Cash Flow Investing in San Diego, CA

Cash Flow Score: 3.4/10Ranked #44 of 52 markets

Data-driven cash flow analysis for San Diego, CA — score breakdown, key investment metrics, and how it compares to other markets.

Last updated: May 2026

Score Breakdown

Cash Flow Score:3.4
Rent-to-Price Ratio(30%)
0.32%0.7
Cap Rate(30%)
3.5%1.1
Low Vacancy(20%)
6.5%6.9
Low Property Taxes(20%)
0.73%7.6

Key Metrics for Cash Flow

Cap Rate

3.5%

Moderate

Rent-to-Price

0.32%

Below 1% rule

Vacancy Rate

6.5%

Healthy

Property Tax

0.73%

Very low

Cash Flow Investment Thesis

San Diego is a lifestyle market with military, biotech, and tourism employment anchors. Very tight supply keeps vacancy low, but high prices mean most investors need significant capital or creative financing.

How San Diego Compares

RankCityCash Flow ScoreCap RateMedian Price
#41Las Vegas, NV3.44.8%$380,000
#42Austin, TX3.44.3%$450,000
#43Seattle, WA3.43.8%$720,000
#44San Diego, CA3.43.5%$820,000
#45Baltimore, MD3.26.5%$180,000
#46Savannah, GA3.25.9%$275,000
#47Los Angeles, CA3.23.2%$900,000

Showing markets ranked near San Diego for this strategy.

Quick Math: Estimated Annual Return

Annual Gross Rent ($2,600/mo)$31,200
Less: Vacancy (6.5%)-$2,028
Less: Property Tax (0.73%)-$5,986
Less: Insurance (~0.5%)-$4,100
Less: Maintenance (~1.5%)-$12,300
Estimated NOI$6,786
Implied Cap Rate0.8%

Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.

Frequently Asked Questions

What is the cash flow score for San Diego, CA?

San Diego, CA scores 3.4 out of 10 on our cash flow score, ranking #44 out of 52 markets we track. Weighted composite: rent-to-price ratio (30%), cap rate (30%), low vacancy (20%), low property taxes (20%). Scale 0–10.

Is San Diego a good city for cash flow investing?

San Diego, CA ranks #44 for cash flow investing with a score of 3.4/10. While not a top-ranked market for this strategy, it may have strengths in other investing approaches.

What is the average cap rate in San Diego?

The average cap rate in San Diego, CA is 3.5%. The median home price is $820,000 with a median monthly rent of $2,600, resulting in a rent-to-price ratio of 0.32%.

What are the property taxes in San Diego?

The effective property tax rate in San Diego, CA is 0.73%. On a $820,000 property, that translates to approximately $5,986 per year in property taxes.

How does San Diego compare to other cash flow markets?

Among our 52 tracked markets, San Diego, CA ranks #44 for cash flow investing. Other markets may be stronger for this particular strategy, though it may excel in different approaches.

Does San Diego meet the 1% rule?

San Diego, CA has a rent-to-price ratio of 0.32%, which falls significantly below the 1% rule. However, the 1% rule is a rough guideline — individual deals can still cash flow well in this market.

Run Your Own Numbers for San Diego

Use our free calculators pre-filled with San Diego, CA market data, or adjust the numbers for your specific deal.