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Merced, CA Accessory Structures: ADU Rental Restrictions (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Minimum rental term
30 continuous days
Short-term/transient rentals
Prohibited
Separate sale of ADU
Prohibited except nonprofit-to-qualified-buyer sale
Exception authority
Gov. Code Sec. 65852.26
Governing section
Merced Municipal Code Sec. 20.42.040(B),(C)

Summary

Merced bars short-term and transient rentals of accessory dwelling units and junior ADUs, requiring a minimum continuous rental term of 30 days under Municipal Code Section 20.42.040(B). The same section blocks selling or conveying an ADU separately from the main house except through a narrow nonprofit-affordability exception.

B.Rental Term. An ADU or JADU may be rented, provided the rental term is at least thirty (30) continuous days or more. Non-continuous or transient occupancy is prohibited.C.Separate Conveyance. An ADU shall not be sold or otherwise conveyed separately from the principal residence, except when sold by a qualified nonprofit corporation to a qualified buyer in accordance with Government Code Section 65852.26 with affordability restrictions.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 85 - 1-26).

Full Breakdown

040(B) sets the minimum rental term for both accessory dwelling units and junior accessory dwelling units at thirty (30) continuous days, and it expressly prohibits any non-continuous or transient occupancy, closing the door on nightly or weekly short-term rental platforms operating out of a Merced ADU. That thirty-day floor applies regardless of whether the ADU is attached, detached, or converted from existing space, and it applies whether the owner rents out the primary home or the ADU under the occupancy rule in subsection (A). Subsection (C) adds a separate-conveyance restriction: an ADU cannot be sold, subdivided, or otherwise conveyed apart from the principal residence on the same parcel.

26, which requires recorded affordability restrictions on the ADU. 030(F)(3) reinforces the same restriction for the property as a whole, barring any lot line adjustment, subdivision, air-rights transfer, or condominium conversion that would let an ADU be sold, transferred, or disposed of independently of the primary dwelling, with that stipulation recorded as a deed restriction against the property.

Violations & Fines

Advertising or renting a Merced ADU for stays under thirty days, or on a night-to-night basis through a short-term rental listing, violates Section 20.42.040(B) and can be enforced as a zoning violation subject to the city's nuisance and code enforcement procedures. Attempting to sell or convey an ADU separately from the primary residence without qualifying under the Government Code Section 65852.26 nonprofit-affordability exception violates Section 20.42.040(C) and can void the transaction under the recorded deed restriction.

Frequently Asked Questions

Can I list my Merced ADU on Airbnb?
No. Section 20.42.040(B) requires any ADU rental to run at least thirty continuous days and explicitly prohibits non-continuous or transient occupancy, which rules out nightly or weekly short-term rental listings for both ADUs and junior ADUs city-wide.
Can I sell my ADU as a separate property from my house?
No, with one narrow exception. Section 20.42.040(C) prohibits conveying an ADU separately from the principal residence. The only exception is a sale by a qualified nonprofit corporation to a qualified buyer under Government Code Section 65852.26, which requires recorded affordability restrictions on the unit.
Does the 30-day rule apply to junior ADUs too?
Yes. Section 20.42.040(B) applies the same thirty-continuous-day minimum and transient-occupancy ban to both accessory dwelling units and junior accessory dwelling units, so a JADU carved out of an existing house cannot be rented night-to-night any more than a detached ADU can.

Sources & Official References

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