West Coast5.8% avg cap rate

San Diego, CA

Southern California beach city — year-round coastal STR demand

San Diego is Southern California's most STR-friendly major beach city, combining 70 miles of coastline, near-perfect year-round weather, and neighborhoods like Pacific Beach, Mission Beach, Ocean Beach, and La Jolla that each support distinct STR market profiles. The city regulates STRs through a tiered permit system — whole-home rentals require a license and are subject to availability caps in some zones.

5.8%
Avg Cap Rate
Net operating income / price
68%
Avg Occupancy
Annual average
$495
Avg Nightly Rate
All property types
$895K
Median Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
68% occ × $495/night
$122,859
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
– $49,144
Est. net operating income
Before mortgage & depreciation
$73,715
At median price
Implied cap rate
8.2%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose San Diego

Near-perfect year-round weather — no meaningful off-season
Pacific Beach and Mission Beach among highest-volume CA coastal STR markets
Comic-Con and major military change-of-station cycles drive demand spikes
San Diego STR permit required — confirm availability by neighborhood
Peak season: Year-round (peaks: summer, Comic-Con July)
Top property types: Condo, Single Family, Beach Cottage, Townhouse
Primary zip: 92109, 92107, 92037, 92106, 92103

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

Run a live analysis in San Diego

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