Effective October 14, 2024, all short-term residential rentals in unincorporated Inland Monterey County are regulated under Monterey County Code §21.64.290. The Coastal Zone Vacation Rental Ordinance was adopted September 23, 2025 and takes effect October 24, 2025. Rentals are split into three tiers: Homestays, Limited Vacation Rentals (LVRs), and Commercial Vacation Rentals (CVRs). CVRs are capped at 4% of the housing stock per planning area and banned outright in Big Sur. Operators must hold a Vacation Rental Operation License, a County Business License, and remit 10.5% Transient Occupancy Tax.
Monterey County rewrote its STR rules through Ord. 24-027 (adopted August 27, 2024). Inland short-term rentals are now regulated under Monterey County Code §21.64.290 - replacing the prior §21.64.280 - and Coastal-Zone STRs are governed by the new Title 20 ordinance certified by the California Coastal Commission in 2025. The ordinances create three categories. Homestays (owner occupies property as primary residence; portion of dwelling rented while owner is on-site) require a ministerial Vacation Rental Operation License (VROL); they are uncapped. Limited Vacation Rentals (LVRs) are whole-home rentals limited in number of bookings/year and require a ministerial VROL; they are also uncapped. Commercial Vacation Rentals (CVRs) are unlimited whole-home rentals and require a discretionary Use Permit (Inland) or Coastal Development Permit (Coastal); these CVRs are capped at 4% of housing stock per planning area. Big Sur prohibits CVRs entirely. The Carmel Area, Carmel Valley, and Moss Landing planning areas have additional zone-specific restrictions in residential or low-density zones. Operators must (1) obtain a VROL (initial fee approximately $1,100), (2) obtain a County Business License through the Treasurer-Tax Collector ($207 first year, $115 annual renewal), and (3) collect and remit Transient Occupancy Tax of 10.5% under Monterey County Code Chapter 5.40 on stays of 30 days or fewer. CVRs must designate a property manager available 24/7 who can arrive on-site within 30 minutes. Discretionary CVR permits cost approximately $8,000 (Inland Use Permit) or $14,000 (Coastal Development Permit) and last up to 7 years.
Operating a vacation rental without a VROL, business license, or required Use/Coastal Development Permit is a violation of Title 21 (Inland) or Title 20 (Coastal) and is subject to administrative citations, civil penalties, and revocation of permits under Monterey County Code Title 1. Unpaid TOT is subject to penalty and interest under Chapter 5.40. Coastal-zone violations may also trigger California Coastal Commission enforcement under Pub. Res. Code §30820, with civil fines up to $15,000 per day for knowing violations.
See how Monterey County's permit requirements rules stack up against other locations.
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