Arroyo Grande, California Short-Term Rental Market
Arroyo Grande STRs averaged $355/night at 53.3% occupancy in April 2026, with a 90-unit permit cap currently full.
Quick Answer: Arroyo Grande, California is an active short-term rental market. average occupancy is 60%. average monthly revenue is $6,949. average daily rate is $438. the top operator is Seven Sisters Vacation Rentals with 141 listings. market score is 75/100 (grade B).
Market data reflects the San Luis Obispo regional market, which includes Arroyo Grande. Regulations, taxes, and permit details below are specific to Arroyo Grande.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Arroyo Grande is a Central Coast city in San Luis Obispo County, situated between Pismo Beach and San Luis Obispo along the Highway 1 corridor. With a population of approximately 18,372, the city draws regional visitors to its historic Village downtown, nearby Edna Valley wine country, and the annual Arroyo Grande Strawberry Festival. The STR market is dominated by entire-place listings: 4,176 of approximately 4,450 tracked listings (93.8%) are whole-unit rentals, with 273 private rooms and 1 shared room rounding out the inventory.
The bedroom mix is relatively balanced among smaller units: 1-bedrooms lead at 1,498 listings, followed by 3-bedrooms (1,110), 2-bedrooms (1,097), 4-bedrooms (464), and 5-bedrooms (277). In April 2026, the market averaged $355 per night with 53.3% occupancy and a RevPAR of $189. Year over year, occupancy slipped slightly (-0.5%), while ADR grew 2.6% and revenue grew 3.9%. The platform split shows dual-channel strength: 2,308 listings appear on both Airbnb and VRBO, 1,802 on Airbnb only, and 340 on VRBO only.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 38% | $264 | $2,886 |
| Feb | 47% | $269 | $2,990 |
| Mar | 50% | $282 | $3,761 |
| Apr | 54% | $299 | $4,267 |
| May | 52% | $317 | $4,313 |
| Jun | 61% | $360 | $5,673 |
| Jul | 68% | $338 | $6,183 |
| Aug | 60% | $323 | $5,282 |
| Sep | 53% | $306 | $4,324 |
| Oct | 52% | $299 | $4,260 |
| Nov | 51% | $305 | $3,960 |
| Dec | 46% | $300 | $3,796 |
Top Short-Term Rental Operators in Arroyo Grande
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Seven Sisters Vacation Rentals | 141 | 8,919 | ★ 4.81 |
| 2 | Paso Robles Vacation Rentals | 132 | 16,301 | ★ 4.88 |
| 3 | Beach Bum Holiday Rentals | 114 | 4,017 | ★ 4.68 |
| 4 | Scenic Coast Property Management | 88 | 5,427 | ★ 4.78 |
| 5 | Coastal Vacation Rentals & Property Management | 86 | 4,846 | ★ 4.68 |
What Kind of STR Should I Buy in Arroyo Grande?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,498 |
| 2 bed | 1,097 |
| 3 bed | 1,110 |
| 4 bed | 464 |
| 5 bed | 277 |
ADR by Property Tier
| Entire Home | $452 |
| Luxury | $801 |
| Professionally Managed | $586 |
Revenue by Dwelling Type
| Apartment | $5,781 |
| Entire Place | $7,210 |
| House | $7,416 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 40.5% |
| vrbo | 7.6% |
| both | 51.9% |
Investment Analysis
Arroyo Grande is a supply-constrained market with significant barriers to new STR entry. The city has a hard citywide cap of 90 vacation rental permits, which was reached under Ordinance No. 718 adopted October 11, 2022. No new vacation rental permits are being issued. Investors who want to acquire an STR in Arroyo Grande must purchase an already-permitted property. Homestays (owner-occupied, up to two rooms) are a separate category and do not face the same cap, but require the operator to be present for the entire stay.
