If you want to rent a San Diego home on Airbnb, VRBO or a similar platform, the City of San Diego requires a Short-Term Residential Occupancy (STRO) license for any guest stay of less than one month. Operating without one is unlawful. The license comes in four tiers, two of them are capped, and you need tax registrations in place before you can apply. This guide covers what the city requires, what it costs, which properties are off limits, and how the rules change once you cross the city line.
TL;DR
- Stays of less than one month per guest need an STRO license in the City of San Diego, and operating without one is unlawful.
- There are four tiers: part-time (20 days or less), home sharing, whole home outside Mission Beach, and whole home in Mission Beach. Tier 4 is at capacity.
- Before applying you need an active Transient Occupancy Tax (TOT) certificate and a paid Rental Unit Business Tax account.
- Newer ADUs, JADUs, guest houses and income-restricted housing cannot be used as STROs.
- Rules differ in unincorporated San Diego County and in other cities, so check the jurisdiction where the property sits before you buy.
Table of Contents
- What counts as a short-term rental in the City of San Diego
- The four STRO license tiers
- Fees, taxes and registrations before you apply
- Operating requirements once you are licensed
- Where you cannot run an STRO
- City of San Diego versus the county and nearby cities
- Financing a short-term rental purchase
- Our perspective
- Buying or selling a home with short-term rental history
- FAQ
- Sources
What counts as a short-term rental in the City of San Diego
The city’s municipal code defines short-term residential occupancy as occupancy of a dwelling unit or part of one for less than one month. That covers a whole house, a condo, a spare bedroom, or a granny flat if it is otherwise eligible.
The ordinance applies to dwelling units across the city’s nine council districts, regardless of base zoning. A property being zoned residential does not exempt it, and neither does a platform’s own rule about minimum stays.
A practical point: stays of a month or longer are treated as ordinary tenancies for STRO purposes. That is why many owners who want to avoid the license cap move to furnished mid-term rentals. Those still carry landlord obligations, so look at the lease rules before you assume it is simpler.
The four STRO license tiers
The city sorts hosts by how often they rent and whether they live on site. According to the municipal code and the City Treasurer’s STRO page, the tiers work like this:
| Tier | Who it is for | Rental days | Key conditions |
|---|---|---|---|
| Tier 1, Part-Time | Any eligible dwelling | 20 days or less per year | Host does not need to be on site |
| Tier 2, Home Sharing | Host’s primary residence | More than 20 days per year | Host lives there at least 275 days a year |
| Tier 3, Whole Home | Non-hosted rentals outside Mission Beach | More than 20 days per year | Two-night minimum stay, citywide cap of 1% of housing units |
| Tier 4, Mission Beach Whole Home | Non-hosted rentals in Mission Beach | More than 20 days per year | Two-night minimum stay, cap of 30% of housing units in Mission Beach |
A few details matter more than the table suggests.
One host, one license, one home
The city limits a host to one active license and one dwelling operated as an STRO at a time. If you are an investor thinking of building a portfolio of San Diego Airbnbs, the city ordinance does not allow it.
The 275-day rule for home sharing
For Tier 2, you must occupy the home as your primary residence for at least 275 days in the relevant calendar year. If you did not hold the home for the full preceding year, the test is at least 75% of the days you owned or rented it. The home must be your real primary residence, so a second home does not qualify for Tier 2.
Whole-home licenses are capped
Tier 3 and Tier 4 are the competitive ones. The Treasurer’s page shows how many licenses have been issued and how many remain, and Tier 4 in Mission Beach is currently at capacity. Tier 3 availability changes over time, so check the live count before you build an investment case around it.
Whole-home licensees also have to keep the property in use. The ordinance requires at least 90 days of STRO utilization each year to keep a Tier 3 or Tier 4 license, and quarterly reports must be submitted.
Fees, taxes and registrations before you apply
The license is the last step, not the first. The City Treasurer says you need an active TOT certificate and an active, paid Rental Unit Business Tax account before applying.
- Application fee: $33 for Tiers 1 and 2, $41 for Tiers 3 and 4.
- License fee: between $193 and $1,129 depending on tier, per the same page.
- Transient Occupancy Tax (TOT): hosts must hold a TOT certificate, collect the tax from guests and remit it to the city.
- Rental Unit Business Tax: property owners must pay it for rentals over 6 days per year.
Fees are reviewed periodically, so confirm the current schedule with the Treasurer’s office before budgeting. Many platforms collect and remit some taxes for you, but the city still expects your own certificate and account to be in order.
If you are modeling returns on a purchase, the property tax side matters too. Our guide to San Diego property taxes walks through how the bill is built and where closing surprises come from.
Operating requirements once you are licensed
Since May 1, 2023, every STRO host has to follow the city’s operating requirements:
- Maintain a Good Neighbor Policy and share it with guests.
- Post notice of your TOT and STRO license on the exterior of the property.
- Provide guests with human trafficking awareness guidance.
- Complete the required host training.
