According to Chalet Data, San Diego’s short-term rental landscape in 2026 is defined by sharp contrasts. The citywide gross yield sits at 5.2%, well below the US median, but a handful of central neighborhoods break away, posting yields from 5.5% up to 9.4%. The top performers cluster east and south of downtown, where home values are more accessible and guest demand has surged. Stockton and Sherman Heights lead the pack, pairing mid-tier prices with strong seasonal spikes and rapid revenue growth.

Meanwhile, occupancy across the city has jumped 20% year-over-year, and average daily rates are up 30%, a sign that supply is tightening as listings drop. Investors who target these high-yield pockets can still find double the citywide return, but must navigate San Diego’s unique licensing rules and competitive buying environment.

The Best San Diego Neighborhoods for Airbnb, Ranked by Yield

Data as of July 11, 2026. Annual revenue is calculated for each listing as ADR × occupancy × 365, using trailing 12-month data, and reported as the median for each neighborhood. Median ADR and occupancy are computed independently, so multiplying them will not reproduce the revenue figure.

Gross yield divides the median revenue by the median home value (Zillow ZHVI). See methodology for details. The active-operator revenue benchmark filters to listings with sustained booking activity and is the figure a committed buyer should underwrite against, rather than the all-listings average.

1. Stockton: San Diego’s Highest-Yield Play

Pricing power sets Stockton apart, with its $436 average daily rate nearly doubling the US median and helping drive a 9.4% gross yield, placing the neighborhood in the 55th percentile of 501 US markets.

Summer is the key revenue engine here, delivering 33% of annual income as occupancy hits 62% in June before plunging to just 25% by September. These swings mean operators must capitalize on peak months to offset the slack in fall, a pattern that rewards sharp pricing and nimble management.

The market’s 10.6-year payback period stands out for San Diego, offering rapid capital recovery compared to regional norms. This speed is possible because active operators consistently earn $66,952 annually, even as occupancy lags the national median (41% vs. 45%).

The past year’s 25% jump in occupancy and 22% rise in ADR, alongside an 11% drop in listings, tightened supply and allowed hosts to command higher rates. Stockton’s classic homes and proximity to downtown draw guests seeking value and central access, but with only 35 full-time listings, buyers face stiff competition for new inventory. For granular price and revenue breakdowns, see the Stockton analytics page.

Who this market is ideal for: Buyers seeking the city’s fastest payback and aren’t deterred by volatility or low occupancy.

2. Sherman Heights: Affordable Entry, Consistent Demand

Spring and summer travelers fuel Sherman Heights’ rental momentum, with occupancy reaching 69% in June and spring alone accounting for 28% of annual revenue. The market’s 9.2% gross yield sits just above the US median, while its 52% median occupancy rate outpaces the national benchmark by seven points. This strong demand, paired with a $196 average daily rate that remains affordable compared to the US median, attracts guests looking for value in central San Diego.

Active full-time listings fell by 20% year-on-year, creating a supply squeeze just as occupancy and ADR surged by 22% and 21% respectively in June. The 11.4-year payback period is competitive for the area, signaling a solid balance between acquisition cost and income potential.

Most properties are one-bedrooms, which saw 29 active listings and generate $17,922 annually, making them an accessible entry point for investors who want to capture steady demand and benefit from the neighborhood’s consistent booking trends. For a full breakdown of bedroom mix and revenue, see the Sherman Heights analytics.

Who this market is ideal for: Investors seeking reliable occupancy and a lower entry price within city limits.

3. Gaslamp: Downtown Discount with Steady Bookings

Downtown’s Gaslamp quarter has become a magnet for investors seeking affordable entry and reliable demand, with its $457,442 median home value representing the lowest in San Diego’s top 10 and a gross yield of 8.4%. While occupancy sits just above the US median at 48%, the spring surge is notable.

March occupancy peaks at 65% (ADR $219), while January slumps to 27%, making spring the most lucrative quarter at 28% of annual revenue. The area’s 12.4-year payback period offers a practical path for buyers focused on cash flow, especially when compared to pricier neighborhoods.

Recent market momentum has been dramatic, with a 43% year-over-year jump in occupancy and a 14% rise in ADR, even as active listings dropped by 20%. This tightening supply has translated into stronger pricing power and fuller calendars for operators, especially for 2-bedroom units, which command $37,100 a year at a $300 ADR.

Most listings remain 1-bedrooms (93 out of 149), but the earnings premium for larger units signals opportunity for those able to differentiate. More granular data on property types and monthly trends is available on the Gaslamp analytics page.

Who this market is ideal for: Buyers after the lowest entry price and willing to accept downtown’s seasonal swings.

4. Logan Heights: Urban Core, Resilient Demand

Momentum in Logan Heights has accelerated sharply, with both occupancy and average daily rate jumping 27% year-over-year as listing supply contracted by 21%. This supply squeeze has powered summer performance, when 30% of annual revenue is earned and July occupancy peaks at 71% with a $258 ADR, making the neighborhood a hotspot for seasonal travelers seeking downtown access.

