Merced, California Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Merced County?

YES, short-term rentals are explicitly allowed in Merced County, CA. Short-term rentals are permitted across multiple zoning districts including residential, agricultural, and commercial zones, though with different permit requirements and restrictions depending on the specific zone classification.

What do Airbnb hosts actually earn in Merced?

Merced hosts earn a median $23,778/year with $158 ADR and 63% occupancy.

Top performers pull in $36,306+ per year.

See the full Merced market breakdown

How to Start a Short-Term Rental Business in Merced County

Step 1: Zoning Compliance Verification

Before purchasing or converting a property, verify that short-term rentals are permitted in your target zone:

Residential Zones (R-R, R-1, R-1-5000, R-2, R-3, R-4, M-H): Permitted with Administrative Permit
Agricultural Zones (A-1, A-1-40, A-2): Permitted with Administrative Permit
Commercial Zones (C-P, C-1, C-2, C-3, H-I-C, MU): Permitted with Administrative Permit
Important: Commercial zones may have restrictions; verify specific requirements for your location

Step 2: Obtain Required Permits

Apply for a short-term rental permit through the Merced County Planning Department. This serves as your business license and must be obtained within 30 days of commencing short-term rental operations.

Step 3: Tax Registration and Compliance

Step 4: Property Preparation

Ensure your property meets all habitability standards, parking requirements, and quiet hour regulations.

Step 5: Platform Registration

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Licenses

Short-Term Rental Permit (Merced County Planning Department)
- Administrative Permit application required
- Must be obtained within 30 days of business commencement
- Valid for the specific property address
- Must be posted conspicuously on premises
Transient Occupancy Tax (TOT) Registration Certificate
- Required from Merced County Treasurer/Tax Collector
- Must be displayed prominently at the rental property
- Application must be submitted within 30 days of business start

Key Requirements and Restrictions

Property Limitations

Maximum Occupancy: No more than five bedrooms can be provided to guests at any one time
Definition: Short-term rental is defined as lodging rented for 30 consecutive calendar days or less
Local Contact: Must designate a local contact person available 24/7 to respond to problems and emergencies

Operational Standards

Off-Street Parking: Required for all guests
Quiet Hours: 10:00 PM to 7:00 AM (must be enforced and advertised)
Advertising: Must include quiet hours in all advertisements and rental agreements
Habitability Standards: Property must meet all county habitability requirements

Tax Obligations

Transient Occupancy Tax: 10% of rental charges
Reporting Frequency: Quarterly basis
Payment Due Dates:
- Q1 (Jan-Mar): Due April 30
- Q2 (Apr-Jun): Due July 31
- Q3 (Jul-Sep): Due October 31
- Q4 (Oct-Dec): Due January 31
Penalties: Delinquency notices include penalties and interest for late payments

Specific Regulations for Short-Term Rentals

Merced County Zoning Code Requirements

Chapter 18.60.270 - Short-Term Rentals

Regulates all aspects of short-term rental operations
Establishes permit requirements and operational standards
Defines hosted vs. vacation rental classifications

Administrative Permit Standards

All short-term rentals require an Administrative Permit with the following considerations:

Compatibility with surrounding land uses
Adequate parking and access
Compliance with noise and disturbance regulations
Health and safety standards

State of California Regulations

While this guide focuses on Merced County requirements, California state laws also apply:

SB 593: Establishes statewide standards for short-term rentals
Health and Safety Code: Requires compliance with habitability standards
Revenue and Taxation Code: Governs tax collection and remittance

Local Compliance Requirements

Noise Ordinances: Must comply with county noise standards (Section 18.40.050)
Solid Waste Regulations: Adhere to Chapter 18.46 requirements
Sign Regulations: Follow Chapter 18.44 for any signage
Parking Standards: Meet Chapter 18.38 requirements

Contact Information for Local Authority

Planning Department - Short-Term Rental Permits

Merced County Planning Division

Website: www.co.merced.ca.us/2374/Planning
Phone: (209) 385-7434 (General County Information)
Address: 2222 M Street, Merced, CA 95340
Services: Short-term rental permit applications, zoning verification, administrative permits

