Back to CA

Merced

Merced County, CA

STR Investment Grade

Transparent Scoring
D
42/100
⚠️ CAUTION
Score Breakdown
💰Cash-on-Cash
10/35
🏠Affordability
6/25
📅Year-Round Income
12/15
🤝Landlord Friendly
2/10
📈Room to Grow
12/15
Cash-on-Cash
2.5%
Break-even
Median Home
$389K
Expensive
Room to Grow
12/15
Good Headroom

STRs Generally Permitted

STRs generally allowed with standard permits

No major restrictions known. Standard registration and tax collection may be required. Check local ordinances for specific requirements.

Permit: Moderate
AI-generated regulation data · Regulations change frequently
📋 Before You Invest
Even in STR-friendly markets, confirm the details for your specific property. Call the Merced 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?
Regulation details vary by neighborhood and zoning district — always verify for your specific address.

Why Merced?

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.

🏥
Medical Tourism

Major medical facilities bring traveling nurses, patients, and families needing extended stays.

Will This Deal Work?

Investment Grade
D
Break-even
CoC: 2.5%
Can You Pay the Bills?
YES
Income covers mortgage
THE BOTTOM LINE ⚠️

Below average. Significant challenges may impact profitability.

💵
$187
Avg ADR
📅
62%
Occupancy
💰
$3,478
Monthly Revenue
🏠
$389K
Median Price

Market estimates · Updated Feb 2026

📊 Income by Property Size

Monthly revenue estimates by bedroom count

1BR
$1,913
2BR
$2,602
3BR
$3,482
4BR
$4,687
5BR
$5,739
6BR+
$6,791
⭐ 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 $6,791/month
2
Add a Parking
Boost revenue by +18%
3
Target $4,348/month
Top 25% performer income goal

📋 Regulation Status

LegalPermit: Moderate

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

Merced, California is rated D for Airbnb investment with a score of 42/100 (CAUTION). The market has an average daily rate (ADR) of $187, 62% occupancy, and estimated monthly STR revenue of $3,478. Median home value is $389,440 with a cash-on-cash return of 2.5%. STR regulation status: Legal. Data powered by Edge by Teeco using estimated market data.