While spring contributes a nearly equal 28% of revenue, the market’s October low of 43% occupancy reveals a pronounced off-peak dip that investors should factor into cash flow planning.

Compared to national figures, Logan Heights sits below the US median for gross yield at the 33rd percentile, but its 52% occupancy outpaces the national median of 45%, signaling steadier demand than many urban peers.

The 13.9-year payback period, based on active-operator revenue of $46,939, is competitive for a central neighborhood and reflects the area’s mix of single-family homes and multifamily units. The recent dip in home values, down 8.2% year-over-year, has helped maintain yield stability even as prices soften, creating a more accessible entry point for buyers looking for reliable urban rental income. For more details, see the Logan Heights analytics page.

Who this market is ideal for: Buyers wanting a balance of price, occupancy, and resilient guest demand near downtown.

5. Grant Hill: Spring Peaks, Stable Pricing

Market dynamics in Grant Hill are shaped by pronounced seasonal swings, as occupancy surges to 74% in March before plunging to zero in June. This spring peak translates into 28% of annual revenue concentrated in just a few months, while the remainder of the year sees a more even distribution across winter (25%), summer (24%), and fall (23%).

The sharp June drop is reflected in the latest momentum data, with occupancy falling 100% year-over-year, even as average daily rates rose 33%. This volatility means investors must plan for periods of both high demand and abrupt slowdowns.

Compared to the broader US short-term rental landscape, Grant Hill’s 6.9% gross yield lands at the 27th percentile, trailing the US median of 9.0%. However, occupancy rates here are slightly above the national median, and the $236 ADR edges out the US average. With a 14.7-year payback period, buyers should focus on the $52,002 active-operator revenue for more conservative underwriting.

The 16% drop in listings over the year points to tightening supply, which may help support pricing, but the pronounced seasonality demands careful cash flow management and a tolerance for revenue volatility. For a deeper dive into month-by-month volatility, see the Grant Hill analytics.

Who this market is ideal for: Buyers comfortable with pronounced seasonality and seeking steady home values.

6. Little Italy: High Occupancy in a Walkable Hub

Demand for centrally located, walkable stays keeps Little Italy’s occupancy at 60%, the highest among San Diego’s top-yielding neighborhoods and well above the 45% US median. The area’s summer surge is clear, with occupancy peaking at 76% in July and summer months generating 30% of annual revenue, but strong spring and winter numbers (26% and 25%, respectively) provide year-round stability.

A supply squeeze has emerged as listings fell 19% while occupancy jumped 12% and ADR rose 24% year-over-year, tightening competition and supporting robust pricing power at an average daily rate of $229.

Active operators here earn a median $41,748 in annual revenue, closely matching the market’s overall headline, which signals efficient management and little drag from underperformers. The typical investor faces a roughly 15.5-year payback period, longer than the US median, reflecting Little Italy’s relatively high home values and premium location.

Most listings are 1-bedrooms (64 out of 109), but 2-bedroom units command much higher annual earnings ($41,221 at a $280 ADR), suggesting that buyers able to secure larger units can outperform the median. Little Italy’s numbers reflect a blend of limited supply, a steady travel calendar, and the enduring appeal of its walkable, urban setting. Those interested in more property-level data can consult the Little Italy analytics.

Who this market is ideal for: Buyers seeking high occupancy and walkability in a central district.

7. Morena: Winter-Weighted Revenue, Moderate Entry

Morena’s winter-driven demand shapes its revenue profile, as 30% of annual earnings arrive in the colder months, well above typical seasonal splits for San Diego. Occupancy surges to 77% in July, illustrating strong summer appeal, but the December low of 38% highlights the sharp off-season drop. This pronounced seasonality means investors must plan for significant month-to-month revenue swings, especially when underwriting cash flow and reserves.

Recent market momentum is striking, with occupancy up 19% and average daily rates climbing 29% year-over-year, even as listings dropped by 17%. This supply squeeze has helped support pricing, though the median ADR of $191 still trails the US median of $232. Morena’s 6.1% gross yield places it in just the 19th percentile nationally, reflecting stiffer home prices and only moderate returns compared to other US markets.

The most common listings are 1-bedrooms (22 of 45 active), which earn $21,356 per year, an important underwriting detail for buyers considering smaller units. The 16.6-year payback period is longer than most, but steady active-operator revenues of $46,082 offer predictability for those prioritizing reliable income over rapid appreciation. The Morena analytics page details monthly swings and bedroom splits.

Who this market is ideal for: Buyers wanting steady returns and a winter bookings boost.

8. Hillcrest: Spring Peaks and Urban Flexibility

Spring’s robust travel demand drives Hillcrest’s short-term rental performance, with March occupancy peaking at 71% and rates reaching $271 per night. While spring delivers 29% of annual revenue, both winter and summer also contribute 26% each, reflecting the neighborhood’s year-round appeal to urban explorers and medical travelers. December sees the lowest occupancy at 46%, underscoring the market’s moderate but manageable seasonality for investors planning cash flow.

