The City of Monterey effectively prohibits short-term rentals in all residential zones, limiting them to commercially zoned properties where hotels are permitted. Unincorporated Monterey County allows STRs with a permit, but the process is expensive and complex, with rules and permit availability varying significantly by planning area (coastal vs. inland).
To host an Airbnb in the City of Monterey, your property must be in a commercial zone where hotels are allowed; hosting in a residential neighborhood is illegal. For properties in unincorporated Monterey County, you can apply for a permit, but be prepared for a very high one-time application fee (over $4,000), a lengthy process, and strict rules. Key county rules include a guest limit of 2 per bedroom plus 2, a ban on renting out ADUs, and a 7-night minimum stay in many coastal areas. Always check the specific rules for your exact location within the county before starting.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
12.0%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
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Permit Fee
$4,364
Processing Time
Several months
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