Regulations >
California >
Atwater

Want to see how Atwater compares to other top cities in California?  Explore all city regulations in California. →

B

Atwater, CA

Generally Investor Friendly

Local STR Agent

Local STR Agent

Atwater STR Expert
Atwater, California skyline

STR Regulations for Atwater, California

Overview: Are Short-Term Rentals Allowed in Atwater, CA?

  • Short-term rentals (STRs) are allowed in Atwater under Merced County’s Unified Development Ordinance (UDO), which governs all unincorporated areas of the county, including Atwater. The UDO regulates STRs via Zoning Code Chapter 18.60.270. In practice, most residential zones and many agricultural and commercial zones permit STRs, typically requiring an Administrative Permit and compliance with specific standards such as occupancy limits, local contact requirements, parking, and quiet hours. Investors must also obtain county permits and comply with Transient Occupancy Tax (TOT) obligations. Source: UDO Chapter 18.60.270.

What do Airbnb hosts actually earn in Atwater?

Atwater hosts earn a median $49,228/year with $179 ADR and 84% occupancy.

Top performers pull in $67,008+ per year.

See the full Atwater market breakdown

How to Start a Short-Term Rental Business in Atwater

  1. Confirm zoning and permit eligibility.

    • Verify the zoning designation of the subject parcel with the County Zoning Map or Planning Division. Most residential zones (R-R, R-1, R-1-5000, R-2, R-3, R-4, M-H) allow STRs with an Administrative Permit. Commercial zones may allow STRs with an Administrative Permit only on lots developed with an existing single-family dwelling; otherwise, hotels/motels are the primary lodging use. Agricultural zones (A-1, A-1-40, A-2) also permit STRs with an Administrative Permit. Industrial zones generally do not list STRs as an allowed use. Source: UDO Chapter 18.60.270; UDO Article 2 (Residential, Agricultural, Commercial, Industrial zone tables).
    • Additional residential units and accessory dwelling units (ADUs) may have specific constraints—coordinate with Planning Division to ensure your STR does not conflict with those use categories. Source: UDO Chapter 18.60.080 (Additional Residential Units); UDO Chapter 18.62 (ADUs).

  2. Apply for the Administrative Permit.

    • Submit an application to the Merced County Planning Division. The application is similar to a business license and should be filed before or within 30 days of beginning rental activity. Processing typically takes several weeks. Fees apply. Source: Wisdom Property Management blog (Merced County STR overview).
    • The Planning Division processes zoning-related permits. Ensure your application materials reflect Chapter 18.60.270 compliance, and include documentation for the required local 24/7 contact and parking plan. Source: UDO Chapter 18.60.270; Planning Division.

  3. Secure insurance and safety measures.

    • Maintain adequate liability insurance and be prepared to document safety features (e.g., functioning smoke/CO detectors, posted emergency procedures). The county requires a local contact person who can respond 24/7 to guest and neighbor issues. Source: UDO Chapter 18.60.270.

  4. Comply with taxes and posting requirements.

    • Register and collect Merced County’s Transient Occupancy Tax (TOT). The rate is 10%, and remittance is due on the last day of the month following the end of each fiscal quarter. Failure to remit on time can trigger delinquency notices with penalties and interest. Source: Wisdom Property Management blog (Merced County STR overview).
    • Post the TOT registration number and any required notices in the rental (some counties require a visible posting; confirm with the Treasurer-Tax Collector). Source: Merced County TOT guidance.

  5. Prepare your listing.

    • Include occupancy limits, quiet hours (10 PM–7 AM), parking instructions, and the 24/7 local contact in all advertisements and house rules. This helps reduce complaints and demonstrates compliance. Source: UDO Chapter 18.60.270; Wisdom Property Management blog.

