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Cayucos, CA

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STR Regulations for Cayucos, California

Overview: Short-term rentals (referred to as “residential vacation rentals”) are allowed in Cayucos, CA. Cayucos is in San Luis Obispo County’s Coastal Zone and is subject to the County’s Coastal Zone Land Use Ordinance Section 23.08.165. The County’s rules govern where and how you may operate, the permits and licenses required, the documentation and noticing you must complete, and ongoing compliance standards.

Note on scope: Cayucos is an unincorporated community in San Luis Obispo County and therefore does not have its own city STR ordinance; it is governed by County rules, including the Coastal Zone standards in Section 23.08.165 and countywide business licensing and tax processes.

1) Are Short-Term Rentals Allowed in Cayucos? (Explicit Answer)

Yes—residential vacation rentals are allowed in Cayucos when they comply with the County’s Coastal Zone standards, including:

  • Location standards specific to Cayucos (proximity to other vacation rentals and visitor-serving accommodations).
  • Performance standards (occupancy, parking, noise, local contact).
  • Required permits and licenses (Zoning Clearance, Business License, and Transient Occupancy Tax/Tourism Marketing District registration).
  • Noticing to agencies and neighbors within 200 feet.
  • Prohibitions (no STRs in ADUs, guesthouses, or agricultural worker housing; restrictions in Williamson Act areas).

These requirements are established by San Luis Obispo County Code Title 23, Section 23.08.165.

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What do Airbnb hosts actually earn in Cayucos?

Cayucos hosts earn a median $61,323/year with $403 ADR and 56% occupancy.

Top performers pull in $90,324+ per year.

See the full Cayucos market breakdown

2) How to Start a Short-Term Rental Business in Cayucos (Step-by-Step)

Cayucos STRs are processed through the County’s Coastal Zone rules and permitting. The steps below reflect the County’s official sequence.

Step 1: Preliminary Eligibility & Zone Verification

  • Confirm the property is in the Coastal Zone. If unsure, use the County GIS Land Use Viewer to check Coastal Zone status.
  • Confirm the property is not in a Williamson Act area. If it is, additional requirements apply.
  • Verify the proposed rental is not an ADU, Guesthouse, or Agricultural Worker Housing (farm support housing)—these are not allowed.
  • Verify the subject residence meets the permitted use category and location standards (see Section 3 for Cayucos-specific proximity rules).

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Step 2: Business Location Verification with Planning & Building

  • Submit a business location verification request to Planning & Building. Wait for staff confirmation that a zoning clearance can be applied for before proceeding.

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Step 3: Tax Collector — Business License Application

  • Complete the County Business License Application and email it to the Tax Collector or mail it to the address provided. A staff member will contact you within 24 hours (Mon–Fri, excluding holidays) to review additional requirements.
  • You must continue to Step 4 (Planning) after this step is complete.

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Step 4: Assemble Required Documents (see Section 3 for full list)

  • Grant Deed; Owner Consent (if applicant is not owner).
  • Site plan and floor plan (hand-drawn acceptable, no scale required).
  • Will Serve Letter from water/sewer supplier.
  • Completed Coastal Vacation Rental Certification Form.
  • Notification letter using the Sample Letter Template; mail to all property owners within 200 feet and to agencies (Sheriff, fire, substation).
  • Mailing list for the notices.

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Step 5: Apply via PermitSLO

  • Submit the zoning clearance application and upload all required documents on PermitSLO.
  • After staff review, you will receive an invoice. Pay it online to begin the formal review timeline.

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Step 6: Approval, TOT/TMD Registration, and License Issuance

  • Once the Planning & Building Zoning Clearance is approved, the Tax Collector will mail the Business License and complete your Transient Occupancy Tax (TOT) and Tourism Marketing District (TMD) registration.
  • Note: The County’s vacation rental submittal guides indicate you must collect and remit TOT (9%) and TMD (1.5%). Verify your TOT/TMD rate and process with the Tax Collector at the time of issuance.

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3) Required Documents, Permits, Licenses, and Guidelines

Permits & Licenses

  • Vacation Rental Zoning Clearance (Coastal Zone) issued by SLO County Planning & Building.
  • County Business License issued by the Auditor-Controller-Treasurer-Tax Collector.
  • Transient Occupancy Tax (TOT) Registration and Tourism Marketing District (TMD) assessment registration through the Tax Collector.

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Required Documentation Checklist

  • Grant Deed (title evidence).
  • If applicant is not the owner: Land Use Consent of Property Owner Form (owner authorization).
  • Site Plan (show structures and parking locations; hand-drawn is acceptable; no scale required).
  • Floor Plan (show all rooms and floors; hand-drawn is acceptable; no scale required).
  • Will Serve Letter from the community water and sewer supplier confirming capacity for vacation rental use.
  • Completed Coastal Vacation Rental Certification Form.
  • Notification letter using the County Sample Letter Template; mail to:
    • All property owners within a 200-foot radius of the proposed vacation rental.
    • County Sheriff’s Office (main office).
    • Local fire agency.
    • Local sheriff substation.
  • Mailing list used for notification (generated from the County GIS Land Use Viewer).

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4) Specific Regulations (Cayucos, SLO County Coastal Zone, and State)

Cayucos Location Standards (Section 23.08.165.c(2))

  • Within Residential Single-Family and Residential Suburban land use categories:
    • No residential vacation rental within:
      • 100 linear feet of a parcel on the same side of the street as the vacation rental.
      • 100 linear feet of the parcel on the opposite side of the street.
      • 50-foot radius around the vacation rental.
    • Distances are measured from the closest property lines.
    • These standards also apply to other visitor-serving accommodations (e.g., bed and breakfast, homestay).
  • Within Residential Multi-Family land use category:
    • No approval if within 50 feet of another parcel with a residential vacation rental or other visitor-serving accommodation.
    • For condominiums, the “property line” is the wall of the individual unit.
  • Modification: The standards may be modified through a Minor Use Permit approval when a Development Plan is not otherwise required.

