MontereyShort-term rental rules

Additional vacation and regional market / California

Monterey code prohibits new short-term residential rentals in residential districts, with a narrow exception for an owner temporarily away from their own residence.

Research reviewed Oct 31, 2026. Primary sources linked.

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Does the operating permit transfer?: No city STR license
Section 38-26(O)(2)(c) expressly ends the limited historic residential rental use at title transfer if it has not already expired. A buyer cannot inherit that grandfathering. Separately approved hotel or other lodging uses require their own property-record review.
Can the land-use approval continue?: Historic residential grandfathering ends
Section 38-26(O) requires termination at the earlier of its five-year sunset or title transfer. Do not treat the historic provision as an available buyer authorization.
Can this buyer obtain approval?: Section 38-26(O) prohibits residential STRs established after August 6, 1991. Its limited historic grandfathering required termination within five years or at title transfer, whichever came first. It is not a continuing investor permit program.
License or registration: There is no ordinary residential STR license route under the reviewed code. Section 38-11 exempts an owner-occupant renting while temporarily away no more than once in any 12-month period; confirm eligibility before relying on that exception.
Application availability: No ordinary residential STR route
The code prohibits new residential STRs in residential districts. Its temporary owner-absence exception and separately approved lodging uses require their own eligibility review.
Timing to verify: No sale-specific deadline was established in this summary. Ask the issuing office about filing, renewal and any interruption in operation.
Changes and uncertainty: Section 22-19.5 also prohibits advertising an unlawful residential STR. Monterey County vacation-rental rules do not establish permission inside the city.

What this means for the appraisal

Confirm zoning, other licenses and private restrictions before treating the absence of a city STR license as permission to operate.
Verify the property’s land-use approval and continuation conditions. Research finding: Historic residential grandfathering ends.
Check the proposed buyer against the recorded requirements: Section 38-26(O) prohibits residential STRs established after August 6, 1991. Its limited historic grandfathering required termination within five years or at title transfer, whichever came first. It is not a continuing investor permit program.
In the assignment analysis, identify the evidence supporting the proposed rental use, any operating interruption and any unresolved assumptions.

Use these prompts to plan the property review. The appraiser must evaluate the evidence and reach the assignment-specific conclusions.

Record the property evidence in a worksheet

Request documents from the owner or agent

Copy this market-specific request, add the property address and edit it for the assignment.

Read or select the document request

Document request for Monterey

Subject: STR property document request | Monterey, CA

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: Section 38-26(O)(2)(c) expressly ends the limited historic residential rental use at title transfer if it has not already expired. A buyer cannot inherit that grandfathering. Separately approved hotel or other lodging uses require their own property-record review.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: Section 38-26(O) requires termination at the earlier of its five-year sunset or title transfer. Do not treat the historic provision as an available buyer authorization.
5. Documents addressing the proposed buyer and property requirements: Section 38-26(O) prohibits residential STRs established after August 6, 1991. Its limited historic grandfathering required termination within five years or at title transfer, whichever came first. It is not a continuing investor permit program.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: The code prohibits new residential STRs in residential districts. Its temporary owner-absence exception and separately approved lodging uses require their own eligibility review.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.
9. Written clarification: For a claimed owner-absence exception or separately approved lodging use, obtain confirmation of its applicability to this buyer and property.

Market research reviewed: 2026-10-31. These requests need property-specific verification.
Official research sources:
Monterey FY2025-2029 consolidated plan and FY2025-2026 action plan: https://files.monterey.gov/Document-Center/Departments/Community-Development/Housing/Plans-and-Reports/Action-Plans/FY25-29-Con-Plan-Annual-FY25-26-Action-Plan.pdf
Monterey current code, section 38-26(O), prohibition and grandfathering termination: https://monterey.municipal.codes/Code/38-26
Monterey current code, section 38-11, owner-absence exception: https://monterey.municipal.codes/Code/38-11
Monterey code, section 22-19.5, prohibited advertising: https://monterey.municipal.codes/Code/22-19.5

Subject: STR property document request | Monterey, CA

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: Section 38-26(O)(2)(c) expressly ends the limited historic residential rental use at title transfer if it has not already expired. A buyer cannot inherit that grandfathering. Separately approved hotel or other lodging uses require their own property-record review.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: Section 38-26(O) requires termination at the earlier of its five-year sunset or title transfer. Do not treat the historic provision as an available buyer authorization.
5. Documents addressing the proposed buyer and property requirements: Section 38-26(O) prohibits residential STRs established after August 6, 1991. Its limited historic grandfathering required termination within five years or at title transfer, whichever came first. It is not a continuing investor permit program.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: The code prohibits new residential STRs in residential districts. Its temporary owner-absence exception and separately approved lodging uses require their own eligibility review.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.
9. Written clarification: For a claimed owner-absence exception or separately approved lodging use, obtain confirmation of its applicability to this buyer and property.

Market research reviewed: 2026-10-31. These requests need property-specific verification.
Official research sources:
Monterey FY2025-2029 consolidated plan and FY2025-2026 action plan: https://files.monterey.gov/Document-Center/Departments/Community-Development/Housing/Plans-and-Reports/Action-Plans/FY25-29-Con-Plan-Annual-FY25-26-Action-Plan.pdf
Monterey current code, section 38-26(O), prohibition and grandfathering termination: https://monterey.municipal.codes/Code/38-26
Monterey current code, section 38-11, owner-absence exception: https://monterey.municipal.codes/Code/38-11
Monterey code, section 22-19.5, prohibited advertising: https://monterey.municipal.codes/Code/22-19.5

Research and guide updates

Oct 31, 2026 Research record: Research recorded for this market. Primary sources linked. See the findings, open questions and official sources below.
Nov 1, 2026 Guide tools: Added assignment prompts, a document request and consistent research questions. This tool update does not change the market research date.

Changes and uncertainty to verify

Section 22-19.5 also prohibits advertising an unlawful residential STR. Monterey County vacation-rental rules do not establish permission inside the city.

Still to confirm

For a claimed owner-absence exception or separately approved lodging use, obtain confirmation of its applicability to this buyer and property.

Sources and research limits

The sale summary cites official code, program guidance or a court record. Read its scope and any remaining questions; it is not a parcel determination.

Use this summary to identify the documents and questions for a property review. A seller's rental history alone does not establish a buyer's permission to operate.

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