Treasurer/Tax Collector - TOT Registration

Karen D. Adams, CPA - Merced County Treasurer/Tax Collector

Phone: (209) 385-7592 (Tax Collector)
Email: Contact through county website forms

Address:

Merced County Treasurer/Tax Collector
Attn: Transient Occupancy Tax Section
2222 M Street
Merced, CA 95340

Website: www.countyofmerced.com/2524/Transient-Occupancy-Tax
Services: TOT registration, quarterly tax payments, certificate management

Additional Contact Resources

Merced County General Information: (209) 385-7434
Building & Safety Division: www.co.merced.ca.us/639/Building-Safety
Environmental Health Division: www.co.merced.ca.us/597/Environmental-Health
Fire Prevention Bureau: www.co.merced.ca.us/346/Prevention

Source Links

Important Reminders for STR Investors

Timeline Compliance: Ensure all permits and registrations are completed within 30 days of business commencement
Quarterly Tax Obligations: Budget for 10% TOT collection and quarterly remittance
Neighbor Relations: Maintain good relationships with surrounding property owners to ensure long-term operation
Regular Inspections: Be prepared for periodic compliance reviews by county officials
Insurance Requirements: Obtain adequate liability coverage for short-term rental operations
Platform Compliance: Ensure all advertising and booking platforms reflect local regulations accurately

Merced County offers a favorable environment for short-term rental investments with clear regulatory frameworks and reasonable operational requirements. Success in this market depends on proactive compliance with all county regulations and maintaining positive community relationships.

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Ask the AI Advisor about Merced

Merced is a mid-sized city in California's Central Valley, serving as the county seat of Merced County. With a population of roughly 90,000, it carries the relaxed, working-class character typical of agricultural Valley communities while increasingly feeling the influence of a major university. The city is best known as a western gateway to Yosemite National Park and sits roughly between the San Francisco Bay Area and the southern Sierra Nevada, about 115 miles southeast of San Francisco along the Highway 99 corridor. Travelers and outdoor enthusiasts often treat Merced as a stopover point or an alternative base for exploring the region, and its blend of small-city amenities, natural surroundings, and access to one of America's most iconic national parks has steadily drawn more visitor attention.

The marquee draw within easy reach is Yosemite National Park, whose Arch Rock entrance near El Portal is approximately 80 miles to the east and reachable in about two hours by car. From Merced, visitors can reach Yosemite Valley, the Mariposa Grove of giant sequoias, and the park's western high-country trailheads without the crowds and prices of the eastern-side gateways. This western approach is one of the most scenic and least congested ways into the park, particularly outside peak summer weekends, making Merced an appealing alternative for travelers who want to combine a quieter base with a full Yosemite itinerary.

Just minutes west of town, in neighboring Atwater, the Castle Air Museum houses one of the largest collections of restored military aircraft on the West Coast, with more than 70 planes displayed across a former Strategic Air Command base. About a 15-minute drive from downtown Merced, the museum draws aviation enthusiasts, families, and school groups throughout the year. It pairs naturally with a Yosemite trip, offering an indoor, weather-independent stop that adds variety to a multi-day stay.

To the north of the city, the Merced National Wildlife Refuge spans a network of seasonal wetlands and grasslands that become a major wintering ground for migratory waterfowl, including the famously large sandhill crane population that stages in the area from roughly October through February. Roughly 20 minutes from downtown, the refuge offers driving loops and short walking trails that are particularly rewarding for birders and photographers. Closer to the center of town, the University of California, Merced, opened in 2005 as the newest campus in the UC system, brings a distinct architectural presence to the region's eastern edge and hosts lectures, sports, and other events that occasionally bring visitors to the city.

Merced stands out as a practical and affordable base for short-term rentals because it offers something the gateways closer to Yosemite typically do not: room to breathe, lower nightly rates, and a working city of its own. Guests can spend a day among the sequoias and granite cliffs, return to a quieter neighborhood, and still enjoy a range of local museums, wildlife areas, and restaurants. As Yosemite visitation continues to grow and Central Valley travel gains more attention, Merced is well positioned to capture travelers who want the national park experience with the comforts of a real, livable California city.