Cayucos performance standards, tenant limits, and compliance:

  • Tenancy Limit: A residence shall not exceed four individual tenancies per calendar month.
  • Occupancy: Maximum occupants shall not exceed two persons per bedroom plus two additional persons, and must also be consistent with the on-site parking capacity specified in the Zoning Clearance.
  • Appearance/Visibility: No change to the residential exterior character via colors, materials, lighting, or accessory structures that are not architecturally consistent with the residence; no emission of noise, glare, flashing lights, vibrations, or odors not commonly experienced in residential areas.
  • Signs: Availability of the rental shall not be advertised on-site.
  • Traffic: Vehicles and traffic generated must not exceed normal residential traffic volume (up to 10 trips per day).
  • On-Site Parking: All guest parking must be entirely on-site (garage, driveway, or off the roadway). No on-street parking by guests at any time.
  • Noise: Must comply with County noise standards. Loud/unreasonable noise is measured based on audibility at 50 feet from property lines and may be documented by County Sheriff or Code Enforcement.
  • Local Contact/Property Management: A local contact person must be available 24/7. The name, address, and telephone number(s) of the local contact must be:
    • Posted prominently in the rental unit.
    • Provided to Planning & Building, Sheriff (main and local substation), and local fire agency.
    • Provided to neighboring property owners within 200 feet.
    • Incorporated into rental contracts as an addendum; changes must be promptly reported to the agencies and neighbors.
  • Transient Occupancy Tax: Must comply with Chapter 3.08 of the County Code (TOT), include the TOT certificate number in all advertising, and remit TOT and TMD as required.
  • Complaints & Enforcement: Complaints should first go to the local contact. If unavailable or unresponsive, contact Sheriff Dispatch. If the contact cannot be reached due to unavailability or outdated information, County Code Enforcement may be notified. Violations can lead to revocation of Zoning Clearance and Business License, with specific triggers listed in the ordinance.
  • Effect on Existing Rentals: If a business license expires, a new Zoning Clearance and Business License are required and must meet all current standards.

Prohibited Uses and Areas:

  • Vacation rentals are not allowed in an Accessory Dwelling Unit (ADU), Guesthouse, or Agricultural Worker Housing (farm support housing).
  • Williamson Act lands may require additional review and standards.

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State-Level Context (California)

  • Transient Occupancy Tax (TOT): California allows counties to levy TOT on short-term lodging; SLO County’s TOT rate is 9% plus a Tourism Marketing District assessment (TMD) of 1.5% (10.5% combined). Confirm rates and collection procedures with the Tax Collector.
  • Coastal Act: As a Coastal Zone property, compliance with the California Coastal Act may be relevant. Consult County staff during application if your property has coastal access or resource considerations.
  • ADU Restrictions: State law restricts STR use in certain ADUs; County rules here specifically prohibit vacation rentals in ADUs, guesthouses, and agricultural worker housing.

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Cayucos

Market Saturation Score

036912
Mild Saturation
2/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
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Photos of Cayucos

Overview of Cayucos

Cayucos is a small coastal community in San Luis Obispo County, California, set along the Central Coast roughly between San Francisco and Los Angeles. With a population of around 2,500 to 3,000 residents, it retains the unhurried character of an old California beach town, anchored by a wooden pier dating to the 1870s, a broad sandy beach, and a compact downtown of locally owned shops and seafood restaurants. Cayucos is best known for its surf-friendly shoreline and its position as a southern gateway to Big Sur and the historic hilltop estate at Hearst Castle. The town sits about 200 miles south of San Francisco and roughly the same distance northwest of Los Angeles, with the city of San Luis Obispo about 30 miles to the southeast.

At the heart of town, Cayucos State Beach and the long wooden Cayucos Pier anchor the community's identity. The pier, which stretches more than 900 feet out into the Pacific, draws anglers, strollers, and sunset-watchers, while the adjacent cove and wide beach are popular for surfing, tide-pooling, and casual walks just steps from the central district.

A short drive north on Highway 1 leads to Hearst Castle in San Simeon, one of the most visited historic sites on the California coast, roughly 25 to 30 miles from Cayucos. The sprawling hilltop estate built by publisher William Randolph Hearst offers guided tours of its ornate architecture, gardens, and pools, and makes an easy day trip from a Cayucos base (Hearst Castle).

South of Cayucos, the working waterfront town of Morro Bay sits about 15 miles down the coast, dominated by the volcanic Morro Rock at the entrance to its harbor. Visitors come for fresh seafood, kayak and boat tours of the bay, and a lively embarcadero of shops and galleries that make it a natural companion stop to Cayucos.

For outdoor recreation, Estero Bluffs State Park lies just a few miles north of town along Highway 1, with coastal bluffs, wildflower-covered hillsides, and a series of uncrowded beach access points. Further south, near Los Osos, Montana de Oro State Park offers rugged cliffs, eucalyptus groves, and the sandy expanse of Spooner's Cove roughly 25 to 30 miles from Cayucos.

Cayucos combines the appeal of a small, walkable beach community with easy access to some of the most iconic destinations on the Central Coast. Travelers can spend the morning surfing, the afternoon touring a historic estate, and the evening sampling seafood in a nearby harbor town, all while staying in a place that feels distinctly removed from the busier resort corridors of Southern California. For owners, that mix of small-town atmosphere, year-round scenic draw, and proximity to marquee attractions makes Cayucos a natural fit for the short-term rental market.

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