Morro Bay, California Short-Term Rental Market
Morro Bay caps full-home STRs; San Luis Obispo County earns $5,263 monthly at $381 ADR, 51.0% occupancy, September 2026.
Quick Answer: Morro Bay, California is an active short-term rental market. average occupancy in the San Luis Obispo market area is 51%. average monthly revenue in the San Luis Obispo market area is $5,263. average daily rate in the San Luis Obispo market area is $381. the top operator in the San Luis Obispo market area is Seven Sisters Vacation Rentals with 141 listings. market score is 75/100 (grade B).
Market data reflects the San Luis Obispo regional market, which includes Morro Bay. Regulations, taxes, and permit details below are specific to Morro Bay.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
This profile uses the San Luis Obispo County STR market as its framing. Morro Bay sits in San Luis Obispo County and shares one performance series with the rest of the county, so every ADR, occupancy, and revenue figure below describes the San Luis Obispo County STR market rather than Morro Bay alone. Bedroom, channel, and listing-type counts and top-operator data are tracked at a shared regional level rather than uniquely for Morro Bay, so this profile omits them.
As of September 2026, the San Luis Obispo County STR market posted an average daily rate of $381, occupancy of 51.0%, and average monthly revenue of $5,263 per listing. Year over year, occupancy rose 9.3%, ADR rose 5.7%, and revenue rose 12.8%, so the gain came from both more booked nights and higher rates. Entire-home listings averaged $396 per night, about $15 above the all-listings figure.
The longer record shows a market that peaked during the pandemic and then reset. Annual occupancy reached 64.9% in 2021, slid to 50.6% in 2024, and recovered to 51.0% in 2025. ADR climbed over the same stretch, from $311 in 2021 to $352 in 2025, and the first nine months of 2026 average $371. Average monthly revenue for 2026 so far is $5,422, already above the 2021 figure of $5,309 and the 2025 figure of $4,943.
Morro Bay itself has 10,591 residents on the San Luis Obispo County coast and is anchored by Morro Rock, the Embarcadero waterfront, and an Audubon-recognized estuary. Leisure and outdoor-recreation visitors drive demand, and events such as the Ironman 70.3 in May add spending. The city’s permit cap on full-home rentals limits new supply, which buyers should weigh against a typical home value of $964,296.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 38% |
| Feb | 47% |
| Mar | 50% |
| Apr | 54% |
| May | 52% |
| Jun | 61% |
| Jul | 68% |
| Aug | 60% |
| Sep | 53% |
| Oct | 52% |
| Nov | 51% |
| Dec | 46% |
Month-by-month nightly rates and revenue figures for Morro Bay are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in San Luis Obispo market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the San Luis Obispo market as a whole, which includes Morro Bay, so these counts are not Morro Bay-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Seven Sisters Vacation Rentals | 141 | 8,870 | ★ 4.80 |
| 2 | Paso Robles Vacation Rentals | 132 | 16,273 | ★ 4.88 |
| 3 | Beach Bum Holiday Rentals | 114 | 4,011 | ★ 4.68 |
| 4 | Scenic Coast Property Management | 88 | 5,409 | ★ 4.78 |
| 5 | Coastal Vacation Rentals & Property Management | 86 | 4,839 | ★ 4.68 |
What Kind of STR Should I Buy in Morro Bay?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Morro Bay are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 40.6% |
| vrbo | 7.7% |
| both | 51.7% |
Home Value Trends (Morro Bay)
Typical home values, median sale prices, and the 10-year price trend for Morro Bay are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Morro Bay — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Morro Bay allows short-term rentals but regulates them tightly under Ordinance 640, adopted in 2020, and enforcement is rated strict. The key restriction is a cap: full-home STRs in residentially zoned areas are limited to 175 units citywide and must keep a 175-foot buffer, measured property line to property line, from other STRs. That cap has produced a waitlist of about 186 properties. Home-share rentals with the owner present have no cap in residential zones, and full-home rentals in commercial or mixed-use zones are exempt from both the cap and the buffer.
Every operator needs three items: an STR permit, a city business license, and a Transient Occupancy Tax (TOT) account. Total permit-related costs start around $600. Permits renew annually, with renewal applications due 60 days before expiration, and properties are inspected every four years. A failed inspection carries a $181 per hour reinspection fee.
The base TOT is 10%, but operators effectively collect about 14.5% once the 3% Tourism Business Improvement District assessment and the 1.5% countywide assessment are added. A minimum of $500 in TOT is owed regardless of income.
There is no published annual night cap. Owner occupancy and primary residence are not required for full-home permits.
Recent changes: the city declared 2025 an audit year, requiring all existing permit holders to renew, and that audit is now complete. No new full-home permits were approved in 2025. As of January 2026 the Council authorized staff to contact five waitlisted properties newly eligible for full-home permits. A new Master Fee Schedule took effect January 1, 2026.
Enforcement is aggressive. Illegal operators face cessation orders, liability for up to three years of unpaid TOT, and penalties up to $5,000 per day. Verify current rules with the city before buying or listing.
Market Comparison
The San Luis Obispo County STR market looks like a rate-driven market. Its September 2026 ADR is $381 at 51.0% occupancy, which works out to roughly $194 in revenue per available night.
The trend is also stronger than flat. Occupancy is up 9.3% year over year, ADR is up 5.7%, and revenue is up 12.8%. Occupancy is still below its 2021 level of 64.9%, so the market has recovered on price faster than on bookings.
The market has a wide seasonal range, with monthly occupancy from 37.5% in January to 68.4% in July. Investors who need steady income year round should model the winter months conservatively.
Operator rankings are tracked at a shared regional level rather than uniquely for Morro Bay, so this profile omits them. Local competition is also bounded by the city’s cap on full-home permits.
Frequently Asked Questions About Morro Bay, California
Are short-term rentals legal in Morro Bay?
How much does a Morro Bay STR permit cost?
What occupancy tax do Morro Bay STR operators collect?
What is the average daily rate in the San Luis Obispo County STR market?
What are the busiest and slowest months?
How much do STRs earn per month in the San Luis Obispo County STR market?
Do I need to live in a Morro Bay home to get a full-home STR permit?
Analyze Morro Bay Rentals
Use our free calculator to estimate Airbnb revenue for any property in Morro Bay.
Free Morro Bay STR Calculator →
