South Lake Tahoe posts $6,602 average monthly STR revenue across 1,664 active listings with dual summer and ski-season demand cycles.
Market Overview
South Lake Tahoe operates one of California’s largest short-term rental markets, with 1,664 active listings as of February 2026. The market draws roughly 3 million visitors per year to a city of only 21,225 permanent residents, creating sustained rental demand across two distinct seasons: summer lake recreation and winter skiing at Heavenly Mountain Resort and nearby ski areas.
The average daily rate hit $610.90 in February 2026, part of a multi-year trend of significant rate growth. The market-wide ADR averaged $423 in 2021 and has climbed to $616 in early 2026, a 46% increase over five years. That rate growth has partially offset a meaningful occupancy decline: market-wide occupancy averaged 58.4% in 2021 but has fallen to the mid-to-upper 30s in recent months, reaching 38% in February 2026.
Revenue per available rental (RevPAR) stood at $235.80 in February 2026, with median revenue at $165.10. The spread between average and median signals that high-performing premium properties pull the average up substantially.
Supply has remained broadly stable at 1,536 to 1,839 active listings over the past five years, with no dramatic expansion. The slight supply contraction in 2024 (averaging 1,536 listings) before a partial rebound in 2025 and 2026 reflects ongoing regulatory pressure on the permit base. Investors entering today face a market where rate discipline and property positioning matter more than in prior years when occupancy was higher across the board.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 47% | $493 | $7,367 | 1,758 |
| Feb | 51% | $478 | $7,149 | 1,750 |
| Mar | 52% | $415 | $7,501 | 1,698 |
| Apr | 43% | $388 | $5,661 | 1,700 |
| May | 41% | $408 | $5,982 | 1,590 |
| Jun | 57% | $443 | $8,389 | 1,693 |
| Jul | 63% | $485 | $10,479 | 1,775 |
| Aug | 59% | $451 | $8,743 | 1,766 |
| Sep | 47% | $407 | $6,321 | 1,756 |
| Oct | 40% | $386 | $5,096 | 1,692 |
| Nov | 39% | $419 | $5,196 | 1,723 |
| Dec | 47% | $544 | $8,283 | 1,756 |
South Lake Tahoe runs a genuine dual-season pattern, which distinguishes it from single-peak resort markets. Understanding the two peaks and the two shoulder valleys is essential for accurate revenue forecasting.
Summer peak runs June through August. July is the strongest month in the dataset: 62.8% average occupancy, $485 ADR, and $10,479 average monthly revenue. August follows at 58.8% occupancy, $451 ADR, and $8,743 revenue. June opens the summer at 57% occupancy, $443 ADR, and $8,389 revenue. These three months represent the highest revenue window in the year.
Winter ski season creates a secondary peak. December leads the winter at $544 ADR (the highest ADR of any month) with $8,283 average revenue and 47.4% occupancy. January averages 46.6% occupancy, $493 ADR, and $7,367 revenue. February, despite being a ski month, shows 51.2% occupancy and $7,149 revenue, partly because it is also when the February 2026 snapshot was taken.
The spring and fall shoulders are the weak spots. April and May average 41% to 43% occupancy with ADRs in the $388 to $408 range, producing $5,661 to $5,982 in average monthly revenue. October and November are the softest months: October averages 39.6% occupancy and $386 ADR for $5,096 in revenue, and November averages 38.6% occupancy and $419 ADR for $5,196 in revenue.
Operators who price December aggressively benefit from the gap between shoulder and peak rates. The $158 ADR gap between October ($386) and December ($544) is the largest monthly ADR swing in the calendar, offering meaningful upside for owners with flexible pricing strategies.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $1,941 | $4,623 | $8,685 | $14,236 |
| ADR | $290 | $480 | $749 | $1,195 |
| Occupancy | 19% | 36% | 53% | 71% |
Revenue in this market varies dramatically by property tier. The February 2026 snapshot shows the following distribution across the 1,664 active listings:
Bottom quarter (p25): $1,941 per month. These are likely properties with low occupancy (under 19%), minimal bookings, or poor listing quality. The 25th percentile occupancy is 19% in February, meaning roughly one week out of four.
Median property (p50): $4,623 per month with 36% occupancy and a $480 median ADR. This represents the typical active listing in the market during a shoulder-to-winter period.
Top quarter (p75): $8,685 per month with 53% occupancy and a $749 ADR. These properties earn nearly double the median through a combination of better pricing and higher booking volume.
Top decile (p90): $14,236 per month with 71% occupancy and a $1,195 ADR. This tier captures premium properties, likely larger homes or lakefront/ski-access units commanding luxury rates.
