Do I need a permit for short-term rentals in Morro Bay?

**Yes**, Morro Bay requires a Short-Term Vacation Rental (STVR) Permit for rentals under 30 days. You need to obtain this permit before operating. The permit costs $500, and you also need a business license and a fire inspection to comply with local regulations. (51 words)

What is the TOT tax rate in Morro Bay?

**11% TOT** plus a 3% TBID assessment is required for short-term rentals in Morro Bay. Hosts are responsible for collecting this from guests and remitting it to the city. Be sure to factor this tax rate into your pricing to ensure compliance. (45 words)

Are short-term rentals allowed in Morro Bay?

**Yes**, short-term rentals are allowed in Morro Bay, but they are subject to specific regulations. These regulations include obtaining a Short-Term Vacation Rental (STVR) permit, adhering to occupancy limits, and meeting parking requirements. Make sure to comply with all rules. (45 words)

How much does an STR permit cost in Morro Bay?

**The STR permit costs $500** in Morro Bay. This is a one-time fee to obtain the Short-Term Vacation Rental (STVR) Permit. In addition to the permit fee, you must also obtain a business license and pass a fire inspection to operate legally. (47 words)

Can renters host on Airbnb in Morro Bay?

**No**, tenants cannot host on Airbnb in Morro Bay. The regulations require the property owner to apply for and obtain the Short-Term Vacation Rental (STVR) permit. Renters are not eligible to apply for this permit, so subletting for short-term stays is prohibited. (48 words)

Morro Bay, CA Short-Term Rental Laws

Baseline Verification

80%

Basic verification complete

Verified: Jan 30, 2026

3 Official Sources

Summary

The City of Morro Bay requires a Short-Term Vacation Rental (STVR) permit, a business license, and a fire inspection for all rentals under 30 days. The city enforces a strict 11% TOT rate plus a 3% TBID assessment, and properties must adhere to specific occupancy limits and parking requirements.

Restriction Level

⛔

Strict

Score: 48 (moderate)

Why this classification:

•High permit fee: $500
•Limited to 1 property per owner
•Tenants cannot host
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

To host an Airbnb in Morro Bay, you must first get a specific STVR permit from the city—you can't just list your home without approval. You'll need to pay an annual fee of around $500, pass a safety inspection by the fire department, and designate a local contact person who can respond to complaints within 30 minutes. Be aware that the city collects a total of 14% in taxes on every booking. Also, if you built an ADU (granny flat) after 2017, you are generally not allowed to use it for short-term rentals.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$500

Processing Time

4-8 weeks

7 Things Hosts Often Miss

1.Verify your exact location: The City of Morro Bay has different rules than unincorporated San Luis Obispo County.
2.Total Tax is 14%: The 11% TOT is often remitted by platforms, but the 3% TBID assessment may be the host's responsibility.
3.30-Minute Response: Your designated local contact must be available 24/7 and able to be physically present at the property within 30 minutes.
4.ADU Restriction: Short-term rentals are prohibited in Accessory Dwelling Units (ADUs) permitted after January 1, 2017.
5.One Permit Limit: Owners are generally limited to holding only one STVR permit within the city.
6.Parking: You must provide the minimum number of off-street parking spaces required by your property's original land use permit.
7.Permit Number in Ads: You must include your City Business License or Permit Number in the first line of all online listings.

Regulation Details

Eligibility(12)

•Morro Bay: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Morro Bay does NOT require the property to be a primary residence. Investment properties are allowed.
•Morro Bay does NOT allow tenants to host STRs. Only property owners may operate short-term rentals.
•Morro Bay, CA: You can have a co-host or property manager help manage your listing.

Requirements(22)

•Morro Bay requires liability insurance for STR hosts. Minimum coverage: 500,000. Insurance must specifically cover short-term rentals.
•Morro Bay, CA: You must display your permit/registration number on your listing. Platforms may remove non-compliant listings.
•Morro Bay, CA: Hosts must report their rental activity monthly to the city, even if platforms collect taxes.

