Capitola, CA Airbnb Market Data, Statistics, and Occupancy Rates

Capitola Short-Term Rental Market Overview

Capitola's beachside charm on the northern Monterey Bay makes it a compelling — if premium-priced — short-term rental market, with active listings averaging $62,254 in annual revenue across just 68 properties. The market earns an ROI score of 57 out of 100, reflecting strong occupancy stability and positive growth trends that partially offset the high entry cost of homes averaging $1,721,010. Seasonal demand swings are pronounced, with July revenues more than double January's, yet the compact supply base and coastal appeal help sustain above-average occupancy stability throughout the year.

Key Market Statistics

According to Rabbu market data, the Capitola short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Capitola

Capitola attracts investors who want exposure to California's coastal vacation rental demand in a small, supply-constrained market with demonstrated occupancy resilience.

Expert Market Assessment

"Capitola presents an attractive but cost-conscious opportunity for STR investors. Revenue potential is meaningful — particularly for 3- and 4-bedroom properties pulling in $92,049 and $125,991 annually — yet the revenue-to-price ratio sits below average given home values north of $1.7 million. Seasonality is a defining feature: July and August drive roughly 60–100% more revenue than winter months, so investors should plan for leaner cash flow from November through March. The market's above-average occupancy stability and growth trend provide a reassuring foundation, making Capitola best suited for investors with longer time horizons who value asset appreciation alongside rental income."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Capitola

Average revenue by month in Capitola

Capitola's revenue peaks sharply in July at $8,068 and August at $7,860, while January bottoms out at $3,115 — a 2.6x seasonal spread that underscores the market's heavy reliance on summer tourism. The shoulder season (April–May, September–October) holds relatively steady in the $4,600–$5,600 range, providing a workable bridge between high and low periods.

Active Airbnb listings by property size in Capitola

Two-bedroom properties dominate Capitola's supply at 33 of 68 listings (nearly half), while 3- and 4-bedroom homes are comparatively scarce with just 10 and 7 listings respectively. This underrepresentation of larger properties, combined with their stronger revenue figures, may signal an opportunity for investors willing to acquire bigger homes.

Average daily rate (ADR) by property size in Capitola

ADR climbs steeply with property size in Capitola, from $218 for 1-bedrooms to $774 for 4-bedrooms — a 3.5x premium. The jump from 2-bedrooms ($312) to 3-bedrooms ($470) represents the sharpest dollar increase, suggesting that the third bedroom commands significant pricing power in this market.

Average RevPAN by property size in Capitola

Three-bedroom properties deliver the strongest RevPAN at $163, outperforming both smaller units ($99–$102 for 1- and 2-bedrooms) and even larger 4-bedroom homes ($136), whose lower occupancy drags down their per-night yield. This makes 3-bedrooms the most efficient revenue generators once occupancy is factored in.

Average occupancy rates by property size in Capitola

Smaller units stay fullest in Capitola, with 1-bedrooms reaching 46% occupancy — well above the market average of 33% — while 4-bedroom properties average just 18%. Investors targeting cash-flow consistency may prefer smaller properties, though the higher per-night rates of larger homes can still produce greater total revenue despite lower fill rates.

Average monthly revenue by property size in Capitola

Monthly revenue scales predictably with size, from $2,952 for 1-bedrooms up to $10,499 for 4-bedroom properties. The 3-bedroom sweet spot at $7,670 per month stands out given these units balance strong ADR and reasonable occupancy, generating over 67% more monthly revenue than 2-bedrooms.

Average annual revenue by property size in Capitola

Four-bedroom listings lead annual revenue at $125,991, followed by 3-bedrooms at $92,049 — both configurations significantly outpacing the market average of $62,254. For investors evaluating return potential relative to acquisition and operating costs, 3-bedroom properties likely offer the best balance given their superior RevPAN and more attainable price points compared to 4-bedroom homes.

Most common amenities for Airbnb listings in Capitola

Kitchen (100%), parking (97%), and self check-in (90%) are virtually universal in Capitola's listings, establishing them as baseline guest expectations rather than differentiators. Outdoor-oriented amenities like patios (77%), BBQ grills (62%), and beach access (31%) reflect the coastal vacation profile of this market, while hot tubs (7%) remain a potential differentiator for hosts looking to stand out.

Understanding Capitola's ROI Score: 57/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Capitola's ROI score of 57 out of 100 places it in the 'Attractive Opportunity' band, driven primarily by above-average occupancy stability and positive market growth trends that help offset a below-average revenue-to-price ratio. The high home values in this coastal California market mean investors need to weigh appreciation potential alongside rental cash flow when evaluating returns. Pairing this score with current local regulatory research and a clear understanding of seasonal revenue swings will give investors the most complete picture before committing capital.

