Short-Term Rental Licenses in San Diego: Tiers, Caps and Fees

Reviewed by Brendan McKee, Managing Broker, DRE #01882732, on October 21, 2026.

To rent a home or part of a home short term in the City of San Diego, the host needs a Short-Term Residential Occupancy (STRO) license in one of four tiers, a Transient Occupancy Tax registration certificate, and a paid Rental Unit Business Tax account. As of October 9, 2026, whole-home licenses outside Mission Beach (Tier 3) had 802 of the capped slots left and Mission Beach whole-home licenses (Tier 4) had none, and whole-home hosts must use the license at least 90 days a year. These rules cover the City of San Diego only; Coronado and other cities set their own.

Key takeaways

• Four tiers: Tier 1 is 20 days or less a year; Tier 2 is a home share with the host living on site; Tier 3 is a whole home outside Mission Beach; Tier 4 is a whole home in Mission Beach.
• Tier 3 is capped at 1% of the City's housing units outside Mission Beach, and Tier 4 at 30% of Mission Beach's units. Tier 4 applications are closed.
• Fees effective March 1, 2025: Tier 1 $33 plus $193; Tier 2 $33 plus $284; Tiers 3 and 4 $41 plus $1,129. Licenses last two years and are not transferable.
• Tiers 3 and 4 need at least 90 days of use a year, quarterly reports and a two-night minimum stay.
• Transient Occupancy Tax is 11.75%, 12.75% or 13.75% depending on the property's zone, since May 1, 2025.
• ADUs may not be used as short-term rentals in the City, apart from companion units permitted before October 15, 2017.

The four license tiers

The STRO rules are in San Diego Municipal Code ch. 5, art. 10, div. 1, and the City Treasurer administers them.

The City reported 8,429 licenses in total on its STRO page updated October 9, 2026. The application period for Tiers 1, 2 and 3 is open, and the Tier 4 period is closed. The Tier 4 waitlist application window ran July 1 to August 15, 2025 and has closed. Counts change as licenses are issued and expire, so check the City's STRO page (opens in a new tab) for current numbers.

Tier 2 residency. A Tier 2 host must occupy the home as a primary residence for at least 275 days of the calendar year (§ 510.0104(c)(3)).

One license per host. "A host may only hold one license at a time" (§ 510.0104(a)(2)). Licenses are not transferable (§ 510.0106(e)), so a buyer cannot take over a seller's license, and each license expires two years after issuance.

Fees, minimum use and minimum stay

The fees below took effect March 1, 2025. Renewals cost the same, and "all fees are non-refundable."

The 90-day rule. Tier 3 and Tier 4 hosts must "use the license a minimum of 90 days each year during the term of the license and submit quarterly reports" (§ 510.0107(c)). The City adds that short-term occupancy of 21 to 89 days a year "is not allowed under the STRO Ordinance." For a whole home, that means renting short term either 20 days or fewer a year under Tier 1, or at least 90 days a year under Tier 3 or 4.

Two-night minimum. Tiers 3 and 4 require "a two consecutive night minimum stay by the same guest."

Taxes: TOT, the business tax and what does not apply

Transient Occupancy Tax. Since May 1, 2025, Measure C divides the City into three tax zones at 11.75%, 12.75% and 13.75%; the rate before that was 10.50%. Use the City's zone lookup map to find a property's rate on the TOT page (opens in a new tab). You need a Transient Occupancy Registration Certificate, returns are filed monthly and are "due no later than the last day of the following month," and the certificate number must appear on all ads. Late returns carry a 1% penalty for the first day plus one-third of 1% a day after that, up to 25%.

Tourism Marketing District. The 2.00% TMD assessment applies only to lodging businesses with 70 or more rooms, so it does not apply to a typical single short-term rental.

Rental Unit Business Tax. The City's exemption for an owner-occupied home does not cover short-term rentals: "Property owners renting their residence or portion of as a short term rental are required to pay the tax." Hosts must show proof of payment on request (§ 510.0107(f)). See the Rental Unit Business Tax guide for the fee schedule.

