San Diego short-term rental rules in 2026.

San Diego has implemented a tiered Home Sharing Program that prioritizes primary residence rentals and actively restricts pure investment STRs. Unlike Joshua Tree or unincorporated county areas, San Diego is a primary-residence-biased market similar to Nashville: a property's zoning and the owner's occupancy status determine whether an STR is viable. If your client is underwriting a pure investment property in San Diego, verify permit eligibility before building the pro forma.

Home Sharing Program tiers

San Diego's Home Sharing Program has four tiers. Tiers 1-3 are legal and available under specific conditions. Tier 4 (non-primary residence/investment STR) is banned in most residential zones.

Tier 1: Home Sharing (no permit required)

Owner's primary residence, rented for up to 20 days per calendar year, owner not required to be present. No license or permit required. This tier is rarely profitable for investors.

Tier 2: Home Sharing with Host (license required)

Owner's primary residence, owner must be present (or on-site) during guest stays, limited to one guest party at a time. Requires Home Sharing License from the city. This tier is used for house-hacking scenarios but impractical for pure investment.

Tier 3: Whole-Home Home Sharing (lottery-based)

Owner's primary residence, owner not required to be present, whole-home rental allowed. Requires Home Sharing License obtained via lottery. The lottery has a long waitlist, and permits are limited. New applicants often wait 12+ months. This is the only practical tier for primary residence-based investment.

Tier 4: Non-Primary Residence (banned)

Pure investment STRs where the property is not the owner's primary residence. Banned in residential zones. Only available in specific commercial/mixed-use districts. Most San Diego residential neighborhoods prohibit this tier entirely.

The rules at a glance

Tax stack

San Diego STRs owe 10.5% Transient Occupancy Tax plus a $1.45 per night tourism assessment. Combined, this represents approximately 12% of gross nightly revenue. Airbnb and VRBO collect and remit the TOT in most San Diego listings, but hosts are responsible for the nightly fee if platforms do not collect. Verify platform coverage with current platform documentation before advising clients.

Primary residence requirement and verification

San Diego strictly enforces the primary residence requirement. The city defines primary residence as the owner's actual place of abode where they reside more than 50% of the year. The city verifies this via inspections, utility bills, voter registration, and other documentation. False claims of primary residence can result in license revocation, fines, and back-tax liability. If your client owns the property as an investment (not a primary residence), they are ineligible for Tiers 1-3. Check whether they can qualify for Tier 4 (non-residential zones) before proceeding.

What this means for your client's underwrite

San Diego is a primary-residence-only market for practical STR investing. If your client is buying a property as a pure investment (non-primary residence), it is likely unpermitted and unprofitable in San Diego. Three critical checks:

1. Confirm whether the property qualifies as the client's primary residence. If not, check if it sits in a commercial/mixed-use zone allowing Tier 4 (rare).
2. If applying for Tier 3 (Whole-Home), budget 12+ months for lottery entry and license issuance.
3. Model 12% of gross nightly revenue for taxes (10.5% TOT + $1.45/night), and verify platform coverage.
4. Understand that the lottery system means no guaranteed STR income until the license is issued.

San Diego is much more restrictive than Nashville for institutional investors. A house-hack strategy (owner occupies) is more viable than a pure investment deal.