The city of Monterey’s ban on vacation (or short-term) rentals has been upheld once again in a court of law…. as has the methodology used by city officials to catch the people who try and rent short term . City officials maintain that short term rentals take housing stock off the market (that could otherwise be used for long-term renters). Due to the current housing crisis, city officials say that what they need most are the long term rentals, and that’s why they created the Vacation Rental Ban.