Top Neighborhoods for Airbnb Investment

1. Sherman Heights

Historic charm meets downtown access. This area has beautiful older homes, a strong sense of character, and is minutes from Petco Park and the Gaslamp.

Why it works: Walkable, full of charm, and just outside the short-term rental restrictions.

Median home price: ~$725,000

2. Logan Heights

Culturally rich, community-driven, and still affordable. This neighborhood is seeing early-stage revitalization with properties under $700K and zoning that favors multi-units.

Why it works: Urban energy, ADU potential, and a long-term appreciation play.

Median home price: ~$660,000

3. Mount Hope

One of San Diego’s most overlooked pockets. Close to the 15, 94, and Downtown, Mt. Hope offers larger lots and fixers that are Airbnb goldmines when done right.

Why it works: Low entry point, flexible zoning, and space for value-adds like hot tubs or fire pits.

Median home price: ~$640,000

4. City Heights / Webster

These neighborhoods are buzzing with local flavor and authentic SoCal grit. You can still find multi-bedroom homes for under $700K — ideal for investors willing to add design flair and sleep more guests.

Why it works: Central location, strong demand, and a growing community vibe.

5. Point Loma / Normal Heights / Golden Hill

These areas consistently perform thanks to walkability, local shops, and design-friendly homes. They’re more competitive price-wise but offer high nightly rates and strong bookings.

Watch Out: STR Restrictions You NEED to Know

If you’re buying with the intent to Airbnb, read this twice:

San Diego City Rules (Tier System):

• Tier 1: You can rent your primary residence while you’re away. No permit needed.

• Tier 2: You live on-site but rent out a room or portion — limited STR allowed.

• Tier 3: Whole-home rental of your primary residence — you can do it up to 90 days/year.

• Tier 4: Whole-home STR that’s not your primary residence — requires a lottery-issued permit and is capped at 1% of housing stock per community planning area.

Mission Beach:

Has its own cap and lottery system, separate from the rest of San Diego. It’s one of the most popular Airbnb zones, but getting a permit here is highly competitive and availability is limited.

Pro tip: If the home already has a Tier 4 permit, that’s gold.

Important: No STRs for Newer ADUs

If you’re planning to build an ADU and Airbnb it, here’s the deal:

Any Accessory Dwelling Unit (ADU) built after 2017 is NOT allowed to be used as a short-term rental.

This rule was created to help ease the housing crisis — so while an ADU can still add value (think long-term rental or extra space), it can’t be used as an Airbnb if it’s newer.

Smart Tools to Evaluate a Property

Before you buy, you should run the numbers — here’s how I do it:

• Rabbu: Estimate monthly Airbnb income and see comps nearby

• AirReview (Chrome Extension): Check how your competitors are performing and what guests are saying

• AirDNA: Get hyper-local data on occupancy, ADR (average daily rate), and seasonality

• PriceLabs: Use this after launch for dynamic pricing

If you’re buying in San Diego, don’t just look for something pretty — look for something that performs. Think: 3+ beds, one bunk room, outdoor space, and bonus points for a pool or hot tub. Stick within metro zones that are close to action and legally STR-friendly.

This is what I do — not just for my clients, but for my own investments.

Want me to run numbers, spot permits, or send off-market leads? Let’s talk strategy.