Overview: Are Short-Term Rentals Allowed in Atwater, CA?

• Short-term rentals (STRs) are allowed in Atwater under Merced County’s Unified Development Ordinance (UDO), which governs all unincorporated areas of the county, including Atwater. The UDO regulates STRs via Zoning Code Chapter 18.60.270. In practice, most residential zones and many agricultural and commercial zones permit STRs, typically requiring an Administrative Permit and compliance with specific standards such as occupancy limits, local contact requirements, parking, and quiet hours. Investors must also obtain county permits and comply with Transient Occupancy Tax (TOT) obligations. Source: UDO Chapter 18.60.270.

How to Start a Short-Term Rental Business in Atwater

1. Confirm zoning and permit eligibility.

   • Verify the zoning designation of the subject parcel with the County Zoning Map or Planning Division. Most residential zones (R-R, R-1, R-1-5000, R-2, R-3, R-4, M-H) allow STRs with an Administrative Permit. Commercial zones may allow STRs with an Administrative Permit only on lots developed with an existing single-family dwelling; otherwise, hotels/motels are the primary lodging use. Agricultural zones (A-1, A-1-40, A-2) also permit STRs with an Administrative Permit. Industrial zones generally do not list STRs as an allowed use. Source: UDO Chapter 18.60.270; UDO Article 2 (Residential, Agricultural, Commercial, Industrial zone tables).
   • Additional residential units and accessory dwelling units (ADUs) may have specific constraints—coordinate with Planning Division to ensure your STR does not conflict with those use categories. Source: UDO Chapter 18.60.080 (Additional Residential Units); UDO Chapter 18.62 (ADUs).

2. Apply for the Administrative Permit.

   • Submit an application to the Merced County Planning Division. The application is similar to a business license and should be filed before or within 30 days of beginning rental activity. Processing typically takes several weeks. Fees apply. Source: Wisdom Property Management blog (Merced County STR overview).
   • The Planning Division processes zoning-related permits. Ensure your application materials reflect Chapter 18.60.270 compliance, and include documentation for the required local 24/7 contact and parking plan. Source: UDO Chapter 18.60.270; Planning Division.

3. Secure insurance and safety measures.

   • Maintain adequate liability insurance and be prepared to document safety features (e.g., functioning smoke/CO detectors, posted emergency procedures). The county requires a local contact person who can respond 24/7 to guest and neighbor issues. Source: UDO Chapter 18.60.270.

4. Comply with taxes and posting requirements.

   • Register and collect Merced County’s Transient Occupancy Tax (TOT). The rate is 10%, and remittance is due on the last day of the month following the end of each fiscal quarter. Failure to remit on time can trigger delinquency notices with penalties and interest. Source: Wisdom Property Management blog (Merced County STR overview).
   • Post the TOT registration number and any required notices in the rental (some counties require a visible posting; confirm with the Treasurer-Tax Collector). Source: Merced County TOT guidance.

5. Prepare your listing.

   • Include occupancy limits, quiet hours (10 PM–7 AM), parking instructions, and the 24/7 local contact in all advertisements and house rules. This helps reduce complaints and demonstrates compliance. Source: UDO Chapter 18.60.270; Wisdom Property Management blog.

Required Documents, Permits, Licenses, and Guidelines

• Administrative Permit (Zoning): Required in most zones where STRs are allowed. Submit to the Merced County Planning Division. Source: UDO Chapter 18.60.270; Planning Division.
• Transient Occupancy Tax (TOT) Registration and Remittance: Collect 10% TOT from guests and remit quarterly. Failure to remit promptly triggers penalties and interest. Source: Wisdom Property Management blog (Merced County STR overview).
• Occupancy and Room Limits: Maximum of five bedrooms may be provided to guests at any time. Source: Wisdom Property Management blog.
• Local Contact: Must be available 24/7 to respond to emergencies and guest issues. Source: UDO Chapter 18.60.270; Wisdom Property Management blog.
• Quiet Hours and Noise: Enforce quiet hours from 10 PM to 7 AM and comply with county noise standards. Source: Wisdom Property Management blog; UDO performance standards (noise, Chapter 18.40).
• Parking and Streetscape: Provide off-street parking and ensure guests comply with neighborhood parking norms. Source: UDO parking standards (Chapter 18.38); Wisdom Property Management blog.
• Property Standards: Maintain habitability, safety features, and appropriate signage (sign regulations, Chapter 18.44). Source: UDO sign and performance standards.
• Agricultural Setbacks (if applicable): New residential dwellings adjacent to agricultural operations must meet 200-foot setback standards; verify site context and general plan overlays. Source: UDO residential zone development standards and agricultural setbacks.
• Recordkeeping: Maintain records of guest stays, TOT collections, and remittances for county audits and renewals. Source: TOT compliance practice.