The ADR spread between the 25th and 90th percentile is $905 in a single month, confirming that property type and position drive returns far more than market timing alone. Investors should target the upper half of the market to achieve returns that justify the $630,000 median purchase price.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $9,884 | $319 | $405 |
| Apr 2021 | $8,809 | $294 | $415 |
| May 2021 | $9,163 | $296 | $410 |
| Jun 2021 | $10,991 | $366 | $434 |
| Jul 2021 | $12,107 | $391 | $465 |
| Aug 2021 | $10,121 | $327 | $435 |
| Sep 2021 | $7,378 | $246 | $404 |
| Oct 2021 | $7,465 | $241 | $415 |
| Nov 2021 | $7,497 | $250 | $390 |
| Dec 2021 | $10,078 | $325 | $458 |
| Jan 2022 | $9,561 | $308 | $429 |
| Feb 2022 | $8,529 | $305 | $428 |
| Mar 2022 | $8,818 | $284 | $402 |
| Apr 2022 | $6,988 | $233 | $384 |
| May 2022 | $6,699 | $216 | $403 |
| Jun 2022 | $8,925 | $298 | $393 |
| Jul 2022 | $10,626 | $343 | $430 |
| Aug 2022 | $8,987 | $290 | $390 |
| Sep 2022 | $7,626 | $254 | $391 |
| Oct 2022 | $6,117 | $197 | $336 |
| Nov 2022 | $6,517 | $217 | $365 |
| Dec 2022 | $9,743 | $314 | $446 |
| Jan 2023 | $8,795 | $284 | $424 |
| Feb 2023 | $7,584 | $271 | $402 |
| Mar 2023 | $7,265 | $234 | $367 |
| Apr 2023 | $5,407 | $180 | $328 |
| May 2023 | $5,604 | $181 | $329 |
| Jun 2023 | $7,668 | $256 | $368 |
| Jul 2023 | $10,560 | $341 | $423 |
| Aug 2023 | $8,902 | $287 | $403 |
| Sep 2023 | $6,490 | $216 | $359 |
| Oct 2023 | $3,811 | $123 | $336 |
| Nov 2023 | $3,561 | $119 | $377 |
| Dec 2023 | $6,574 | $212 | $515 |
| Jan 2024 | $5,998 | $194 | $483 |
| Feb 2024 | $6,313 | $218 | $451 |
| Mar 2024 | $5,578 | $180 | $420 |
| Apr 2024 | $3,095 | $103 | $362 |
| May 2024 | $3,837 | $124 | $405 |
| Jun 2024 | $6,487 | $216 | $473 |
| Jul 2024 | $8,845 | $285 | $521 |
| Aug 2024 | $7,355 | $237 | $497 |
| Sep 2024 | $4,831 | $161 | $420 |
| Oct 2024 | $3,661 | $118 | $380 |
| Nov 2024 | $3,772 | $126 | $431 |
| Dec 2024 | $7,167 | $231 | $596 |
| Jan 2025 | $6,100 | $197 | $509 |
| Feb 2025 | $6,719 | $240 | $499 |
| Mar 2025 | $5,959 | $192 | $483 |
| Apr 2025 | $4,007 | $134 | $449 |
| May 2025 | $4,609 | $149 | $494 |
| Jun 2025 | $7,874 | $263 | $549 |
| Jul 2025 | $10,258 | $331 | $585 |
| Aug 2025 | $8,351 | $269 | $532 |
| Sep 2025 | $5,280 | $176 | $462 |
| Oct 2025 | $4,424 | $143 | $464 |
| Nov 2025 | $4,635 | $155 | $531 |
| Dec 2025 | $7,852 | $253 | $706 |
| Jan 2026 | $6,381 | $206 | $622 |
| Feb 2026 | $6,602 | $236 | $611 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 66% | 1,514 |
| Jun 2021 | 71% | 1,671 |
| Sep 2021 | 48% | 1,704 |
| Dec 2021 | 62% | 1,795 |
| Mar 2022 | 61% | 1,815 |
| Jun 2022 | 64% | 1,934 |
| Sep 2022 | 56% | 1,870 |
| Dec 2022 | 60% | 1,878 |
| Mar 2023 | 53% | 1,823 |
| Jun 2023 | 60% | 1,826 |
| Sep 2023 | 54% | 1,802 |
| Dec 2023 | 42% | 1,677 |
| Mar 2024 | 42% | 1,543 |
| Jun 2024 | 45% | 1,162 |
| Sep 2024 | 39% | 1,617 |
| Dec 2024 | 38% | 1,745 |
| Mar 2025 | 40% | 1,797 |
| Jun 2025 | 45% | 1,873 |
| Sep 2025 | 37% | 1,789 |
| Dec 2025 | 35% | 1,683 |
South Lake Tahoe requires a higher entry price than most STR markets. Typical home values sit at $634,276 with a median sale price of $630,000 as of the data snapshot. The sale-to-list ratio of 0.975 indicates modest negotiating room, and 171 properties were listed for sale at the time of this data, giving investors a reasonable selection to evaluate.
At those entry prices, revenue expectations must be grounded in percentile data rather than market averages. In February 2026, a property at the 25th percentile generated $1,941 in monthly revenue. The median property (50th percentile) generated $4,623. A property in the top quarter (75th percentile) generated $8,685, and top-decile properties hit $14,236 that month.
