Merced, CA Accessory Structures: ADU Rental Restrictions (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.
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?
Can I sell my ADU as a separate property from my house?
Does the 30-day rule apply to junior ADUs too?
Sources & Official References
Other rules in Merced
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