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Half Moon Bay, CA

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STR Regulations for Half Moon Bay, California

Overview: Are Short-Term Rentals Allowed?

Yes. Short-term rentals (STRs) are explicitly allowed in Half Moon Bay, CA, but they are strictly regulated. STRs are permitted in all residential zoning districts and in mixed-use development within Commercial-Downtown, Commercial-General, and Commercial-Visitor Serving districts. STRs are not permitted in accessory dwelling units (ADUs). All STR operations must be registered with the City prior to commencement and must follow the City’s Short-Term Rental Ordinance (Half Moon Bay Municipal Code Chapter 18.06.025).

Unhosted STRs (where the primary resident is not present during guest stays) are limited to 60 nights per calendar year. Hosted STRs (where a resident/host is present) have no annual night cap.

Note: The California Coastal Commission reviewed and certified the City’s STR ordinance and associated Local Coastal Program amendment in 2023. The ordinance’s central policy requires STRs to be incidental to the principal residential use of the property.

Sources:

What do Airbnb hosts actually earn in Half Moon Bay?

Half Moon Bay hosts earn a median $59,645/year with $294 ADR and 67% occupancy.

Top performers pull in $83,078+ per year.

See the full Half Moon Bay market breakdown →

How to Start a Short-Term Rental Business in Half Moon Bay

Complete the steps below before listing or hosting any guest:

  1. Pre-application diligence
  • Confirm zoning eligibility: Your property must be in an eligible residential district or a qualifying mixed-use district (Commercial-Downtown, Commercial-General, Commercial-Visitor Serving).
  • Confirm dwelling type: STRs are not permitted in ADUs.
  • Review the City’s STR application checklist and requirements.
  1. Obtain a Business License
  • Apply through the City’s Business License Portal.
  • Submit a new business license application.
  • Keep your license current and renewed as required.
  1. Register for Transient Occupancy Tax (TOT)
  • Register via the City’s TOT portal.
  • Important: Airbnb collects and remits TOT on behalf of hosts in Half Moon Bay. If you do not use a platform that collects TOT, you must collect and remit TOT yourself.
  1. Submit the STR Application/Permit
  • Once you have your business license and TOT registration, complete the City’s Short-Term Rental Application/Permit.
  • The City will verify compliance with the ordinance (primary residence, zoning, occupancy/parking, and other performance standards) as part of the review.
  1. Ongoing compliance
  • Retain documentation and maintain compliance with all City requirements (e.g., occupancy, parking, neighborhood standards).
  • If your circumstances change (e.g., you are no longer the primary resident), contact the City immediately.

Source links:

Required Documents, Permits, Licenses, and Guidelines

Before operating, you must obtain and maintain all of the following:

  • Business License (City of Half Moon Bay)
  • Transient Occupancy Tax (TOT) registration certificate
  • Short-Term Rental (STR) Permit (issued under Chapter 18.06.025)
  • Proof of primary residence (for new STRs; see specific regulations below)
  • Compliance with performance standards (occupancy, parking, noise, trash, property management)
  • Evidence of compliance with any additional contracts or rules that bind your property (e.g., lease terms, HOA/condo board rules, landlord consent)

Note: The City requires a complete STR application and registration prior to operation. Use the City’s application checklist and FAQ as your procedural guide.

Source links:

Specific Regulations for Short-Term Rentals in Half Moon Bay

The following rules are central to legal operation:

Zoning and Location

  • STRs are permitted in all residential zoning districts and in mixed-use development within the Commercial-Downtown, Commercial-General, and Commercial-Visitor Serving districts.
  • STRs are not permitted in accessory dwelling units (ADUs).

Primary Residence Requirement

  • New STRs must be the operator’s primary residence. A “primary residence” is the domicile where the operator habitually resides and which is used as the principal address for voter registration, tax, mail, and other core civic and financial purposes. This requirement is central to the City’s approach to protecting housing stock.

Hosted vs. Unhosted Operation

  • Unhosted STRs (where the host is not present during guest stays) are capped at 60 nights per calendar year.
  • Hosted STRs (where a resident/host is present during guest stays) have no annual night cap.

Occupancy and Parking

  • STR occupancy must be scaled to the number of bedrooms; the City’s standards tie permissible occupancy to bedroom count and require that off-street parking be provided consistent with occupancy.

Operational and Neighborhood Standards

  • STRs must operate as incidental to the principal residential use of the property (consistent with Coastal Commission certification and the City’s Local Coastal Program).
  • Hosts must comply with property management, traffic, noise, and trash standards designed to protect coastal resources and neighborhood character.
  • Advertising must not conflict with performance standards (e.g., do not advertise occupancy beyond approved limits or features that violate City standards).

Continuance Provisions for Existing Non-Primary-Residence Operators

  • Existing operators who do not meet the primary residence requirement may be considered for “continuance” if they were previously paying TOT and register under the new ordinance, remain in good standing, and otherwise comply with City requirements. Specific terms and conditions of continuance are set by the City.

Enforcement and Tax

  • All STRs must pay Transient Occupancy Tax (TOT). If you operate through Airbnb, TOT is collected and remitted on your behalf. If you operate off-platform, you must collect and remit TOT directly.

Coastal Commission Alignment

  • The City’s STR ordinance was reviewed and certified by the California Coastal Commission in 2023. The Commission confirmed STRs must be subordinate to the primary residential use and directed the City to implement appropriate performance standards.

Source links:

Contact Information (Local Authority for STRs)

  • Email: HalfMoonBay@hdlgov.com
  • Phone: (650) 443-9050
  • STR-related questions can also be directed to the City’s contact above; additional information is available via the City’s STR page and FAQ.

Source link:

County and State Context

The rules summarized above are city-specific and apply within Half Moon Bay municipal boundaries. San Mateo County and the State of California may impose additional requirements (e.g., state-level TOT rules, county health and safety regulations, and local zoning if your property lies outside the City). Always verify the jurisdictional status of your property (City vs. County) and consult the City for any county or state references that may apply to your specific situation.

Links to Source Pages

Key takeaways for investors:

  • Verify eligibility early (zoning; not an ADU).
  • Plan your path: Business License → TOT registration → STR Permit.
  • Confirm you can satisfy the primary residence requirement.
  • If you plan to operate unhosted, budget for a 60-night cap.
  • Maintain compliance with occupancy, parking, and neighborhood standards to protect your operating license.

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Half Moon Bay

Market Saturation Score

036912
Mild Saturation
4/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
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Photos of Half Moon Bay

Overview of Half Moon Bay

Half Moon Bay is a coastal city in San Mateo County, California, known for its scenic beauty and charming small-town atmosphere. With a population of around 12,000 residents, Half Moon Bay is situated approximately 30 miles south of San Francisco, making it a convenient destination for visitors coming from a major urban center.

The city boasts a range of attractions that make it appealing for short-term rentals. Notable landmarks include the beautiful Half Moon Bay State Beach, offering miles of sandy shores and opportunities for outdoor activities such as picnicking, fishing, and hiking along the Coastal Trail. More information can be found on the California State Parks website.

Another significant attraction is the renowned Mavericks Beach, famous for its big wave surfing, which draws surf enthusiasts from around the world. For those interested in horticulture, the Half Moon Bay Nursery provides a delightful experience with a wide array of plants and flowers.

The city's historical sites also add to its charm. The Half Moon Bay Jail, now a museum, offers insight into local history and early 20th-century law enforcement.

Given its proximity to San Francisco, combined with its natural beauty and array of attractions, Half Moon Bay offers an attractive setting for short-term rentals. Visitors can enjoy a laid-back coastal environment while staying within easy reach of a major metropolitan area.

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