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Short-Term Rental Regulations
in San Diego, CA

Last verified: March 2026 · Report an update

Zoning & Conditions

Short-term rentals are restricted by a four-tier licensing system with citywide caps (1% of housing units outside Mission Beach; 30% within). Tier 2 requires the unit to be a primary residence for 275+ days/year, while Tiers 3 and 4 require 90+ days of annual utilization and a 2-night minimum stay for guests.

How to Obtain a Permit

1) Ensure compliance with Transient Occupancy Tax (TOT) and Rental Unit Business Tax. 2) Apply for a license via the City's STRO application portal (subject to lottery for Tiers 3 and 4). 3) Maintain records for 4 years and submit quarterly reports to the STRO program.

Regulatory Updates — San Diego

Proposed and recent legislation

PassedJuly 2023

Tiered STR Licensing System — Implemented 2023

San Diego's City Council approved a four-tier STR licensing system effective July 2023. Tier 1 covers hosted home-sharing (host present); Tier 2 covers primary-residence whole-home rentals when the host is away (limited nights); Tier 3 covers non-primary-residence whole-home rentals, capped at roughly 1% of the city's total housing units via annual lottery; and Tier 4 is a legacy status for Mission Beach properties. The transition was contentious, with thousands of operators losing the ability to legally operate.

Official source
PassedAugust 2023

Tier 3 Lottery — First Annual Drawing Controversy

The first Tier 3 lottery in 2023 was heavily oversubscribed, with far more applicants than available permits. Many longtime operators who had operated legally under prior rules did not receive a license. Legal challenges from unsuccessful applicants alleged procedural irregularities in the lottery process. The city defended the process and subsequent lotteries have proceeded.

PassedJuly 2023

Mission Beach Tier 4 Legacy Status

Mission Beach was granted a separate Tier 4 license category acknowledging the beach community's historic reliance on vacation rentals as a primary source of income. Tier 4 permits are not subject to the citywide 1% cap, providing somewhat greater stability for Mission Beach operators. This special status reflects the unique character of the community where vacation rentals predate modern STR regulation.

Official Resources

Official San Diego STR regulation source

Local Resources & Advocacy

San Diego Short-Term Rental AllianceLocal

Local advocacy organization representing San Diego STR operators, actively engaged in the tiered licensing debate and monitoring city council discussions of cap adjustments.

California Rental Housing Association (CalRHA)Statewide

Statewide rental housing association with San Diego members tracking the tiered licensing system and advocating for property owner rights.

Vacation Rental Management Association (VRMA)National

National trade association that has closely monitored San Diego's tiered licensing transition as a model for cities considering similar systems.

Frequently Asked Questions

Are short-term rentals allowed in San Diego, CA?
Short-term rentals are restricted by a four-tier licensing system with citywide caps (1% of housing units outside Mission Beach; 30% within). Tier 2 requires the unit to be a primary residence for 275+ days/year, while Tiers 3 and 4 require 90+ days of annual utilization and a 2-night minimum stay for guests.
Is a permit required to operate a short-term rental in San Diego?
Yes, a permit is required to operate a short-term rental in San Diego. 1) Ensure compliance with Transient Occupancy Tax (TOT) and Rental Unit Business Tax. 2) Apply for a license via the City's STRO application portal (subject to lottery for Tiers 3 and 4). 3) Maintain records for 4 years and submit quarterly reports to the STRO program.
How do I get a short-term rental permit in San Diego?
1) Ensure compliance with Transient Occupancy Tax (TOT) and Rental Unit Business Tax. 2) Apply for a license via the City's STRO application portal (subject to lottery for Tiers 3 and 4). 3) Maintain records for 4 years and submit quarterly reports to the STRO program.
What are San Diego's four STR license tiers?
San Diego's tiered STR system works as follows: Tier 1 is for hosted home-sharing where the host is present during guest stays, with no annual night cap; Tier 2 is for primary-residence whole-home rentals while the host is temporarily away, capped at a limited number of nights per year; Tier 3 is for non-primary-residence (investment) whole-home rentals, available only through an annual lottery and capped at approximately 1% of housing units citywide; and Tier 4 is a legacy category exclusive to Mission Beach, exempt from the citywide 1% cap. Each tier has different fee structures and eligibility requirements.
How does the Tier 3 lottery work in San Diego?
San Diego holds an annual lottery to allocate available Tier 3 licenses (non-primary-residence whole-home STRs). Applicants apply during an open enrollment window, and licenses are awarded randomly until the cap is reached. There is no priority for previous operators, number of years in business, or prior compliance history — each eligible application has an equal chance. If you do not win a license in a given year, you must reapply in the next lottery cycle. The demand for Tier 3 licenses typically far exceeds the available supply.
Can I still operate my non-primary investment property as an STR in San Diego?
Only if you hold a valid Tier 3 license obtained through the annual lottery. If you did not receive a Tier 3 license and your property is not your primary residence, you cannot legally operate it as an STR under San Diego's current rules. Operating without a license subjects you to significant fines. If you are purchasing an investment property in San Diego with STR intentions, ensure you understand the lottery process and the low odds of obtaining a Tier 3 license before completing the purchase.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction