In January 2004, the City passed Ordinance 499 which repealed, amended, and reenacted Morro Bay Municipal Code Chapter 5.32 "Mobilehome and Recreational Vehicle Park Rent Stabilization." All revisions were unanimously approved and recommended by the Ad Hoc Subcommittee.

In the fall of each year the Finance Director publishes a memo outlining the yearly allowable rent increase. The allowed increase is derived from the Consumer Price Index for all Urban Consumers (CPI-U). This index is established by the United States Department of Labor, Bureau of Labor Statistics.