Morro Bay, CA Airbnb Market Data, Statistics, and Occupancy Rates

Morro Bay Short-Term Rental Market Overview

Morro Bay sits along California's Central Coast, drawing steady visitor traffic from travelers seeking coastal scenery, outdoor recreation, and a quieter alternative to larger beach destinations. With 160 active Airbnb listings generating an average annual revenue of $46,557 and an ADR of $243 — well below the $551 state average — the market offers a more accessible price point for guests while still delivering meaningful income for hosts. An ROI score of 54 out of 100 signals a competitive landscape where above-average occupancy stability is offset by elevated home values and a tighter supply/demand balance, making selective deal sourcing essential.

Key Market Statistics

According to Rabbu market data, the Morro Bay short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Morro Bay

Morro Bay appeals to investors seeking a coastal California market with above-average occupancy stability and strong summer revenue potential, though high home prices demand careful underwriting.

Expert Market Assessment

"Morro Bay presents a competitive but navigable opportunity for short-term rental investors willing to be strategic about property selection. The market's above-average occupancy stability is a genuine strength, and the revenue spread between summer ($6,021 in July) and winter ($2,334 in January) — roughly a 2.6x swing — is manageable compared to many resort-dependent markets. However, average home values near $1.26 million create a challenging revenue-to-price ratio, which means investors will need to target larger or uniquely positioned properties to achieve attractive yields. Pairing a 3- or 4-bedroom property with the right amenity mix and pricing strategy offers the clearest path to solid returns here."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Morro Bay

Average revenue by month in Morro Bay

Revenue in Morro Bay follows a clear summer-driven pattern, peaking at $6,021 in July and bottoming at $2,334 in January — a spread of nearly $3,700 between the strongest and weakest months. The shoulder months of April through June and September through November cluster in the $3,600–$4,500 range, providing a meaningful revenue bridge that softens the off-season impact.

Active Airbnb listings by property size in Morro Bay

One-bedroom units dominate supply at 68 listings (43% of the market), while 4-bedroom properties are scarce with only 10 active listings. This supply imbalance — combined with the significantly higher revenue that larger units generate — suggests that 3- and 4-bedroom homes may face less competition and offer stronger positioning for investors.

Average daily rate (ADR) by property size in Morro Bay

ADR scales steadily from $176 for 1-bedroom listings to $412 for 4-bedroom properties, representing a 2.3x premium for the largest units. The jump from 3 bedrooms ($295) to 4 bedrooms ($412) is the steepest increase in the range, indicating that group-sized properties command a substantial pricing advantage in this market.

Average RevPAN by property size in Morro Bay

RevPAN rises consistently with property size, from $62 for 1-bedroom units to $190 for 4-bedroom homes. The 4-bedroom tier delivers more than three times the RevPAN of 1-bedrooms, making it the most efficient size for generating nightly revenue once occupancy is factored in.

Average occupancy rates by property size in Morro Bay

Occupancy rates climb from 35% for 1-bedroom listings to 46% for both 3- and 4-bedroom properties, indicating that larger homes attract more consistent bookings. The 11-percentage-point gap between 1-bedroom and multi-bedroom units suggests smaller properties may struggle with demand consistency, which could pressure cash flow during off-peak periods.

Average monthly revenue by property size in Morro Bay

Monthly revenue ranges from $2,583 for 1-bedroom units to $8,727 for 4-bedroom properties, with each additional bedroom delivering a meaningful step up. The largest gap in absolute terms is between 3-bedroom ($5,148) and 4-bedroom ($8,727) listings, where monthly revenue jumps by nearly $3,600 — a compelling premium for investors who can source larger homes.

Average annual revenue by property size in Morro Bay

Annual revenue tells a clear story: 4-bedroom properties generate $104,728 per year on average, roughly 3.4 times the $31,007 earned by 1-bedroom units. Even 3-bedroom listings at $61,779 annually offer a strong income profile, making mid-to-large-sized properties the most attractive configurations for return-focused investors in Morro Bay.

Most common amenities for Airbnb listings in Morro Bay

Parking leads at 98%, reflecting the car-dependent nature of Central Coast travel, while kitchen access (76%), patio or balcony (66%), and self check-in (62%) round out the essentials guests expect. Outdoor lifestyle amenities like BBQ grills (54%) and workspaces (54%) signal a market that caters to both vacationers and remote workers, and listings offering these as a baseline are likely better positioned for competitive occupancy rates.

Understanding Morro Bay's ROI Score: 54/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Morro Bay's ROI Score of 54 out of 100 places it in the 'Competitive Opportunity' band — a market where real demand exists but elevated home prices and increasing supply mean investors need to be deliberate about property selection. Above-average occupancy stability is the standout strength, partially offset by a below-average revenue-to-price ratio and supply/demand balance that reflects recent listing growth. Pairing these data points with thorough local regulatory research and a focus on larger, higher-earning property types will help investors identify the deals that pencil out.