Specific Regulations for Short-Term Rentals (City/County/State)

• Merced County Zoning (Chapter 18.60.270): STRs are allowed in agricultural, residential, and commercial zones subject to an Administrative Permit and operational standards (e.g., local contact, occupancy limits, parking, quiet hours). Commercial zone allowance applies only on lots with an existing single-family dwelling; hotels/motels remain the principal lodging use in commercial zones. Source: UDO Chapter 18.60.270; UDO Article 2 (use tables).
• Residential Zones: STRs permitted with an Administrative Permit in all residential zones (R-R, R-1, R-1-5000, R-2, R-3, R-4, M-H). Source: UDO Residential Zones (Table 2-3).
• Agricultural Zones: STRs permitted with an Administrative Permit in agricultural zones (A-1, A-1-40, A-2). Source: UDO Agricultural Zones (Table 2-1).
• Commercial Zones: STRs permitted with an Administrative Permit in commercial zones (CP, C-1, C-2, C-3, H-I-C, MU), limited to lots with an existing single-family dwelling. Hotels/motels are separately regulated; other lodging facilities are not classified as STRs. Source: UDO Commercial Zones (Table 2-5) and Section 18.14.040 (A)(8).
• Industrial Zones: STRs are not listed as an allowed use in industrial zones (BP, M-1, M-2). Source: UDO Industrial Zones (Table 2-7).
• State Law (California AB 2246): Operators with three or more STR units statewide must register with the Department of Housing and Community Development (HCHD) and use a statewide platform for listings and compliance notices. Ensure your Atwater listings and guest communications meet state registration and disclosure requirements. Source: California Department of Housing and Community Development (HCHD) — STR registration program (ab2246.hcd.ca.gov).

Note: Atwater does not appear to have adopted city-specific STR ordinances distinct from Merced County’s UDO; thus, county zoning and standards apply. Source: UDO applicability to unincorporated areas (Atwater); Wisdom Property Management blog.

Contact Information (Merced County)

• Planning Division (Zoning/Permits)
  • Phone: Contact via Merced County Planning Division main line or website.
  • Email: Contact via Merced County Planning Division website.
  • Address: Merced County Planning Division, 2222 M Street, Merced, CA 95340.
  • Website: Merced County Planning Division — permits for Chapter 18.60.270 and Administrative Permits.
• Treasurer-Tax Collector (Transient Occupancy Tax)
  • Phone: Merced County Treasurer-Tax Collector main line.
  • Website: Merced County TOT portal and resources for registration and quarterly filings.
• California Department of Housing and Community Development (HCHD) — STR Registration (State)
  • Website: ab2246.hcd.ca.gov (statewide STR registration for multi-unit operators).
• Wisdom Property Management (Local STR services)
  • Phone: 209-358-7563
  • Email: WPMRealty@gmail.com
  • Address: 1488 Broadway Ave, Atwater, CA 95301
  • Hours: 9am–5pm Mon–Fri (closed 12pm–1pm)
  • Notes: Offers property management in Merced and Atwater; helpful for local context and compliance support.

Links to Source Pages (if available)

• Merced County Unified Development Ordinance — Chapter 18.60.270 (Short Term Rentals): online.encodeplus.com/regs/mercedcounty-ca/doc-viewer.aspx?secid=1514
• UDO Article 2 — Zones, Allowable Uses, and Development Standards: www.countyofmerced.com/DocumentCenter/View/21859/Article-2---Zones-Allowable-Uses-and-Development-Standards
• Merced County Zoning Code (general reference): www.qcode.us/codes/mercedcounty/index.php?topic=18
• Planning Division (Merced County): www.co.merced.ca.us/2374/Planning
• Merced County Treasurer-Tax Collector (TOT): www.co.merced.ca.us/59/Assessor (See TOT-related pages from Treasurer-Tax Collector on the county site)
• HCHD — Statewide Short-Term Rental Registration (AB 2246): ab2246.hcd.ca.gov
• Wisdom Property Management — STR Regulations and Restrictions (Merced County overview): www.wisdompropertymgt.com/what-are-the-regulations-and-restrictions-related-to-short-term-rentals

This guide consolidates county zoning and state-level obligations into a practical checklist for investors launching STRs in Atwater. Prior to operation, confirm zoning and permit specifics with the Planning Division and register for TOT with the Treasurer-Tax Collector; multi-unit operators should complete state AB 2246 registration with HCHD.