San Diego hosts nearly 9,900 active STR listings with median monthly revenue of $3,161 and peak summer earnings above $6,900.
Market Overview
San Diego is one of the largest short-term rental markets in the United States, with 9,838 active listings recorded in February 2026. The market draws from a base of 32 million annual visitors spread across beach neighborhoods, convention activity, military-adjacent zones, and year-round tourism driven by the region’s Mediterranean climate.
As of February 2026, the market-wide average occupancy sits at 45.0%, with an average daily rate of $350. Average monthly revenue across all listings is $4,273, though that figure reflects a wide spread between low-performing and high-performing properties.
The five-year trajectory tells two distinct stories. Occupancy has compressed steadily, falling from a peak of 70.4% in 2021 to 53.8% in 2025 as listing supply expanded by roughly 25% between 2021 and its 2023 peak of 11,406 active listings. Supply has since pulled back to around 10,606 in 2025, suggesting some market self-correction. At the same time, average daily rates have climbed sharply, from $264 in 2021 to $382 in 2025, a 45% increase over four years. The net result is that average annual revenue per listing remained relatively stable in 2024-2025 ($5,474-$6,255 annually) even as occupancy declined, because higher nightly rates offset the lost nights.
For investors, this means San Diego no longer rewards low-effort listings the way it did in 2021. Positioning, pricing strategy, and property quality now drive meaningful performance differences across the distribution.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 51% | $293 | $4,525 | 10,305 |
| Feb | 57% | $286 | $4,530 | 10,286 |
| Mar | 66% | $287 | $6,249 | 9,749 |
| Apr | 63% | $293 | $5,770 | 9,771 |
| May | 62% | $312 | $6,108 | 9,286 |
| Jun | 68% | $339 | $7,472 | 10,147 |
| Jul | 70% | $372 | $8,957 | 10,785 |
| Aug | 68% | $336 | $7,462 | 10,707 |
| Sep | 62% | $308 | $5,855 | 10,614 |
| Oct | 60% | $296 | $5,568 | 10,095 |
| Nov | 56% | $301 | $4,927 | 10,158 |
| Dec | 54% | $322 | $5,288 | 10,267 |
San Diego’s STR market follows a clear coastal summer pattern, but the range between peak and trough months is narrower than purely seasonal beach markets because the city draws convention, military, and weather-driven visitors year-round.
July is the strongest month by every measure: 70.0% average occupancy, $372 average daily rate, and $8,957 average monthly revenue historically. August runs close behind at 68.2% occupancy and $7,462 in average revenue. June rounds out the core summer window at 68.2% occupancy and $7,472 in average revenue.
March and May both perform solidly, reaching 66.2% and 62.2% average occupancy respectively. Spring break demand, Comic-Con proximity planning, and the early influx of out-of-state visitors contribute to the March uptick.
The weakest months are January and February, where average occupancy drops to 51.4% and 56.6% respectively, with average revenue around $4,525-$4,530. Even in these off-peak months, the market holds above 50% occupancy on average, which reflects the year-round demand base.
December shows a notable ADR premium at $322 average, compared to November at $301, suggesting holiday and New Year’s demand supports rate strength even as occupancy dips to 54.2%.
For operators, the practical implication is a summer surge strategy: rates should scale aggressively in June-August, with the spring shoulder (March-May) treated as secondary peak. Winter months (January-February) require either discounted pricing to maintain bookings or acceptance of lower occupancy as a trade-off for maintaining rate floors.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $1,493 | $3,161 | $5,568 | $8,828 |
| ADR | $170 | $265 | $426 | $669 |
| Occupancy | 23% | 44% | 66% | 82% |
Revenue distribution in San Diego is wide, reflecting the diversity of property types, neighborhoods, and listing quality across a large market.
In February 2026, the most recent data month, the distribution breaks down as follows:
– Bottom quartile (p25): $1,493 per month
– Median (p50): $3,161 per month
– Top quartile (p75): $5,568 per month
– 90th percentile (p90): $8,828 per month
Annualized, the median property earns approximately $37,900 per year. The top quartile earns roughly $66,800 per year. The 90th percentile annualizes to around $105,900, though that estimate assumes consistent performance across all months, and peak-season months drive a disproportionate share of annual revenue.
July 2025 data illustrates peak potential: the 90th-percentile property earned $20,610 in that single month. The median property earned $6,964 in July, and even the 25th-percentile earned $3,560.