Short-Term Rental Regulations in Morro Bay

Understanding local STR regulations is essential before investing in Morro Bay. Here's the current regulatory landscape:

Permit Requirements

The City of Morro Bay, California may require short-term rental operators to obtain a permit or register their property before listing on platforms like Airbnb. Investors should verify current permit requirements directly with the city's planning or community development department before purchasing.

Key Restrictions

Common STR restrictions in California coastal communities can include occupancy limits tied to bedroom count, minimum-stay requirements, noise and parking standards, and caps on the total number of permits issued. HOA rules may impose additional limitations, so reviewing any applicable CC&Rs is strongly recommended before committing to a property.

Tax Obligations

Short-term rental hosts in California are generally subject to transient occupancy tax (TOT), and some jurisdictions also levy tourism or business improvement district assessments. Platforms like Airbnb often collect and remit these taxes on behalf of hosts, but operators should confirm their specific obligations with the City of Morro Bay and the State of California.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Morro Bay can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Morro Bay is likely to maintain its pronounced summer peak, with July revenues potentially climbing another 2–4% as coastal destinations continue to attract leisure travelers. Occupancy rates should remain steady in the low-to-mid 40% range annually, though winter months will continue to test cash-flow resilience with revenues dipping toward $2,300–$2,700. The 118% year-over-year listing growth suggests increasing competition, which could put modest downward pressure on ADR unless hosts differentiate through amenities and guest experience. Investors entering now should budget conservatively for slower months while positioning larger properties to capture the strongest per-night returns."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Morro Bay, CA

What is the average Airbnb occupancy rate in Morro Bay?

The average Airbnb occupancy rate in Morro Bay is currently 41%, which sits just below the California state average of 43%. Occupancy varies meaningfully by property size — 1-bedroom units average 35%, while 3- and 4-bedroom properties reach 46%. This suggests that larger homes tend to attract more consistent bookings, likely due to group and family travel demand along the Central Coast.

How much do Airbnb hosts make in Morro Bay?

Airbnb hosts in Morro Bay earn an average of $3,879 per month and $46,557 per year based on trailing 12-month booking data. Revenue scales significantly with property size: 1-bedroom listings average about $31,007 annually, while 4-bedroom properties generate approximately $104,728 per year. Peak summer months like July can bring in over $6,000 per month on average, making property size and seasonal pricing strategy key levers for maximizing income.

Is Morro Bay a good market for Airbnb investment?

Morro Bay earns a Rabbu ROI Score of 54 out of 100, classified as a 'Competitive Opportunity.' The market benefits from above-average occupancy stability and reliable coastal tourism demand, but elevated home values (averaging around $1.26 million) create a below-average revenue-to-price ratio. Investors who source deals selectively — particularly larger properties that command higher nightly rates and occupancy — can still find worthwhile returns, but this market rewards careful underwriting over speculative buying.

What is the average daily rate (ADR) for Airbnb in Morro Bay?

The average daily rate for Airbnb listings in Morro Bay is $243, which is well below the California state average of $551. ADR increases with property size, ranging from $176 for 1-bedroom units to $412 for 4-bedroom homes. This pricing is reflective of the market's positioning as an approachable coastal getaway rather than a luxury resort destination.

Are short-term rentals legal in Morro Bay?

Short-term rentals operate in Morro Bay, but local regulations may apply. The City of Morro Bay and the State of California may require permits, registration, or adherence to specific operating standards. Regulations in California's coastal communities can evolve, so prospective investors should consult the city's planning department and review any applicable HOA restrictions before purchasing a property intended for short-term rental use.

When is peak season for Airbnb in Morro Bay?

Peak season in Morro Bay runs from June through August, with July standing out as the strongest month at an average revenue of $6,021 per listing. August follows closely at $5,518, and June averages $4,536. The slowest months are January ($2,334) and February ($2,648), creating a seasonal spread of roughly 2.6x between peak and off-peak — notable but manageable with proper cash-flow planning.

How many Airbnbs are there in Morro Bay?

As of April 2026, there are 160 active Airbnb listings in Morro Bay. The supply skews heavily toward smaller properties, with 1-bedroom units making up 68 of the total listings, followed by 39 two-bedroom, 36 three-bedroom, and just 10 four-bedroom properties. Year-over-year listing growth of 118% indicates the market is expanding rapidly, which investors should factor into competitive analyses.

How is Airbnb revenue calculated in Morro Bay?

The annual and monthly revenue figures shown for Morro Bay are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll up the remaining data to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently rather than to forecasts, while naturally reflecting seasonal peaks and slower months since each month uses its own historical performance window. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts, occupancy rates, and daily rates by market
• Revenue metrics including monthly and annual averages based on trailing 12-month booking data
• Property size breakdowns covering listings, ADR, occupancy, RevPAN, and revenue by bedroom count
• Home value data from Zillow Home Value Index (ZHVI) for estimating revenue-to-price ratios
• Amenity prevalence data across active listings to benchmark guest expectations

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages as of April 2026 and may not capture very recent market shifts. Local regulations, permit availability, and tax obligations can change; investors should verify current rules with the City of Morro Bay before purchasing.