Monterey Short-Term Rental Regulations

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Monterey has no STR permit program. Short-term residential rentals (under 30 days) are prohibited in all residential districts (including Planned Community districts) and are allowed only in areas zoned for Visitor Accommodation Facilities (VAF). Limited grandfathering applied only to STRs operating before August 6, 1991 that registered within 60 days. Operating or advertising a prohibited STR is a violation, with each day a separate offense.

Tax Obligations

Combined rate: 12% of gross rental income.

Collection: The operator self-reports and remits Transient Occupancy Tax to the City of Monterey Finance Department using the Visitor Accommodation Facilities (VAF) Return Form, filed with payment by the 15th of the following month.

Filing: Monthly; returns and payment due on the 15th day of the following month

Rental Limits

Monterey does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Short-term residential rentals are prohibited in all residential districts (including PC Planned Community districts) if established after August 6, 1991. Short-term rentals (under 30 days) are only allowed in areas zoned for Visitor Accommodation Facilities (VAF). Limited grandfathering applies only to STRs that existed before August 6, 1991, were registered with the Finance Department within 60 days, and that terminated within five years or upon transfer of title.

Insurance & Safety

Insurance

Monterey does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Penalties for Non-Compliance

• Each day an advertisement of a prohibited short-term rental is posted, published, circulated, broadcast or maintained is a separate offense (MCC 22-19.5).
• Any short-term residential rental operated in violation of the chapter or determined to be a nuisance forfeits its right to continue operation (MCC 38-26.O).

Platform Requirements

• Advertising a prohibited short-term rental on any platform, website, or application is itself a violation (MCC 22-19.5)
• Online hosting platforms/companies are not treated as the responsible party.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Monterey:

1. Register for tax accounts. Set up lodging tax accounts with City of Monterey Finance Department.
2. Collect and remit taxes. 12% on all bookings.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Monterey?

Monterey does not require a dedicated short-term rental permit, but you must still register for and remit applicable lodging taxes. Confirm local zoning rules still allow short-term rentals at your property before listing.

Does Monterey require a short-term rental to be your primary residence?

Monterey is not issuing new short-term rental permits, so in practice only previously permitted (grandfathered) properties can operate — regardless of whether it is your primary residence.

How many days a year can you short-term rent in Monterey?

Monterey does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Monterey?

Short-term rental stays in Monterey are subject to a combined 12% in lodging taxes. This combines 12% Transient Occupancy Tax (TOT) + 0.80%-4.15% of rent (applies to hotels/motels by location and service level; does not generally apply to residential STRs) Conference Center Facilities District (CCFD) assessment + $1.70-$7.90 per occupied room night (currently does not apply to lodging in the City of Monterey) Tourism Improvement District (TID) assessment. The host is responsible for collecting and remitting them.