Legal with a tiered license — investor tier is rationed
San Diego's tiered STRO system allows investor whole-home rentals (Tier 3), but licenses are capped at 1% of city housing stock and running out — check live availability before buying.
Permit and costs
- Permit
- STRO License (Short-Term Residential Occupancy)
- Issued by
- City of San Diego
- Cost
- Tier 3: $1,170 / 2 years
- Renewal
- Every 2 years
Key limits
- Tier 3 investor cap
- 1% of housing stock (~800 left)
- Tier 2 home-share
- Host must live there 275+ days/yr
- Tier 1 part-time
- Max 20 days/yr, no residency rule
- One STR per owner
- Across all tiers
Taxes
- Transient occupancy tax
- 11.75–13.75% by location
Registration checklist
- 1Get a TOT certificatePrerequisite — no TOT certificate, no license.
- 2Identify your tier and applySTRO portal; Tier 3 enters the waitlist once the cap is hit.
- 3Report quarterlyTier 3 hosts file quarterly activity reports; 2-night minimum stays.
What could change this verdict
Tier 2 home-sharing stays open
Renting rooms while you occupy the home 275+ days a year sidesteps the Tier 3 investor cap entirely.
Permit and costs
- Permit
- STRO License — Tier 2 (home sharing)
- Issued by
- City of San Diego
- Cost
- $317 / 2 years
- Renewal
- Every 2 years
Sources
Rules researched October 2026. They change, so verify with the city before you buy.
Want this verified for your exact address?
- Verdict for your parcel, not just the city
- Permit name, fee, and renewal schedule
- Night caps, occupancy rules, and key limits
- Tax rates and a step-by-step checklist
Free during early access. Run the free address check