Pacific Grove, California Short Term Rental Regulations Guide for Airbnb hosts

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

Yes, short-term rentals (STRs) are permitted in Pacific Grove, CA, but with significant restrictions. The City operates a highly regulated STR program with two distinct categories:

Short-Term Rental (STR) Licenses - For renting an entire dwelling unit. These are only allowed within the City's Coastal and Commercial zoning areas and are subject to strict caps and density limits.
Home Sharing Licenses - For renting rooms within a residence while the owner/tenant lives on-site. These are permitted city-wide without caps or density restrictions.

Pacific Grove currently issues 84 active STR licenses out of a maximum of 250 city-wide. The city implements both a cap on total licenses and strict density requirements to mitigate community impacts.

What do Airbnb hosts actually earn in Pacific Grove?

Pacific Grove hosts earn a median $75,222/year with $353 ADR and 81% occupancy.

Top performers pull in $145,594+ per year.

See the full Pacific Grove market breakdown

How to Start a Short-Term Rental Business in Pacific Grove

Step 1: Determine Property Eligibility

Before applying, verify:

Your property is located within an eligible zone (Coastal or Commercial for STRs; any zone for Home Sharing)
Your property is not within the 55-foot Zone of Exclusion from any existing STR
Your property does not have unresolved code violations
Your property is a legal dwelling unit (no unpermitted spaces)

You can check your property's status using:

Step 2: Choose License Type

Short-Term Rental License (entire dwelling):

Must be in Coastal or Commercial zone
Subject to 250 city-wide cap
Subject to 55-foot Zone of Exclusion
Subject to 15% block density limit
Higher application and renewal fees
More stringent occupancy limits

Home Sharing License (rent rooms while living on-site):

Allowed city-wide
No cap or density restrictions
Owner must reside on-site
Maximum one bedroom rented to adults (2nd bedroom allowed for children)
Lower fees

Step 3: Prepare Application Package

For STR licenses, you'll need:

Completed STR License Application with inspection required
$141 non-refundable application fee
Building inspection report from certified third-party inspector
Site plan and floor plan
Affidavit for smoke/CO alarms and fire extinguisher
Additional $124 license fee upon approval

For Home Sharing licenses, you'll need:

Completed Home Sharing License Application
$81 permit application fee
Building inspection report
Site plan showing room designations and parking
Affidavit for smoke/CO alarms and fire extinguisher
Proof of residency (Driver's License)
If leasing, lease agreement and owner authorization

Step 4: Submit Application

Submit complete applications to:

City of Pacific Grove
Housing Division - TUL
300 Forest Avenue
Pacific Grove, CA 93950

Office hours: 8am-12pm and 1pm-4:45pm, Monday-Friday. In-person submissions are encouraged.

Step 5: Await Review and Approval

Application review takes approximately 3 weeks. You'll be notified by email and phone when approved.

For Home Sharing licenses:

Pay $265 annual license fee (prorated quarterly)
Sign Owner Responsibility Statement
License must be displayed in unit

For STR licenses:

License will be mailed to owner, manager, or site manager
License must be displayed in unit
Placard with contact information must be posted at front entrance

Step 6: Fulfill On-Going Obligations

Pay 12% Transient Occupancy Tax (TOT) monthly by the 15th of the following month
Maintain guest log with guest information
Respond to complaints within 30 minutes
Ensure property complies with all regulations
Renew licenses annually before March 31st
Update listings to include license number
Email STR listing links to lfrati@cityofpacificgrove.org

Required Documents, Permits, Licenses, and Guidelines

For STR Licenses (Entire Dwelling Rental)

Application Requirements:

STR License Application Form (available on City website)
Building Inspection Report (from certified third-party using City checklist)
Site/Floor Plan showing room uses and parking
Affidavit for smoke/CO alarms and fire extinguisher
$141 application fee (non-refundable)
Additional $124 license fee upon approval
Proof of property ownership or tenant authorization

Ongoing Requirements:

Annual license renewal ($221 renewal fee)
Monthly TOT filing and payment (12% of gross rent)
Guest log maintenance
Display of license and placard
Building inspection every 2 years
Compliance with occupancy, parking, noise, and other regulations

For Home Sharing Licenses (Rent Rooms While Living On-Site)

Application Requirements:

Home Sharing License Application Form
Building Inspection Report (from certified third-party using City checklist)
Site/Floor Plan showing room designations and parking
Affidavit for smoke/CO alarms and fire extinguisher
Proof of residency (Driver's License)
If leasing: lease agreement and owner authorization
$81 application fee + $265 annual license fee

Ongoing Requirements:

Annual license renewal (before March 31st)
Monthly TOT filing and payment (12% of gross rent)
Guest log maintenance
Display of license
Building inspection annually
Compliance with occupancy, parking, noise, and other regulations

General Guidelines

All STR operators must comply with:

Pacific Grove Municipal Code Chapter 7.40
Transient Occupancy Tax regulations (Chapter 6.09 PGMC)
Occupancy limits (2 adults per bedroom + 1 additional)
Noise regulations (no amplified sound beyond property boundaries)
Parking requirements (provide on-site parking if available)
Waste management regulations
Advertising regulations (license number must appear in all listings)

Specific Regulations for Short-Term Rentals in Pacific Grove

City-Level Regulations

License Caps and Limits:

Maximum 250 STR licenses city-wide
One STR license per parcel
55-foot Zone of Exclusion from existing STRs
15% block density limit
STRs only allowed in Coastal and Commercial zones

