Back to CA

Costa Mesa

Orange County, CA

STR Investment Grade

Transparent Scoring
D
36/100
AVOID
Score Breakdown
💰Cash-on-Cash
5/35
🏠Affordability
2/25
📅Year-Round Income
15/15
🤝Landlord Friendly
2/10
📈Room to Grow
12/15
Cash-on-Cash
-15.9%
Negative Cash Flow
Median Home
$1354K
Very Expensive
Room to Grow
12/15
Good Headroom
🚫

Strict STR Regulations

STRs treated as hotels, effectively banned in residential

Costa Mesa treats STRs as hotels, requiring hotel zoning and licensing. Effectively banned in residential areas.

Permit: Very HardPermit Cap in Effect0
Grade Impact: Base score of 36/100 would be grade D, but capped at D (36/100) due to regulation risk.
Verified data as of February 2026 · Regulations change frequently
📞 How to Verify
Call the Costa Mesa City Clerk or Planning & Zoning Department and ask:
1. Are short-term rentals (under 30 days) allowed at [your address]?
2. What permits or licenses are required?
3. Are there owner-occupancy requirements?
4. Any caps on rental nights per year or number of permits?
Some banned cities still have grandfathered operators or exemptions — it's worth calling to understand your options.

Why Costa Mesa?

Urban Market

What drives short-term rental demand here

🏙️
Urban Hub

Business travel, events, and tourism create consistent year-round occupancy in city centers.

📈
Growing Market

Population and economic growth signal increasing demand and property appreciation potential.

🎓
University Town

Parent visits, graduations, and sports events create predictable demand spikes.

Will This Deal Work?

Investment Grade
D
Negative Cash Flow
CoC: -15.9%
Can You Pay the Bills?
Risky
May struggle with payments
THE BOTTOM LINE

This market has strict STR regulations. Some operators still succeed here, but thorough research into local ordinances and permits is essential before committing.

💵
$217
Avg ADR
📅
73%
Occupancy
💰
$4,752
Monthly Revenue
🏠
$1354K
Median Price

Market estimates · Updated Feb 2026

📊 Income by Property Size

Monthly revenue estimates by bedroom count

1BR
$2,614
2BR
$3,555
3BR
$4,757
4BR
$6,404
5BR
$7,842
6BR+
$9,280
⭐ Best

🏠 Top Amenities for This Market

Add these to boost your revenue

MUST HAVEParking
+18%
MUST HAVEWalkability
+15%
HIGH IMPACTWorkspace
+12%
HIGH IMPACTFast WiFi
+10%
NICE TO HAVERooftop/Patio
+8%

🎯 Your Next Steps

1
Search for 6BR+ properties
Best income potential at $9,280/month
2
Add a Parking
Boost revenue by +18%
3
Target $5,940/month
Top 25% performer income goal

📋 Regulation Status

Strict RulesPermit: Very HardVerified Data

Regulations vary by city and county. Always verify local STR ordinances, permit requirements, and zoning laws before purchasing.

Research Comparable Listings

See active short-term rentals in this market

View Listings on Airbnb

Opens Airbnb.com in a new tab to view real listings and pricing in this market

Take the Next Step

Find homes, agents, and lenders in this market

Opens Zillow.com in a new tab

Want Jeff's Team to Help You Close?

Our coaching students get matched with vetted agents and STR-friendly lenders

Learn More
📊

Run the Numbers on a Property

Free STR calculator with comp data for any address

Ready to Invest?

See how our students earn $2K–$4K/mo from rural Airbnbs — even as first-time investors.

Apply Now

Costa Mesa, California is rated D for Airbnb investment with a score of 36/100 (AVOID). The market has an average daily rate (ADR) of $217, 73% occupancy, and estimated monthly STR revenue of $4,752. Median home value is $1,354,413 with a cash-on-cash return of -15.9%. STR regulation status: Strict Rules. Data powered by Edge by Teeco using estimated market data.