Primary-Residence-Only Rule
Monterey bans short-term residential rentals in every residential district unless established before August 6, 1991, and only if registered, so newly created vacation rentals are illegal citywide. The one lawful year-round exception lets an owner-occupant rent out their own residence while temporarily away, but no more than once every 12 months, under Monterey City Code § 38-11.
Monterey Short-Term Rentals: Owner-Occupant Exemption Only
Heavy RestrictionsMonterey City Code §§ 38-11, 38-26(O)
Short-term Residential Rental: 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. ... Rental of a residential unit by an owner-occupant who ...