However, California imposes an $800 annual franchise tax, plus an additional gross receipts fee if rental income exceeds $250,000.

A few things I’ve seen work in today’s market:Focus on cash flow-friendly markets: Look outside major metros where STR regulations are strict, and pick areas with high occupancy rates and strong tourism or business travel demand.Leverage property management: Either in-house or through specialized STR management companies, this is key to scaling without burning out.Buy undervalued or off-market properties: You can still find deals where the numbers work even in competitive markets.Know the regulations: City rules and HOA restrictions are critical.

Are there any restrictions in communities like that?  

In short, Powell was more “dovish” than expected (a fancy way of saying/signaling future interest rate cuts and less restrictive monetary policy in his closely chosen language).

Some restrict STRs by density.

In a “b” offering no solicitation or advertising is allowed, and there are restrictions to the “preexisting” relationship requirement between sponsor and investor.  

Hampton VA has some tough restrictions on STR.  

.- Bellevue is quite strict with restrictions on Transient Lodging (<30 day stays) in single family homes; rooms within the home may be rented however. 

Yet the recovery was faster than anyone expected, with a surge of buyers re-entering the market as soon as restrictions eased.The lesson is clear: no matter the cause, the market always rebounds.Today’s Situation: Where We Stand NowOver the past few years, home sales have been sluggish.

Your target, from what you wrote, would be cheaper renters looking for a value stay that is clean, but unspectacular.If you market is saturated, you will keep going lower and lower in the algorithm which will indirectly restrict booking.