Top 11 Airbnb Markets in California

California is synonymous with tourism, tech hubs, wine country, national parks, and endless coastline. From the deserts of the south to the redwoods in the north, the Golden State hosts dozens of lucrative short-term rental (STR) pockets. Based on AirDNA’s proprietary Market Score, these are the 11 highest-ranking California markets for investors looking to capitalize on the state’s diverse travel demand.

What Is AirDNA’s Market Score?

Market Score is a proprietary metric that ranks how attractive a location is for short-term rental investment. Each score is calculated from the following five factors:

• Investability
• Rental Demand
• Revenue Growth
• Seasonality
• Regulation

Scores range from 0 to 100. In addition to an overall Market Score, each of the five factors receives its own score within the AirDNA platform, giving hosts and investors deeper insight into market behavior.

Understanding Markets vs. Submarkets

This ranking highlights major markets as well as sub-regions within larger metros. For our purposes:

• Markets refer to broader geographic areas—cities, metro regions, or multi-county zones.
• Submarkets are smaller locales—neighborhoods, coastal enclaves, or mountain towns within those broader regions.

Balancing both views lets investors spot opportunities that could be overlooked when focusing only on the biggest cities. A statewide “average” can hide submarkets with exceptional performance metrics.

Airbnb Market Overview in California

California’s STR landscape is as varied as its geography. Coastal icons like San Diego and Santa Barbara enjoy strong year-round demand, while inland retreats such as Joshua Tree and the Southern Sierra draw nature lovers seeking escape. Tech-centric metros like San Jose/Palo Alto support business travel, and wine regions such as Sonoma continue to fetch premium nightly rates. Despite pockets of tighter regulation, California remains one of the most dynamic STR states in the U.S. for hosts who understand local rules and seasonality.

Top 11 Airbnb Markets in California (Ranked by Market Score)

11. Sacramento

Market Score: 42.91

Average Annual Revenue: $29,735

California’s capital is a government and university hub that benefits from steady mid-week business travel and weekend leisure demand. Lower home prices compared with Bay Area metros make Sacramento an approachable entry point, though investors should factor in moderate seasonality and increasing competition.

10. Sonoma

Market Score: 45.53

Average Annual Revenue: $82,464

Sonoma’s rolling vineyards and farm-to-table scene attract high-spending wine tourists. Limited hotel stock and premium nightly rates drive strong ADRs, but strict local regulations and permitting caps require careful due diligence.

9. Anaheim

Market Score: 48.94

Average Annual Revenue: $60,954

Home to Disneyland and the Anaheim Convention Center, this market benefits from a steady influx of families and event attendees. While nightly rates are robust, operators must comply with evolving STR regulations in Orange County.

8. San Francisco

Market Score: 54.88

Average Annual Revenue: $48,128

San Francisco remains a global destination for tech, tourism, and conferences. Strict city regulations limit supply, which can help bolster occupancy for compliant properties. High acquisition costs are the primary barrier to entry.

7. San Diego

Market Score: 68.65

Average Annual Revenue: $69,144

Mild weather, beaches, and a thriving convention scene make San Diego one of California’s most consistent performers. Recent regulation changes added permit requirements, but demand remains strong across both coastal and inland neighborhoods.

6. Southern Sierra Mtns

Market Score: 69.00

Average Annual Revenue: $50,991

This mountainous region—encompassing towns near Sequoia and Kings Canyon National Parks—draws year-round adventurers. Lower property prices versus coastal California offer higher cash-on-cash potential, with occupancy peaking during summer and shoulder seasons.

5. California North Area

Market Score: 76.82

Average Annual Revenue: $42,656

Stretching from the Oregon border down through redwood country, this region caters to road-trippers, outdoor enthusiasts, and remote workers seeking tranquility. Lower density and limited competition help bolster occupancy and nightly rates.

4. Monterey Bay

Market Score: 80.51

Average Annual Revenue: $86,467

Famous for its aquarium, scenic coastline, and golf courses, Monterey Bay attracts both luxury and family travelers. High ADRs offset elevated property prices, and proximity to Silicon Valley fuels off-season demand.

3. San Jose/Palo Alto

Market Score: 82.03

Average Annual Revenue: $35,558

The heart of Silicon Valley balances tech-driven mid-week stays with weekend leisure trips exploring nearby redwoods and coastal towns. While regulations are city-specific, consistent business travel helps smooth seasonality.

2. Santa Barbara

Market Score: 84.99

Average Annual Revenue: $83,243

Known as the “American Riviera,” Santa Barbara commands some of California’s highest nightly rates thanks to its Mediterranean climate, wine scene, and luxury appeal. Tight supply and strong demand yield high revenue potential, but entry costs and permitting hurdles are significant.

1. Joshua Tree

Market Score: 98.77

Average Annual Revenue: $56,247

Joshua Tree tops the list with a near-perfect Market Score driven by exceptional rental demand, relatively affordable desert real estate, and distinctive, design-forward properties that command premium rates. Year-round stargazing and proximity to Los Angeles fuel consistent bookings.

Should You Invest in California?

Despite higher home prices and varied regulations, California delivers a spectrum of STR opportunities—from high-revenue luxury markets like Santa Barbara and Monterey Bay to value-oriented desert and mountain regions such as Joshua Tree and the Southern Sierra. Tech centers provide weekday stability, wine and coastal areas command premium ADRs, and national-park gateways benefit from adventure tourism.

For investors willing to navigate local ordinances and seasonality, California’s tourism diversity offers both high-yield and long-term appreciation upside. Whether your strategy is cash flow, portfolio diversification, or lifestyle investment, the Golden State remains a compelling—and competitive—short-term rental destination.