Failure to comply can lead to civil penalties and license revocation. A revoked license on a capped tier is hard to replace, which is a strong reason to treat these rules as part of the business model, not paperwork.
Where you cannot run an STRO
Eligibility depends on the property type as much as on the tier. The city’s own guidance says STROs are prohibited in:
- Income-restricted affordable housing
- Student housing
- ADUs and JADUs permitted after September 2017
- Guest houses
- Vehicles
The ADU rule catches a lot of buyers. A newly built backyard unit looks like an obvious Airbnb, but if it was permitted after September 2017 it cannot be a short-term rental in the city. It can still be a long-term rental or house family. If you are weighing a property with an accessory unit, our ADU rules guide covers size, setbacks, parking and cost.
HOA covenants and lease terms are a separate layer. An HOA can prohibit short stays even where the city would license them, so read the CC&Rs before you make an offer.
City of San Diego versus the county and nearby cities
The STRO system belongs to the City of San Diego. It does not follow you across the boundary.
In unincorporated San Diego County, a short-term rental is a stay of fewer than 30 consecutive days, and the County says it does not require a County health permit. The County’s zoning material regulates guest living quarters by zone, size, metering and compatibility, but it does not set up the city’s four-tier cap system.
Other jurisdictions may require their own registrations, permits, licenses and fees. The County’s housing program covers Carlsbad, Coronado, Del Mar, Encinitas, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach, Vista and unincorporated areas, but not Chula Vista, El Cajon, Escondido, Imperial Beach, National City, Oceanside or San Diego. Each of those cities may have its own approach, so call the city before you assume anything.
State law does not replace this patchwork. California leaves most short-term rental regulation to cities and counties, so the address decides the rules.
Financing a short-term rental purchase
Lenders treat a property bought for short-term rental income differently from an owner-occupied home or a long-term rental. Appraisal, income documentation and down payment requirements can all change. If you are exploring short-term rental financing options, talk to a lender before you write an offer, and get your license eligibility confirmed first. Financing a property that cannot legally be licensed is the costliest mistake in this category.
Our perspective
Most people who ask us about Airbnb rules are really asking a buying question: can I afford this home if the rental income does not work out? We tell clients to underwrite the property as a home or long-term rental first, and treat any STRO income as upside.
The reasons are practical. Tier 3 is capped, Tier 4 is full, a host may hold only one license, and newer ADUs are off the table. A listing that mentions “Airbnb potential” is not a license. Before you fall for a Mission Beach cottage or a Pacific Beach duplex, we pull the permit history, ask whether any accessory unit predates the 2017 cutoff, and check the HOA documents.
If you are relocating or buying your first home here, the neighborhood you choose affects this too. Walkable areas near the coast draw the most guests, but they also draw the most neighbor complaints and the strictest scrutiny. We would rather you buy a home you love living in than one that only pencils out with a license you may not get.
— Chelsea Almario
Buying or selling a home with short-term rental history
If you are buying a home that has been used as an Airbnb, ask the seller for the STRO license number, TOT and business tax account status, and the last year of reports. A license is tied to the host and the dwelling, so confirm with the city what happens on transfer instead of assuming it passes to you.
If you are selling, a licensed, compliant property is easier to market than one with unclear history. Our home selling process takes you from pre-list preparation to close in six steps, and we can help you decide how to present the rental history.
We can also help if you are weighing San Diego neighborhoods or relocating from out of state and want to understand what rental rules apply before you tour anything. Chelsea offers a free 20-minute consultation on the buyer page, and you can get a data-backed price for your current home through our home valuation.
FAQ
Do I need a license to host on Airbnb in San Diego?
Yes, if your guests stay less than one month at a time and the home is in the City of San Diego. The city requires an STRO license, and operating without one is unlawful. Stays of a month or longer are outside the STRO definition.
Can I rent my ADU on Airbnb?
Not if it was permitted after September 2017. The city prohibits STROs in ADUs and JADUs permitted after that date, as well as in guest houses. Check the permit date and the city’s location guidance before you list.
Can I own more than one Airbnb in the city?
No. A host is limited to one active license and one dwelling operated as an STRO at a time. Investors looking for multiple units would need to look at other jurisdictions or other rental models.
How much does an STRO license cost?
The application fee is $33 for Tiers 1 and 2 and $41 for Tiers 3 and 4. License fees run from $193 to $1,129 depending on tier. You also need an active TOT certificate and a paid Rental Unit Business Tax account first.
Do the same rules apply in Chula Vista, La Mesa or unincorporated areas?
No. The STRO tiers and caps are specific to the City of San Diego. Other cities and the unincorporated county have their own requirements, so contact the jurisdiction where the property is located.
Sources
- Short-Term Residential Occupancy (STRO), City of San Diego Treasurer
- Article 10: Short-Term Residential Occupancy and Hosting, San Diego Municipal Code
- STRO Host Operating Requirements, City Treasurer
- Where can a Short-Term Residential Occupancy be located, City of San Diego
- Housing Program, County of San Diego
- Part Six: General Regulations, County of San Diego zoning