San Diego Permit Requirements Rules (2026) — What You Need to Know
Heavy RestrictionsKey Facts
- License Fee (Whole-Home)
- $1,066/year
- TOT Tax Rate
- 10.5%
- Tier 1 (Home-Share)
- No night limit, primary residence
- Tier 2 (Whole-Home)
- Primary residence, city cap applies
- Good Neighbor Policy
- Required for all tiers
The Short Version
San Diego overhauled its short-term rental rules in 2022 with one of the most detailed frameworks in California. There are now three tiers. Tier 1 is home-sharing — you rent out part of your primary residence while you're there, no limit on nights. Tier 2 is whole-home rental of your primary residence, limited to the city-wide cap. Tier 3 was a temporary grandfathering for existing operators in Mission Beach, but most of those have expired. You need a Short-Term Residential Occupancy License, and the annual fee is $1,066 for whole-home rentals. The city also charges 10.5% Transient Occupancy Tax.
Full Breakdown
San Diego's STRO (Short-Term Residential Occupancy) ordinance was years in the making and took effect in May 2022. The tier system tries to balance tourism revenue with neighborhood livability.
Tier 1 home-sharing is the most accessible: rent a room in your house while you're there. No cap on nights, and the license fee is lower. Tier 2 whole-home rentals require it to be your primary residence (183+ days per year), and the city limits the total number of these licenses to about 1% of the housing stock. As of early 2025, many neighborhoods are at or near capacity.
The application process involves proof of primary residence, a Good Neighbor Policy that you must share with adjacent neighbors, liability insurance, and a signed acknowledgment of all rules including noise, trash, and parking requirements. The $1,066 annual fee for whole-home rentals is among the highest in California. The city also requires a local contact person available 24/7 who can respond to issues within 60 minutes.
What Happens If You Violate This?
Operating without an STRO license carries fines of $1,000 for the first offense, $2,000 for the second, and $5,000 for the third. The city has actively fined operators and even pursued legal action against repeat offenders. License holders face suspension or revocation for three violations within a year.
Frequently Asked Questions
How much does it cost to get an STR license in San Diego?
Is my San Diego neighborhood at capacity for Tier 2 licenses?
What is the Good Neighbor Policy?
Related Ordinances in San Diego
How does San Diego compare?
See how San Diego's permit requirements rules stack up against other locations.