Monterey, Virginia Short Term Rental Regulations Guide for Airbnb hosts

Here is a comprehensive analysis of the Short-Term Rental (STR) regulations for Monterey, California:

Overview of STR Legality in Monterey, CA

Short-term rentals are allowed in Monterey, California, but are heavily regulated. The city has had restrictions in place since the early 1990s to manage its tourism industry and preserve long-term housing. The current framework involves a tiered permit system and strict enforcement, including a ban on advertising unpermitted rentals.

What do Airbnb hosts actually earn in Monterey?

Monterey hosts earn a median $25,162/year with $157 ADR and 52% occupancy.

Top performers pull in $34,900+ per year.

See the full Monterey market breakdown

How to Start a Short-Term Rental Business in Monterey, CA

Starting an STR business in Monterey requires a clear understanding of the permit categories and a commitment to compliance.

Identify the Property's Zoning: Your ability to operate an STR and the permit required depend on the zoning of your property. The regulations vary between inland areas and the coastal zone.
Determine the Appropriate Permit Category: As per the 2025 ordinance adopted for the coastal zone and the established inland rules, there are three distinct categories:
- Homestay: This is for owner-occupied properties where the owner rents out a room or rooms while residing in the home. The owner must occupy at least one bedroom.
- Limited Vacation Rental: This applies to whole-home rentals where the owner is not present, but the property is rented for a limited number of days per year (specifically, up to three events in a 12-month period).
- Commercial Vacation Rental: This is for whole-home rentals that occur frequently (more than three times a year). This category faces the most scrutiny and restrictions.
Apply for the Required Permits and Licenses:
- For Homestays and Limited Vacation Rentals: These generally require a zoning clearance. However, only owner-occupied homestays with five or fewer bedrooms qualify for this streamlined process.
- For Commercial Vacation Rentals: These require a more stringent discretionary use permit or coastal development permit (CDP). The 2025 coastal ordinance specifically requires a CDP for commercial rentals in the coastal zone, along with design review and seven-year permit terms with renewals.
- All STR operators, regardless of category, must obtain a business license.
Comply with Operational Standards: Operators must adhere to occupancy standards, safety requirements, and performance evaluations for onsite wastewater systems.

Required Documents, Permits, Licenses, and Guidelines

Business License: Mandatory for all STR operators.
Zoning Clearance: Required for Homestays (owner-occupied, ≤5 bedrooms) and Limited Vacation Rentals.
Use Permit or Coastal Development Permit (CDP): Required for Commercial Vacation Rentals. For coastal properties, the CDP process is discretionary and involves design review.
Compliance with Performance Standards: Operators must meet size-based occupancy standards and ensure their onsite wastewater system passes a performance evaluation.

Specific Regulations for STRs in Monterey, CA

The regulatory framework is defined by both inland ordinances and the recently adopted (2025) coastal zone ordinance.

Permit Categories & Limits:
- Homestay: Unlimited rental contracts are allowed for owner-occupied properties with five or fewer bedrooms. Minimum stay is not explicitly stated in the provided content, but the overall ban is for rentals under 30 days.
- Limited Vacation Rental: Up to 12 rental contracts per year are allowed, including up to two in any single month, for whole-home rentals.
- Commercial Vacation Rental: Requires discretionary review. The 2025 coastal ordinance imposes planning-area caps (e.g., a 4% cap in some sensitive areas) and prohibits commercial vacation rentals in the Big Sur coast land-use plan area. The overall cap for new commercial rentals is strictly controlled to protect long-term housing.
Key Restrictions:
- Minimum Stay: A property cannot be rented for fewer than 31 days. This is a core part of the city's charter.
- Prohibition on Unpermitted Advertising: It is illegal to advertise a short-term rental (on platforms like Airbnb or VRBO) without first securing the proper county permission to operate. This is a primary focus of enforcement.
Enforcement & Fines:
- The county operates a code enforcement program. "Sting operations" have been used, where a code enforcement officer books a rental for less than 30 days to catch violators.
- Administrative Fines are based on advertised rental rates:
  - First Offense: 400% of the advertised rate or $1,000 (whichever is higher).
  - Second Offense: 600% of the advertised rate or $2,500.
  - Third Offense: 800% of the advertised rate or $5,000.
- An enforcement officer has the authority to suspend, revoke, or prohibit any short-term rental business license.

Contact Information for Local Authority in Monterey, CA

The primary authority for STRs in the unincorporated areas of Monterey County is the County Code Enforcement.

Code Enforcement Hotline: (831) 796-3674 (for reporting violations and obtaining compliance information).
For more information on permits, applications, and zoning, contact the Monterey County Housing and Community Development department.

Links to Source Pages

Important Clarification: This entire guide is based on information for Monterey, California. If you are interested in regulations for Monterey, Virginia, I will need to obtain and analyze the relevant source content for that specific location.

Next step

Found a property in Monterey?

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 Monterey

Monterey, Virginia is a small town serving as the county seat of Highland County, the least populous county in the Commonwealth of Virginia. With a population of only a couple hundred residents, Monterey exudes the quiet, unhurried character of an Appalachian mountain community, surrounded by rolling pastures, forested ridges, and wide open skies. The town sits in the heart of the Allegheny Highlands and is often considered a gateway to an outdoor region sometimes called "Virginia's Switzerland" for its high-elevation meadows, working dairy and cattle farms, and reliable winter snowfall. Monterey is roughly a two-hour drive northwest of Staunton, the nearest mid-sized city, and about four hours from Washington, D.C.

One of the most famous events in the region is the annual Highland County Maple Festival, held in Monterey and surrounding communities each March. The festival celebrates the area's long tradition of maple syrup production, with sugar camps open for tours, pancake breakfasts, and craft vendors drawing visitors from across the mid-Atlantic. Because Highland County is one of the top maple-syrup-producing counties in Virginia, the festival has become a marquee draw for travelers interested in rural food traditions and small-town Americana, and it also marks the unofficial start of the spring tourism season in the mountains.

Just beyond Monterey, the vast George Washington and Jefferson National Forests spread across the Allegheny Mountains, offering hiking, fishing, camping, and backcountry drives. Forest roads and trailheads along routes such as State Route 84 and the winding back roads of Highland County are favorites for cyclists, motorcyclists, and leaf-peepers in autumn, when the hardwood slopes turn vivid shades of red, orange, and gold. A particularly well-known scenic corridor loops through the surrounding ridges and is regularly cited as one of the more memorable drives in western Virginia.

A short drive to the south, Bath County offers the Warm Springs and Hot Springs communities, where natural thermal springs and historic inns have welcomed travelers for generations. The same mountain landscape continues across the county line, with national forest land, trout streams, and quiet country roads that complement the slower pace of Highland County.

Monterey's combination of small-town charm, dramatic mountain scenery, and access to both cultural events like the Maple Festival and the outdoor expanse of the national forest makes it a quietly compelling base for a short-term rental. Visitors seeking cool summer nights, vibrant fall foliage, snowy winter weekends, and a genuine escape from crowded tourist corridors find here a place where Appalachian rhythms still set the pace, and where a mountain cabin or cottage can serve as a year-round retreat.