Tenant protections. Short-term occupancy licensed under the STRO is exempt from the City's Tenant Protection Ordinance (SDMC § 98.0703). If you switch the home to a lease of more than 30 days, the Tenant Protection Ordinance can apply from day one.

This is general information, not legal or tax advice. Confirm the details for your situation with a California attorney or tax professional.

Host duties and enforcement

Every licensed host must:

1. Give each guest the Good Neighbor Policy notice (§ 510.0107(g)), covering respect for neighbors, the room count and maximum occupants, parking, trash and recycling, City noise limits "including the issuance of individual administrative citations in an amount up to $1,000 to each guest and to the host," that overstaying guests may be treated as trespassers, and that guests may be charged for police response costs.
2. Respond to complaints "in person or by telephone within one hour."
3. Post an exterior sign "8.5 x 11 inches … all caps, black, bold, 20-point font."
4. Comply with the Fire Code.

Operating without a license can bring "a Notice of Violation with an assessment of penalties." The City may issue a verbal warning, written warning, notice of violation or revocation "without any requirement that the actions escalate in severity" (§ 510.0109(b)). A third violation within 12 months can lead to revocation, a license cannot be renewed if a revocation was taken or in progress in the prior 12 months, and appeals must be filed within 10 calendar days.

ADUs, Coronado and other cities

ADUs. "The San Diego Municipal Code prohibits using ADUs for short-term rental and will result in a Code violation." The only exception is a companion unit permitted before the October 15, 2017 prohibition. Separately, an ADU in the City may not be rented for less than 31 consecutive days (SDMC § 141.0302(b)(8)). More on this in renting out a San Diego ADU.

Coronado is its own city, and the City of San Diego's STRO does not apply there. Coronado's own rules are explained in Coronado short-term rental rules. Other cities in the county have their own rules, so check the local code before you list.

Short-term, mid-term or long-term?

With Tier 4 closed and Tier 3 capped, many owners compare a licensed short-term rental with a furnished stay of more than 30 days or a standard lease. Each option has different rules for licensing, taxes and tenant protections; the comparison is in long-term, mid-term or short-term rentals in San Diego, and the rental length rule checker helps test a planned stay length. If you own a second home you use part of the year, see vacation home property management; for long-term leasing, see San Diego property management.

Frequently asked questions

Do I need a license for a short-term rental in San Diego?

Yes, inside the City of San Diego. Any short-term residential occupancy needs a STRO license in Tier 1, 2, 3 or 4, plus a Transient Occupancy Registration Certificate and Rental Unit Business Tax payment. Operating without a license can lead to a notice of violation with penalties. Other cities, including Coronado, have their own rules.

How many short-term rental licenses are left in San Diego?

As of the City's update on October 9, 2026, Tier 3 (whole home outside Mission Beach) had 4,859 licenses issued and 802 remaining, and Tier 4 (Mission Beach whole home) had 1,099 issued and none remaining, with applications closed. Tiers 1 and 2 have no cap. Counts change, so check the City's STRO page.

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

Under fees effective March 1, 2025, Tier 1 is a $33 application fee plus a $193 license fee, Tier 2 is $33 plus $284, and Tiers 3 and 4 are $41 plus $1,129. Licenses last two years, renewals cost the same, and all fees are non-refundable.

Do I need to collect Transient Occupancy Tax for a short-term rental in San Diego?

Yes. You need a Transient Occupancy Registration Certificate and must file monthly returns, due by the last day of the following month. Since May 1, 2025 the rate is 11.75%, 12.75% or 13.75% depending on the property's zone under Measure C, and the certificate number must appear on all your ads.

Can I rent my San Diego ADU on a short-term rental site?

No. The City prohibits using ADUs for short-term rental, except companion units permitted before October 15, 2017, and an ADU may not be rented for less than 31 consecutive days. The main home may be eligible for a STRO license if the host meets the tier rules.

Next step: run the numbers on each option

A short-term license is only one way to earn from a San Diego home, and with the caps in place it may not be available for yours. A free San Diego rental analysis shows what the home could earn as a long-term rental so you can compare. McKee Properties has managed San Diego rentals since 1982.