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Best Airbnb Markets in California (2026)

Based on Airbtics data from January 2025 to December 2025, this page shows the top Airbnb locations to invest in California with key statistics and information, like short-term rental regulations, number of listings, occupancy rate, average daily rate, and annual revenue. This allows you to discover the most profitable cities to invest in, buy, and own Airbnb rental properties in California.

The Airbtics Market Score indicates how attractive a location is for investing in an Airbnb rental property. We determine this score based on the following criteria:

  1. Short-term rental yield: The ratio between annual revenue and property price, as a percentage. Locations with higher Airbnb rental yield score better.
  2. Short-term rental regulations: How STR-friendly the local Airbnb rules and laws are. Markets with more lenient regulations get a higher score.
  3. Market size: The number of Airbnb listings. Larger vacation rental markets get a higher score as it is easier for investors to buy and sell properties.
  4. Growth: How fast the market is becoming saturated. Priority is given to markets that are already developed but are not approaching saturation yet.
  5. Seasonality: To what degree Airbnb performance is affected by seasonality. Less seasonal impact is preferred as investors can enjoy a more stable short-term rental performance throughout the year.
Learn more about how we collect the data and accuracy

Last updated: February, 2026

California Short-Term Rental Market Overview (Full-Year 2025 Analysis)

National averages across all California markets
Average Occupancy Rate i
60.90%
Average Annual Revenue i
$65,268
Average Daily Rate (ADR) i
$289
YoY Supply Growth i
15.86%
YoY Revenue Change i
27.10%

Top 31 California Cities for Airbnb in 2026

Position Market Grade Market Name Regulation No of Listings Avg. Occupancy Rate Avg. Daily Rate Revenue Short-term Rental Yield Rent Gap
1DLos angeles
Strict
10,58867%$214$53,83412.3%34.5%
2CSan diego
Strict
9,82171%$253$67,21512.3%34.5%
3D+San francisco
Strict
3,84673%$198$53,75712.3%34.5%
4CPalm springs
Lenient
3,27556%$427$89,02912.3%34.5%
5D+Big bear lake
Strict
2,47438%$319$46,45512.3%34.5%
6D+San jose
Lenient
1,98268%$130$33,03112.3%34.5%
7C+North lake tahoe
Lenient
1,41351%$433$83,18312.3%34.5%
8D+Oakland
Lenient
1,40967%$143$35,86212.3%34.5%
9B+Salinas
Lenient
1,38465%$338$82,14012.3%34.5%
10BLa quinta
Strict
1,35455%$352$72,42412.3%34.5%
11CBakersfield
Lenient
1,31051%$182$35,17912.3%34.5%
12CPalm desert
Lenient
1,29553%$269$53,43812.3%34.5%
13BOceanside
Lenient
1,23472%$296$79,78912.3%34.5%
14D+Long beach
Strict
1,23068%$218$55,79812.3%34.5%
15B+Indio
Strict
1,22349%$448$82,82512.3%34.5%
16CNewport beach
Strict
1,20773%$489$133,58312.3%34.5%
17CLake arrowhead
Strict
1,09438%$330$47,97112.3%34.5%
18BEureka-arcata
Lenient
1,07762%$193$44,71612.3%34.5%
19C+Ukiah
Lenient
97655%$271$56,14512.3%34.5%
20CTruckee
Lenient
89748%$424$76,48512.3%34.5%
21C+Calaveras
Lenient
87042%$305$48,79612.3%34.5%
22DSanta monica
Strict
84573%$236$64,50712.3%34.5%
23BJoshua tree
Strict
82257%$244$53,76412.3%34.5%
24CSanta barbara
Lenient
75771%$326$87,18312.3%34.5%
25CAnaheim
Strict
64278%$298$86,84112.3%34.5%
26DBerkeley
Lenient
63976%$143$40,36812.3%34.5%
27CCarlsbad
Lenient
59268%$332$84,07612.3%34.5%
28CSanta cruz
Lenient
59163%$370$87,04012.3%34.5%
29E+Albany
Lenient
53255%$136$28,14212.3%34.5%
30C+Idyllwild-pine cove
Lenient
51151%$257$49,84112.3%34.5%
31C+Encinitas
Lenient
50274%$401$109,91012.3%34.5%

Find the Best Airbnb Markets with Our Interactive Tool

Use our interactive Market Explorer to find the best places to start an Airbnb in California. Compare multiple markets side by side, apply filters like regulations, budget (property or rent prices), and market size, and even export the results to Excel.

Explore Interactive Tool

📊 Want a deeper dive into California's STR market?

Explore our comprehensive 2025 Short-Term Rental Market Report for California, featuring detailed market trends, supply analysis, and year-over-year insights.

View 2025 Market Report

Why Invest in Airbnb California in 2026?