February is not a peak month. July, the strongest month on record, shows average revenue of $10,479. A realistic mid-tier property (near the 50th percentile) can expect roughly $4,600 to $8,700 per month depending on season, with annualized revenue in the $65,000 to $85,000 range for well-positioned properties based on the trailing seasonal averages in this dataset.
The key risk factor is the occupancy compression trend. Average occupancy dropped from 58.3% in 2022 to 39.9% in 2024. Rising ADR has cushioned revenue, but the trajectory means properties competing on price in an overcrowded segment face real pressure. Premium properties with strong amenities, lake views, or ski-in/ski-out access continue to outperform. Properties in the middle of the market without a clear differentiator are most exposed to the occupancy decline.
Permit acquisition adds time and cost to entry. Budget for city permit fees, business license, and the administrative process before the property earns its first booking.
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Start Free TrialHome Value Trends
| Date | Typical Home Value |
|---|---|
| Mar 2021 | $558,999 |
| Dec 2021 | $663,863 |
| Sep 2022 | $694,798 |
| Jun 2023 | $643,536 |
| Mar 2024 | $658,307 |
| Dec 2024 | $657,828 |
| Sep 2025 | $646,653 |
Booking Insights
South Lake Tahoe guests book further in advance than many comparable markets. As of February 2026, the average booking lead time is 54.2 days, with a median of 36 days. The gap between average and median indicates that a meaningful share of bookings arrive 60 to 90 or more days out, pulling the average up, while most bookings still arrive in the 30 to 40 day window.
Length of stay averages 4.8 nights with a median of 3 nights. This confirms that most guests book a long weekend (3 nights) while a segment books full weeks or multi-week stays that push the average up. A 3-night minimum is likely the right floor for most operators, as it captures the median booking without turning away the largest guest segment.
Practical implications for operators: the 54-day average lead time means pricing decisions made two months out directly affect revenue. Operators who discount too early to fill dates leave money on the table during the 4 to 6 week window when peak bookings arrive. Conversely, operators who hold firm on pricing until 10 to 14 days out risk going dark during slow shoulder months when last-minute demand is thin.
For peak weeks (Fourth of July, Presidents Day, Christmas/New Year), the lead time almost certainly extends well beyond the 54-day average. Opening calendars 90 to 120 days out for holiday periods and setting firm pricing early captures the high-value advance bookings that drive top-decile revenue in this market.
Short-Term Rental Regulations
South Lake Tahoe enforces a structured short-term rental permitting system that operators must complete before accepting any bookings.
All STR operators in South Lake Tahoe must obtain two separate approvals: a city business license and a short-term rental permit. Both are issued by the City of South Lake Tahoe. The application process requires documentation of the property, compliance with safety standards, and payment of applicable fees. Operating without a valid permit exposes owners to significant fines and potential permanent revocation of permit eligibility.
The Transient Occupancy Tax (TOT) is set at 10% of gross rental income and must be collected from guests and remitted to the city. This is a pass-through cost but requires ongoing bookkeeping and timely filings. Failure to remit TOT is treated as a serious violation.
Safety compliance is mandatory. The city requires working smoke detectors, carbon monoxide detectors, and fire extinguishers in all permitted units. Inspections may be required as part of the permit process or in response to complaints.
Zoning restrictions are actively enforced. South Lake Tahoe limits STR activity in certain residential zones to preserve neighborhood character. Before purchasing a property with STR intent, verify the parcel’s zoning designation and confirm it is eligible for a short-term rental permit. Not all residential parcels qualify.
Prospective investors should budget time for the permit process and confirm current permit availability in their target zone directly with the City of South Lake Tahoe Planning and Building Division, as local regulations can change. The regulatory environment here is more complex than in unincorporated Tahoe areas, and compliance is non-negotiable.
Market Comparison
South Lake Tahoe sits in the upper tier of U.S. STR markets by ADR. The February 2026 median ADR of $480 and average of $611 are well above the national STR median, which typically ranges from $150 to $200 for comparable periods in non-resort markets. The market competes directly with other mountain and lake resort destinations such as Park City, Big Bear, and Mammoth Lakes.
Compared to other California STR markets tracked by AirROI, South Lake Tahoe’s rate growth has been notable: ADR increased from $423 in 2021 to $616 in early 2026, a 46% gain. However, the occupancy decline from 58.4% in 2021 to roughly 38% to 40% in 2024 to 2026 is a counterweight that mirrors broader trends in resort markets that saw pandemic-era demand spikes followed by normalization.
The 1,664 active listing count relative to 3 million annual visitors gives a visitor-to-listing ratio of approximately 1,801 visitors per listing per year, or roughly 5 visitors per available night. That ratio suggests demand is not the limiting factor. Conversion of that visitor base into bookings is a function of pricing competitiveness, listing quality, and permit status.
Investors comparing South Lake Tahoe to coastal California markets will find entry prices similar to many beach markets but significantly higher revenue potential during peak months, offset by genuine shoulder-period softness that coastal markets with milder seasonality do not experience to the same degree.
Frequently Asked Questions About South Lake Tahoe, California
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