Merced, California Short-Term Rental Market
Merced, CA STRs averaged $141/night at 59.1% occupancy in April 2026, near the gateway to Yosemite National Park.
Quick Answer: Merced, California is an active short-term rental market. average occupancy is 63%. average monthly revenue is $2,724. average daily rate is $157. the top operator is Evolve with 177 listings. market score is 58/100 (grade C).
Market data reflects the California Central Valley regional market, which includes Merced. Regulations, taxes, and permit details below are specific to Merced.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Merced is a Central Valley city of approximately 91,953 residents, marketed as the Gateway to Yosemite and located less than two hours from Yosemite National Park, which attracts more than 3.5 million annual visitors. The city is served by Amtrak’s San Joaquins line and YARTS bus connections to the park, making it a transit staging hub for Yosemite-bound travelers. UC Merced, with more than 9,000 students, generates additional visitor and academic travel.
In April 2026, the STR market posted an average daily rate of $141 and an occupancy rate of 59.1%, with RevPAR of $83. Year-over-year through April 2026, occupancy declined 0.5 percentage points, ADR fell 0.7%, and revenue declined 2.7%.
A notable characteristic of this market is its year-round occupancy consistency. The weakest month in the historical average, January, still records 54.7% occupancy. This compressed seasonal range earns an Apivex seasonality score of 98.8, reflecting the benefit of sustained demand across all 12 months rather than reliance on a concentrated peak.
The listing mix includes a larger private-room share than most markets in this dataset. Entire-place listings account for approximately 73% of inventory, with private rooms representing approximately 27%. This mix reflects Merced’s dual character as a Yosemite gateway (entire-place vacation rentals) and a UC Merced-adjacent market (hosted rooms for university visitors).
One-bedroom units are the most represented category, followed by three-bedroom and two-bedroom properties. Airbnb is the dominant channel, with VRBO a minor secondary platform.
The Apivex composite score is 58.0. Seasonality leads at 98.8. Rental demand scores 66.4, regulation 63.6, investability 58.1, and revenue growth 48.7. The below-average composite reflects modest revenue growth and investability rather than a demand deficit.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 55% | $106 | $1,695 |
| Feb | 61% | $111 | $1,725 |
| Mar | 61% | $112 | $1,932 |
| Apr | 61% | $117 | $1,948 |
| May | 64% | $124 | $2,107 |
| Jun | 66% | $129 | $2,316 |
| Jul | 67% | $125 | $2,308 |
| Aug | 63% | $122 | $2,154 |
| Sep | 61% | $118 | $1,949 |
| Oct | 61% | $116 | $1,979 |
| Nov | 58% | $115 | $1,826 |
| Dec | 57% | $116 | $1,862 |
Top Short-Term Rental Operators in Merced
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 177 | 4,256 | ★ 4.54 |
| 2 | Stay Smart | 85 | 926 | ★ 4.36 |
| 3 | Guest Equity, Inc. | 47 | 4,161 | ★ 4.71 |
| 4 | Fresno Short Term Rentals | 43 | 3,826 | ★ 4.85 |
| 5 | LUSH Garden Hideaway | 42 | 875 | ★ 4.95 |
What Kind of STR Should I Buy in Merced?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 4,549 |
| 2 bed | 1,551 |
| 3 bed | 1,999 |
| 4 bed | 1,210 |
| 5 bed | 462 |
ADR by Property Tier
| Entire Home | $191 |
| Luxury | $299 |
| Professionally Managed | $232 |
Revenue by Dwelling Type
| Apartment | $1,838 |
| Entire Place | $3,296 |
| House | $2,862 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 70.7% |
| vrbo | 2.9% |
| both | 26.3% |
Investment Analysis
The typical home value in Merced is $397,040 (Zillow, April 2026 snapshot). The median sale price was $376,000 and the median list price was $401,483. With 259 active for-sale listings, a sale-to-list ratio of 93.7%, and a median of 25 days to pending, the housing market is moving but buyers are achieving modest discounts below list price.
At April 2026 average monthly revenue of $2,268 and the typical home value of $397,040, the implied gross yield is approximately 6.9% [(2,268 x 12) / 397,040]. This is a rough approximation using market averages and does not account for management fees, vacancies, or operating costs.