Application Process(11)

•Morro Bay STR permit - Step 1: Zoning and Density Check. Verify your property is in a permitted zone and that the neighborhood cap (if applicable) has not been reached. Time: 1 week.

Fees & Costs(1)

•Morro Bay charges a registration fee of $500 (annual). Extended/additional fee: $300 (Annual renewal fee is typically lower than the initial application fee; currently $300 per fee schedule.).

Taxes(1)

•Morro Bay charges a Transient Occupancy Tax of 11%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO remit the 11% TOT but may not remit the 3% TBID assessment; hosts must verify.

Limits & Restrictions(8)

•Morro Bay: One Permit Limit: Owners are generally limited to holding only one STVR permit within the city.
•Morro Bay, CA occupancy calculation: 2 per bedroom plus 2 additional guests, not to exceed 10 total.. Count your bedrooms to determine your max guest limit.
•Morro Bay limits STRs to a maximum of 10 guests. Formula: 2 per bedroom plus 2 additional guests, not to exceed 10 total.

Safety Requirements(1)

•Morro Bay requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Visible address numbers, Egress windows in sleeping areas, One 2A:10BC rated fire extinguisher.

Penalties(3)

•Morro Bay: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Morro Bay enforces the following penalties for STR violations: First offense: $100. Second offense: $200. Third offense: $500. Daily fine: Varies by violation. Maximum fine: Permit revocation. Permit may be revoked for violations.

Exemptions(3)

•Morro Bay: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Morro Bay, CA: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Morro Bay exempts the following from STR regulations: long-term rentals (30+ days).

Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other California Markets

Los Angeles

California

Strict

The City of Los Angeles requires all short-term rental hosts to register for a Home-Sharing permit and only permits the rental of one's primary residence. Stays are capped at 120 days per year unless an Extended Home-Sharing permit is obtained, and rentals in RSO-regulated buildings or newer ADUs are strictly prohibited.

Permit requiredNight limitsPrimary residence

0.1% total tax

Anaheim

California

Prohibited

Short-term rentals in Anaheim are strictly limited to approximately 277 'pre-moratorium' operators who were grandfathered in 2019. The city currently prohibits the issuance of any new STR permits. Allowed operators must follow rigid 'Good Neighbor' policies, enforce a 3-night minimum stay, and pay a 15% Transient Occupancy Tax.

Permit required

15.0% total tax

Mammoth Lakes

California

Moderate

Short-term rentals are heavily regulated in Mammoth Lakes and generally restricted to multi-family and resort zones (RMF-2, Resort, etc.). Hosts must obtain an STR Certificate and a Business Tax Certificate, and pay a total TOT rate of 13%. Stays of 31 days or longer are exempt from these regulations.

Permit required

0.1% total tax

Big Bear Lake

California

Strict

The City of Big Bear Lake regulates short-term rentals under Chapter 5.44, requiring an annual license, rigorous safety inspections, and a strict guest limit of 2 per bedroom plus 2. Owners are limited to 2 licenses total and must remit a 9% combined TOT and TBID tax quarterly.

Permit required

0.1% total tax

Morro Bay

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

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Regulation Details

Eligibility(12)

Requirements(22)

Application Process(11)

Fees & Costs(1)

Taxes(1)

Limits & Restrictions(8)

Safety Requirements(1)

Penalties(3)

Exemptions(3)

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Frequently Asked Questions

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Anaheim

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Morro Bay

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

Frequently Asked Questions

1Do I need a permit for short-term rentals in Morro Bay?

2What is the TOT tax rate in Morro Bay?

3Are short-term rentals allowed in Morro Bay?

4How much does an STR permit cost in Morro Bay?

5Can renters host on Airbnb in Morro Bay?

Related Content

Other California Markets

Los Angeles

Anaheim

Mammoth Lakes

Big Bear Lake