Monterey, CA Short-Term Rentals: Primary-Residence-Only Rule (2026)
Key Facts
- New STRs after 8/6/1991
- Prohibited citywide
- Grandfather registration window
- 60 days, Finance Dept.
- Grandfathered rental sunset
- 5 years or sale of title
- Owner-occupant exemption
- Once per 12 months
- Advertising a banned rental
- Separate daily offense, § 22-19.5
Summary
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.
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 is temporarily away from the residence is also exempt from this ordinance, as long as such rental does not occur more than once in any 12-month period. ... O. Short-term Residential Rentals.Short-term residential rentals shall be regulated in all residential districts, including residential developments in "PC" (Planned Community) Districts, as follows: 1. Future Rentals Prohibited.Short-term residential rentals are prohibited in all residential districts if established after August 6, 1991, or if not qualified for limited grandfathering pursuant to subparagraph 2 below.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 3721, passed July 7, 2026).
Full Breakdown
Monterey City Code § 38-26(O) regulates short-term residential rentals in every residential zoning district, including residential development within "PC" Planned Community districts. Under § 38-26(O)(1), any short-term residential rental established after August 6, 1991, or that never qualified for the ordinance's limited grandfathering, is prohibited outright: there is no permit process to newly create one. A rental that predates August 6, 1991, may keep operating only if its owner registered with the Finance Department within 60 days of the ordinance's effective date, supplying documentation proving the prior use; owners who missed that window lost the right permanently.
and must terminate the rental use within five years of the effective date or upon any transfer of title, whichever comes first. Any legacy rental that violates the chapter or is found to be a nuisance forfeits its right to continue, following the procedures at § 38-221. Outside that narrow grandfathered category, the only way a Monterey homeowner may lawfully rent a residence short-term is the exemption written into the definition itself at § 38-11: an owner-occupant who is temporarily away from the residence may rent it out, but not more than once in any 12-month period.
5 makes it a distinct offense, charged per day, to advertise a short-term rental that the Zoning Ordinance prohibits, whether the posting appears on a listing platform, website, or printed notice; property owners and their agents, not the hosting platforms themselves, bear that liability.
Violations & Fines
Operating or advertising an unpermitted short-term rental is a zoning and code enforcement violation. The City can order an illegal rental to cease, and a grandfathered rental that breaches its conditions or is found to constitute a nuisance forfeits its right to continue under § 38-26(O)(4), following the § 38-221 nuisance-abatement procedure. Advertising a prohibited rental under § 22-19.5 is a separate offense charged for each day the ad runs, regardless of whether the hosting platform is liable.
Frequently Asked Questions
Can I rent my Monterey home on Airbnb for a weekend?
Are any older vacation rentals still legal in Monterey?
What happens if I advertise a short-term rental online?
Sources & Official References
Other rules in Monterey
California rules heatmap·Compare Monterey to another location·View the California short-term rentals overview
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