Complete the STR permit application and safety affidavit. Obtain HOA approval if your community requires it.
4. Register for Fremont’s TOT and any business tax as required.
5. After approval, post your permit number and Good Neighbor Guidelines in the unit and notify neighbors within 100 feet.
6. Maintain a 24/7 local contact and document responses to any complaints.

See forms and templates on the City’s Short‑Term Rental Permit portal.

Fremont STR ROI explained

Short‑term rental returns depend on price, demand, and operating choices. In Fremont, aggregator data shows a moderate range for pricing and occupancy.

Key inputs to model

• Average Daily Rate (ADR) and occupancy: Recent aggregator snapshots show ADR around 120 to 130 dollars and occupancy near 45 percent, depending on property type and season. See the Fremont market snapshot.
• Purchase price and financing: Use a realistic purchase price for your scenario. For examples in this guide, we use 1,450,000 dollars to reflect a typical Fremont purchase assumption.
• Operating costs: Cleaning per stay, utilities, supplies, insurance, platform fees, management fees, HOA if applicable, and the 10 percent TOT. For property tax, Alameda County’s effective rate is often near 1 to 1.3 percent of assessed value. Estimate with the County Assessor’s guide.
• Management choice: Full‑service STR management often runs about 15 to 30 percent of gross revenue. See typical ranges in this manager fee overview.

Quick calculator

• Nights booked per year = 365 × occupancy rate.
• Gross annual revenue = ADR × nights booked per year.
• Net operating income (NOI) = Gross revenue − (TOT + platform fees + management + cleaning + utilities + insurance + maintenance + other).
• Cash flow before debt = NOI − property taxes − HOA fees.
• Cash flow after debt = Cash flow before debt − annual mortgage payments.

ROI example: typical numbers

Assumptions for a whole‑home scenario in Fremont:

• ADR: 129 dollars; occupancy: 45 percent. Source: market snapshot.
• TOT: 10 percent. Source: FMC §3.10.
• Platform fee: 15 percent host‑side estimate. Source: Airbnb fee overview.
• Management fee: 20 percent in this example. Range is often 15 to 30 percent. Source: manager fee overview.
• Cleaning: 125 dollars per turnover. Assume 82 turnovers a year if the average stay is 2 nights.
• Utilities, supplies, insurance, maintenance combined: 6,000 dollars per year.
• Example purchase price: 1,450,000 dollars.

Math highlights:

• Nights booked ≈ 365 × 0.45 = 164 nights.
• Gross revenue ≈ 164 × 129 dollars = 21,156 dollars.
• Estimated costs: TOT 2,116; platform 3,173; management 4,231; cleaning 10,250; utilities and other 6,000.
• Estimated NOI ≈ 21,156 − 25,770 = −4,614 dollars, before property tax and any mortgage.

What this means: at these inputs, a whole‑home STR can run negative before debt. Owners often improve results by increasing ADR, boosting occupancy, setting longer minimum stays to cut cleaning costs, reducing management fees, or pivoting to an owner‑occupied homestay model.

What moves returns most

• ADR and occupancy: Small gains compound quickly. Better photos, amenities, and response time help.
• Turnover cost: Longer minimum stays reduce cleaning and supplies per booked night.
• Management choice: Co‑hosting or partial services can lower fees while keeping some support.
• Financing and taxes: Mortgage rate, down payment, and property tax drive cash flow. Estimate taxes with the County Assessor’s guide.

Is a Fremont STR right for you?

If you plan to host in your primary residence and keep turnover low, a homestay can be workable. Entire‑home STRs in Fremont often need higher ADR, stronger occupancy, or tighter cost control to pencil out. Always check your HOA rules, since some communities restrict STRs even when the City allows them.

If you want a calm, practical review of your options, reach out. As a local advisor who blends process discipline with a people‑first approach, I can help you model scenarios and choose the right path for your goals. Connect with Karin Freiman to get started.

FAQs

Do I need a permit to host a short‑term rental in Fremont?

• Yes. Operating without a City STR permit is unlawful under FMC §5.100; apply on the City’s permit portal.

Can I rent an ADU or a non‑primary home as an STR in Fremont?

• No. STRs are allowed only in a host’s primary residence and are prohibited in ADUs, JADUs, accessory structures, and affordable units per FMC §5.100.

How much is the hotel tax on short stays in Fremont?

• The Transient Occupancy Tax is 10 percent of rent for stays of 30 nights or fewer under FMC §3.10.

If my platform collects taxes, do I still register with the City?

• Yes. Platforms may collect and remit some taxes, but you must confirm collection, register with the City, and report as outlined on the permit portal.

What ROI should I expect for a Fremont STR?

• Returns vary widely. Using typical ADR and occupancy inputs from a Fremont snapshot, a whole‑home example can be negative before debt unless you raise ADR, boost occupancy, or reduce costs.

What are the occupancy and parking rules for Fremont STRs?

• Occupancy generally follows two persons per bedroom, and guest parking must be on site unless noted in transit areas; see FMC §5.100 for details.

Are STR permits transferable if I sell my home?

• No. Permits are host‑specific and not transferable under FMC §5.100.