Overview: Are short‑term rentals allowed in Monterey County, CA?

Short‑term rentals exist in Monterey County but are subject to significant, area‑specific restrictions and new permit requirements. As of late September 2025, the Monterey County Board of Supervisors passed ordinances that:

• Ban commercial (unhosted) vacation rentals in Big Sur and the Carmel Highlands.
• Limit short‑term rentals to 4% of single‑family housing across the county’s unincorporated coastal areas.
• Permit hosted rentals (e.g., renting a room while the owner is present) and allow rentals that occur three times per year or less.
• Introduce new permit requirements; the rules were reported as set to go into effect at the end of the month.

In short: STRs are allowed in some areas and under certain conditions, but investors must confirm whether a property is located within a restricted zone and must comply with upcoming permitting, caps, and coastal regulations before listing or operating.

References: KSBW news coverage of the ordinance; County’s “Vacation Rentals” planning page.

How to start a short‑term rental business in this market

A practical entry path, structured to mitigate regulatory risk:

1. Confirm zoning and eligibility before purchasing or leasing

• Verify whether the subject property is in Big Sur or the Carmel Highlands; unhosted STRs are banned in those zones.
• For all other unincorporated coastal areas, confirm the 4% cap does not limit available permits for the property’s census tract or neighborhood.
• Distinguish between hosted stays (allowed) and unhosted rentals (restricted or prohibited in coastal zones).

2. Plan around the coastal overlay and pending enforcement

• Properties within the California Coastal Commission’s jurisdiction face heightened oversight. Expect enhanced monitoring and a conservative enforcement posture, especially post‑ordinance.

3. Align your STR model to allowed use types

• Hosted rentals (e.g., a single room in the owner’s primary residence) are permitted under the new rules.
• Unhosted STRs may be permissible outside the restricted coastal zones, subject to caps and new permits.

4. Secure local authorization (permits) first; then list

• Anticipate new permit requirements and ensure full approval before marketing the property. The County’s Permit Center is the venue for permitting (see Contact Information below).

5. Prepare for Transient Occupancy Tax (TOT) and business compliance

• Register for any required TOT certificate (Transients Occupancy Tax) and maintain compliance with tax collection and remittance obligations.

6. Operational readiness

• Establish guest communications, house rules, and local management procedures that reflect stricter coastal compliance norms.

Reference: County planning page for “Vacation Rentals”.

Required documents, permits, licenses, and guidelines

Based on the County’s public information and recent ordinance reporting:

• Permit requirements: New permits are required under the adopted ordinances, with enforcement expected as rules go into effect. Confirm the precise permit type, application, and fees with the County Permit Center before listing.
• Coastal compliance: The California Coastal Commission’s oversight applies in coastal zones. Properties within these areas will face stricter scrutiny, especially for unhosted STRs.
• Taxes: Transient Occupancy Tax (TOT) registration and compliance are required. Collect TOT from guests and remit per County timelines.
• Use‑type eligibility: Hosted rentals are permitted; unhosted rentals are banned in Big Sur and Carmel Highlands and limited to 4% of single‑family housing stock in unincorporated coastal areas.

References: KSBW news coverage; County planning page.

Specific regulations for short‑term rentals (city, county, and state)

Monterey County (unincorporated areas, including the coast)

• Prohibited: Commercial (unhosted) STRs are banned in Big Sur and the Carmel Highlands.
• Allowed with caps: In other unincorporated coastal areas, unhosted STRs are limited to 4% of single‑family housing; hosted rentals are allowed.
• De minimis exception: Rentals occurring three times per year or less are not subject to the ban in the restricted zones.
• Permits: New permit requirements apply; details should be confirmed with the County’s Permit Center.
• Enforcement posture: The California Coastal Commission has signed off on the plan, signaling strong oversight of coastal STR activity.

Incorporated cities (e.g., Monterey, Carmel‑by‑the‑Sea, Salinas, Seaside)

• City‑specific STR rules are not provided in the referenced materials. Investors should consult the relevant city planning or business licensing department for municipal requirements.
• For properties within city limits, State of California TOT obligations typically still apply.

State of California (applies where relevant)

• TOT collection and remittance obligations apply to short‑term rentals (e.g., accommodations less than 30 days).
• Coastal Commission oversight applies in the coastal zone, affecting permitting feasibility and compliance standards for STRs.

References: KSBW ordinance summary; County planning page.

Contact information (phone, email, website) for the local authority in charge of STRs

• County of Monterey Housing & Community Development – Permit Center (short‑term rentals permitting reference page)

  • Website: www.countyofmonterey.gov/government/departments-a-h/housing-community-development/permit-center/short-term-rentals
  • Note: Contact details (phone/email) are not included in the referenced materials. Visit the page’s Contact Us section or call the County’s main line to route to the appropriate staff.

• County of Monterey Housing & Community Development – Planning Services (Advance Planning; “Vacation Rentals”)

  • Website: www.countyofmonterey.gov/government/departments-a-h/housing-community-development/planning-services/advance-planning/ordinances-plans-under-development/vacation-rentals
  • Note: Planning project pages often include staff contacts; use the department’s general contact channel if details are not immediately visible.

• Transient Occupancy Tax (TOT) registration

  • County of Monterey Auditor‑Controller (TOT/Tax Collector functions)
  • Website: See the County’s main portal (countyofmonterey.gov) for the TOT page or contact the Auditor‑Controller’s office. Phone/email not provided in the referenced materials.

For all contacts, if phone/email are not listed on the specific page, use the County’s general Contact Us page or main switchboard to route to the correct division.

Links to source pages

• County of Monterey – Permit Center: Short‑Term Rentals www.countyofmonterey.gov/government/departments-a-h/housing-community-development/permit-center/short-term-rentals

• County of Monterey – Planning Services: Vacation Rentals (Ordinances/Plans Under Development) www.countyofmonterey.gov/government/departments-a-h/housing-community-development/planning-services/advance-planning/ordinances-plans-under-development/vacation-rentals

• KSBW Action News 8: “Monterey County passes ordinances for vacation rentals” www.ksbw.com/article/monterey-county-passes-ordinances-vacation-rental/68025035

Notes and practical cautions

• The County materials do not provide granular permitting steps, forms, or fees; investors should obtain current application details directly from the Permit Center.
• City‑specific rules are not included in the referenced sources; for properties inside incorporated cities, contact city authorities before acquisition or listing.
• Given the Coastal Commission’s role and the 4% cap in unincorporated coastal areas, enforceability is expected to be high; plan for conservative compliance and early engagement with County staff.