The gap between the median ($3,161) and the 75th percentile ($5,568) in February represents a $2,407 monthly difference driven largely by property position, quality, amenities, and professional management. Investors targeting the upper half of the distribution should budget accordingly for acquisition, setup, and ongoing management costs.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $6,593 | $213 | $243 |
| Apr 2021 | $6,372 | $212 | $252 |
| May 2021 | $6,721 | $217 | $257 |
| Jun 2021 | $7,475 | $249 | $280 |
| Jul 2021 | $8,155 | $263 | $301 |
| Aug 2021 | $7,688 | $248 | $288 |
| Sep 2021 | $6,293 | $210 | $262 |
| Oct 2021 | $6,041 | $195 | $260 |
| Nov 2021 | $5,253 | $175 | $243 |
| Dec 2021 | $5,437 | $175 | $250 |
| Jan 2022 | $4,904 | $158 | $240 |
| Feb 2022 | $5,076 | $181 | $245 |
| Mar 2022 | $6,750 | $218 | $263 |
| Apr 2022 | $6,512 | $217 | $270 |
| May 2022 | $6,694 | $216 | $290 |
| Jun 2022 | $7,879 | $263 | $301 |
| Jul 2022 | $9,391 | $303 | $342 |
| Aug 2022 | $7,509 | $242 | $296 |
| Sep 2022 | $6,587 | $220 | $283 |
| Oct 2022 | $6,120 | $197 | $266 |
| Nov 2022 | $5,406 | $180 | $259 |
| Dec 2022 | $5,170 | $167 | $258 |
| Jan 2023 | $4,790 | $155 | $247 |
| Feb 2023 | $4,762 | $170 | $243 |
| Mar 2023 | $6,230 | $201 | $265 |
| Apr 2023 | $5,557 | $185 | $263 |
| May 2023 | $5,776 | $186 | $272 |
| Jun 2023 | $7,100 | $237 | $299 |
| Jul 2023 | $9,046 | $292 | $351 |
| Aug 2023 | $7,312 | $236 | $305 |
| Sep 2023 | $5,640 | $188 | $286 |
| Oct 2023 | $4,641 | $150 | $265 |
| Nov 2023 | $4,248 | $142 | $304 |
| Dec 2023 | $4,911 | $158 | $345 |
| Jan 2024 | $4,181 | $135 | $311 |
| Feb 2024 | $4,069 | $140 | $280 |
| Mar 2024 | $5,296 | $171 | $307 |
| Apr 2024 | $4,518 | $151 | $305 |
| May 2024 | $5,189 | $167 | $331 |
| Jun 2024 | $6,811 | $227 | $372 |
| Jul 2024 | $8,391 | $271 | $405 |
| Aug 2024 | $7,063 | $228 | $376 |
| Sep 2024 | $5,330 | $178 | $340 |
| Oct 2024 | $5,194 | $168 | $323 |
| Nov 2024 | $4,415 | $147 | $329 |
| Dec 2024 | $5,227 | $169 | $357 |
| Jan 2025 | $4,246 | $137 | $312 |
| Feb 2025 | $4,472 | $160 | $311 |
| Mar 2025 | $6,374 | $206 | $359 |
| Apr 2025 | $5,893 | $196 | $374 |
| May 2025 | $6,161 | $199 | $410 |
| Jun 2025 | $8,094 | $270 | $444 |
| Jul 2025 | $9,801 | $316 | $459 |
| Aug 2025 | $7,739 | $250 | $413 |
| Sep 2025 | $5,427 | $181 | $368 |
| Oct 2025 | $5,846 | $189 | $367 |
| Nov 2025 | $5,312 | $177 | $370 |
| Dec 2025 | $5,695 | $184 | $397 |
| Jan 2026 | $4,505 | $145 | $353 |
| Feb 2026 | $4,273 | $153 | $350 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 71% | 7,418 |
| Jun 2021 | 74% | 8,669 |
| Sep 2021 | 72% | 8,979 |
| Dec 2021 | 67% | 9,207 |
| Mar 2022 | 74% | 9,541 |
| Jun 2022 | 75% | 12,117 |
| Sep 2022 | 69% | 12,063 |
| Dec 2022 | 58% | 11,971 |
| Mar 2023 | 70% | 11,918 |
| Jun 2023 | 72% | 11,876 |
| Sep 2023 | 62% | 11,568 |
| Dec 2023 | 49% | 9,848 |
| Mar 2024 | 58% | 9,060 |
| Jun 2024 | 61% | 6,682 |
| Sep 2024 | 54% | 9,714 |
| Dec 2024 | 49% | 10,415 |
| Mar 2025 | 58% | 10,806 |
| Jun 2025 | 59% | 11,389 |
| Sep 2025 | 51% | 10,745 |
| Dec 2025 | 48% | 9,893 |
San Diego’s appeal as an STR investment market rests on durable demand fundamentals: 32 million annual visitors, a major convention center, three military installations, three Division I universities, and a coastline that generates year-round booking pressure. However, entry costs are high and performance is highly skewed.
Typical home values in the area stand at $974,053 per the housing data, with a median sale price of $901,750. At that purchase price, a property generating median revenue of $3,161 per month ($37,932 annualized) produces a gross revenue yield of roughly 3.9-4.2% before expenses, financing, and vacancy. Top-quartile properties earning $5,568 per month ($66,816 annualized) reach a gross yield closer to 6.9-7.4%.
