Morro Bay requires a permit for all STRs, with a critical distinction between Primary Home and Non-Primary properties. The city-wide cap of 250 Non-Primary permits has been reached, and a waitlist is in effect, effectively halting new investment STRs. All hosts are limited to one permit, must pay a 14% total tax, and must display their permit number on all listings.
To host an Airbnb in Morro Bay, you must get a Short-Term Rental Permit from the city. Be aware that permits for non-primary residences (investment properties) are capped and have a long waitlist, making it nearly impossible to start a new one. If it's your primary home, you can apply, but you're limited to just one permit. You'll need to submit a detailed application with proof of ownership, a floor plan, and $1M in liability insurance, and register to pay a 14% transient tax. Once approved, you must display your permit number in your online listing.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
14.0%
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.
Learn more about STR regulations and hosting tips.
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Permit Fee
$650
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