San Diego, California, renowned for its idyllic weather, stunning coastline, and vibrant city life, has emerged as a popular destination for travelers worldwide.
As a result, the short-term rental market in San Diego has experienced significant growth in recent years.
In this guide, we will delve into the key aspects of this market, including market trends, regulations, financial considerations, and factors that make San Diego an attractive location for short-term rentals.
Market Overview
To gain a better understanding of the short-term rental market in San Diego, let’s explore some important data points
Supply
AS of July 2025, the most popular homes are 3-bedroom homes, comprising 24.91% of inventory. This is followed by 2 and 1-bedroom homes at 24.24% and 22.34% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in San Diego experienced an appreciation of 4.82%. This data indicates a significant increase in property values. San Diego ranks #5 on Chalet’s list of top Airbnb markets for home appreciation over the past year.
Median Home Value
As of January of 2025, Homes in San Diego have appreciated by 4.82%. The median home value in San Diego is $1,010,255 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short-Term Rentals
AS of July 2025, San Diego boasts a significant Airbnb rental market, with approximately 10,781 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $310.58. The Average Daily Rate is the highest for 5-bedroom homes ($610) followed by 4-bedrooms and 3 bedrooms at $545 and $467 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 60.90% for Airbnb rentals in San Diego. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in San Diego ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 5.30 in San Diego. This figure suggests that short-term rentals in the city offer a favorable return on investment. San Diego is ranked #90 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in San Diego earn an average of $53,593 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Top Places for Airbnb in San Diego
San Diego’s top submarkets for Airbnb investments include areas like ZIP code 92119, which has the highest gross yield at 9% and an annual revenue of $85,497. In contrast, ZIP code 92109 offers more extensive opportunities with 4,398 full-time listings, but a lower gross yield of 4%.
Home values also vary significantly, with properties ranging from $738K in 92139 to $1.5M in 92109, making each submarket unique in terms of investment potential and entry cost.
Hosts
Property management firms dominate the market. The largest host is Vacasa with 4.56% of the total inventory and an average review of 4.46 ⭐️s .
Property Tax
According to SmartAsset, the average property tax in San Diego is 0.75%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in San Diego come from California and are within driving distance. 6%% of all guests are from Los Angeles followed by San Diego with 5%.
Regulations
San Diego’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
