San Diego DSCR Loans: Coastal Demand, Capped Vacation Rentals
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
San Diego rewards investors who read the STRO ordinance before the listing: the vacation-rental map is capped and largely allocated, the long-term market is very much open, and the difference is worth six figures.
Can I get a DSCR loan in San Diego?
Yes: 1–4 unit rentals across the county, from the city and Chula Vista to Oceanside, Escondido, and El Cajon. The loan qualifies on the property's rent against its full payment; the mechanics live in the California DSCR guide. One structural advantage here: the 2026 conforming loan limit in San Diego County is $1,104,000, well above the national $832,750 baseline, so a larger slice of the San Diego market fits conventional financing before you even reach DSCR. We price both and show the comparison.
The coastal ratio reality
The county median sat near $1.085 million in June 2026, and retail single-family rents do not cover a million-dollar payment at 1.0. The San Diego DSCR deals that clear the ratio are multi-unit properties where several rents stack against one payment, below-market purchases, or licensed short-term rentals with documented revenue. For pure month-one cash flow, the Inland Empire and Central Valley are stronger, and we say so: the inland contrast. San Diego's case is demand, appreciation, and the vacation-rental premium where a permit exists.
Can I buy a Mission Beach short-term rental right now?
Usually only by buying one that already holds a permit. San Diego's Short-Term Residential Occupancy (STRO) ordinance runs four tiers: part-time and home-sharing tiers have no cap, whole-home Tier 3 is capped citywide at 1% of housing units, and the Mission Beach Tier 4 area is capped at 30% of dwelling units and allocated by lottery. The Mission Beach waitlist has been closed since November 2022; a brief reopening ran July 1 to August 15, 2026 once the prior list was exhausted, and after that window no standard new path exists until the city runs another round. The practical route to a Mission Beach whole-home rental is buying a property whose Tier 4 license transfers with the sale, and we verify that permit before we underwrite any short-term income. This is the most perishable fact on the page, so we re-check it before every deal. Financing detail: short-term rental loans; every city's rules: STR rules by city.
How we'd play San Diego
Our take: outside the capped Tier 4 zone, long-term and mid-term rentals are the clean plays, and the higher conforming limit means more of the county fits conventional structure. Where a transferable Tier 3 or Tier 4 permit exists, the constrained supply against San Diego's visitor demand is a genuine edge, as long as you underwrite the purchase to survive on long-term rent if the permit picture ever shifts. We model the parcel and the permit, not the postcard.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Is the San Diego Mission Beach short-term rental lottery open right now?
As of this writing, no. The Mission Beach (Tier 4) waitlist has been closed since November 2022, apart from a brief reopening from July 1 to August 15, 2026 once the prior list was exhausted. After that window there is no standard new path until the city runs another lottery round. Buying a property with an existing transferable permit is the realistic route; re-check status before you offer.
Can I get a DSCR loan in San Diego?
Yes: 1–4 unit rentals county-wide, qualified on the property's rent-to-payment ratio with 20–25% down and 620–660 credit floors typical. San Diego County's 2026 conforming loan limit is $1,104,000, above the national baseline, so more of the market fits conventional financing before you reach DSCR. We compare both.
What is the conforming loan limit in San Diego for 2026?
$1,104,000 for a one-unit property in San Diego County, above the $832,750 national baseline but below the $1,249,125 high-cost ceiling that applies in Los Angeles and the Bay Area. FHFA resets these limits each November. The higher San Diego number lets more of the county's pricing fit conventional sizing.
Do San Diego coastal rentals cash-flow on a DSCR loan?
Rarely at retail prices, given a county median near $1.085 million. The San Diego DSCR deals that clear a 1.0 ratio tend to be multi-unit, below-market, or licensed vacation rentals with revenue history. For month-one cash flow, inland and valley markets are stronger. We underwrite the specific address rather than the metro average.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. California rent-cap percentages, city and county STR rules, tax figures, and litigation status change; verify current requirements with the city or county, your CPA, or a California real estate attorney before you buy. Loans are subject to buyer and property qualification.