Redwood City, CA Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

42 / 100

Redwood City presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.

Redwood City Short-Term Rental Market Overview

Redwood City sits at the heart of Silicon Valley's Peninsula, where proximity to major tech employers and Stanford University fuels steady short-term rental demand. With an average occupancy rate of 47%—outpacing California's 43% state average—and an ADR of $270, the market generates roughly $37,940 in average annual revenue per listing. However, home values averaging over $2.5 million mean the revenue-to-price ratio is tight, making selective deal sourcing essential for investors targeting this competitive market.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 185
Average Daily Rate (ADR) vs. $551 state avg. $270
Average Occupancy Rate vs. 43% state avg. 47%
RevPAN ADR * Occupancy Rate $127
Average Monthly Revenue Historical 12-month average $3,161
Average Annual Revenue Historical 12-month average $37,940

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

Why Investors Consider Redwood City

Redwood City appeals to investors who want exposure to Silicon Valley's deep corporate and professional travel demand, tempered by the understanding that high entry costs require disciplined underwriting.

Key investment factors

  • Proximity to major tech campuses drives consistent weekday and extended-stay demand
  • Occupancy stability rated above average, providing more predictable cash flow than many California peers
  • Market growth trend is above average, signaling strengthening demand signals
  • Larger properties (3–4 bedrooms) command outsized revenue, with 4-bedrooms averaging nearly $106K annually
  • Workspace and self check-in amenities dominate listings, reflecting a guest base that values convenience and productivity

Expert Market Assessment

"This market earns a Competitive Opportunity designation—strong demand fundamentals exist, but high property prices compress yield and rapid supply growth tightens competition. Seasonality is moderate: revenue climbs from a February low of about $2,329 to a July peak near $4,106, creating a roughly 1.8× swing that investors can plan around. Larger units are the standout performers, with 4-bedroom properties pulling in $8,830 per month on average, yet they represent just 8 of the market's 185 listings, hinting at a supply gap worth exploring. Investors who can secure well-located, multi-bedroom properties at reasonable basis should find the most attractive risk-adjusted returns here."

— Rabbu Market Analysis Team

Understanding Redwood City's ROI Score: 42/100

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

Factor Redwood City Performance Weight
Revenue-to-Price Ratio Below average 40%
Occupancy Stability Above average 30%
Market Growth Trend Above average 15%
Supply/Demand Balance Below average 15%

What This Means for Investors

Redwood City's ROI Score of 42 out of 100 places it in the Competitive Opportunity band, reflecting a market where demand is genuine but elevated home prices compress returns. The score is buoyed by above-average occupancy stability and a positive market growth trend, but held back by a below-average revenue-to-price ratio and tight supply/demand balance as listings have grown rapidly. Investors should pair this data with thorough local regulatory research and focus on property types—particularly larger homes—where the revenue math works against a high acquisition cost.

Short-Term Rental Regulations in Redwood City

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

Permit Requirements

Redwood City, California may require hosts to obtain a short-term rental permit or business license before listing a property. Investors should verify current registration requirements directly with the City of Redwood City and San Mateo County, as rules can change and enforcement varies.

Key Restrictions

Common STR restrictions in California markets include occupancy limits, minimum-stay requirements, noise and parking regulations, and caps on the number of permits issued. HOA rules can add another layer of restriction, particularly in condominium and planned-unit developments, so investors should review CC&Rs before purchasing.

Tax Obligations

Short-term rental hosts in California are typically subject to transient occupancy tax (TOT), and in some cases state sales tax. Platforms like Airbnb often collect and remit TOT on behalf of hosts, but operators should confirm their obligations with both the City of Redwood City and the California Department of Tax and Fee Administration.

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

Short-Term Rental Financing for Redwood City

Financing an Airbnb investment in Redwood City requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Redwood City Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Redwood City's STR market is expected to benefit from continued tech-sector activity along the Peninsula and above-average occupancy stability. Seasonal patterns suggest summer months will remain the revenue peak, with July historically topping $4,100 per listing—roughly 76% higher than the February trough. We estimate ADR could edge up 1–3% as demand remains firm, though new supply (listing growth near 95% year-over-year) could pressure occupancy into the 44–48% range. Investors should monitor whether the rapid supply expansion moderates, as that will be the key swing factor for per-listing returns."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Redwood City, CA

What is the average Airbnb occupancy rate in Redwood City?
The average Airbnb occupancy rate in Redwood City is currently 47%, which is above the California state average of 43%. One-bedroom listings tend to perform best on occupancy at 50%, while studios lag at 37%. This above-average occupancy stability is a positive signal for investors seeking consistent booking activity.
How much do Airbnb hosts make in Redwood City?
On average, Airbnb hosts in Redwood City earn approximately $3,161 per month, or about $37,940 annually, based on the trailing 12 months of booking data. Revenue varies significantly by property size—1-bedroom units average around $25,018 per year, while 4-bedroom properties can generate roughly $105,959 annually. Peak earning months are June through August, with July leading at about $4,106 per listing.
Is Redwood City a good market for Airbnb investment?
Redwood City earns an ROI Score of 42 out of 100, classified as a Competitive Opportunity. The market benefits from above-average occupancy stability and a positive growth trend, driven by Silicon Valley's deep pool of corporate and professional travelers. However, average home values above $2.5 million mean the revenue-to-price ratio is below average, so investors will need to be selective in sourcing deals that pencil out.
What is the average daily rate (ADR) for Airbnb in Redwood City?
The average daily rate in Redwood City is $270, which is below the California state average of $551. ADR scales meaningfully with property size: studios command an average of $416, 1-bedrooms sit at $158, 2-bedrooms at $309, 3-bedrooms at $369, and 4-bedroom properties reach $554 per night. The lower market-wide average reflects the dominance of 1-bedroom listings in the supply mix.
Are short-term rentals legal in Redwood City?
Short-term rentals are permitted in Redwood City, though hosts may need to obtain a permit or business license and comply with local regulations. Requirements can include occupancy limits, parking provisions, and transient occupancy tax collection. We recommend verifying current rules directly with the City of Redwood City, as regulations evolve and enforcement practices may vary.
When is peak season for Airbnb in Redwood City?
Peak season in Redwood City runs from roughly June through October, with July delivering the highest average monthly revenue at approximately $4,106 per listing. August follows closely at $3,870, and September and October remain strong at around $3,488 and $3,483 respectively. The slowest months are January and February, when average revenue dips to about $2,361 and $2,329.
How many Airbnbs are there in Redwood City?
There are currently 185 active Airbnb listings in Redwood City. The supply is heavily concentrated in 1-bedroom properties, which account for 100 of those listings—more than half the market. Two-bedroom (32), studio (21), 3-bedroom (20), and 4-bedroom (8) listings make up the remainder, suggesting potential opportunity in underserved larger property sizes.
How is Airbnb revenue calculated in Redwood City?
The annual and monthly revenue figures shown for Redwood City 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 roll the results up to a market-level historical average. Because each month uses its own historical performance, the figures naturally reflect seasonal peaks and slower periods. 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 for the Redwood City market
  • Average daily rate, occupancy, and RevPAN metrics based on current and trailing performance
  • Monthly and annual revenue estimates derived from historical booking data across comparable listings
  • Property value benchmarks sourced from the Zillow Home Value Index (ZHVI)
  • Amenity prevalence data reflecting the current competitive landscape of active listings

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 performance and market conditions as of April 2026; actual results may differ as conditions evolve. Local regulations, HOA rules, and tax obligations vary and should be independently verified before making investment decisions.

Next Steps

Ready to invest in Redwood City's short-term rental market? Take action with these resources:

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