Merced, CA Short-Term Rentals: Occupancy Limits (2026)

Merced's Municipal Code contains no maximum-occupancy rule aimed at short-term rentals, because the city has not adopted an STR ordinance. Guest capacity in an ordinary dwelling is therefore governed by generally applicable standards rather than an STR formula tied to bedroom count. Those general standards include the California Building and Fire Codes (as adopted in the city's building regulations) and the zoning definitions of dwelling units. The one occupancy figure that appears in code for a comparable transient-lodging use is for a bed and breakfast: Section 20.44.030 caps a bed and breakfast at twelve (12) guest rooms for overnight guests and requires the owner to reside on the premises in separate owner's quarters. The Title 20 definition of a bed and breakfast (Section 20.90.020) describes a structure with one to six guest rooms without individual cooking facilities. These figures apply to the bed and breakfast use, not to a self-rented short-term rental, and a bed and breakfast itself requires a conditional use permit. By contrast, the unincorporated Merced County STR program limits occupancy by bedroom count; that bedroom-based cap is a county rule and does not apply inside the City of Merced. Hosts should treat occupancy as governed by general building, fire and zoning limits and confirm specifics with the city.