Thinking about buying or selling in Pacific Beach and counting on short‑term rental income? San Diego’s STR caps changed the rules of the game, and the details matter more than ever. You want clarity on what’s allowed, what transfers, and how to position your move. This guide breaks down the caps, the hot spots in 92109, and practical steps that protect your goals. Let’s dive in.
San Diego STR caps at a glance
San Diego requires a Short‑Term Residential Occupancy (STRO) license for STRs and uses a four‑tier system that controls how, where, and how often you can rent. Whole‑home, non‑hosted rentals are capped at roughly 1 percent of the city’s housing stock, with Mission Beach treated separately at about 30 percent. Hosted tiers are structured differently and not subject to that same cap. You can review tiers, fees, and timelines on the City’s official STRO page and application portal (City of San Diego STRO).
Licenses are tied to a single natural person, one license per host, and licenses do not transfer to a new owner or a new address. The City publishes an open data list of active licenses so you can confirm status by address and tier (Active STRO Licenses). The cap, one‑license limit, and non‑transferability make STR rights scarce and highly specific to each owner and property.
ADUs add another layer. Accessory Dwelling Units permitted under the post‑2017 rules are generally not eligible for STR licensing, and the City has increased enforcement on illegal ADU STRs (STRO rules).
Why Pacific Beach feels it most
Pacific Beach and Mission Beach (ZIP 92109) account for a large share of San Diego’s active STR licenses. Analyses of the City’s dataset show 92109 is one of the most saturated areas, which explains the stronger neighborhood focus and enforcement attention along the coast (92109 concentration).
At the same time, some apartment operators and platforms have introduced “Airbnb‑friendly” programs that can increase short‑term listing density even when whole‑home caps limit single‑owner permits. That means supply can vary block by block within the broader North Shore area (Airbnb‑friendly apartments context).
Buyer strategy in North Shore
Confirm your path to a license
- Start with the City’s STRO page to understand which tier fits your plan and whether an application window is open (STRO overview).
- Use the City’s open data to check if a license exists at the address and which tier it is (Active licenses).
- If you plan a whole‑home STR, expect scarcity and possible lotteries or waitlists under the 1 percent cap.
Do not assume a license will transfer
- Licenses do not transfer to a buyer, and they do not move with the property. If a seller is currently hosting, your ability to operate after closing depends on your own license approval.
- Build offers and timelines around licensing risk and confirm how existing bookings and accounts will be handled separately from the license (Active licenses dataset).
Watch ADU, condo, and contract limits
- ADUs permitted after 2017 are generally ineligible for STR licensing. Verify permit history and any ADU listings you see online (STRO rules).
- Review HOA rules, CC&Rs, and leases for STR prohibitions or special restrictions common in multi‑family buildings and coastal communities (Context on building rules).
Model realistic returns
- Whole‑home investors face uncertainty on license timing and availability, which should be reflected in pricing and contingencies.
- Hosted models can be more attainable. A home‑share primary residence path may fit if you plan to live on site and meet residency requirements (STRO tiers).
Seller strategy in North Shore
Disclose precisely and early
- Provide the STR license tier, the named host, expiration, and any past or pending enforcement or noise/code complaints.
- Clarify that licenses do not transfer. Separate what might convey, such as booking accounts or furnishings, from what cannot (Active licenses dataset).
Price and negotiate for uncertainty
- Expect two buyer profiles: owner‑occupiers who may pursue hosted options and investors who face licensing caps.
- Use credits or price adjustments tied to license outcomes and share clean records of Transient Occupancy Tax filings and any required STRO reports to reduce friction (STRO reporting and fees).
Clean up compliance
- Remove any noncompliant ADU listings, resolve code issues, and bring tax filings current before going live.
- The City has stepped up enforcement on illegal ADU STRs, including civil penalties, so clearing issues first can protect your timeline and net proceeds (ADU enforcement reporting).
Market honestly
- If the buyer will need to host as a primary resident or enter a waitlist or lottery for a whole‑home slot, say so.
- When STR is uncertain, spotlight location, lifestyle, and long‑term rental potential rather than implying a transferable license (Active licenses dataset).
Pacific Beach due diligence checklist
- Confirm jurisdiction: City of San Diego vs unincorporated county, since county registration and enforcement differ (County TOT registration).
- Verify an existing STRO license by address and tier; document what will and will not convey (Active licenses).
- Review the STRO rules for tier requirements, utilization/reporting, and fee schedules (STRO rules and fees).
- Check ADU permit history and STR eligibility; treat recent ADU STR use as a red flag (STRO ADU guidance).
- Collect proof of Transient Occupancy Tax certificates and remittances, plus Rental Unit Business Tax status if applicable (STRO taxes and reporting).
- Search for address‑level complaints or code actions and resolve before closing, especially noise, occupancy, or unpermitted listings (ADU enforcement context).
- Review HOA/CC&Rs and building house rules for STR limits or bans, common in coastal condos (Building rules context).
- Add an STR contingency to the purchase agreement tied to obtaining required STRO, TOT, and business tax accounts within a defined period (STRO portal).
What could change next
Enforcement has intensified around illegal ADU STRs and unpermitted activity, with coordinated checks across City departments documented in 2025 reporting (Recent enforcement examples). The City also adjusts administrative items such as application windows and fees, and reopened a Tier 4 period in mid‑2025. For the latest timing and process updates, monitor the City’s STRO page and open data tools (STRO updates; Active licenses).
A smart plan respects the cap, the one‑license rule, and non‑transferability while leaning into what is possible. Whether you are buying or selling, align your pricing, disclosures, and timelines with the licensing path you can actually prove. If you want a second set of eyes on strategy before you act, connect with Jovanah McKinney for a thoughtful, high‑touch consultation.
FAQs
Can I buy a Pacific Beach home and keep the seller’s STR license?
- No. STRO licenses are tied to a single host and do not transfer to a buyer or new address, so you must qualify and apply under your own name (Active licenses).
How does San Diego’s 1 percent cap affect whole‑home buyers?
- It makes new whole‑home, non‑hosted licenses scarce citywide, often requiring lotteries or waitlists, so you cannot assume quick approval (STRO overview).
Are ADUs in Pacific Beach eligible for STR licensing?
What should San Diego sellers include in an STR disclosure package?
- Provide license tier and host details, expiration, tax filings, required reports, and any code or noise complaints, plus a clear statement that the license will not transfer (STRO rules; Active licenses).
Do HOA and condo rules in 92109 limit STRs even if the City allows them?
- Often yes. Many buildings restrict or ban STRs through CC&Rs and house rules, so review governing documents early (Building rules context).
If I only rent my Pacific Beach home a few weeks per year, do caps still apply?
- Hosted and limited‑days tiers are structured differently from whole‑home caps, but you still need to follow the City’s STRO rules and licensing for your tier (STRO tiers).
