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California · Monterey

Monterey

city Mostly prohibited Verified · last verified 2026-07-15

Short-term residential rentals (lodging for transient guests for a period of "less than a calendar month or less than 30 consecutive days," per Monterey City Code § 38-11) are PROHIBITED in all residential districts of the City of Monterey. Under the zoning ordinance § 38-26(O)(1), STRs "are prohibited in all residential districts if established after August 6, 1991, or if not qualified for limited grandfathering." A narrow grandfathering path existed only for STRs operating before Aug 6, 1991 (§ 38-26(O)(2)), which required registration with the Finance Department within 60 days (with proof of prior existence), payment of TOT, and self-termination "on or before the expiration of five (5) years from the effective date of this section or upon transfer of the title... whichever shall occur first" — a term long run out, so the path is (interpretively) effectively extinguished today. There is NO permit or license available to legally start an STR in a home; STRs are permitted only in areas zoned for Visitor Accommodation Facilities (VAF) (hotel/visitor-commercial zones). The City Finance TOT/CCFD/TID FAQ (Last Update 07/01/2025) states: "Short-Term Rentals (STR), less than 30 days, are not permitted in any areas except those zoned for Visitor Accommodation Facilities (VAF) in the City of Monterey." Advertising a prohibited STR is separately banned by § 22-19.5 (Ord. 3564 § 3, 2017). Any STR that does lawfully operate (VAF zone) must collect and remit the City's 12% Transient Occupancy Tax, due the 15th of the following month. Operating a use contrary to the zoning ordinance is declared "unlawful and a public nuisance" (§ 38-222(A)) and a misdemeanor, "and each day or partition thereof that such violation is in effect shall be a new and separate offense" (§ 38-222(B)). Code current through Ordinance 3719, passed June 2, 2026. All facts quote-anchored to primary sources; the "effectively extinguished" characterization of grandfathering is a reasonable inference, not a quoted fact.

Not legal advice. Last verified 2026-07-15 · sources linked below.

Requirements checklist

  • city Zoning conformance — no residential STR permit exists (STRs banned in residential districts) Required
    Fee: — · Renewal: — · Applies to: Any residential dwelling in an R (residential) district or residential 'PC' (Planned Community) district; STRs are only allowed in areas zoned for Visitor Accommodation Facilities (VAF). · official page ↗
  • city Transient Occupancy Tax (TOT) collection & remittance Conditional
    Fee: — · Renewal: TOT return filing (due 15th of the following month per City Finance FAQ) · Applies to: Only STRs that lawfully operate (VAF-zoned properties) or any pre-1991 grandfathered STR; such operators must collect and remit the City TOT. · official page ↗
  • city Prohibition on advertising an unlawful short-term rental Required
    Fee: — · Renewal: — · Applies to: Any 'responsible party' (property owner or tenant, or agent/representative) who posts, publishes, circulates, broadcasts or maintains any advertisement of a prohibited STR. Online hosting platforms/companies are expressly excluded from the definition of responsible party. · official page ↗
  • city Pre-1991 grandfather registration with Finance Department (historical / interpretively expired) Conditional
    Fee: — · Renewal: — · Applies to: Only STRs that existed prior to August 6, 1991; owners had to register with the Finance Department within 60 days with verifying documentation, pay TOT, and terminate within 5 years or upon title transfer. · official page ↗
  • city Public nuisance / misdemeanor prosecution for zoning violations Not required
    Fee: — · Renewal: — · Applies to: Any person operating a use (including an STR) contrary to the zoning ordinance; abatement pursued by the City Attorney upon City Council order. · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
Transient Occupancy Tax (TOT) 12% City of Monterey Finance Department (Uniform Transient Occupancy Tax Ordinance, City Code Chapter 35, Article 3, §§ 35-10 et seq.) — —

Lodging-tax estimator

Estimate the combined transient/lodging tax (~12.0%) on a stay in Monterey. Estimate only — not tax advice.

Operating rules

Primary residence
—
Min stay (nights)
30
Max nights / year
—
Max occupancy
—
Zoning-restricted
Yes
Cap on licenses
—

Grandfathering: Only STRs lawfully existing before August 6, 1991 could continue, and only if the owner registered with the City Finance Department within 60 days with proof of prior existence and paid TOT. Even those grandfathered uses had to terminate no later than five (5) years from the section's effective date or upon transfer of title, whichever came first (§ 38-26(O)(2)). The conclusion that this exemption is now fully extinguished is a reasonable inference (the 5-year clock has long run), not a directly quoted fact.

