August 26, 2026
Samuel Foote | REALTOR® DRE #02081916
How Much Can an Airbnb Actually Earn in San Diego?
One of the biggest questions most people have when considering a short-term rental investment in San Diego is, “Does an AirBnb actually make more than renting it long term?”
As with many of my answers when analyzing a short-term rental - it varies based on many important factors. As both a San Diego Realtor and an owner who self-manages several short-term rentals here, I’ve had the opportunity to analyze these properties from both the investment and operational sides.
According to the rental data expert AirDNA, San Diego short-term rentals average around 65% occupancy with an Average Daily Rate of roughly $317. Those numbers are a decent gauge for understanding the overall market, but San Diego is a big city with a huge variety, and quality, of short-term rentals. A two-bedroom condo Downtown, a beach cottage in Mission Beach, and a four-bedroom house in La Jolla with a tennis court are going to have very different potentials.
When I’m looking at a property as a potential Airbnb, I want to know how others like that one is performing. Here’s how to analyze the viability of a particular property.
Start With ADR and Occupancy
Two numbers you’ll hear frequently when researching short-term rentals are Average Daily Rate (ADR) and occupancy.
ADR is the average nightly rate a property earns when it’s booked. Occupancy percentage tells you how many of the available nights are actually being booked. Both are incredibly important.
For example, consider a Short-Term Rental averaging $500 per night at 40% occupancy. Over a full year, that works out to about $73,000 in gross revenue. While another property averaging only $350 per night but maintaining 70% occupancy would generate around $89,000.
The $500 nightly rate catches your attention, but the second property is generating considerably more revenue. Which is why occupancy is every bit as important as nightly rate when evaluating a property.
Compare Similar Properties
Location naturally plays a huge role in driving revenue. But there can also be major differences between properties within the same neighborhood. Bedroom count, guest capacity, parking, outdoor space, views, walkability, property condition and amenities all influence what someone is willing to pay.
This is where it’s important to get to know the properties comparable to the one you’re evaluating very well.
When looking at a two-bedroom property in Ocean Beach, look for other two-bedroom properties nearby. How many guests do they accommodate? Do they have parking? How close are they to the beach? What amenities do they offer? What are their reviews like?
Tools like AirDNA are nearly indispensable with this research because they allow investors to zoom in and see specifics. You can look at revenue, occupancy, amenities and nightly rates for comparable short-term rentals rather than relying solely on citywide numbers.
The closer you can get to comparing apples to apples, the more confidence you can have in your own projections.
Serving the Market What it Wants
Something that can be incredibly valuable to look for is if a property fills a need that isn't already being well served.
Let's say you're looking Downtown and find hundreds of one-, two-, and three-bedroom short-term rentals. What happens if you find a property that can comfortably accommodate a much larger group? There’s potentially demand for four- or five-bedroom accommodations, and very few properties available to serve it.
The same thinking applies to amenities and property features. Maybe an area has plenty of vacation rentals, but very few with multiple parking spaces, large outdoor areas, accommodations for families, or other features certain groups are specifically looking for.
This takes some research, so take your time. A lack of competition doesn't automatically mean you've found an opportunity. Sometimes there's simply no demand for what you're considering. But if you can identify existing demand that isn't being adequately served, you may be able to position the property to stand out from the crowd.
Be sure to check out my next blog post - How to find underserved demand.
San Diego Still Has Seasonality
San Diego has the advantage of attracting visitors throughout the year, something I discussed in my first article in this series. In layman's terms, that means there are increases and decreases throughout the year in revenue.
Beach communities can have huge summers. Holidays, conventions, sporting events and major events around the city can also create spikes in demand. Then it shifts to the cold and windy months at the beach, and you may have slower months.
One mistake I would avoid is looking at a property’s summer performance and extrapolating that across the entire year. July revenue multiplied by twelve is probably going to give you a pretty unrealistic expectation.
So, when evaluating a property, look at a full twelve months of comparable data whenever possible. I also prefer being somewhat conservative with revenue projections. If the investment only works when everything goes perfectly, factor that into your expectations.
Revenue Is Only Half the Story
Let’s say you find a property projected to generate $100,000 per year. Great. Now what does it cost to generate that $100,000?
There are cleaning fees, utilities, insurance, repairs, maintenance, supplies, platform fees, licensing costs and furnishings that eventually need to be replaced. Depending on the property, you may also have an HOA, landscaping, pool service, hot tub maintenance or professional management.
Purchase price and financing can completely change the investment. A property purchased several years ago at a low interest rate may produce excellent cash flow at $100,000 in annual revenue. Someone buying the exact same property today could have a very different result.
This is why I’m careful when I hear someone say, “This Airbnb makes $120,000 a year.”
Okay. What does the owner actually keep? Close analysis and falling in love with the numbers…not the property…will pay off in the future.
Management Makes a Difference
There’s another variable that’s harder to put into a spreadsheet: how well the property is operated.
I self-manage my own short-term rentals, and I’ve seen firsthand how much the little things matter. Pricing, photography, cleanliness, communication, reviews and the overall guest experience all affect performance.
And I’ll repeat something from my previous article: Amenitize! Amenitize! Amenitize!
A hot tub, fire pit, bikes, beach equipment, game room or great outdoor space can give guests a reason to choose your property over another one down the street. You still have to determine whether the cost of adding those amenities makes financial sense, but the experience you create absolutely matters.
Two nearly identical properties can produce different results simply because one is being operated better.
So, What Should You Expect?
Maybe it’s not the answer you came here for, but there really isn’t one revenue number I’d use for a San Diego Airbnb.
Before buying, study comparable properties, look at least a year of performance data, look at future revenue projections, understand the seasonal swings and build out the expected operating expenses.
San Diego continues to produce some very strong short-term rental properties, but the range in performance is enormous. Buying the property first and figuring out the revenue afterward is doing things backwards.
If you're considering a property in San Diego and want to understand its short-term rental potential, our team can help research the local market, regulations, comparable rentals and expected performance before you make the investment.
