Short-term rental rules · Monterey County, California
Short-term rentals in Monterey County, explained properly.
Monterey County regulates vacation rentals (stays of 30 consecutive calendar days or fewer) in the unincorporated inland areas under Section 21.64.290 of its zoning code, effective October 14, 2024. Homestays (owner present in their primary residence) and non-hosted limited vacation rentals (rented not more than three times a year) are allowed in listed zoning districts. Commercial vacation rentals (non-hosted, rented more than three times a year) need a use permit of up to seven years, are capped by area plan (for example 226 in North County Inland and 20 in Cachagua), and are prohibited in the residential districts of the Carmel Valley Master Plan area. Commercial operators also need a County business license and a vacation rental operation license. The coastal zone of the unincorporated County is under a separate Title 20, and cities such as Monterey and Carmel-by-the-Sea apply their own rules. We haven't reviewed the license chapter, the coastal rules, the lodging tax or the fee schedule yet.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Conditional: in the unincorporated inland areas of Monterey County, homestays and non-hosted rentals are allowed in listed zoning districts, and commercial rentals need a use permit within area caps; the coastal zone and the cities have their own rules [1] ClauseConfirming |
| Is a County use permit required for a commercial vacation rental? | Yes: a use permit, issued for an initial term of no more than seven years and renewable in seven-year extensions [1] Clause |
| Is there a cap on commercial vacation rental use permits? | Yes: set area by area, from 20 permits (Cachagua) to 226 (North County Inland), limited to four percent of single family dwellings [1] Clause |
| Is there a limit on commercial vacation rentals per lot or per owner? | Yes: one commercial vacation rental per legal lot of record (the Light Commercial, Heavy Commercial and Visitor-Serving/Professional Office districts are not held to that), and an owner may hold an ownership interest in one commercial vacation rental property in unincorporated Monterey County at a time [1] Clause |
| Must the owner live on the property? | Conditional: a homestay requires the owner to occupy a bedroom and use the property as their primary residence; limited and commercial vacation rentals are defined as non-hosted [1] ClauseConfirming |
| Is a County business license and vacation rental operation license required for a commercial vacation rental? | Yes: the operator must keep a valid business license (Chapter 7.02) and a valid vacation rental operation license (Chapter 7.120) throughout the use permit term [1] Clause |
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Detailed rules
The full picture, section by section
Operating rules
| Rental types the County defines | Homestay, limited vacation rental and commercial vacation rental: a rental of 30 consecutive calendar days or fewer is a vacation rental [1] Clause A "vacation rental" is the use of residential property for transient lodging for 30 consecutive calendar days or fewer, counting portions of days as full days; it includes commercial vacation rentals, homestays and limited vacation rentals and does not include a bed and breakfast facility, hotel, motel, hostel, inn, roominghouse or boardinghouse. A homestay is hosted by an owner in their primary residence. A limited vacation rental is non-hosted and rented not more than three times per 12-month period. A commercial vacation rental is non-hosted and rented more than three times per 12-month period. The County's stated purposes (Sec. 21.64.290(A)) include preserving residential character and housing supply, and regulating commercial vacation rentals in areas with infrastructure limitations. |
|---|---|
| Safety notices, parking and septic rules for commercial rentals | Commercial rentals must show adequate fire and medical response times, post emergency-services contact notices, meet parking requirements and keep any septic system in working order [1] Clause Under Sec. 21.64.290(F), a commercial vacation rental must demonstrate that County fire and emergency medical response times will be adequate under General Plan Safety Element Policy PS-1.1 and Table PS-1, and must provide emergency-services contact information. The notice must be included in rental contracts and posted in a prominent place within six feet of the front door, and must give the average response time and describe the onsite fire protection systems. Parking must meet Monterey County Code Section 21.58.040 for the dwelling type, or the parking rules in effect when the dwelling was built. A rental served by an onsite wastewater treatment system (OWTS) must keep it in good working order under Chapter 15.20 and, before use permit approval, submit a performance evaluation report from a qualified OWTS professional; any unacceptable component must be repaired or replaced first. A commercial rental not accessible directly from a public road is subject to Chapter 16.80, and the operator must mail notice of the proposed use to all properties with ownership or access rights to the private road when applying. |
| Transition rules for rentals operating before October 14, 2024 | Rentals already operating or permitted before October 14, 2024 must come into line with the section on a set timetable [1] Clause Operators who can show a vacation rental was established and operating before October 14, 2024 without the required approvals had six months from that date to apply for all permits, licenses, certificates or other entitlements, and could keep operating for up to six months or until the County acted on the application, whichever was later, unless the County required earlier termination because of a risk to public health, safety and welfare (Sec. 21.64.290(G)). Administrative permits issued under Sec. 21.64.280 for transient use of residential property before October 14, 2024 must comply with the section when the permit expires, and the operator must cease operating at expiration if the prior use is no longer allowed; permits without an expiration date must comply within seven years of October 14, 2024 (Sec. 21.64.290(H)). The County keeps the power to take enforcement action, including shutting down a rental, during the phasing-out period if it creates an immediate or imminent threat to life, public health or safety. Pending applications not approved by October 14, 2024 must comply with the section. |
State law that also applies
| Who sets lodging taxes on short stays in California? | Each city or county: state law lets them levy a transient occupancy tax on stays of 30 days or less [2] Clause California Revenue and Taxation Code section 7280 lets the legislative body of any city, county, or city and county levy a tax on the privilege of occupying a room or other living space in a hotel, inn, tourist home or house, motel or other lodging, unless the stay is longer than 30 days. A county's tax applies only in its unincorporated areas. The rate, registration and filing rules are set by each city or county, so the local tax is shown in the city's own section of this page. |
|---|---|
| Can cities make booking platforms report rentals and show local license numbers? | Yes, where the city or county opts in by ordinance (Short-Term Rental Facilitator Act of 2025, in force January 1, 2026) [3] Clause 1 Clause 2 Clause 3 Clause 4 Government Code sections 50990 to 50996 (Senate Bill 346, 2025) apply only in a city or county that adopts an ordinance making them apply. Where they apply, a booking platform must, on the local agency's request, report the physical address with nine-digit ZIP code of each short-term rental it facilitated (no more often than every 3 months, or monthly if the local tax is remitted monthly), and must include in each listing any applicable local license number and any transient occupancy tax certification issued by the local agency. The local agency may fine a platform that does not report. The act does not stop a city or county from regulating short-term rentals, platforms or tax collection in other ways. |
Changes
Recent and pending changes
We read the Monterey County Code title page (codified through Ordinance 5446, passed April 21, 2026; Supplement 56, online June 12, 2026) and Section 21.64.290 of Title 21, as published on Municode and fetched on October 18, 2026. The title page lists adopted ordinances not yet codified, but the saved list was cut short, and we haven't reviewed Board of Supervisors or Planning Commission agendas, the vacation rental operation license chapter (7.120) or the coastal Title 20 yet, so we will watch the Code and County actions for changes.
Sources
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.