Thinking about turning a Mission Hills property into an Airbnb or short stay? The rules in San Diego changed recently, and a few of them can make or break your plan. You want a clear path that protects your investment while keeping you compliant. In this guide, you’ll learn the exact license tiers, taxes, operating rules, and buyer and seller tips that apply in Mission Hills. Let’s dive in.
Mission Hills follows city rules
Mission Hills sits inside the City of San Diego, so your short-term rental is governed by the city’s Short-Term Residential Occupancy program and Transient Occupancy Tax rules. You can confirm the neighborhood’s city status on the City Council District 3 page for Mission Hills. Mission Hills is part of San Diego’s Council District 3.
Operating for stays under one month requires an STRO license. It became unlawful to operate without a license on or after May 1, 2023. You can review the city’s program and application resources on the Short-Term Residential Occupancy pages.
License tiers you need to know
San Diego uses four license tiers. Mission Hills properties can fall under Tiers 1, 2, or 3.
Tier 1: Part-time (20 days or less)
- Rent your place a combined total of 20 days or less per year.
- You do not need to live onsite.
- This tier is not capped citywide.
Tier 2: Home-sharing (host-occupied)
- Rent rooms in your primary residence for more than 20 days per year.
- You must be a permanent resident of the home, but you can be away up to 90 days per year and still qualify.
- Not subject to the citywide cap.
Tier 3: Whole-home citywide
- Rent the entire home for more than 20 days per year and you do not live onsite.
- Licenses are capped at 1% of the city’s housing stock and may be issued by lottery when demand exceeds supply.
- You must meet a minimum annual utilization of 90 days to keep the license, and a two-night minimum stay applies to bookings.
Tier 4: Mission Beach only
- This special tier does not apply in Mission Hills. Mission Hills investors should plan under Tiers 1, 2, or 3.
Other limits to note
- A host must be a natural person and may hold only one STRO license at a time. Licenses are not transferable to another host or property. See details on the city’s STRO site.
Taxes and fees to budget
Short stays under one month are subject to the City’s Transient Occupancy Tax. As of May 1, 2025, TOT uses zone-based rates of 11.75%, 12.75%, or 13.75% depending on your parcel’s tax zone. Make sure you have an active TOT certificate and collect and remit correctly. Learn more on the City of San Diego TOT page.
If you rent out any part of a property for more than six days in a year, the owner is responsible for the Rental Unit Business Tax. If the host is not the owner, the host must obtain a Business Tax Certificate and pay business tax annually. Active TOT and business tax compliance are required before you can get an STRO license. You can check current fee schedules and application windows on the Treasurer’s STRO landing page.
STRO license fees were updated in 2025. For example, a Tier 3 license fee is listed at $1,129. Fees can change, so verify the latest amounts on the city’s STRO pages before you apply.
Operating rules that matter in Mission Hills
- Primary residence rules: Tier 2 requires you to be a permanent resident of the dwelling. Tier 3 is for whole-home rentals where you do not live onsite.
- Minimum stays: Whole-home Tier 3 bookings generally require a two-night minimum.
- ADU restrictions: ADUs and JADUs built under the city’s post-2017 rules cannot be used as short-term rentals. Only certain pre-2017 companion units may be eligible. See the restriction on the STRO program page.
- Local contact and response: You must name a local contact who can respond by phone or in person within one hour of a complaint. You also need to post your license number and local contact info on listings and at the property as part of the Good Neighbor Policy.
- Safety and occupancy: Follow building and safety codes, provide required signage, and use the city’s checklists to stay compliant.
Buying or selling with STR goals
If you are buying a Mission Hills home for STR income, account for the citywide cap on Tier 3 and the one-license-per-host rule. Licenses are not transferable, so you should plan to apply for your own after closing. The city can deny applications where there are pending enforcement actions.
HOAs, CC&Rs, condo bylaws, and leases can prohibit or restrict STRs even if the city would license the use. Always review all private covenants and leases.
Use this quick checklist before you rely on STR income:
- Confirm the property is inside City of San Diego limits and in Mission Hills.
- Verify the current owner’s standing on TOT and Rental Unit Business Tax.
- Review HOA, CC&R, condo rules, and any lease terms for STR limits.
- If you need a whole-home STR, check Tier 3 availability and any lottery or waitlist updates on the STRO site.
How to apply in San Diego
Start on the City’s STRO pages for guides, forms, and FAQs, or visit the Treasurer’s STRO portal for current windows and fees. You can email the STRO Administration at [email protected] or call 619-615-6120 with program questions. For enforcement issues, the BLUE team can be reached at [email protected].
Have these items ready when you apply:
- Active TOT certificate and compliance history.
- Rental Unit Business Tax status, plus a Business Tax Certificate if the host is not the owner.
- Proof of primary residence for Tier 2, such as utility bills or DMV records.
- Local contact information and Good Neighbor Policy acknowledgment, including required signage.
- A property free of pending enforcement actions.
Common Mission Hills scenarios
- You live in your Mission Hills home and rent a guest room most weekends: That is likely Tier 2 home-sharing.
- You want to rent your entire home for 120 nights each year while you travel: That is Tier 3 whole-home, which is capped citywide and requires a two-night minimum and at least 90 rental days per year to keep the license.
- You planned to STR a newly built ADU behind the house: Post-2017 ADUs and JADUs are not eligible for STR use under city rules.
The bottom line
Mission Hills sits under San Diego’s citywide STR framework, so your success comes from knowing your tier, budgeting for taxes and fees, following the operating rules, and planning around caps and non-transferability. If you are weighing a purchase or sale that depends on STR income, get the facts early and build a plan that fits your goals and the ordinance.
Ready to evaluate a Mission Hills property with STR potential or prep your home for a compliant sale? Connect with John Rubino for local guidance and a clear strategy.
FAQs
What short-term rental license do I need in Mission Hills?
- You need a City of San Diego STRO license for stays under one month, and it has been unlawful to operate without one since May 1, 2023; start on the city’s STRO page.
How do 2025 TOT rates affect my Mission Hills STR?
- As of May 1, 2025, the City uses zone-based TOT rates of 11.75%, 12.75%, or 13.75%; check your parcel’s zone and filing steps on the TOT page.
Can an STRO license transfer to a buyer when I sell?
- No; licenses are not transferable, so a buyer should assume they must apply for their own license after closing and meet all prerequisites listed on the STRO site.
Are ADUs in Mission Hills allowed as short-term rentals?
- ADUs and JADUs created under the post-2017 rules are not eligible for STR use, with limited exceptions for certain pre-2017 companion units; see the STRO guidance.
What happens if neighbors complain about my STR?
- Your local contact must respond within one hour, and repeated violations can lead to citations, civil penalties, and possible license revocation; enforcement details are outlined on the STRO pages.
How many San Diego STRs can I run at once?
- A host must be a natural person and may hold only one STRO license at a time for one dwelling unit, as explained on the STRO program site.
