Short-Term Rental Rules in San Diego: A General Overview

The City of San Diego requires a license for short-term residential occupancy, which means renting a home for less than one month. At the time this article was written (October 2026), the City Treasurer's page said licenses come in four tiers, and it listed 8,429 licenses issued in total. This guide is a general overview of what the City published. It covers only the City of San Diego. It is not legal or tax advice, and I am a REALTOR, not an attorney.

What the City requires

The City of San Diego calls short-term rentals Short-Term Residential Occupancy, or STRO. The City Treasurer's page says a license is required for any rental of less than one month. The City updated the page on October 9, 2026.

The page says a host must be a natural person, meaning a real person and not a company. It says there is one license per host, and LLCs cannot hold one. A host also needs a Transient Occupancy Tax certificate, and the page notes that a Rental Unit Business Tax applies.

Other cities and the unincorporated county have their own short-term rental rules. This guide covers only the City of San Diego.

The four license tiers

At the time this article was written, the City Treasurer's page described the tiers like this.

Tier	What the City page describes	Licenses issued
Tier 1	Rentals up to 20 days a year	135
Tier 2	Home sharing, with the host onsite. Whole-home rental is limited to up to 90 days a year.	2,336
Tier 3	Whole-home rentals outside Mission Beach. Capped at 1% of housing units. Two-night minimum stay.	4,859 (802 remaining)
Tier 4	Whole-home rentals in Mission Beach. Capped at 30%. No licenses remaining, with a waitlist lottery.	1,099

These numbers change as licenses are issued, renewed or ended. The City page is the place to see the current count.

The page also says Tier 3 and Tier 4 hosts must use the home at least 90 days a year and must send quarterly reports. The City Treasurer's page has the exact definitions, and I am only summarizing it.

Fees listed by the City

At the time this article was written, the City page listed fees that took effect March 1, 2025. It said licenses last two years. The yearly column below is my math. It is the application fee plus the license fee, divided by two years.

Tier	Application fee	License fee	Total for two years	About per year (my math)
Tier 1	$33	$193	$226	$113.00
Tier 2	$33	$284	$317	$158.50
Tiers 3 and 4	$41	$1,129	$1,170	$585.00

These fees do not include the Transient Occupancy Tax or the business tax, and they do not include any cost of insurance, cleaning or furnishing. The City can change fees, so please check its page.

Reading the numbers on the City page

The counts on the City page can help a reader see how the system works. My math: 135 plus 2,336 plus 4,859 plus 1,099 equals 8,429, which matches the total the City listed. For Tier 3, my math adds 4,859 issued and 802 remaining to get 5,661. That would be the cap on whole-home licenses outside Mission Beach at the time the page was updated.

Tier 4 is different. The page said no Mission Beach licenses remained, with a waitlist lottery. In plain words, the number of licenses is limited by the City, so a license may not be available to everyone who wants one. Whether one is available now is a question for the City Treasurer.

Costs beyond the license

The license is only one cost of hosting. The City page names two taxes, and a host may have other costs that the City does not list.

• The Transient Occupancy Tax certificate and the tax itself.
• The Rental Unit Business Tax.
• Everyday costs such as cleaning, supplies, utilities, furniture and insurance. The City page does not list these, and they vary by property.
• Time spent on guest messages, check-ins and quarterly reports where they apply.

A CPA can explain how rental income and taxes work for a specific host. Insurance questions go to an insurance agent.

ADUs and short-term rentals

The City's page says ADUs cannot be used as short-term rentals. It lists a narrow exception for permitted companion units built before October 15, 2017. If you are reading about ADUs, my overview of ADUs in San Diego explains that the City's ADU bulletin has a minimum rental term of 31 days.

Whether a certain unit counts as an ADU or a companion unit is a question for the City.

What the City says about violations

The City Treasurer's page lists penalties for hosting without following the rules. They include a notice of violation and license revocation. The page is a summary, and the municipal code has the details.

Neighbors, associations and lenders can also have rules of their own. A lease, an HOA's rules or a loan agreement may limit short-term stays even where the City allows a license. For legal questions, an attorney can read those documents.