In recent years, California has emerged as one of the best locations for investing in short-term rentals thanks to its popular tourist attractions, thriving business activities, growing digital nomad presence, and vibrant cities like Newport beach, Encinitas and Palm springs. With millions of international visitors coming each year, the demand for vacation rental accommodations is growing, making Airbnb California a lucrative option for both local and foreign investors.

Due to strong demand from travelers, California offers competitive average daily rates (ADR), healthy occupancy rates, and attractive revenue potential in the best Airbnb markets. Whether you're looking to start your first Airbnb business with a modest budget or to add a luxury short-term rental property to your portfolio, California has a profitable location to meet your budget and aspirations as an investor.

Market Saturation Analysis: California

Benchmark: Markets are categorized relative to California's national averages (Supply: +15.9%, Revenue: +27.1%). Markets above the national average are marked with ↑, while those below are marked with ↓.

🟢

Healthy Growth

Supply > avg, Revenue > avg
Expansion with demand keeping up

  • San diego Supply: +17.4% | Revenue: +29.2%
  • Salinas Supply: +16.9% | Revenue: +29.0%
  • San francisco Supply: +22.9% | Revenue: +27.5%
🟡

Early Saturation

Supply > avg, Revenue ≤ avg
Competition rising

  • Los angeles Supply: +36.7% | Revenue: +19.2%
  • San jose Supply: +32.2% | Revenue: +22.9%
  • Palm desert Supply: +30.7% | Revenue: +11.9%
  • Berkeley Supply: +27.3% | Revenue: +21.1%
  • Albany Supply: +23.3% | Revenue: +13.2%
  • Carlsbad Supply: +20.3% | Revenue: +22.6%
  • Long beach Supply: +17.7% | Revenue: +25.4%
  • Anaheim Supply: +17.6% | Revenue: +22.3%
  • Bakersfield Supply: +17.3% | Revenue: +26.8%
🔵

Under-the-Radar

Supply ≤ avg, Revenue > avg
Hidden opportunities

  • Newport beach Supply: +13.0% | Revenue: +41.8%
  • Joshua tree Supply: +7.1% | Revenue: +40.5%
  • North lake tahoe Supply: +9.1% | Revenue: +37.3%
  • Calaveras Supply: +10.3% | Revenue: +36.5%
  • Encinitas Supply: +11.5% | Revenue: +36.4%
  • Oceanside Supply: +12.0% | Revenue: +33.5%
  • La quinta Supply: +12.5% | Revenue: +33.5%
  • Indio Supply: +15.4% | Revenue: +32.3%
  • Oakland Supply: +14.1% | Revenue: +31.0%
  • Idyllwild-pine cove Supply: +3.0% | Revenue: +28.7%
  • +1 more markets
🔴

Declining

Supply ≤ avg, Revenue ≤ avg
Risky markets

  • Santa barbara Supply: +15.3% | Revenue: +21.3%
  • Santa monica Supply: +12.6% | Revenue: +21.9%
  • Ukiah Supply: +9.8% | Revenue: +23.1%
  • Santa cruz Supply: +13.8% | Revenue: +23.1%
  • Lake arrowhead Supply: +9.3% | Revenue: +23.4%
  • Big bear lake Supply: +10.9% | Revenue: +24.2%
  • Palm springs Supply: +11.4% | Revenue: +25.7%
  • Truckee Supply: +11.7% | Revenue: +26.7%

Best Cities for Airbnb in California by Budget

Top 3 Affordable & Mid-Range Airbnb Markets: $500,000 & Below

These markets offer accessible investment opportunities with lower to moderate property prices, suitable for investors seeking entry-level or mid-range options.

  1. Bakersfield
    • Property price: $300,000
    • STR revenue: $35,179/year
    • Yield: 11.4%
  2. Indio
    • Property price: $350,000
    • STR revenue: $82,825/year
    • Yield: 16.6%
  3. Eureka-arcata
    • Property price: $350,000
    • STR revenue: $44,716/year
    • Yield: 14.9%

Top 3 Premium & Luxury Airbnb Markets: $500,000 & Above

These markets represent high-end investment opportunities with premium properties, ideal for investors with substantial capital seeking strong returns.

  1. Salinas
    • Property price: $550,000
    • STR revenue: $82,140/year
    • Yield: 17.9%
  2. Oakland
    • Property price: $600,000
    • STR revenue: $35,862/year
    • Yield: 7.9%
  3. Oceanside
    • Property price: $600,000
    • STR revenue: $79,789/year
    • Yield: 13.8%

Top 3 Best Places for Airbnb Arbitrage in California

  1. Salinas
    • STR revenue: $82,140/year
    • Rent gap: $4,366
  2. Ukiah
    • STR revenue: $56,145/year
    • Rent gap: $3,849
  3. Eureka-arcata
    • STR revenue: $44,716/year
    • Rent gap: $3,386



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