Pacific Grove Home Sharing Allows One Bedroom — but Not ADUs, Condominiums or Whole-Home Rentals

PACIFIC GROVE, Monterey County — October 23, 2026. A homeowner who wants to rent a spare bedroom while remaining at home faces a different regulatory pathway than someone seeking to operate an entire residence as a short-term rental. The Pacific Grove Municipal Code §23.64.370, amended in January 2026, defines home sharing as resident-hosted lodging for 30 days or less while at least one resident stays in the dwelling. A separate municipal permit is required.

Who may operate an approved home share?

The ordinance generally limits the activity to qualifying single-family dwellings in residential or commercial zones. The resident must also occupy the home throughout the guest stay. The city’s rule excludes ADUs, second units, condominium units, multifamily housing and several other types of accommodations from this particular permit category. A property with two separate dwelling units does not automatically qualify by renting the smaller one to visitors.

How many rooms can be rented?

Under the city’s conditions, one bedroom can be rented to adult guests, with a second room available to children under the same rental contract. No more than two adults may occupy the rented bedroom. Guests must be able to share an appropriate bathroom and kitchen with the resident, and sleeping rooms cannot become additional unauthorized kitchen suites. These conditions distinguish an owner-present home share from a self-contained vacation property.

What safety steps apply?

An applicant must obtain the city’s administrative home-sharing permit and satisfy its safety and inspection conditions. The required materials include an affidavit concerning smoke detectors, carbon-monoxide alarms and accessible fire extinguishers, as well as a certified inspection report verifying applicable requirements. An online booking-platform listing alone is not evidence that a city permit has been granted.

What about parking and taxes?

If the property has an onsite guest parking space or driveway parking, that space must be made available in accordance with the code. The city applies transient occupancy tax rules to permitted home shares. The Pacific Grove tax-processing portal provides online and mailed reporting options. Reporting is separate from holding a valid permit, and the owner should determine current rates, filing periods and documentation requirements with the city.

Is home sharing the same as whole-home licensing?

No. The city also maintains a more restrictive full-unit STR license scheme, with caps, density and proximity restrictions. Residents should explain their intended use honestly to city staff before applying: renting one room with the resident present is different from leasing out the full home while traveling. A change of use can invalidate assumptions about the existing permit.

Find more at Pacific Grove News and Monterey News. Submit original documents or verified corrections to California58 Newsroom and support this local newsroom.

Sources: Pacific Grove Municipal Code §23.64.370, last amended by Ordinance 26-002, and city Transient Occupancy Tax processing instructions. Informational reporting only.

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