Staying in Monaco for 5 days...

Unless you'll be a guest of the prince I'd rather stay in Nice which is a much better base for exploring the Cote d'Azur and it feels like a real city. A daytrip to Monaco is more than enough for most travellers.

Whether you stay in Nice or Monaco the coastal towns are easy to access by frequent trains and than walk around. For tours to the hinterland and driving some awesome corniche roads you need a car.

addressing the actual question - are you in Monaco now?

There is a difference between getting around in summer and winter. When I stay in Monaco it is normally February or March. I have both driven and taken the train, and once I flew.

The train between the Italian border (on onwards towards Genoa) along the coast all the way as far as Frejus, beyond Cannes is frequent, reasonably priced and fairly comfortable. If you sit upstairs on the side nearer the Sea (on the right heading towards Italy and the left heading towards Cannes) you get a really special view. That close to the water, and the rocks simply isn't possible with a car.

Traffic in the summer is really difficult along the coast. Traffic can also be be bad towards Grasse and St Paul de Vence.

The big question is - where do do you want to go? Where do you mean by "outlying towns within 1-2 hours away"? That covers as absolutely huge area. Can you narrow it down otherwise it will take ages to try to guess and so much work will be wasted.

There are several of us here who know the area fairly well, but without more specifics and knowing what time of year.

What sort of places do you want to visit?

Any mobility problems in your group? How big is the group?

By the way, in both Nice and Monaco a car is as much help as a boat anchor. The small towns we can discuss.

If you do decide to have a car while staying in Monaco, please share which district you are/will be in. I may be able to give a few hints depending on which district and time of year you will be in Monaco.

Train, because of the difficulties of overnight parking in Monaco.
Nice would be easier with a car, as long as you book a Nice hotel that facilitates overnight parking.
From Nice, Monaco is an easy day trip by train.

Thank you all for the replies. We have already booked hotel in Monaco with points. LeMeridian Beach Plaza. My husband is a sugarcane farmer in America and he would would like to see some rural farm lands. I am thinking that we can see lavender fields around Provence. On our 5th day when leaving Monaco, we are renting a car and traveling northwest for 4 days back to Paris to catch outgoing flight back home. I just wasn’t sure what farming areas we could possibly see without a car when in Monaco?
Another question: can you do a day trip on train from Monaco to Aix en Provence? Or is it too far for one day trip?

For travel times, go to Rome2rio website. They know more than we do about travel times.

Another question: can you do a day trip on train from Monaco to Aix en Provence? Or is it too far for one day trip?

That is too far for a day trip.

I don't think you're going to see rural farmlands in Monaco. Southern France is where you can find rural areas.