Short-term rental rules · San Diego, California
Short-term rentals in San Diego, explained properly.
San Diego uses a four-tier Short-Term Residential Occupancy (STRO) licensing system. Whole-home rentals without an on-site host (Tier 3) are capped citywide at 1% of housing units, and a separate, harder-capped Tier 4 exists just for Mission Beach — both caps are effectively full, so new whole-home licenses largely depend on the resale/waitlist market or a lottery.
Draft. These rules were compiled from the official sources listed below but have not yet been checked line by line. Confirm with the city before making decisions.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| License tiers | Tier 1: part-time (≤20 days/year, no residency requirement). Tier 2: home-sharing (host lives on-site, up to 90 days/year absence allowed). Tier 3: whole-home outside Mission Beach (no host on-site, 90+ days/year minimum use). Tier 4: whole-home within Mission Beach only.[1] |
| Tier 3 citywide cap | Capped at 1% of San Diego's total housing units (outside Mission Beach)[1]Confirming |
| Tier 4 (Mission Beach) cap | Capped at 30% of Mission Beach housing units — capacity exhausted (1,099 licenses issued)[1]Confirming |
| Registration required? | Yes — an STRO license plus an active Transient Occupancy Tax Certificate and current Rental Unit Business Tax compliance[1] |
| Application and license fees (effective March 1, 2025) | Tiers 1-2: $33 application, $193-$284 license. Tiers 3-4: $41 application, $1,129 license. All fees non-refundable; renewal fees match initial fees.[1] |
| License validity | Licenses expire 2 years from issuance, are renewable, and are non-transferable between hosts or properties[1] |
| Combined guest tax | 11.75%-13.75% Transient Occupancy Tax depending on the property's tax zone, plus up to a 2% Tourism Marketing District assessment on smaller properties if the operator elects to pass it on[2]Confirming |
| Unlicensed operation | Operating an STRO without a license (in effect since May 1, 2023) triggers a Notice of Violation with penalties, and can lead to civil penalties, license revocation, and disqualification from future licensing[1] |
| Non-owner hosts (renters/lessees) | Must obtain a Business Tax Certificate and provide right-to-occupy documentation before hosting[1] |
| Last researched | September 25, 2026 |
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Detailed rules
The full picture, section by section
Eligibility & zoning
| Tier 1: Part-time | Rented for an aggregate of 20 days or fewer per calendar year; no host residency requirement[1] |
|---|---|
| Tier 2: Home-sharing | More than 20 days annually; requires the host's permanent residence on-site, with up to 90 days of host absence allowed per year[1] |
| Mission Beach boundary | Tier 4 applies only within the Mission Beach Community Planning Area; whole-home STRs anywhere else in the city fall under Tier 3's citywide 1% cap[1] |
Licensing & application
| Application process | Applications for Tiers 1, 2, and 3 are open on a rolling basis (subject to the Tier 3 cap); Tier 4 (Mission Beach) is allocated by periodic lottery when its waitlist reopens[1] |
|---|---|
| Tier 3 minimum use requirement | A Tier 3 license holder must rent the unit at least 90 days per year to keep the license active[1] |
Operations & requirements
| Host signage | The city provides a standard STRO host signage template that must be posted at the property[3] |
|---|
Taxes & fees
| TOT rate by zone (effective May 1, 2025) | Tax Zone 1: 11.75%. Tax Zone 2: 12.75%. Tax Zone 3: 13.75%[2] |
|---|---|
| Tourism Marketing District (TMD) assessment | 2.00% assessment applies to lodging businesses; for short-term rentals, the operator may elect to pass this assessment on to the guest[2]Confirming |
Changes
Recent and pending changes
Checked the City of San Diego Office of the City Treasurer's STRO program page and TOT/TMD page as of the research date below. The Tier 3 and Tier 4 license counts (issued vs. remaining) are self-reported by the city and change frequently as licenses are issued, revoked, or expire — treat the specific numbers here as a snapshot, not a live count. Watch the city's STRO Lottery page for the next Tier 4 (Mission Beach) application window, and San Diego City Council agendas for any change to the Tier 3 citywide cap.
New STRO fee schedule took effect, covering Tier 1-2 ($33 application / $193-284 license) and Tier 3-4 ($41 application / $1,129 license).
Current zone-based TOT rates (11.75%-13.75%) took effect May 1, 2025.
Sources
Every rule above links to one of these
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This page is general information compiled from official sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.