City Watch
Short-term rental rules in Morro Bay, CA
How Morro Bay regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- Hard numeric cap: maximum 175 full-home STR permits allowed in residentially zoned areas (fixed supply quota).
- 175-foot separation buffer between new full-home STRs in residential zones (density/dispersion constraint on top of the cap).
- Cap and buffer are Coastal-Commission-certified into the Local Coastal Program (durable, rating-determining, not merely proposed).
- STR permit + business license + TOT account all required prior to operating (layered process on top of the supply limit).
Based on: Morro Bay Municipal Code Title 17, Ch. 17.30, Sec. 17.30.220 (Short-Term Vacation Rentals); STR ordinance adopted 2020
Summary of the rule
Hard cap of 175 full-home short-term rental permits in residentially zoned areas (fixed quota).
View the ordinance source ↗✓ Verified
Last reviewed Sep 9, 2026 · Sources · Report an error
Pending legislation
Monitoring Morro Bay · system last checked Oct 25, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.