Multifamily and Duplex Properties for Sale in Santa Lucia Preserve: Zoning and Rent Rules

What multifamily in Santa Lucia Preserve looks like

Santa Lucia Preserve has no apartment buildings, and duplexes are not part of its design. It is a gated community of large estate homesites inside a roughly 20,000-acre ranch, most of it held as conservation land. "Multifamily" here means a main home plus a guesthouse, caretaker unit or second unit, along with a small number of inclusionary units approved with the original project. Rental income is usually a whole-home lease or a caretaker arrangement, not a unit count. Investors who want true multifamily income on the Monterey Peninsula should look at nearby cities; see our Monterey County multifamily guide. For financing questions, see financing 2-4 unit properties and apartment building loans.

Where the zoning allows it

The Preserve is unincorporated Monterey County land. A 2010 County staff report gives its zoning as RC-D-S: Resource Conservation, with Design Control and Site Plan Review overlays. It places the Preserve in the Greater Monterey Peninsula Area Plan and the Carmel Valley Master Plan.

Standards. RC requires a 10-acre building site unless the lot was approved as part of a clustered development. Other limits:

• 30 feet for main buildings and 15 feet for habitable accessory buildings
• 25% site coverage
• at least 20 feet between main buildings

Ordinance 5422 last amended the RC use lists on August 27, 2024.

Caretaker units. A 2007 County staff report for a Preserve homesite approved a caretaker unit by administrative permit under Sections 21.36.040.B and 21.64.030. Its conditions required a deed restriction against renting the unit separately. That lot was zoned RC/40-D-S. Expect similar conditions on other caretaker units, and read the recorded restriction on any unit you plan to count as income.

Inclusionary units. The 2010 staff report notes that the Preserve EIR addressed nine inclusionary units alongside 53 market-rate units in one area, and identifies a specific lot as inclusionary housing. Units like these carry recorded affordability terms.

ADUs and SB 9. State ADU law applies, subject to the County’s ADU rules, the density limit and the building envelope. SB 9 reaches only urbanized single-family lots in unincorporated areas, so it does not fit Preserve lots. See our ADU investment guide and SB 9 lot split guide.

Private rules. The association’s CC&Rs and design guidelines may limit second units, caretaker occupancy or leasing beyond what the County allows. Those rules are private contracts and must be read in full.

Rent rules: state law only

Rent caps. The Attorney General’s rent cap page, updated July 16, 2026, puts Monterey County in All Other Counties. Covered units may rise up to 7.7% for increases from August 1, 2025, and 8.6% from August 1, 2026 through July 31, 2027. Salinas is the only Monterey County jurisdiction on the AG’s chart of local rent ordinances. A single-family home owned by individuals can be exempt from AB 1482 if the lease includes the required notice. See our AB 1482 guide.

Just cause. State just cause rules apply to covered tenancies. See our just cause eviction guide.

Caretakers. When a caretaker lives on site as part of a job, the arrangement mixes employment and tenancy. Put it in writing and get advice before buying a property with an existing caretaker.

Santa Lucia Preserve rental property rules

• Short stays. RC allows homestays and limited vacation rentals by right under Section 21.64.290. Commercial vacation rentals need a use permit. Check the County’s short-term rental page and the County’s 10.5% transient occupancy tax. The CC&Rs may bar short stays regardless of County rules.
• Leasing rules. Associations often set minimum lease terms, tenant registration or approval steps. Ask for the current leasing rules.
• Transfer tax. Monterey County Code Chapter 5.32 sets $0.55 per $500 of consideration. No city tax applies.

Water, wastewater and site limits

Santa Lucia CSD. LAFCO’s 2006 Carmel Valley service review found the following:

• Formation and size. The Santa Lucia Community Services District was formed July 13, 1998 and covers more than 18,000 acres.
• Water. It runs a community water system of several wells, storage and distribution, and some irrigation uses reclaimed wastewater.
• Wastewater. A small package plant with tertiary treatment served about 150 homesites, while about 160 homesites used individual septic systems that the district pumps and maintains.
• Build-out. The district’s sphere was drawn to serve only already-approved development.

Ask the district whether a parcel is sewered or on septic, and whether an added unit fits its water and wastewater capacity.

Envelopes and easements. Each homesite has a building envelope of one to five acres, and land outside it is to stay in natural condition under a conservation easement. Any guesthouse or second unit must fit inside the envelope.

Trees and slopes. Tree removal is counted against allotments set in the original approvals, and building on slopes over 30% needs added County approval.

Buildings. For older hillside homes, a seismic retrofit review is worth considering. SB 721 applies only to buildings of three or more units, so it rarely applies here. Wildfire insurance and defensible space are major cost items.

Underwriting a Santa Lucia Preserve rental purchase

1. Read the CC&Rs, design guidelines and leasing rules before counting any rental income.
2. Confirm the zoning suffix, building envelope and how many units are legally permitted.
3. Check any guesthouse or caretaker unit for a recorded deed restriction against separate rental.
4. Confirm water and wastewater service with the Santa Lucia CSD, including septic condition.
5. Decide whether AB 1482 applies, and collect any lease and estoppel certificate from an existing tenant.
6. Rebuild expenses with reassessed taxes, association dues, CSD charges, insurance and defensible-space work in our rental property analysis.

Questions people ask

Sources & notes

1. Title 21, Chapter 21.36, Resource Conservation (GoCodebook)
2. Monterey County Planning Commission staff report, PLN070299 (September 12, 2007)
3. Monterey County Planning Commission staff report, PD070907 (May 12, 2010)
4. Monterey County LAFCO, Carmel Valley Municipal Services Review (June 2006)
5. County HCD, short-term rentals and County TOT
6. Monterey County Code Chapter 5.32
7. California Attorney General, Rent Caps

Note: The Preserve’s CC&Rs, design guidelines and leasing rules are private and were not reviewed; statements about them are general cautions, not descriptions of their contents. LAFCO figures date from 2006. We did not review the County’s ADU and guesthouse sections in 21.64.

General information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

Related: Santa Lucia Preserve real estate guide · Commercial real estate in Santa Lucia Preserve · Multifamily investing guide · Investor services