10 county-level rules, plus city-specific rules for 2 cities in Monterey County, California.
Verified from official government sources
Unincorporated Monterey County requires a Vacation Rental Operation License for all short-term rentals. Commercial vacation rentals additionally need a Use Permit (inland) or Coastal Development Permit (coastal). Inland rules took effect October 14, 2024; coastal rules October 24, 2025.
Monterey County Code Chapter 7.120 (added by Ord. 24-027, eff. 10/14/2024)
Chapter 7.120 - VACATION RENTAL OPERATION LICENSE. A vacation rental operation license is required for any vacation rental operation in the unincorporated area of the County of Monterey, in addition to a business license issued pursuant to Section 7.02.060.
Monterey County vacation rentals must comply with noise and quiet-hour standards as license conditions, and outdoor amplified sound is restricted at short-term rentals. A 24-hour local contact must respond to complaints quickly.
Unincorporated Monterey County charges a 10.5% Transient Occupancy Tax on hotels, motels, vacation rentals, and homestays. The Vacation Rental Operation License fee is listed at $965, plus a separate County business license.
Monterey County's vacation rental ordinance requires on-site parking for short-term rentals. Applicants must submit a parking plan, and approved parking is set as a condition of the Vacation Rental Operation License.
Monterey County's vacation rental ordinance limits guest occupancy based on the number of bedrooms, generally about two adults per bedroom with an overall maximum for larger homes. Exact limits are set as license conditions by Housing and Community Development.
Monterey County Code Chapter 7.120 (Vacation Rental Operation License)
The vacation rental operation license shall specify the maximum overnight occupancy and maximum daytime occupancy of the vacation rental and shall require compliance with quiet hours from 10:00 p.m. to 7:00 a.m. and a prohibition on outdoor amplified sound.
Monterey County's Vacation Rental Operation License is established under County Code Chapter 7.120, which sets license, inspection, and operating conditions. Operators should confirm any liability-insurance requirement directly with Housing and Community Development, as a specific dollar amount is not published in the County's summary materials.
Monterey County defines short-term rentals as stays of 30 days or fewer. Limited Vacation Rentals may be rented whole-house up to three times per year; Commercial Vacation Rentals (more than three times/year) are capped at about 4% of housing units per planning area.
Every short-term rental in unincorporated Monterey County must register for a Vacation Rental Operation License and a Transient Occupancy Tax certificate. Inland operators had to apply or comply by April 14, 2025; coastal operators by December 24, 2025.
Homestays require the owner to live on site and occupy a bedroom during stays. Non-hosted Limited and Commercial Vacation Rentals do not require host presence but must designate a 24-hour local contact who responds quickly to complaints.
Monterey County does not ban non-owner-occupied rentals outright, but Homestays must be the owner's residence, and Limited and Commercial Vacation Rentals (non-hosted) face caps and zoning limits. Commercial rentals are banned in several residential areas.
2 cities in Monterey County have their own short-term rentals rules. Each link goes to that city's dedicated page with code citations.
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