Commercial Real Estate in Bodega: Historic District, Rural Commercial Zoning and Coastal Permits

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

Bodega is the small inland village on the Bodega Highway, a few miles east of Bodega Bay, and it should not be confused with the harbor town. Its commercial property is a handful of shops, cafes, galleries and old public buildings along the highway and Bodega Lane, most of them inside a County Historic District. Zoning, historic review and septic capacity decide what a buyer can do, and all of it runs through Sonoma County. Confirm a parcel’s zoning and whether it is in the Coastal Zone with Permit Sonoma before relying on this page.

Who controls the parcel

There is no city or community services district with land use powers. Sonoma County decides through Permit Sonoma. Two questions come first:

Coastal or inland? The County’s LCP FAQ describes the Coastal Zone as running generally to the first coastal ridgeline, and only the Coastal Commission can interpret that line. Neighboring Valley Ford is one of the LCP’s listed coastal communities, so Bodega parcels may well be coastal; check the County’s Coastal Zone map. Coastal parcels use Chapter 26C; inland parcels use Chapter 26.
Urban service? Bodega is not one of the 21 Urban Service Areas in the County’s GIS layer. Plan for wells or a small water system and septic, not public sewer.

The Bodega Historic District

The County’s Bodega Historic District property list identifies it as Landmark No. 136, designated in 1982, with 45 parcels on Bodega Highway, Bodega Lane, Salmon Creek Road, Church Street and Highway 1. Several buildings carry dates and past uses that show how mixed the village has always been:

Address	Built	Past uses listed by the County
17120 Bodega Highway	1859	Church, Gothic Revival
231 Salmon Creek Road	1860	Store; barn used as garage and carpentry shop
17110 Bodega Highway	1873	Schoolhouse, community hall, art gallery, restaurant, residence
17191 Bodega Highway	After 1874; second building 1925	Saloon, residence; barber, beauty and coffee shop
17132 Bodega Lane	1911	Residence, Druid’s Hall, antiques store
17235 Bodega Highway	1921	Garage, fire department meeting house, art gallery

Exterior work on these properties goes through Permit Sonoma’s historic design review, described in its PJR-114 handout. Budget time for it.

Zoning for commercial use in and around Bodega

District	Code	Intended uses	Notes
CS Rural Services	26C, coastal	Neighborhood retail, restaurants and bars, offices, clinics, mostly under 3,000 sq ft	Only inside rural community or urban service boundaries in the coastal plan
CT Commercial Tourist	26C, coastal	Inns to 15 units, visitor retail, small restaurants, galleries, a small B&B	Larger hotels need a use permit; 50-room cap on unserved sites outside urban service areas
CR Commercial Rural	26, inland	Mix of homes and businesses in unincorporated communities; tasting rooms; personal services	Houses permitted; County keeps discretionary review of new commercial uses
LC Limited Commercial	26, inland	Daily-needs retail, restaurants, offices, hosted and vacation rentals	Meant for rural areas in keeping with their character
AS Agricultural Services	26 or 26C	Farm retail, farm stands, ag support services	Agriculture-focused

Whatever the base district, the historic combining district sits on top in the village core. Look up the parcel in the County’s zoning viewer before pricing a use.

Size, height and septic limits

Lot size. With neither public water nor sewer, new lots in CS and CT must be at least 1.5 acres, and inland commercial zones also require 1.5 acres in that case. Most village lots are older and smaller, so the issue is usually how much an existing septic system can carry, not subdivision.

Coverage and height. Coastal CS allows 50% coverage; east of Highway 1, buildings visible from a designated scenic road are limited to 24 feet and others to 35. Inland commercial zones cap height at 35 feet and coverage at 50%.

Change of use. Turning a gallery into a restaurant, or adding seats, changes wastewater flow. Ask Permit Sonoma’s well and septic staff early.

Coastal permits, appeals and lodging

If the parcel is coastal, most development, including lot line adjustments and special events, needs a coastal development permit, according to the LCP FAQ. Approvals of a principally permitted use consistent with the land use plan are not appealable, but commercial uses outside a commercial designation are, as is anything within 100 feet of a wetland, estuary or stream.

Lodging. Inns and B&Bs are zoning decisions under the table above. Whole-house vacation rentals need a County license; the District 5 fact sheet applies the rules in the Coastal Zone, caps guests at 12 and limits owners to one license. Bodega was not on the 2023 cap or exclusion list.

Transfer tax, business tax and property tax

The Sonoma County Recorder charges $0.55 per $500 of value, less assumed loans, and only Santa Rosa and Petaluma add a city tax. Lodging collects the County’s transient occupancy tax; we did not verify the rate. A change of ownership generally triggers Proposition 13 reassessment.

Due diligence that matters in Bodega

Start with our commercial due diligence checklist, then add:

Confirm whether the parcel is in the Coastal Zone and which chapter’s district applies.
Check the Historic District list and the review exterior work requires.
Get septic permits, capacity and inspection history, plus the water source and any water system permit.
Confirm that past uses, such as a restaurant or saloon, are still legal rather than lapsed nonconforming uses.
Map creeks and wetlands against the site for coastal appeal and setback issues.
Verify any vacation rental license and whether it can continue after sale.

Questions people ask

Is Bodega the same as Bodega Bay?

No. Bodega is the inland village on the Bodega Highway; Bodega Bay is the harbor town on Highway 1 with its own utility district and Urban Service Area.

Is Bodega a historic district?

Yes. The County lists the Bodega Historic District as Landmark No. 136, designated in 1982, covering 45 parcels.

What are the oldest buildings?

The County dates the Gothic Revival church at 17120 Bodega Highway to 1859 and the store at 231 Salmon Creek Road to 1860.

Is there public sewer in Bodega?

Bodega is not an Urban Service Area, so plan for septic.

Do I need a coastal permit?

If the parcel is inside the Coastal Zone, usually yes. Confirm the boundary with the County’s map.

Is there a city transfer tax?

No. Only the County’s $0.55 per $500 applies.

Does Diamond handle commercial property in Bodega?

Contact Matthew Martinez to discuss buying, selling or leasing commercial property in Bodega. For countywide context, see our Sonoma County commercial guide and Sonoma County multifamily guide.

Sources & notes

Note: We could not confirm from a County text source whether Bodega is inside the Coastal Zone or which district applies to each parcel, so the zoning table lists the districts most likely to matter. We did not read the historic combining district text or PJR-114, identify Bodega’s water supplier or verify the transient occupancy tax rate.

This page is general information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

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