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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 — Tier 3 still had about 807 licenses remaining as of September 25, 2026, while Tier 4 is fully allocated and new Mission Beach licenses are issued only from a lottery-ordered waitlist as licenses free up. Licenses cannot be transferred with a sale.

17 rule fields6 cited sources

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At a glance

What you need to know before you buy or list

QuestionAnswer
License tiersTier 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 capCapped at 1% of San Diego's total housing units (outside Mission Beach) [1]
Tier 4 (Mission Beach) capCapped at 30% of Mission Beach housing units — capacity exhausted (1,099 licenses issued) [1]
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)Tier 1: $33 application, $193 license. Tier 2: $33 application, $284 license. Tiers 3-4: $41 application, $1,129 license. All fees non-refundable; renewal fees match initial fees. [1]
License validityLicenses expire 2 years from issuance, are renewable, and are non-transferable between hosts or properties [1]
Combined guest tax11.75%-13.75% Transient Occupancy Tax depending on the property's tax zone. The 2% Tourism Marketing District assessment is levied only on lodging businesses with 70 or more rooms, so it does not apply to a typical single-unit STR [2]
Unlicensed operationOperating 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]

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Detailed rules

The full picture, section by section

Eligibility & zoning

Tier 1: Part-timeRented for an aggregate of 20 days or fewer per calendar year; no host residency requirement [1]
Tier 2: Home-sharingMore 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 boundaryTier 4 applies only within the Mission Beach Community Planning Area; whole-home STRs anywhere else in the city fall under Tier 3's 1% cap [1]

Licensing & application

Application processApplications for Tiers 1, 2, and 3 are open (subject to the Tier 3 cap). The Tier 4 (Mission Beach) application period is closed: the July 1-August 15, 2025 window fed a lottery-ordered waitlist, and Tier 4 licenses are issued from that waitlist as they become available [1]
Tier 3 and Tier 4 minimum use requirementTier 3 and Tier 4 license holders must use the license (rent the unit) at least 90 days each year of the license term to keep it [1]

Operations & requirements

Host signageHosts must post an 8.5 x 11 inch notice, visible from the sidewalk or public right-of-way (whichever is closer), in all-caps black bold 20-point font, showing the STRO license number, TOT certificate number, and designated local contact name and phone number. The city also requires human-trafficking guidance to be posted conspicuously inside the unit [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) assessment2.00% assessment levied only on lodging businesses with 70 or more rooms (since September 1, 2016); a typical single-unit STR is below that threshold. Where it applies, the operator may elect to pass it on to the guest as a separate line item [2]

Changes

Recent and pending changes

We re-checked the City Treasurer's STRO page (license counts as of September 25, 2026; fees; Tier 4 status), the TOT/TMD page (last updated June 3, 2025), the STRO host signage PDF, the STRO Lottery page, the June 2025 Tier 4 reopening release and the September 15, 2026 Tier 4 waitlist, plus state legislation (SB 346) and local news from the past year. No change to the Tier 3 (1%) or Tier 4 (30%) cap percentages was found. A proposed vacation-rental tax ballot measure was rejected by the City Council Rules Committee on January 28, 2026 (news reports only; not enacted). Tier 3/Tier 4 counts are a snapshot that changes as licenses are issued, revoked or lapse. Watch the Tier 4 waitlist PDF, City Council agendas for cap or tax proposals, and any San Diego ordinance adopting SB 346 platform reporting.

Mar 1, 2025
STRO license and application fees increasedEnacted [1]

New STRO fee schedule took effect, covering Tier 1-2 ($33 application / $193-284 license) and Tier 3-4 ($41 application / $1,129 license).

May 1, 2025
Transient Occupancy Tax zone rates updatedEnacted [2]

Voter-approved Measure C replaced the flat 10.5% TOT with zone-based rates (11.75%, 12.75%, 13.75%) effective May 1, 2025.

Jun 27, 2025
Mission Beach (Tier 4) waitlist applications reopened, then closedEnacted [4] [5]

The city accepted Tier 4 (Mission Beach whole-home) waitlist applications from July 1 to August 15, 2025, the first window since November 2022. A random lottery set waitlist order; licenses are issued from the waitlist only as Tier 4 licenses become available (113 applicants on the published waitlist as of September 15, 2026).

Oct 13, 2025
California SB 346 lets cities require STR platforms to report listing addressesEnacted [6]

SB 346 (Chapter 751, Statutes of 2025, approved October 13, 2025) authorizes local agencies to require short-term rental facilitators such as Airbnb and Vrbo to report each rental's address and to display local license and tax certificate numbers, with administrative fines for non-compliance. It applies in a city only through a local ordinance; whether San Diego has adopted one was not confirmed.

Sources

Every rule above links to one of these

  1. Short-Term Residential Occupancy (STRO)
    City of San Diego, Office of the City Treasurer
  2. Transient Occupancy Tax (TOT)/Tourism Marketing District (TMD)
    City of San Diego, Office of the City Treasurer · page updated May 1, 2025
  3. STRO Tier Four Waitlist
    City of San Diego, Office of the City Treasurer · page updated September 15, 2026
  4. SB 346 Local agencies: transient occupancy taxes: short-term rental facilitator (Chaptered)
    California Legislature (via LegiScan) · page updated October 13, 2025

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This page is general information compiled from public 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.