Zoning: STRs (rentals of less than a calendar month / less than 30 consecutive days) are prohibited in all residential (R) districts and in residential 'PC' Planned Community districts (§ 38-26(O)). Legal transient lodging is confined to areas zoned for Visitor Accommodation Facilities (VAF). A rental of 30+ days is not an STR and is not restricted by this ordinance. A non-monetary home 'swap'/trade is excluded from the STR definition, and an owner-occupant temporarily away may rent their residence but not more than once in any 12-month period (§ 38-11).

  • There is no cap on STR licenses because no residential STR license/permit program exists — residential STRs are simply banned.
  • STR definition (MCC § 38-11, verified verbatim): 'Rental of any residential building, portion of such building, or group of such buildings in which there are guest rooms or suites, including housekeeping units, for transient guests, where lodging with or without meals is provided for a period of less than a calendar month or less than 30 consecutive days.'
  • Definition exemptions (verified verbatim): house 'swapping' or trading without rent/exchange of money is excluded; a residential unit rented by an owner-occupant temporarily away is exempt 'as long as such rental does not occur more than once in any 12-month period.'
  • This record is the CITY of Monterey. Monterey COUNTY (unincorporated) has a separate STR regulatory regime under parent jurisdiction us-ca-monterey-county — do not conflate.

Enforcement

Active enforcement
unknown
Fines
—
Notes
All enforcement language quote-anchored to § 38-222 (verified verbatim) and § 22-19.5 (verified verbatim). § 38-222(B): 'guilty of a misdemeanor, and each day or partition thereof that such violation is in effect shall be a new and separate offense.' The specific dollar amount of the misdemeanor fine (per MCC § 1-1.06) was not independently retrieved and is left unstated.

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Frequently asked questions

Is Airbnb legal in Monterey?
Short-term residential rentals (lodging for transient guests for a period of "less than a calendar month or less than 30 consecutive days," per Monterey City Code § 38-11) are PROHIBITED in all residential districts of the City of Monterey. Under the zoning ordinance § 38-26(O)(1), STRs "are prohibited in all residential districts if established after August 6, 1991, or if not qualified for limited grandfathering." A narrow grandfathering path existed only for STRs operating before Aug 6, 1991 (§ 38-26(O)(2)), which required registration with the Finance Department within 60 days (with proof of prior existence), payment of TOT, and self-termination "on or before the expiration of five (5) years from the effective date of this section or upon transfer of the title... whichever shall occur first" — a term long run out, so the path is (interpretively) effectively extinguished today. There is NO permit or license available to legally start an STR in a home; STRs are permitted only in areas zoned for Visitor Accommodation Facilities (VAF) (hotel/visitor-commercial zones). The City Finance TOT/CCFD/TID FAQ (Last Update 07/01/2025) states: "Short-Term Rentals (STR), less than 30 days, are not permitted in any areas except those zoned for Visitor Accommodation Facilities (VAF) in the City of Monterey." Advertising a prohibited STR is separately banned by § 22-19.5 (Ord. 3564 § 3, 2017). Any STR that does lawfully operate (VAF zone) must collect and remit the City's 12% Transient Occupancy Tax, due the 15th of the following month. Operating a use contrary to the zoning ordinance is declared "unlawful and a public nuisance" (§ 38-222(A)) and a misdemeanor, "and each day or partition thereof that such violation is in effect shall be a new and separate offense" (§ 38-222(B)). Code current through Ordinance 3719, passed June 2, 2026. All facts quote-anchored to primary sources; the "effectively extinguished" characterization of grandfathering is a reasonable inference, not a quoted fact.
Do I need a license or registration for a short-term rental in Monterey?
Yes — Monterey requires: Zoning conformance — no residential STR permit exists (STRs banned in residential districts); Transient Occupancy Tax (TOT) collection & remittance; Prohibition on advertising an unlawful short-term rental. See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Monterey?
Transient Occupancy Tax (TOT) (12%) — roughly 12.0% combined. Use the lodging-tax estimator on this page for a specific stay.

Official sources

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Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.