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

Merced Short-Term Rental Market Overview

Merced offers an emerging short-term rental landscape shaped by its proximity to Yosemite National Park and the growing UC Merced campus, though current performance metrics suggest a market that rewards careful deal selection. With an average annual revenue of $15,404 across 82 active listings and an ADR of $114—well below the California state average of $551—the market skews toward affordability rather than premium nightly rates. Average home values sit at $485,733, and a notable 96% year-over-year growth in active listings signals rising investor interest that could tighten competition ahead.

Key Market Statistics

According to Rabbu market data, the Merced 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 Merced

Merced attracts investor attention thanks to below-state-average home prices, a university anchoring year-round demand, and gateway access to one of California's most-visited national parks.

Expert Market Assessment

"Merced presents a competitive but uneven opportunity for STR investors. Revenue peaks sharply in summer—July tops $1,653 in average monthly revenue—while winter months like January and February dip below $800, creating a pronounced seasonal swing that investors need to budget around. The 29% average occupancy rate trails the state benchmark meaningfully, though multi-bedroom properties tell a more encouraging story: 2-bedroom units hit 43% occupancy and 3-bedrooms reach 39%, each generating over $22,000 annually. For investors willing to target the right property size and manage through quieter months, the market's affordable entry point and upward growth trajectory offer a realistic path to returns."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Merced

Average revenue by month in Merced

Merced's revenue cycle is distinctly seasonal: July leads at $1,653 per month while February bottoms out at $751, a spread of over $900 that underscores the importance of summer tourism to cash flow. Revenue begins climbing in March and stays elevated through October before tapering into winter, giving investors roughly seven months of above-average performance.

Active Airbnb listings by property size in Merced

One-bedroom units overwhelmingly dominate Merced's supply at 47 of 82 total listings, while 2-bedroom properties are notably scarce with just 7 listings. The relative undersupply of 2- and 3-bedroom units—combined with their stronger performance metrics—could signal a competitive advantage for investors targeting those sizes.

Average daily rate (ADR) by property size in Merced

ADR scales steadily from $66 for 1-bedroom listings up to $203 for 4-bedroom properties, roughly tripling across the size spectrum. The jump from 1-bedroom to 2-bedroom ($66 to $133) represents the largest proportional increase, suggesting that even a modest step up in size commands a meaningful rate premium in this market.

Average RevPAN by property size in Merced

Three-bedroom listings deliver the strongest RevPAN at $65, followed closely by 2-bedrooms at $57, while 1-bedroom units lag significantly at just $18 per available night. Notably, 4-bedroom properties drop to $36 RevPAN despite their higher ADR, reflecting their low 18% occupancy and suggesting oversupply or limited demand at the larger end.

Average occupancy rates by property size in Merced

Two-bedroom listings lead occupancy at 43%—matching the state average—while 3-bedrooms follow at 39%, both far outpacing the 27% seen in 1-bedroom units. Four-bedroom properties occupy just 18% of available nights, indicating that larger homes in Merced may struggle to fill consistently and carry higher vacancy risk.

Average monthly revenue by property size in Merced

Monthly revenue climbs from $700 for 1-bedroom units to $2,110 for 4-bedrooms, though the gains flatten considerably above 2 bedrooms—moving from $1,915 (2BR) to $2,059 (3BR) to $2,110 (4BR). The steep jump from 1- to 2-bedroom revenue suggests that upgrading beyond studio-style listings is where the most meaningful revenue lift occurs.

Average annual revenue by property size in Merced

Four-bedroom properties top annual revenue at $25,326, with 3-bedrooms close behind at $24,713 and 2-bedrooms at $22,980—all roughly three times the $8,405 earned by 1-bedroom listings. Given comparable annual revenues across the 2- to 4-bedroom range, 2- and 3-bedroom units may offer the best return potential when factoring in their lower acquisition and operating costs.

Most common amenities for Airbnb listings in Merced

Kitchens (99%) and parking (98%) are near-universal in Merced listings, reflecting guest expectations in a car-dependent Central Valley market. Washers and dryers also appear in roughly 90% of listings, while differentiators like hot tubs (6%) and pools (5%) remain rare—presenting a potential competitive edge for hosts willing to invest in standout amenities.

Understanding Merced's ROI Score: 51/100

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

Merced's ROI Score of 51 out of 100 places it in the "Competitive Opportunity" band, meaning strong investor interest is already present but selective deal sourcing matters. The score reflects an average revenue-to-price ratio and supply/demand balance, paired with above-average market growth—yet occupancy stability currently drags the overall assessment down. Investors should pair these metrics with on-the-ground regulatory research and focus on property types (particularly 2- and 3-bedroom units) that outperform the market averages.