The 90th-percentile performer generates $8,828 per month in February, one of the market’s softest months. In peak summer months, top-quartile properties can exceed $12,000-$20,000 in a single month based on July 2025 data, which showed a 90th-percentile of $20,610.
The housing market is competitive: homes are selling at 99.3% of list price and reaching pending status in 33 days on average. For-sale inventory sits at 2,556 units, which is limited for a county of this size. Buyers who can identify properties with strong STR fundamentals (beach proximity, parking, outdoor space, flexible bedroom counts) will face competition from both owner-occupants and other investors.
Key risk factors include occupancy compression if supply re-expands, the annual STRO permit renewal requirement, and potential regulatory tightening given San Diego’s ongoing debates around housing availability.
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Start Free TrialHome Value Trends
| Date | Typical Home Value |
|---|---|
| Mar 2021 | $829,460 |
| Dec 2021 | $931,688 |
| Sep 2022 | $1,067,844 |
| Jun 2023 | $1,037,993 |
| Mar 2024 | $1,131,048 |
| Dec 2024 | $1,165,320 |
| Sep 2025 | $1,117,780 |
Booking Insights
San Diego guests book with a moderate planning horizon. The average booking lead time is 37.6 days, with a median of 25 days. This means half of all bookings arrive within three and a half weeks of the stay, and the average booking comes in just over five weeks out.
For operators, this has two practical implications. First, yield management matters: prices set too conservatively at 60-90 days out will leave revenue on the table when late-booking guests would have paid higher rates. Second, minimum stay requirements need careful calibration because accepting a 7-day minimum too far in advance can block higher-value short-window bookings that arrive in the final 2-3 weeks.
Average length of stay is 7.0 nights, but the median is only 3.0 nights. The median-vs-average gap suggests a distribution with many short 1-3 night stays and a smaller group of longer weekly or extended stays that pull the average up. Beach and coastal properties in San Diego tend to attract the longer weekly bookings in summer, while urban and convention-adjacent properties turn over faster on 2-3 night stays.
Operators focused on revenue per available night should test both short-stay and longer-stay pricing strategies across seasons. The 7-day median lead time gap is also relevant for dynamic pricing tools: last-minute discounting should be targeted at the final 7-14 day window rather than applied broadly.
Short-Term Rental Regulations
San Diego operates a formal permit system for short-term rentals under the Short-Term Residential Occupancy (STRO) ordinance, administered through the City of San Diego Development Services Department.
All operators must obtain a Short-Term Residential Occupancy Permit before listing a property. The permit requires proof of liability insurance and must be renewed annually. Properties must comply with zoning restrictions, meaning not all neighborhoods or property types qualify. Operators should verify zoning eligibility for any specific parcel before purchase or listing.
San Diego charges a Transient Occupancy Tax (TOT) of 10.5% on all short-term rental income. This tax must be collected from guests and remitted to the city on a quarterly basis. Failure to remit TOT can result in penalties and permit revocation.
Safety requirements are mandatory: smoke detectors, carbon monoxide detectors, and fire extinguishers must be present and operational. Noise, parking, and occupancy limit rules apply and are subject to neighbor complaints, which can trigger permit review.
The city has periodically revisited its STR ordinance in response to housing availability concerns. The current framework allows whole-home rentals but caps the number of non-hosted STR permits for investment properties as distinct from owner-occupied rentals. Investors should review current permit tier rules directly with the city, as the ordinance has been updated multiple times since 2022.
For reference, the San Diego Municipal Code governs STR operations: https://library.municode.com/ca/san_diego/codes/municipal_code. Consulting a local STR attorney or property manager familiar with San Diego’s specific rules is advisable before acquiring an investment property.
Market Comparison
San Diego is a large, mature coastal STR market with above-average ADR relative to most US markets, but occupancy and revenue figures reflect the compression seen across coastal California since 2021.
At 53.8% average annual occupancy in 2025, San Diego runs below the levels seen in supply-constrained beach markets like the Florida Keys or Outer Banks, which frequently average 65-75% occupancy. However, San Diego’s 2025 average daily rate of $382 is substantially higher than most secondary beach markets, where ADRs of $175-$250 are more common. The high ADR reflects both property costs and genuine demand depth from the 32-million-visitor annual base.
Revenue per available room (RevPAR) was $152.60 in February 2026, based on average occupancy and ADR. February is a soft month; summer RevPAR would run considerably higher based on the July occupancy and ADR data.
As a comparison point, San Diego’s median property earned $3,161 in February 2026, which is the market’s softest period. That figure compares favorably to off-season performance in many inland or Midwest STR markets, where February median revenue can fall below $1,500.
The market’s size (nearly 10,000 listings) means individual properties compete in a dense field. Differentiation through design, amenities, and professional management is more important here than in smaller or emerging markets where demand exceeds supply.
Frequently Asked Questions About San Diego, California
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