La Jolla's short-term rental market presents exceptional revenue opportunities for property owners, with average daily rates consistently exceeding $400-500 during peak seasons due to the area's unique combination of pristine beaches, proximity to UC San Diego, and limited hotel inventory that creates sustained demand pressure. The coastal location commands premium pricing year-round, with occupancy rates typically maintaining 70-85% even during off-peak months, while the affluent visitor demographic—including biotech executives, university families, and luxury leisure travelers—demonstrates strong price tolerance that enables owners to capture revenue premiums of 40-60% above traditional long-term rental yields. Strategic positioning within walking distance of La Jolla Cove, Scripps Institution, or the village center can generate gross rental yields of 8-12% annually, significantly outperforming the broader San Diego County average of 5-7%, while the area's reputation as a world-class destination ensures consistent booking velocity and the ability to implement dynamic pricing strategies that maximize revenue during high-demand periods including summer months, university events, and conference seasons.