Question 1

How many Airbnbs and VRBOs are in Monterey Bay?

Accepted Answer

As of May 2026, Monterey, Santa Cruz, Carmel-by-the-Sea, Capitola have 1,607 active Airbnb and VRBO listings. This represents a 19% decrease from the previous year.

Question 2

How much do Airbnbs and VRBOs make in Monterey Bay?

Accepted Answer

The average Airbnb or VRBO in Monterey Bay generates $93K per year. High-performing properties earn $225K/year, while low-performing properties earn $34K/year. This wide earnings spread highlights that even with a 19% reduction in market supply, revenue capture remains highly polarized, suggesting that asset-specific appeal heavily dictates financial outcomes over broader market trends.

Question 3

How much does it cost to buy an Airbnb or VRBO property in Monterey Bay?

Accepted Answer

Average home prices in Monterey Bay vary by property size: 1-bedroom properties cost approximately $651K, 2-bedroom homes average $676K, 3-bedroom properties are around $852K, and 4+ bedroom homes average $995K. These prices reflect median home values across the Monterey, Santa Cruz, Carmel-by-the-Sea, Capitola area.

Question 4

Is Airbnb and VRBO profitable in Monterey Bay?

Accepted Answer

Airbnb and VRBO can be profitable in Monterey Bay, with an average gross yield of 8% across all properties. High-performing properties achieve yields up to 20%, which is considered top for short-term rental investment. The gap between the average and the top tier demonstrates that capital efficiency is heavily skewed toward a small segment of the inventory.

Question 5

What is the occupancy rate for Airbnb and VRBO in Monterey Bay?

Accepted Answer

The average occupancy rate for Airbnbs and VRBOs in Monterey Bay is 38%. This occupancy level, combined with an average nightly rate of $595, results in a RevPAR (revenue per available room) of $173 per day.

Question 6

Which bedroom count provides the best yield in Monterey Bay?

Accepted Answer

4+ bedroom properties demonstrate the strongest performance in Monterey Bay, with an average gross yield of 11% and annual revenue of $151K. These properties balance purchase price ($995K), operating costs, and rental demand most effectively in the Monterey Bay market.

Question 7

Are short-term rentals legal in Monterey Bay?

Accepted Answer

Short-term rental regulations vary by jurisdiction in the Monterey Bay area. Monterey: Strict. Permit required, owner-occupancy mandatory, 30-night minimum stay. Active enforcement with compliance checks and fines.
Santa Cruz: Strict. Permit required, owner-occupancy mandatory, density limits by neighborhood. Active enforcement, violations prosecuted.
Carmel-by-the-Sea: Strict. STRs effectively banned in residential zones. Active enforcement, few legal operations exist.
Capitola: Strict. Permit required, owner-occupancy mandatory, caps on permits. Active enforcement with waiting lists. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

Question 8

Is the Monterey Bay Airbnb and VRBO market oversaturated?

Accepted Answer

The Monterey Bay Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 19% year-over-year, while RevPAR has decreased 17%. This indicates balanced supply-demand dynamics. The synchronized contraction in both inventory and per-unit earnings suggests a market-wide stabilization process rather than localized volatility.

Question 9

When is the best time to launch a new Airbnb or VRBO in Monterey Bay?

Accepted Answer

Launch around May, 2-3 months before peak summer season (August peaks). This pre-peak timing lets you build reviews when competition is 15% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (May-January) when gaining traction is harder.

Question 10

What are the most popular amenities for Airbnbs and VRBOs in Monterey Bay?

Accepted Answer

The most common amenities in Monterey Bay listings include: Kitchen (94%), Washing Machine (74%), Tv (72%), Heating (59%), Balcony (54%). Amenities that boost revenue the most include Washing Machine, Hot Tub, Ev Charger, with Washing Machine properties earning approximately 58% more ($136K/year vs $86K/year).

Question 11

What is the monthly revenue breakdown for Airbnbs and VRBOs in Monterey Bay?

Accepted Answer

Monthly estimated revenue per listing in Monterey Bay over the last 12 months: May: $5K, June: $5K, July: $7K, August: $7K, September: $5K, October: $5K, November: $5K, December: $5K, January: $3K, February: $4K, March: $6K, April: $7K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

Question 12

What is the average nightly rate for Airbnbs and VRBOs in Monterey Bay?

Accepted Answer

The overall average nightly rate in Monterey Bay is $595, up 19% year-over-year. By property size: 1-bedroom properties average $297/night, 2-bedroom properties average $512/night, 3-bedroom properties average $719/night, 4+ bedroom properties average $1K/night. Rates peak in August and are lowest in January.

Question 13

How far in advance do guests book Airbnb and VRBO stays in Monterey Bay?

Accepted Answer

Guests in Monterey Bay book an average of 41 days in advance, down 17% from last year. By property size: 1-bedroom: 35 days, 2-bedroom: 41 days, 3-bedroom: 43 days, 4+ bedroom: 48 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Question 14

How has the Monterey Bay Airbnb and VRBO market changed over the past year?

Accepted Answer

Over the past year, the Monterey Bay Airbnb and VRBO market has seen the following changes: supply declined 19%, revenue per listing decreased 17%, occupancy fell 12%, average nightly rates increased 19%, and lead time decreased 17%. These metrics reveal a shift toward shorter booking windows and higher price sensitivity, indicating that guests are increasingly selective despite a leaner inventory.

Question 15

Which days of the week perform best for Airbnbs and VRBOs in Monterey Bay?

Accepted Answer

In Monterey Bay, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Saturday and are lowest on Monday. Weekends show 53% higher occupancy than weekdays.