This week’s roundup covers San Diego blocking a proposed short-term rental tax, new 2026 investment insights from AirDNA, cities continuing to adjust short-term rental rules ahead of the 2026 World Cup, a legal challenge to Dearborn’s STR ban, and a new HGTV series spotlighting vacation rentals. Let’s dive in.
Previously reported in Industry News on January 23rd and October 10th, San Diego’s proposed short-term rental tax was officially rejected this week. After hours of public comment and debate on Wednesday, the San Diego City Council Rules Committee voted 3–2 to block the measure, preventing it from moving forward to the full City Council and appearing on the June ballot. The proposal would have imposed a new annual tax of up to $8,000 on short-term rentals and vacation homes, with revenue directed toward affordable housing and homelessness programs. Supporters presented the tax as a tool to address housing affordability, while opponents argued it would disproportionately affect hard-working hosts and the vacation rental industry as a whole in the area. Councilmember Raul Campillo, who voted against the measure, said the tax would undermine small businesses and warned the city would ultimately lose more revenue than it would generate if it passed the new tax.
AirDNA released a report this week highlighting its top 10 markets for short-term rentals at the $700,000 to $1 million price point. The rankings are based on gross yield, comparing AirDNA’s projected annual short-term rental revenue against the average purchase price of homes currently listed for sale in each market. AirDNA notes that while gross yields in this higher price tier tend to be lower than in more affordable markets, higher-end properties often generate stronger overall revenue per listing, potentially allowing investors to own fewer assets while receiving similar returns. Markets featured on the list include Santa Rosa/Rosemary Beach, Florida, the Ozark Mountains in Missouri, and Fort Lauderdale, Florida, each posting projected gross yields between 9.0 and 9.8 percent based on current inventory. AirDNA also released a companion report highlighting the best places to invest with a $250,000 to $400,000 budget, using the same gross-yield methodology. That list includes Burlington, Kentucky, Abilene, Texas, and Savannah, Georgia, with average gross yields ranging from 15.9 to 17.9 percent.
Brea, a city in Orange County, California, has become the latest local government to amend its short-term rental rules as cities across the U.S. prepare for increased travel demand tied to the 2026 World Cup and the 2028 Summer Olympics. City officials approved a new short-term rental pilot program that will allow rentals to operate under a regulated framework where they were previously banned. The new program will allow up to 100 permits, issued through a lottery, with hosts required to comply with rules around parking, safety inspections, minimum stay requirements, and business licensing. The city estimates the program could generate roughly $500,000 in annual revenue while helping accommodate the large number of visitors expected during the upcoming global events. The program will run through December 31, 2029, and will expire unless extended by the City Council.
Previously reported in Industry News on July 18th, Dearborn’s short-term rental ban is now being challenged in federal court by a group of property owners and short-term rental operators. The ordinance, passed in July 2025 and taking effect on January 1st, prohibits short-term rentals in single-family residential neighborhoods. In the lawsuit, property owners argue the city violated due process by eliminating a previously permitted land use and that any ban should have exempted properties that were already operating as short-term rentals.
On Wednesday, HGTV announced the premiere date for its new series, Wild Vacation Rentals, with the first episode set to air on March 2nd. Each episode will feature three unique vacation rentals in the U.S., beginning in the central United States. They will be showcasing amazing design, hilariously honest guest reviews, stories straight from the owners, and the incredible experiences that set short-term rentals apart. We hope to see a few OwnerRez-powered properties featured along the way.
As cities continue to shift short-term rental regulations and fresh investment data is released, the vacation rental landscape continues to take shape in 2026. Check back next week for the latest news.