Short-Term Rental Regulations
in Morro Bay, CA

Airbnb listings are allowed in Morro Bay, CA, but with restrictions. Full-home STRs in residential zones are capped at 175 active permits and must maintain a 175-foot separation buffer from other STRs. Occupancy is limited to two people per bedroom plus two (max 10) for full-home rentals, and onsite parking is strictly required with no street parking allowed. A permit is required before you can host. These rules apply to all short-term rental platforms (Airbnb, Vrbo, Booking.com, etc.) — not just Airbnb specifically. See the official source linked on this page for full requirements. Last verified 2026-05-14.

Full-home STRs in residential zones are capped at 175 active permits and must maintain a 175-foot separation buffer from other STRs. Occupancy is limited to two people per bedroom plus two (max 10) for full-home rentals, and onsite parking is strictly required with no street parking allowed.

Yes, a permit is required to operate a short-term rental in Morro Bay. 1. Submit an STR application and business license request to str@morrobayca.gov for intake review. 2. If approved to proceed (and not waitlisted), complete a safety inspection and provide required documents including house rules, proof of STR insurance, and a Good Neighbor Brochure. 3. Pay applicable fees and renew the permit annually, with a full re-inspection required every four years.

1. Submit an STR application and business license request to str@morrobayca.gov for intake review. 2. If approved to proceed (and not waitlisted), complete a safety inspection and provide required documents including house rules, proof of STR insurance, and a Good Neighbor Brochure. 3. Pay applicable fees and renew the permit annually, with a full re-inspection required every four years.

Vrbo is permitted in Morro Bay, CA under the same restrictions that apply to Airbnb — local rules govern the rental itself, not the specific platform. You must hold a valid permit before hosting on Vrbo. Last verified 2026-05-14.

Short-term rental hosts in Morro Bay are typically responsible for lodging, occupancy, and applicable sales taxes — these usually apply even where hosting is allowed without a permit. Rates and remittance rules vary by jurisdiction (state, county, and city can each levy a share); confirm the current rates with the official source linked on this page. Platforms such as Airbnb and Vrbo collect some taxes automatically, but the host remains liable for any not collected on their behalf.

We are not currently tracking any recent short-term rental ordinance changes for Morro Bay. STR rules change frequently — verify the current requirements with the city or county before listing, using the official source linked on this page.