Your Guide to Short-Term Rental Regulations in Monterey County

- Dax Nollenberger

Your Guide to Short-Term Rental Regulations in Monterey County

November 20, 2025

Short-term rental rules in Monterey County have undergone major changes. Whether you are buying a home for personal use, investment, or occasional rental income, it is important to understand how the county regulates short stays. These rules apply only to homes located in the unincorporated areas of Monterey County, and the requirements differ between inland and coastal regions.

Incorporated Cities

Cities like Carmel-by-the-Sea, Monterey, Pacific Grove, Seaside, Marina, and Salinas each have their own STR rules that do not follow county policy. If you want a breakdown of STR regulations in these incorporated areas, you can reference this blog:
https://www.brezsnyassociates.com/blog/monterey-county-short-term-rental-regulations/

The information below covers only the areas regulated by Monterey County.

Understanding the Three Types of STRs

Monterey County defines a short-term rental as any stay of 30 days or less. The county recognizes three categories. Each has different rules, caps, and approval requirements.

Homestay
The owner lives on-site during the guest stay.

Limited Vacation Rental
Non-hosted with no more than three stays per year. Not subject to caps.

Commercial Vacation Rental
Non-hosted with more than three stays per year. Subject to caps, zoning limits, and permit requirements.

Inland Area Rules

(Currently Active)

The inland STR ordinance took effect on October 14, 2024.

What is allowed

• All three STR types.
• Homestays and Limited STRs require registration.
• Commercial STRs require a Vacation Rental Operation License.

Where Commercial STRs are restricted

Commercial vacation rentals are prohibited in the RDR, LDR, MDR, and HDR zoning districts within the Carmel Valley Master Plan area.

Caps

Commercial STRs are capped at about 4 percent of total housing units within each inland Planning Area.

Property eligibility

• Single-family homes only.
• ADUs, JADUs, duplexes, condos, and multifamily buildings are not eligible.
• Guesthouses may qualify under limited criteria.

Operating requirements

• On-site parking.
• Occupancy limits.
• Local 24-hour contact within 30 minutes.
• Noise and trash compliance.
• TOT registration and business license.

Inland STR Eligibility Checklist

1. Confirm the property is in the unincorporated inland area.
2. Verify the home is a legal single-family dwelling.
3. Identify the STR category you want.
4. Check Planning Area cap availability.
5. Confirm zoning compatibility.
6. Confirm legal access if on a private road.
7. Verify septic or sewer capacity.
8. Confirm parking.
9. Review HOA or CC&R rules.
10. Confirm you can meet operating standards.
11. Register for TOT and obtain a business license.
12. Complete the required STR permit.

Coastal Zone Rules

(Active as of 11/24/25)

The Coastal Zone rules are active as of 11/24/25 and apply to all short-term rentals within the unincorporated coastal areas of Monterey County.

What is allowed

• Homestays and Limited STRs with registration.
• Commercial STRs only in Planning Areas that permit them.

Where Commercial STRs are restricted

Commercial STRs are not allowed in several Planning Areas, including:
• Big Sur Coast
• Carmel Highlands
• Portions of Del Monte Forest
• Environmentally sensitive coastline areas

Planning Area caps

Commercial STRs are capped at 4 percent of total housing units within each Coastal Planning Area.

Permit requirements

Commercial STRs require a discretionary Use Permit or Coastal Development Permit.

Operating requirements

• On-site parking
• Septic capacity verification
• Local 24-hour contact
• Noise and trash compliance
• Posted STR license number
• TOT registration and business license

Coastal STR Eligibility Checklist

1. Confirm the property is inside the unincorporated Coastal Zone.
2. Verify it is a legal single-family dwelling.
3. Identify the intended STR category.
4. Confirm the Planning Area permits Commercial STRs.
5. Check if the cap allows new Commercial licenses.
6. Determine if a Use Permit or CDP is required.
7. Verify access and easements.
8. Verify septic or sewer capacity.
9. Review HOA or CC&R rules.
10. Confirm you can meet operating standards.
11. Register for TOT and obtain a business license.
12. Complete the STR permit process.

Where You Can Search for STR-Eligible Homes

If you are looking for STR potential, focus on the unincorporated areas regulated by the county.

Inland Areas

Most flexible and best for Commercial STR potential.
• Prunedale
• Royal Oaks
• Aromas (Monterey County portion)
• Corral de Tierra
• San Benancio
• Toro Park (unincorporated)
• Highway 68 corridor
• Castroville (county pockets)
• Chualar Canyon
• Bradley
• San Ardo
• San Lucas

Coastal Areas

Best for Homestays and Limited STRs.
Commercial STRs depend on Planning Area rules and caps.
• Carmel Highlands
• Mid-Carmel Valley (outside city limits)
• Del Monte Forest
• Big Sur
• Point Lobos area
• Coastal pockets near Marina and Moss Landing

If you want help confirming which homes qualify, I can run custom searches based on parcel zoning, Planning Area designation, and STR eligibility.

Frequently Asked Questions

Are stays longer than 30 days considered STRs?
No. Stays of 31 days or more follow different rules.

Can an ADU or JADU be used as an STR?
No. ADUs and JADUs cannot be used as Commercial STRs.

Do HOA rules override county approval?
Yes. Private restrictions still apply.

Are business licenses and TOT registration required?
Yes. Required for all STR categories.

Are STR permits transferable when a home is sold?
No. New owners must apply for their own license.

Will the county enforce unlicensed STRs?
Yes. Monterey County actively monitors STR listings.

Resources

These resources provide the full county documents, maps, and STR data tools.

Coastal Unincorporated Monterey County STR Ordinance
https://www.countyofmonterey.gov/home/showpublisheddocument/143188/638973473825670000

Inland Unincorporated Monterey County STR Ordinance
https://acrobat.adobe.com/id/urn:aaid:sc:VA6C2:f07f8100-f10a-414f-b74f-705eaf900bfd

Planning Area STR Cap Viewer
Search Planning Area housing counts and STR cap availability.
https://maps.co.monterey.ca.us/portal/apps/experiencebuilder/experience/?id=5b8e94ead2a24485a8ae4572a09a5b11&page=Table-Counts

Monterey County GIS Parcel and Zoning Map
Look up zoning, Coastal Zone boundaries, sewer vs septic, and more.
https://maps.co.monterey.ca.us/wab/parcelreportwebapp/

County STR Ordinance Overview
General information from Monterey County Housing and Community Development.
https://www.countyofmonterey.gov/government/departments-a-h/housing-community-development/planning-services/current-planning/general-info/vacation-rental-aka-short-term-rental-ordinances-coastal-inland

Dax Nollenberger
📩 dax@sereno.com
📞 831-227-5847