The Market
Why Monterey & Carmel is One of the World's Premier STR Markets
The Monterey Peninsula is where California keeps its postcard coast: Carmel Beach's white sand under wind-bent cypress, the 17-Mile Drive, Cannery Row, and an aquarium that anchors one of the great marine sanctuaries on Earth. It's also — and owners need to hear this plainly — one of the most restrictive short-term-rental regions in the country. Carmel-by-the-Sea has banned rentals under 30 days in its residential district for decades. The city of Monterey allows them only in areas zoned for visitor accommodation. Unincorporated Monterey County finalized ordinances in 2024 that prohibit commercial vacation rentals outright in Big Sur, Carmel Highlands and the residential zones of Carmel Valley. What's left is real, though: licensed rentals in Pacific Grove's coastal zone, homestays and limited rentals in the county, furnished 30-plus-day homes — and one of the deepest boutique-inn markets in America, because Carmel has been an inn village for a century. If you operate lodging here legally, the demand is not your problem.
Demand on the Peninsula runs deeper than its short season suggests. Summer is strong, but the calendar's real spikes are events: Monterey Car Week and the Pebble Beach Concours d'Elegance in August reprice the entire region for ten days, the AT&T Pebble Beach Pro-Am lands in February, the Monterey Jazz Festival — running since 1958 — fills September, and the Big Sur International Marathon and Sea Otter Classic carry April. Blended nightly rates run around $330 with occupancy in the mid-40s, but the spread is wide: Monterey listings average near $270 while Carmel Point sits among the highest-earning rental pockets in California. Layer in aquarium tourism, Pebble Beach golf pilgrims, and the wedding trade, and you have a market where the licensed few and the well-marketed inns take home outsized returns.
Top Attractions & Landmarks
- Monterey Bay Aquarium
- Cannery Row
- 17-Mile Drive
- Carmel Beach
- Point Lobos State Natural Reserve
- Carmel Mission
- Lovers Point Park
Nearby Markets: San Francisco | Napa Valley | Lake Tahoe