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Morro Bay · Renting & eviction

Short-term rentals in Morro Bay

Morro Bay's own rules on short-term rentals, with the code text for every value.

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Each rule below links to the section of the Morro Bay Municipal Code it was read from, with the code text one click away (extracted October 2026). General information, not legal advice.

What Morro Bay's code says

Morro Bay code What Morro Bay's code adds
Allowed
  • Yes. Home-sharing and full-home rentals are allowed with a permit.
    Applies: Residential, commercial and mixed use zones only; full-home rentals in residential zones capped at 175; not in ADUs, mobile home parks or affordable housing units.
    § 17.30.220 · code text
    Short-term vacation rentals are permitted in residential, commercial, and mixed use zoning districts only. Full-home short-term vacation rentals in residential districts shall be subject to the density limitations of Section 17.30.220 D, Short-Term Vacation Rentals—Density Limitations, below.
Permit or registration
  • A short-term vacation rental permit and a city business license.
    Applies: All short-term vacation rentals; the property owner gets the permit, valid for no more than 12 months unless renewed.
    § 17.30.220 · code text
    Short-term vacation rentals may only be operated pursuant to a current and valid short-term vacation rental permit from the city of Morro Bay, as well as a current and valid city business license, in accordance with all the requirements of this section.
Primary residence
  • Yes. The home must be the host's primary residence, and the host stays on site during the guest's stay.
    Applies: Home-sharing rentals.
    § 17.30.220 · code text
    Home-sharing rental” means a short-term vacation rental within a dwelling that is the host's primary residence, and where the host is on site throughout the guest's stay.
  • No. The host is not present and guests have the home to themselves.
    Applies: Full-home rentals.
    § 17.30.220 · code text
    “Full-home rental” means a short-term vacation rental of no more than thirty consecutive days of a home, in whole or in part, for exclusive transient use. The guest enjoys the exclusive private use of the dwelling, and the host is not present.
  • Yes. A guest house may be rented only as a home-share, with the host on site in the main home.
    Applies: Guest houses used as short-term vacation rentals.
    § 17.30.220 · code text
    The use of a guest house as a short-term vacation rental is prohibited, unless the guest house is rented as a home-share vacation rental with the host on site in the primary residence throughout the guest's stay in the guest house.

Who this affects

TenantsLandlordsProperty managers

Frequently asked questions

Can I rent out my home short-term in Morro Bay?

Morro Bay's code: Yes. Home-sharing and full-home rentals are allowed with a permit. (Residential, commercial and mixed use zones only; full-home rentals in residential zones capped at 175; not in ADUs, mobile home parks or affordable housing units.) (§ 17.30.220); A short-term vacation rental permit and a city business license. (All short-term vacation rentals; the property owner gets the permit, valid for no more than 12 months unless renewed.) (§ 17.30.220).

General information, not legal advice.

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Morro Bay Municipal Code — full text