Is Long Beach, California Good for Airbnb Investment?

Potentially—Long Beach, California combines visitor demand with long-term real estate upside.

• Presents a mixed but potentially favorable outlook.
• The city benefits from consistent tourism, driven by attractions like the Aquarium of the Pacific, its vibrant downtown, and proximity to Southern California beaches and theme parks.
• Current market conditions in Long Beach show appreciating property values, though they remain high, which can impact initial investment costs.
• The investment potential is strong for properties that can command higher nightly rates and maintain high occupancy, especially those near key attractions or business centers.
• However, investors must navigate the evolving short-term rental regulations in Long Beach, which include permit requirements and restrictions, to ensure compliance and profitability.

$2,800–$4,500 per month based on location, season, and property quality.

• Based on available market data, average Airbnb earnings in Long Beach, California typically range from $2,800 to $4,500 per month for a standard one-bedroom unit.
• Seasonal variations show peak earnings during summer months (June through August) when revenues can increase by 25-40% due to beach tourism.
• Properties within walking distance of the beach, downtown area, or major attractions like the Queen Mary command premium rates averaging 30-50% higher than inland locations.
• Key factors affecting earnings include proximity to the ocean, property condition and amenities, professional photography quality, responsive host communication, competitive pricing strategies.
• Occupancy rates generally range from 65-75% annually, with beachfront properties achieving higher occupancy rates of 75-85%.

Potentially strong—typical annual ROI is 8–15%.

• Typically generate ROI between 8-15% annually, with beachfront and downtown properties achieving the higher end of this range due to strong tourist demand from the Queen Mary, Aquarium of the Pacific.
• The average payback period ranges from 7-12 years depending on property location and initial investment, with properties near the waterfront and convention center recovering costs faster.
• Compared to traditional long-term rentals in Long Beach which average 6-9% ROI, short-term rentals can generate 40-60% higher returns.
• However, Airbnb investments require significantly higher operational costs including cleaning fees, property management, utilities, and compliance with Long Beach's short-term rental regulations.

Long Beach, California averages 68–72% annual occupancy, with seasonal variation.

• Long Beach, California maintains an average Airbnb occupancy rate of approximately 68-72% annually, with significant seasonal variations that peak during summer months (June through August) at 78-85% occupancy due to beach tourism and the Long Beach Grand Prix in April, while winter months (December through February) typically see occupancy drop to 55-62%.
• The city experiences secondary peaks during spring break periods and major events like the Queen Mary attractions and convention center bookings.
• Long Beach performs slightly above the California state average of 65-68% for coastal markets but remains below premium destinations like Santa Monica or San Diego.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The best neighborhoods for Airbnb investment in Long Beach include Belmont Shore, which offers premium rental rates due to its beachfront location, upscale dining, and proximity to Naples Island.
• Downtown Long Beach provides excellent investment potential with its convention center, aquarium, entertainment district, and walkable urban amenities that appeal to business travelers and tourists.
• Naples Island stands out as the most exclusive area with luxury canal-front properties commanding the highest rental rates, attracting high-end vacationers seeking waterfront experiences.
• The East Village Arts District offers strong rental demand from creative professionals and tourists interested in the area's galleries, trendy restaurants.
• Alamitos Beach provides solid investment returns with its residential charm, beach access, and appeal to families and groups seeking quieter accommodations near the water.
• Belmont Heights delivers consistent rental income due to its hilltop location offering ocean views, proximity to California State University Long Beach bringing steady demand from visiting families.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Long Beach, California requires short-term rental operators to obtain a Conditional Use Permit (CUP) and business license.
• Owner-occupancy is mandatory for hosted rentals, meaning the property owner must reside on-site during guest stays.
• Short-term rentals are primarily restricted to specific zoning districts including certain commercial and mixed-use areas.
• The registration process involves submitting applications through the Development Services Department, paying fees ranging from $1,500 to $3,000 for the CUP, obtaining required inspections.
• Properties must comply with parking requirements of one space per bedroom, noise ordinances with quiet hours from 10 PM to 8 AM.
• Recent regulatory changes have included stricter enforcement mechanisms, increased penalties for violations up to $1,000 per day, enhanced neighbor notification requirements during the permit process.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Long Beach, California are subject to several fees and taxes including a 14% Transient Occupancy Tax (TOT) collected from guests.
• Property owners must obtain a Short-Term Rental Permit with an initial registration fee of approximately $400-500 and annual renewal fees of around $300-400.
• Additional requirements include a business license costing roughly $150-200 annually, and compliance with safety inspections that may cost $200-300.
• The city also requires a $1,000 performance bond or security deposit to ensure compliance with regulations.
• Properties must pay standard property taxes, and hosts may be subject to California state income tax on rental income, with rates varying from 1% to 13.3% depending on income brackets.
• Some properties may also be subject to special assessment districts fees ranging from $50-200 annually.