Occupancy Limits:

Overnight: 2 adults per bedroom + 1 additional person
Daytime: 1.5 times overnight limit
Maximum 1 bedroom for adults (2nd bedroom only for children in Home Sharing)

Operational Requirements:

Site Manager required (unless owner manages and lives within 30 minutes)
Site Manager must respond within 30 minutes of complaint
On-site parking must be made available to guests
No amplified sound audible beyond property boundaries
No auctions, commercial functions, or similar events
No signs indicating STR use on the property
Guest log with names, contact info, addresses, license plates, dates
License number must appear in all online listings
Contact information must be posted at front entrance

Inspection Requirements:

Building inspection by certified third-party inspector
Building inspection required at initial application
Building inspection required every 2 years for STRs
Building inspection required annually for Home Sharing
Inspections must use City-provided checklist

Tax Requirements:

12% Transient Occupancy Tax (TOT)
Monthly filing and payment (due by 15th of following month)
Applies to all gross rental receipts
Airbnb collects and remits TOT for bookings through their platform
All other platforms require owner remittance

County-Level Regulations

Monterey County has not enacted specific STR regulations beyond state requirements. County health and safety codes still apply to STRs.

State-Level Regulations (California)

California has not enacted statewide STR regulations. However, the following state laws may apply:

Fair Housing Laws: Prohibit discrimination in rental housing
Civil Code 1950.5: Security deposit regulations
California Health and Safety Code: Habitability requirements
Business and Professions Code: Advertising regulations
California Tax Code: TOT regulations (collected at city level)

Pacific Grove's STR regulations are stricter than state minimums in most areas, particularly regarding caps, density limits, and operational requirements.

Contact Information for Local STR Authority

Short-Term Rental Program Contact:

Lori Frati, Short-Term Rental Program
City of Pacific Grove
300 Forest Ave
Pacific Grove, CA 93950

Phone: (831) 648-3133
Fax: (831) 375-9863
Email: lfrati@cityofpacificgrove.org

Other Important Contacts:

Code Compliance (Complaints): (831) 648-3116 or codecompliance@cityofpacificgrove.org
Police (Non-Emergency): (831) 648-3143
TOT Processing Center: (831) 920-3890
General City Information: (831) 648-3100

Submit Applications and Payments to:

City of Pacific Grove
Housing Division - TUL
300 Forest Avenue
Pacific Grove, CA 93950

File TOT Returns Online: https://pacificgrove.hdlgov.com/ Mail TOT Returns To:

City of Pacific Grove TOT Processing Center
8839 N Cedar Ave #212
Fresno, CA 93720

Links to Source Pages

This guide provides all essential information for STR investors considering Pacific Grove as a market. The regulations are complex but the city provides robust support through staff assistance and online resources. Compliance is critical given the strict enforcement and significant penalties for violations.

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Ask the AI Advisor about Pacific Grove

Pacific Grove is a small coastal city on the Monterey Peninsula in Monterey County, California, with a year-round population of roughly 15,000 to 16,000 residents. Often called "Butterfly Town, USA" for the monarch butterflies that overwinter in its eucalyptus groves, the town is celebrated for its preserved Victorian-era architecture, its quiet residential streets, and its dramatic oceanfront setting. It sits just west of Monterey and functions as a gentle, residential gateway to some of the most scenic coastline in California, including Big Sur to the south and the famed 17-Mile Drive to the north. The city is approximately 120 miles south of San Francisco and about 330 miles north of Los Angeles, with typical drive times of just over two hours from the Bay Area depending on traffic.

One of the most distinctive local landmarks is the Point Pinos Lighthouse, located within the city limits on the westernmost point of the Monterey Peninsula. Operating continuously since 1855, it is the oldest working lighthouse on the Pacific coast and is open to visitors for self-guided tours, offering a glimpse into 19th-century maritime history along with sweeping ocean views.

Just a few minutes from the city center, Asilomar State Beach stretches along the Pacific at the northwestern edge of Pacific Grove. The combination of dunes, tide pools, and coastal trails makes it a popular spot for walking, beachcombing, and watching sunsets, while the adjacent Asilomar Conference Grounds, designed in part by architect Julia Morgan, adds a layer of architectural and historical interest to the area.

About a mile east, the Monterey Bay Aquarium sits on Cannery Row, and its proximity is a major draw for visitors to Pacific Grove. While the aquarium itself is in neighboring Monterey, it is the single most visited attraction on the peninsula, giving short-term rental guests in Pacific Grove convenient access to one of the most respected marine institutions in the country, along with the restaurants and shops of Cannery Row.

To the north, the gated 17-Mile Drive winds through Pebble Beach and is known for its rugged coastline, cypress trees, and landmarks such as the Lone Cypress. Although a vehicle fee applies, the drive is a signature experience of the Monterey Peninsula, and the famous golf courses and resort amenities of Pebble Beach are within a few minutes of Pacific Grove.

For travelers looking to venture further afield, the dramatic cliffs and redwood forests of Big Sur begin roughly 30 to 40 miles south along Highway 1, making Pacific Grove a natural home base for day trips along one of the most celebrated coastal drives in the world. Its compact, walkable scale, ocean views, and proximity to the peninsula's marquee attractions give Pacific Grove a quiet appeal that pairs well with the broader appeal of the Monterey Bay region, making it a particularly attractive setting for short-term rentals that cater to visitors seeking both relaxation and easy access to a remarkable stretch of the California coast.