Short-Term Rental Regulations in Merced

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

Permit Requirements

The City of Merced and Merced County may require short-term rental operators to obtain a business license or specific STR permit before listing a property. Investors should verify current registration and permitting requirements directly with local planning and zoning offices, as California municipalities vary widely in their STR frameworks.

Key Restrictions

Common restrictions that may apply include occupancy limits, minimum stay requirements, noise and nuisance ordinances, and off-street parking mandates. HOA covenants in certain Merced neighborhoods could impose additional limitations, and some jurisdictions cap the total number of STR permits issued, so it's important to confirm availability before committing to a purchase.

Tax Obligations

Short-term rental hosts in Merced are generally subject to California's transient occupancy tax (TOT), and may owe additional county or city-level tourism-related assessments. Platforms like Airbnb often collect and remit some of these taxes automatically, but hosts should confirm their full obligations with a local tax professional.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Merced's STR market is likely to benefit from continued university-driven demand and Yosemite-bound tourism, particularly during the summer peak when monthly revenues climb above $1,600. The above-average market growth trend suggests expanding demand, though occupancy—currently at 29% against a 43% state average—will need to improve before revenue potential meaningfully shifts upward. Investors should anticipate ADR holding relatively steady in the $110–$120 range, with seasonal occupancy swings remaining pronounced. Targeting 2- and 3-bedroom properties that already show stronger occupancy could help mitigate the softer off-season months."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Merced, CA

What is the average Airbnb occupancy rate in Merced?

The average Airbnb occupancy rate in Merced is currently 29%, which falls below the California state average of 43%. However, performance varies significantly by property size—2-bedroom listings achieve 43% occupancy and 3-bedroom listings reach 39%, both well above the market-wide figure. One-bedroom units, which make up the majority of supply, pull the overall average down at 27%.

How much do Airbnb hosts make in Merced?

On average, Airbnb hosts in Merced earn approximately $1,283 per month or $15,404 per year based on trailing 12-month booking data. Earnings vary considerably by property size: 1-bedroom listings average around $700/month ($8,405/year), while 3- and 4-bedroom properties generate roughly $2,059–$2,110/month ($24,713–$25,326/year). Actual results depend on factors like pricing strategy, property quality, and seasonal demand.

Is Merced a good market for Airbnb investment?

Merced earns a Rabbu ROI Score of 51 out of 100, placing it in the 'Competitive Opportunity' category. The market shows above-average growth trends and average revenue-to-price and supply/demand dynamics, though occupancy stability is below average. Investors who target multi-bedroom properties—particularly 2- and 3-bedroom units with stronger occupancy and RevPAN—may find the most viable opportunities, especially given Merced's relatively affordable home values of $485,733.

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

The average daily rate for Airbnb listings in Merced is $114, significantly lower than the $551 California state average. ADR scales with property size: 1-bedroom units average $66/night, 2-bedrooms average $133, 3-bedrooms reach $168, and 4-bedroom properties command $203/night. This pricing reflects Merced's positioning as an affordable Central Valley market rather than a premium destination.

Are short-term rentals legal in Merced?

Short-term rentals are generally permitted in Merced, though operators may need to obtain a business license or STR-specific permit from the City of Merced or Merced County. Local regulations can include occupancy caps, parking requirements, and noise ordinances. Because California's STR rules vary by municipality and can change, investors should check directly with local planning authorities and review any HOA restrictions before purchasing a property.

When is peak season for Airbnb in Merced?

Peak season for Airbnb in Merced runs from June through September, with July delivering the highest average monthly revenue at $1,653 and August close behind at $1,637. This summer surge aligns with Yosemite tourism and warmer-weather travel. The slowest months are January ($772) and February ($751), creating a seasonal spread of roughly $900 between peak and trough.

How many Airbnbs are there in Merced?

As of April 2026, there are 82 active Airbnb listings in Merced. The market has seen significant growth, with a 96% year-over-year increase in active listings. One-bedroom units dominate supply at 47 listings, while 2-bedroom (7 listings), 3-bedroom (13 listings), and 4-bedroom (13 listings) units are far less common—a potential gap worth exploring for investors.

How is Airbnb revenue calculated in Merced?

The annual and monthly revenue figures for Merced are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the results into a market-level historical average. Because each month draws on its own historical data, the figures naturally reflect seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and operational management.

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 for the Merced market
• Average daily rates, occupancy rates, and RevPAN metrics across property sizes
• Monthly and annual revenue trends based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to inform property setup decisions

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 averages as of April 2026 and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.