Required Documents, Permits, Licenses, and Guidelines

  • Administrative Permit (Zoning): Required in most zones where STRs are allowed. Submit to the Merced County Planning Division. Source: UDO Chapter 18.60.270; Planning Division.
  • Transient Occupancy Tax (TOT) Registration and Remittance: Collect 10% TOT from guests and remit quarterly. Failure to remit promptly triggers penalties and interest. Source: Wisdom Property Management blog (Merced County STR overview).
  • Occupancy and Room Limits: Maximum of five bedrooms may be provided to guests at any time. Source: Wisdom Property Management blog.
  • Local Contact: Must be available 24/7 to respond to emergencies and guest issues. Source: UDO Chapter 18.60.270; Wisdom Property Management blog.
  • Quiet Hours and Noise: Enforce quiet hours from 10 PM to 7 AM and comply with county noise standards. Source: Wisdom Property Management blog; UDO performance standards (noise, Chapter 18.40).
  • Parking and Streetscape: Provide off-street parking and ensure guests comply with neighborhood parking norms. Source: UDO parking standards (Chapter 18.38); Wisdom Property Management blog.
  • Property Standards: Maintain habitability, safety features, and appropriate signage (sign regulations, Chapter 18.44). Source: UDO sign and performance standards.
  • Agricultural Setbacks (if applicable): New residential dwellings adjacent to agricultural operations must meet 200-foot setback standards; verify site context and general plan overlays. Source: UDO residential zone development standards and agricultural setbacks.
  • Recordkeeping: Maintain records of guest stays, TOT collections, and remittances for county audits and renewals. Source: TOT compliance practice.

Specific Regulations for Short-Term Rentals (City/County/State)

  • Merced County Zoning (Chapter 18.60.270): STRs are allowed in agricultural, residential, and commercial zones subject to an Administrative Permit and operational standards (e.g., local contact, occupancy limits, parking, quiet hours). Commercial zone allowance applies only on lots with an existing single-family dwelling; hotels/motels remain the principal lodging use in commercial zones. Source: UDO Chapter 18.60.270; UDO Article 2 (use tables).
  • Residential Zones: STRs permitted with an Administrative Permit in all residential zones (R-R, R-1, R-1-5000, R-2, R-3, R-4, M-H). Source: UDO Residential Zones (Table 2-3).
  • Agricultural Zones: STRs permitted with an Administrative Permit in agricultural zones (A-1, A-1-40, A-2). Source: UDO Agricultural Zones (Table 2-1).
  • Commercial Zones: STRs permitted with an Administrative Permit in commercial zones (CP, C-1, C-2, C-3, H-I-C, MU), limited to lots with an existing single-family dwelling. Hotels/motels are separately regulated; other lodging facilities are not classified as STRs. Source: UDO Commercial Zones (Table 2-5) and Section 18.14.040 (A)(8).
  • Industrial Zones: STRs are not listed as an allowed use in industrial zones (BP, M-1, M-2). Source: UDO Industrial Zones (Table 2-7).
  • State Law (California AB 2246): Operators with three or more STR units statewide must register with the Department of Housing and Community Development (HCHD) and use a statewide platform for listings and compliance notices. Ensure your Atwater listings and guest communications meet state registration and disclosure requirements. Source: California Department of Housing and Community Development (HCHD) — STR registration program (ab2246.hcd.ca.gov).

Note: Atwater does not appear to have adopted city-specific STR ordinances distinct from Merced County’s UDO; thus, county zoning and standards apply. Source: UDO applicability to unincorporated areas (Atwater); Wisdom Property Management blog.