How short-term rentals fit with other rental topics

A short-term rental is a different kind of rental from a long-term lease. The state rent cap I describe in my overview of rent increase rules in San Diego is about long-term tenancies. Short-term stays follow the City's license rules instead.

Income from either type depends on costs and vacancy. My overview of cash flow, cap rate and cash-on-cash return explains the math that investors use to compare them. None of those numbers are guaranteed.

Please talk with a professional

City rules for short-term rentals have changed over the years, and the page I used shows counts and fees that can change. I did not find a second primary source for this topic, so I kept to what the City Treasurer published.

I am a REALTOR, not an attorney or tax advisor. For questions about licensing, taxes or a specific property, please talk with an attorney or tax professional, and contact the City Treasurer.

Questions people bring to the City or an attorney

• Which tier would apply to this property and this host?
• Is a license available now, or is there a waitlist?
• Do the HOA rules, lease or loan terms allow short stays?
• What taxes and certificates apply, and who files them?
• Does the unit count as an ADU, and does an exception apply?

Related guides

• Rent increase rules in San Diego
• Cash flow, cap rate and cash-on-cash return in San Diego
• House hacking in San Diego
• 1031 exchanges for San Diego investment property
• ADU rules, costs and rental income in San Diego
• How San Diego property taxes are calculated

Frequently asked questions

Do I need a license to rent my San Diego home short term?

At the time this article was written, the City of San Diego Treasurer said a license is required for any rental of less than one month. Please check with the City about your own property.

What are the short-term rental license tiers in San Diego?

At the time this article was written, the City described four tiers. They range from up to 20 days a year to whole-home rentals with caps on the number of licenses.

Can an LLC hold a San Diego short-term rental license?

At the time this article was written, the City page said a host must be a natural person and that there is one license per host, with no LLC hosts. An attorney can explain how that applies to you.

Can I use my ADU as a short-term rental in San Diego?

At the time this article was written, the City said ADUs cannot be used as short-term rentals, with an exception for certain permitted companion units built before October 15, 2017. Please ask the City about a specific unit.

How much does a San Diego short-term rental license cost?

At the time this article was written, the City listed fees that took effect March 1, 2025, such as $33 plus $193 for Tier 1 and $41 plus $1,129 for Tiers 3 and 4. Licenses last two years, and other taxes apply.

About the author

Trevor Landress is a San Diego REALTOR® with Coldwell Banker West (DRE# 02126901). He was born and raised in San Diego and has been licensed since 2021. Trevor helps homeowners sell, guides first-time buyers through the home buying process and assists investors with their next acquisition. His work includes negotiating offers, analyzing market trends, building pricing strategies and running marketing campaigns for his listings.

He serves clients across San Diego County, from coastal communities like La Jolla, Del Mar and Carlsbad to neighborhoods inland. Trevor is part of the Campbell Group, a three-generation real estate team, and he and the Campbell Group consistently rank as a top producing team at Coldwell Banker West each month. He writes these guides to help San Diego buyers and sellers navigate an ever-changing market.

Each guide on this blog is built from official or primary sources, and the text names the source and the month it was checked. When a fact can go stale, such as a rate, a fee, a deadline or a rule, the guide says so. The goal is plain answers you can use before you make a big decision.

Trevor is a REALTOR, not a tax advisor, attorney, lender or contractor. For questions in those areas, he recommends you check with the right professional. To talk through your plans, call or text (619) 402-4614 or contact Trevor Landress.

How I help San Diego home buyers

Trevor guides first-time buyers through the home buying process, from setting a budget to closing. His work includes negotiating offers and analyzing market trends so buyers understand what a home may really cost to own.

How I help San Diego home sellers

Trevor helps homeowners sell with pricing strategies, marketing campaigns, offer negotiation and market analysis, so sellers know what to expect before they list.

Sources

• City of San Diego Office of the City Treasurer, Short-Term Residential Occupancy (updated October 9, 2026)

This guide is general information only. It is not tax, legal or financial advice, and I am not a tax professional or an attorney. Please talk with a licensed CPA, tax professional or attorney, and with the County or the agency named above, before you make any decision.