Compared to the US median, Hillcrest’s 5.7% gross yield sits at the 16th percentile, though its 56% occupancy rate outpaces the national median of 45% and ADR of $244 edges above the US norm. The past year’s 21% occupancy jump and 30% ADR surge, combined with a 31% drop in listings, signal a tightening market where supply constraints have fueled stronger pricing power.

The 18.3-year payback period aligns with other central San Diego neighborhoods, while the $42,975 active-operator revenue provides a realistic underwriting baseline. Investors should note the dominance of 1-bedroom listings, but 3-bedrooms command the highest earnings, offering upside for those able to secure larger homes. For a closer look at Hillcrest’s property mix and monthly trends, visit the Hillcrest analytics.

Who this market is ideal for: Buyers seeking a central, flexible neighborhood with diverse property types.

9. Allied Gardens: Summer Surge, Family Appeal

Pricing in Allied Gardens sits well above the US median, and the 5.6% gross yield places the neighborhood in the 15th percentile nationwide, reflecting San Diego’s premium home values and steady, if modest, rental returns.

Occupancy outpaces most US markets at 58%, with a pronounced surge in August when rates hit 79% and ADR climbs to $177, underscoring the area’s draw for family vacations during the summer break. In contrast, May’s occupancy trough at 43% highlights the off-peak challenge, but summer’s 38% share of annual revenue helps smooth out the year’s cash flow for investors focused on seasonal peaks.

Recent market shifts show occupancy up 18% year-over-year while ADR dropped 28%, a sign that operators have responded to tighter supply (listings fell 21%) by maximizing volume at lower nightly rates. This strategy has kept active-operator revenue strong at $53,174, supporting a typical San Diego payback horizon of 18.1 years despite high buy-in costs.

The mix of larger homes and a family-friendly reputation makes Allied Gardens a reliable choice for those seeking stable summer demand, even as pricing pressure shapes the revenue profile. For more on seasonal trends, see the Allied Gardens analytics.

Who this market is ideal for: Buyers prioritizing summer bookings and family-friendly homes.

10. Serra Mesa: High ADR, Steady Returns

Pricing strength shapes Serra Mesa’s investment profile, as the market’s $309 median ADR stands well above the US median of $232 and helps offset its relatively modest 5.5% gross yield. Occupancy hits a robust 73% in July, while January sees a dip to 48%, reflecting strong summer travel demand that drives 31% of annual revenue into just three months. This pronounced seasonality means operators must capitalize on peak months to maximize returns.

Compared with 501 US markets, Serra Mesa’s yield sits at the 14th percentile, but its 56% occupancy rate is notably higher than the US median of 45%. The 18.3-year payback period is in line with other San Diego neighborhoods, signaling a typical return horizon for the region’s price tier.

The most common property type is a 1-bedroom, with 22 active listings earning $12,947 per year at a $70 ADR, but the wide gap to the market’s median ADR highlights opportunities for larger or more premium listings to outperform.

Recent trends reveal a nuanced market. Occupancy slipped 5% year-over-year, yet ADR surged 24%, and active listings dropped 25%, suggesting supply tightened as operators focused on higher nightly rates. This combination of steady demand and pricing power makes Serra Mesa an appealing choice for buyers prioritizing central location and consistent, high nightly revenue. Explore the Serra Mesa analytics for more detail on property types and seasonality.

Who this market is ideal for: Buyers seeking high nightly rates and steady returns in a central location.

How to read these rankings before you buy

Gross yield is a powerful first filter for comparing neighborhoods, but it’s only the starting point. It reflects annual revenue as a percentage of median home value, before expenses or financing. Headline revenue averages all listings, but the active-operator benchmark filters for hosts with consistent bookings, offering a more realistic underwriting target for buyers planning to operate full-time.

Seasonality, payback period, and bedroom mix all shape risk and return. Always verify regulations, property condition, and block-level demand before making an offer. Neighborhood-level stats guide your search, but every property is unique.

How to Act on This

San Diego’s short-term rental market is competitive and highly regulated. The city’s Short-Term Residential Occupancy (STRO) Ordinance requires a license for any rental under one month, with different tiers based on location and property type. Only one license may be held per host, and whole-home permits are capped outside Mission Beach. Investors should review the city’s official STRO resources and confirm their property’s eligibility before proceeding.

Transient Occupancy Tax rates vary by location but start at 10.5% for most rentals. With supply tightening and demand on the rise, buyers must move quickly and underwrite conservatively, using active-operator revenue, not just headline averages. Connect with a local short-term rental agent for up-to-date guidance on regulations, tax implications, and neighborhood trends. If you’re ready to take the next step, match with a San Diego STR agent to navigate the process with confidence.