Contact Information (Merced County)

  • Planning Division (Zoning/Permits)
    • Phone: Contact via Merced County Planning Division main line or website.
    • Email: Contact via Merced County Planning Division website.
    • Address: Merced County Planning Division, 2222 M Street, Merced, CA 95340.
    • Website: Merced County Planning Division — permits for Chapter 18.60.270 and Administrative Permits.
  • Treasurer-Tax Collector (Transient Occupancy Tax)
    • Phone: Merced County Treasurer-Tax Collector main line.
    • Website: Merced County TOT portal and resources for registration and quarterly filings.
  • California Department of Housing and Community Development (HCHD) — STR Registration (State)
    • Website: ab2246.hcd.ca.gov (statewide STR registration for multi-unit operators).
  • Wisdom Property Management (Local STR services)
    • Phone: 209-358-7563
    • Email: WPMRealty@gmail.com
    • Address: 1488 Broadway Ave, Atwater, CA 95301
    • Hours: 9am–5pm Mon–Fri (closed 12pm–1pm)
    • Notes: Offers property management in Merced and Atwater; helpful for local context and compliance support.

Links to Source Pages (if available)

This guide consolidates county zoning and state-level obligations into a practical checklist for investors launching STRs in Atwater. Prior to operation, confirm zoning and permit specifics with the Planning Division and register for TOT with the Treasurer-Tax Collector; multi-unit operators should complete state AB 2246 registration with HCHD.

Next step

Found a property in Atwater?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Atwater

Free brief

Get the free Atwater STR Investment Brief

Revenue data, top neighborhoods, seasonal trends, and the key regulations for Atwater, California in one email.

Atwater

Market Saturation Score

036912
Moderate Saturation
5/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Atwater Market Analysis

Photos of Atwater

Overview of Atwater

Atwater is a small city of roughly 30,000 residents in Merced County, in the heart of California's San Joaquin Valley. The community has a working, agricultural character, with almond orchards, dairy operations, and irrigated farmland framing its residential streets, and a relaxed pace that contrasts with the larger cities of coastal California. Travelers passing through quickly recognize it as a practical stop along Highway 99 and a surprisingly handy gateway to the Sierra Nevada. Atwater sits about 130 miles southeast of San Francisco and roughly 110 miles east of the Pacific coast, putting both major urban centers and the high country within an easy day's drive.

One of the city's standout attractions sits almost in the middle of town, on the grounds of the former Castle Air Force Base. The Castle Air Museum holds one of the West Coast's largest collections of restored military aircraft, with dozens of warbirds spanning the early days of flight through the Cold War era, displayed across a sprawling outdoor ramp. Visitors can walk among B-52s, SR-71s, and a wide variety of fighter and bomber aircraft, making it a popular stop for aviation enthusiasts and families alike. The museum is just minutes from anywhere in Atwater, so it functions as both a destination in its own right and a rainy-day option for guests who want something to do without a long drive.

The single biggest draw in the region is Yosemite National Park, whose western entrances are reached by heading east from Atwater. The drive via Highway 140 through Mariposa covers roughly 70 to 80 miles and typically takes between an hour and a half and two hours, depending on traffic and the chosen entrance. Yosemite Valley's granite cliffs, waterfalls, and giant sequoias are the kind of bucket-list experience that drives lodging demand along the entire approach corridor, and Atwater sits squarely on one of the main routes in.

About thirty miles to the south, the Merced National Wildlife Refuge offers a quieter kind of Sierra-adjacent recreation. The refuge's wetlands and seasonal grain fields attract enormous flocks of migratory birds, including sandhill cranes, snow geese, and northern pintails, drawing birders and photographers each fall and winter. Closer to home, Lake McClure on the Merced River is roughly a forty-minute drive northeast and provides a familiar mix of boating, fishing, and lakeside camping for guests who want a half-day excursion rather than a full park visit.

Atwater's appeal for short-term rentals comes from this balance. It offers significantly more affordable nightly rates than the towns tucked into the foothills or the Yosemite gateway itself, while still placing guests within a couple of hours of one of the most visited national parks in the country. The combination of a walkable, full-service town, an in-house aviation museum, and easy access to both Sierra wilderness and Central Valley birding makes it a flexible base for travelers who want a real sense of place without the premium pricing of the marquee destinations nearby.

Want to know if a property in Atwater is a good investment?

Enter an address to get instant revenue potential and comps.