Monterey County, CA

Where short-term rentals are allowed in Carmel-by-the-Sea, CA

Carmel-by-the-Sea opens no new transient rental without new housing. One transient rental unit is permitted for the creation of three new rental units. Older permits run with the land, so they pass to a new owner at sale.[4]

Every rule below links to the official source it comes from, verified October 1, 2026.

Can you rent short term in Carmel-by-the-Sea?

Your zoning decides

Seasonal homes
1,542
Housing units
3,442
Residents
3,162

U.S. Census Bureau, 2024 ACS 5-year estimates

  • City ruleAllowed by zone
  • City feeNone published
  • Tax on each stay10%
  • Seasonal homes448 per 1,000

Carmel-by-the-Sea short-term rental rules

Carmel-by-the-Sea prohibits short-term rentals in its single family R-1 zoning district. The city defines a transient rental as a residential unit occupied for less than 30 consecutive days in exchange for a fee. In the commercial districts and R-4, the city has two types of permits. They are named Legal Non-conforming and Housing Incentive. The first covers permits issued before the city adopted its ordinance. The second requires a conditional use permit, with one off-street parking space per unit. The city's page prints no application fee.[4]

What Carmel-by-the-Sea asks of you

  • Short term rentals are prohibited in the single family R-1 zoning district.[4]

  • A second city page covers the residential district. No home or subordinate unit may be rented there for less than 30 consecutive days.[5]

  • Transient lodging of residential dwellings for remuneration is prohibited in the CC, SC and RC districts, outside lawfully permitted transient rentals.[4]

  • Units permitted before the effective date of Ordinance 2019-03 are a legal nonconforming use. Their permits are allowed in perpetuity.[4]

  • Of the three new rental units behind a Housing Incentive permit, one is rented as low income. A second is rented as moderate income, the third at market rate.[4]

  • Two of those rental units must be a minimum of 650 square feet in size.[4]

  • A Housing Incentive rental must be maintained at the original site of approval. It is not classified as legal nonconforming.[4]

  • The city's ordinance page prints no fee for the conditional use permit.[4]

  • A city handout, still online, tells the operator to apply for a business license. The city then issues a Transient Occupancy Registration Certificate.[6]

  • The handout says the Zoning Code is silent on transient rentals in the Commercial Zoning Districts. It carries no date.[6]

  • A building of 3 or more units with any transient rental is a Hotel/Motel under the California Building Code, the handout says.[6]

  • The ordinance text submitted to the City Council bars advertising an unpermitted transient rental. Each day an advertisement is maintained is a separate offense.[7]

  • That text makes unlawful use of residential property an infraction for each day of use. It states no fine amount.[7]

  • The same text says the zoning ordinance is also the Local Coastal Program. The amendment requires certification by the California Coastal Commission.[7]

What California asks wherever you host

These rules apply at this address whatever the city decides.

  • No state license exists for short-term rentals in California. The state's 2025 act on booking platforms says it does not preempt a local short-term rental ordinance.[1]

  • Since July 1, 2024, every mandatory fee has to sit inside the rate you advertise. Only government taxes and fees may be added later.[2]

  • State law caps city fines when a short-term rental violation threatens health or safety. The first ceiling is $1,500. A second violation within the year reaches $3,000, each later one $5,000.[3]

California short-term rental rules

What a guest pays on top of your nightly rate in Carmel-by-the-Sea

Each layer is set by a different authority, and not all of them are collected by the platform.

Short-term rental tax layers in Carmel-by-the-Sea
LayerRateRemitted to
Carmel-by-the-Sea transient occupancy tax[6]10%The city
Total on a taxable stay10%

Measure M goes before Carmel-by-the-Sea voters on November 3, 2026. It would add a new 2% transient occupancy tax to the existing 10%, for a total of 12%. The county's measure list gives no effective date.[8]

Airbnb taxes for hosts

What the census counts

How much of Carmel-by-the-Sea is already a second home

The Census Bureau counts 1,542 of Carmel-by-the-Sea's 3,442 homes as vacant for seasonal, recreational or occasional use. That is 448 out of every 1,000. It ranks Carmel-by-the-Sea 4th of the 37 California cities on this site for the share of its housing stock kept for part-year use.

Rank in the state
4th of 37
Share of housing
448 per 1,000
Median home value
$2,000,001

U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.

Nearby and comparable

Where Carmel-by-the-Sea sits among its neighbors

San Francisco, CA

Primary residence only

Only in the unit you live in at least 275 nights a year, once registered. Unhosted stays stop at 90 nights a year.

San Francisco short-term rental rules

Monterey, CA

Allowed by zone

966 seasonal homes, 68 per 1,000 housing units.

Monterey short-term rental rules

Indian Wells, CA

Allowed by zone

2,253 seasonal homes, 443 per 1,000 housing units.

Indian Wells short-term rental rules

Mammoth Lakes, CA

Allowed by zone

5,531 seasonal homes, 573 per 1,000 housing units.

Mammoth Lakes short-term rental rules
StatewideEvery California city on this site, in one tableState law, the tax stack and every city we cover in California, with what each one asks of a host.California short-term rental rules

FAQ

Carmel-by-the-Sea short-term rental questions

Can I Airbnb my house in Carmel-by-the-Sea?

Not in the single family R-1 district, where the city prohibits short term rentals. A transient rental is any paid stay of less than 30 consecutive days.[4]

What is the occupancy tax in Carmel-by-the-Sea?

The city's handout gives a rate of 10% of the rent charged by the operator. Operators report total rent received and remit the tax on a bi-monthly basis.[6]

Will Carmel-by-the-Sea raise its lodging tax to 12%?

Only if voters approve Measure M on November 3, 2026. The measure would establish a new 2% tax on top of the existing 10%.[8]

Can a Carmel-by-the-Sea transient rental permit be sold with the building?

A Legal Nonconforming permit may be transferred to a new owner upon sale of the property. It may not move from one location to another.[4]
Read nextHow to start an AirbnbThe six steps in order, starting with the permit check.Read the guide

Sources

  1. Short-Term Rental Facilitator Act of 2025 (SB 346), Government Code sections 50990 to 50996, California Legislative Information, read on October 1, 2026
  2. Business and Professions Code section 17568.6, lodging price display, California Legislative Information, read on October 1, 2026
  3. Government Code section 36900, fines for city ordinance violations, California Legislative Information, read on October 1, 2026
  4. Transient/Short-Term Rental Information, City of Carmel-by-the-Sea, read on October 1, 2026
  5. Short-Term Rentals, City of Carmel-by-the-Sea, read on October 1, 2026
  6. Transient Rentals in the Commercial District (handout), City of Carmel-by-the-Sea, read on October 1, 2026
  7. Ordinance No. 2019-003, text submitted to the City Council, City of Carmel-by-the-Sea, read on October 1, 2026
  8. List of Local Measures, November 3, 2026 General Election, County of Monterey Elections, read on October 1, 2026

This page is not legal advice. It summarizes the official sources listed on this page as they read on October 1, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.

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