Merced, CA Short-Term Rentals: Primary-Residence-Only Rule (2026)

Merced has not adopted any ordinance requiring a short-term rental to be the host's primary residence, and no such requirement exists in the city code. Owner-occupancy obligations in the code attach to specific named uses, not to short-term renting generally. First, a bed and breakfast under Section 20.44.030 requires the owner to reside on the premises, with separate owner's quarters maintained. Second, accessory dwelling units are subject to Section 20.42.040: between January 1, 2020 and January 1, 2025 the city could not impose owner-occupancy on ADUs, and after January 1, 2025 the owner of a parcel with an ADU in an R-1 district (or equivalent) may rent either the primary unit or the ADU but not both, and may live in either. Critically, that same section bars transient use of ADUs entirely, discussed under host-presence and primary-residence themes below. Outside of those two specific uses, the city does not require a host to live in the property to operate a short-term rental. This contrasts with the unincorporated Merced County STR program, which has been described as requiring the rental to be the owner's primary residence; that primary-residence framing is a county rule and does not apply inside the City of Merced. Hosts should confirm current requirements with the city before relying on the absence of a primary-residence rule.