For permitted properties, the revenue performance is well above national medians. April 2026 average monthly revenue was $4,962 across all property types. House-category properties averaged $5,307 and entire-place listings averaged $5,128. Annualizing the April figure yields approximately $59,544, while the 2025 annual average of $4,928 per month implies a trailing 12-month run rate of about $59,136. No housing price data is available in the source data, so cap rate or yield calculations are not possible here. The luxury tier averaged $644/night versus the all-listings average of $355, an 81% premium. Professionally managed properties averaged $460/night, a 30% premium over the market average, suggesting that professional operators in this market have concentrated in larger, higher-amenity properties. The investability score of 57.2 reflects the significant cap constraint; revenue growth score of 89.2 out of 100 signals that properties already in the market continue to perform well.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Arroyo Grande guests book an average of 49 days in advance, one of the longer lead times for a Central Coast California market this size. The 49-day window reflects the mix of holiday-weekend travelers who plan ahead and wine-country visitors who coordinate with winery reservations. Average length of stay is 3.4 nights, slightly below the typical California coastal average, suggesting a mix of long-weekend and midweek bookings.
A 3.4-night average at current occupancy implies roughly 8 to 9 turnovers per month, a manageable cadence for owner-operated properties. The 49-day lead time gives operators a clear window to set rates before demand solidifies, particularly for June, July, and October when shoulder-to-peak transitions drive pricing leverage. Properties that enforce 3-night minimums during peak weekends can reduce operational friction while protecting revenue. The mild climate and diverse attraction mix mean the booking calendar is relatively spread across months, reducing the high-volatility risk seen in single-season coastal markets.
Short-Term Rental Regulations
Short-term rentals in Arroyo Grande are governed by Ordinance No. 718, adopted October 11, 2022. The city distinguishes two categories: vacation rentals (owner not present, under 30 days) and homestays (owner-occupied, operator on-site for the entire stay, maximum two lodging rooms). Both require a Minor Use Permit, a Plot Plan Review approval, and a city business license. Vacation rentals do not require owner-occupancy, but a hard citywide cap of 90 vacation rental permits exists and has been reached. No new vacation rental permits are being issued. New properties also cannot be within 500 feet of an existing STR or a school.
Apartment and occupancy rules: overnight occupancy is limited to two persons per bedroom plus two additional persons, and properties are limited to two off-street parking spaces. The city’s Transient Occupancy Tax (TOT) rate is 10%, applied to all stays of 30 days or less. TOT collection frequency was increased from annually to twice yearly as of a September 2024 Council amendment. Enforcement is rated strict: permits face revocation after three unresponsive emergency-contact incidents within 12 months, two police citations or arrests from guest behavior within 12 months, or failure to remit TOT. Investors should verify permit status and transferability on any target property before purchase, as the permit cap makes this the binding constraint on market entry.
Market Comparison
Arroyo Grande’s April 2026 occupancy of 53.3% is slightly below the U.S. STR median of approximately 55%, while its $355 ADR is 61% above the national median of approximately $220. The combined effect puts RevPAR at $189, well above what most inland markets achieve. The total market score of 74.9 out of 100 is solid, though the investability score of 57.2 reflects the effectively closed permit environment for new vacation rentals.
The professional management sector is led by regional specialists rather than national firms. Seven Sisters Vacation Rentals leads with 141 listings and 8,919 reviews (4.81 average rating). Paso Robles Vacation Rentals is second with 132 listings and 16,301 reviews (4.88 average), the highest review count in the top five. Beach Bum Holiday Rentals holds third with 114 listings and 4,017 reviews (4.68 average). Scenic Coast Property Management is fourth with 88 listings and 5,427 reviews (4.78 average). Coastal Vacation Rentals and Property Management rounds out the top five with 86 listings and 4,846 reviews (4.68 average). The combined top-five count of 561 listings represents a meaningful share of the cap-constrained 90-unit vacation rental market, suggesting these firms primarily manage properties across the broader San Luis Obispo County area.
Frequently Asked Questions About Arroyo Grande, California
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