Short-term rentals (STRs) in Monterey County, California, are classified as "vacation rentals" and are regulated by the County of Monterey, particularly the Housing and Community Development Department. The rentals are legal but subject to specific regulations, including the need for a permit that allows rentals for periods of seven to 30 days. Legal compliance is crucial, as operating without a permit may lead to sanctions. The business landscape favors a variety of properties, with urban apartments and rural cabins thriving, particularly in tourist hotspots like Carmel Valley and Pacific Grove. The overall market environment is heavily influenced by tourism, catering primarily to vacationers rather than business travelers, especially given the region's appeal to those visiting for leisure activities such as coastal exploration and wine tasting. The government authority responsible for these regulations is the Monterey County Planning Commission, overseeing compliance with local ordinances. More information on these regulations can be found on their official websites: Monterey County Short Term Rentals and Vacation Rental Ordinances.