Rental Cap Values

Analysis of specific percentage limits placed on rental units and how those limits pair with fine exposure.

Most Common Cap
25%

Found in 21 communities

Average Cap
37%

Mean percentage allowed

Total Capped HOAs
2,621

Communities with explicit % limits

Financial Exposure Blend
59

Index combining fines, discretion, and escalation language

Rental Cap Distribution
Frequency of specific rental cap percentages.
Financial Exposure Context
Caps alone don’t cap risk.

Undefined fine ceilings82%

Escalating “until cured” language0%

Avg exposure index59

Caps at 10–25% are common, but vague or compounding fines can outweigh the cap itself if owners fall out of compliance.

Interpretation Notes
How to read these caps.

Caps below 10% function like near-bans; 10–25% limit investor dominance; 50%+ caps are rare and usually resort-focused.

Board approval layers or waitlists can further depress actual rental availability even where percentages look generous.

Methodology snapshot
How rental caps and exposure are derived.

• Parse cap percentages from CC&Rs, bylaws, and rental exhibits

• Link caps to enforcement data: undefined ceilings, escalation language, and board-discretion flags

• Exposure index blends fine schedules, discretion, and penalty risk into a single number