Short-Term Rental Regulations in Capitola

Understanding local STR regulations is essential before investing in Capitola. Here's the current regulatory landscape:

Permit Requirements

The city of Capitola, California may require short-term rental operators to obtain a permit or business license before listing a property; investors should verify current requirements directly with the Capitola city clerk or planning department, as regulations in California's coastal communities can change frequently.

Key Restrictions

Common restrictions in markets like Capitola can include occupancy limits tied to the number of bedrooms, minimum-stay requirements (particularly in residential zones), noise ordinances, parking mandates, and caps on the total number of STR permits issued. HOA rules may also limit or prohibit short-term rentals in certain communities, so reviewing any applicable CC&Rs before purchasing is essential.

Tax Obligations

Short-term rental operators in California are generally subject to Transient Occupancy Tax (TOT), and Capitola may impose its own local rate on top of county obligations. Platforms like Airbnb often collect and remit these taxes on behalf of hosts, but investors should confirm compliance with both city and state requirements.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Capitola can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, we expect Capitola's STR market to continue benefiting from steady coastal tourism demand, with summer months likely sustaining ADRs in the $350–$400+ range. The 67% year-over-year growth in active listings signals rising investor interest, though occupancy rates — currently at 33% market-wide — may face modest downward pressure if supply additions outpace demand. We estimate annual revenue for a well-managed property could remain in the $55,000–$70,000 range depending on size and positioning, with 3-bedroom units particularly well-positioned to capture family and group travel through the peak season."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Capitola, CA

What is the average Airbnb occupancy rate in Capitola?

The average occupancy rate for Airbnb listings in Capitola is currently 33%, which is below the California state average of 43%. However, occupancy varies significantly by property size — 1-bedroom units lead at 46%, while larger 4-bedroom homes average around 18%. Capitola's occupancy stability is rated above average, meaning hosts tend to see relatively consistent booking patterns even if the headline rate appears modest.

How much do Airbnb hosts make in Capitola?

Airbnb hosts in Capitola earn an average of $5,187 per month, or approximately $62,254 per year based on the trailing 12 months of booking data. Revenue varies considerably by property size: 1-bedroom listings average $35,432 annually, 2-bedrooms earn about $54,967, 3-bedrooms bring in roughly $92,049, and 4-bedroom properties top the market at $125,991 per year. Peak summer months like July can generate over $8,000 in a single month.

Is Capitola a good market for Airbnb investment?

Capitola scores 57 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market benefits from above-average occupancy stability and a positive growth trend, though the revenue-to-price ratio is below average due to high home values averaging $1,721,010. Investors with a longer time horizon who value coastal appreciation alongside rental income will find Capitola most appealing, particularly in the 3-bedroom segment where RevPAN reaches $163.

What is the average daily rate (ADR) for Airbnb in Capitola?

The average daily rate across all Capitola Airbnb listings is $364, which comes in below the California state average of $551. ADR scales with property size: 1-bedrooms average $218, 2-bedrooms $312, 3-bedrooms $470, and 4-bedroom properties command a premium at $774 per night. These rates reflect the coastal vacation positioning of the market.

Are short-term rentals legal in Capitola?

Short-term rentals operate in Capitola, with 68 active Airbnb listings currently on the market. However, the city of Capitola and the state of California may impose permit requirements, registration obligations, and other regulations that hosts must comply with. We strongly recommend verifying the latest local rules with the Capitola city government or a local real estate attorney before making an investment.

When is peak season for Airbnb in Capitola?

Peak season in Capitola runs from June through August, with July being the highest-earning month at an average of $8,068 in revenue. August follows closely at $7,860. The shoulder months of May and September also perform solidly at $5,084 and $5,563 respectively. Winter months are the slowest — January averages just $3,115 — creating a seasonal spread of roughly 2.6x between peak and trough.

How many Airbnbs are there in Capitola?

As of April 2026, there are 68 active Airbnb listings in Capitola. The supply is dominated by 2-bedroom properties (33 listings), followed by 1-bedrooms (14), 3-bedrooms (10), and 4-bedrooms (7). Year-over-year listing growth has been strong at 67%, indicating increasing investor interest in this coastal market.

How is Airbnb revenue calculated in Capitola?

The annual and monthly revenue figures for Capitola are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the remaining data to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance window. Individual results can vary based on property quality, pricing strategy, and how effectively the listing is managed.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts, occupancy rates, and daily rates by market
• Revenue per available night (RevPAN) and monthly/annual revenue averages based on trailing 12-month booking data
• Property size breakdowns covering listings, rates, occupancy, and revenue across bedroom counts
• Amenity prevalence data across active listings to identify guest expectations and competitive advantages
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI) for investment return context

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages and market conditions as of the date indicated; actual results may vary based on property quality, pricing strategy, and management. Local regulations, permit requirements, and tax obligations are subject to change — always verify with local authorities before investing.