ADR ranges from $141 at the market average to $171 for entire-home listings, $188 for professionally managed properties, and $258 for luxury-tier listings. The entire-home ADR of $171 is 21% above the all-market average, reflecting the higher rate of dedicated vacation properties compared to the broader inventory including private rooms.
By property type, entire-place listings average $2,713/month, house listings average $2,372/month, and apartment-category listings average $1,637/month. Entire-place listings outperforming house listings may reflect that well-positioned Yosemite-gateway or UC Merced-adjacent vacation rentals achieve higher rates than average residential STRs.
Annual revenue averages have been modestly positive: $2,200 in 2023, $2,268 in 2024, and $2,330 in 2025. The revenue growth score of 48.7 reflects this gradual upward trajectory.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
The average booking lead time for Merced STRs is 28.1 days, approximately 4 weeks before arrival. This is notably shorter than most markets in this dataset, suggesting that Yosemite-bound travelers and UC Merced visitors book lodging closer to their trip dates. This may reflect the planning patterns of park visitors who wait to assess weather, road conditions, or park reservation availability before finalizing lodging.
Average length of stay is 5.0 nights, longer than most markets in this dataset. This reflects multi-night Yosemite itineraries and extended university-related stays that anchor the Merced market. Longer average stays reduce turnover frequency and cleaning costs per occupied night, which benefits net operating yield.
The combination of a 28.1-day lead time and 5.0-night average stay means operators have moderate forward visibility but a shorter booking window than traditional vacation markets. Dynamic pricing tools that adjust rates based on demand signals within the 4-week window may be particularly valuable here. A minimum stay of 2 to 3 nights is compatible with the average booking pattern.
Short-Term Rental Regulations
Short-term rentals are permitted in Merced, subject to regulatory compliance. The City of Merced requires operators to obtain a city business license and a Transient Occupancy Tax (TOT) certificate from the Finance Department. An Administrative Permit from the Planning Department is also commonly referenced as required for STR operation.
The TOT rate is 10% of the rental amount, remitted quarterly (April, July, October, January). A potential TOT increase to up to 12% was discussed by the Merced City Council in 2024, with a possible voter ballot measure proposed. The enacted status of any increase after the November 2024 ballot window is uncertain and should be confirmed directly with the City Finance Department before listing.
IMPORTANT: Much of the commonly cited STR regulatory detail for Merced, including specific zone-by-zone permit requirements, a 180-night annual cap, and an owner-occupancy requirement, appears to originate from the Merced County Unified Development Ordinance governing unincorporated county areas, not the incorporated City of Merced. Secondary reference sources frequently conflate city and county rules in this market. The actual City of Merced Title 20 permit pathway, applicable residential zones, and any owner-occupancy or night-cap provisions could not be confirmed from available municipal sources and must be verified directly with City Planning.
Operating conditions commonly referenced include a 24/7 local emergency contact, quiet hours from 10 PM to 7 AM, and a no-events policy. Enforcement is characterized as moderate. Investors should confirm all applicable requirements with Merced City Planning and the Finance Department before listing any property.
Market Comparison
The US median annual STR occupancy is approximately 55%. Merced’s April 2026 occupancy of 59.1% exceeds the national median. The 2025 annual average of 58.2% also outperforms the national benchmark. Merced’s consistent year-round occupancy above 54% in all months distinguishes it from markets with deeper seasonal troughs.
ADR of $141 is significantly below the national median of approximately $220 and below most California coastal and mountain markets. Merced’s affordability and relatively lower leisure tourism profile compared to coastal California or Lake Tahoe keep nightly rates modest despite proximity to Yosemite.
Top operators in the Merced and Central Valley area include Evolve (177 listings, 4,256 reviews, 4.54 average rating), Stay Smart (85 listings, 926 reviews, 4.36 rating), and Guest Equity Inc. (47 listings, 4,161 reviews, 4.71 rating). Fresno Short Term Rentals (43 listings, 4.85 rating) and LUSH Garden Hideaway (42 listings, 4.95 rating, highest-rated in the top five) round out the top five operators serving the region.
The composite score of 58.0 and investability of 58.1 are below the dataset average. The standout metrics are the seasonality score of 98.8 and gross yield of approximately 6.9% based on current home values, which together describe a market with stable demand and reasonable entry-level return potential.
Frequently Asked Questions About Merced, California
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