A Landlord's Guide to Government Per Diem Rates & Boosting Rental Revenue

Mark Palmiere
Oct 27
12 min read

TL;DR:

What It Is: Government per diem rates are daily allowances for federal employees' travel, covering lodging, meals, and incidentals.
Why It Matters: Aligning your rental's nightly rate with the official lodging per diem makes it a pre-approved, hassle-free choice for reliable government and military guests.
The Benefit: This strategy attracts steady, mid-term bookings (14-30+ days), reduces vacancy during off-seasons, and boosts rental income.
How to Do It: Use the GSA's official website to find the current San Diego per diem rates and set your all-inclusive price just under that cap.
Expert Help: Partnering with a specialist like **West Coast HomeStays** automates this process, optimizes your listing for this market, and can increase your revenue by 20-30%.

Government Per Diem Rates: A Steady Revenue Source for San Diego Landlords

Government per diem rates are the official daily allowances federal employees receive for lodging, meals, and incidental expenses during official travel. For savvy San Diego property owners, these fixed, high-value rates translate into steady bookings from reliable, mid-term guests, creating a consistent revenue stream you can count on. It's a friendly, data-driven way to keep your calendar full all year.

Your Guide To A Winning Per Diem Rental Strategy

Start by aligning your nightly rates with government per diem rates. This simple, coastal-cool tweak positions your property as an automatic pick for:

Government contractors on short-term assignments
Military personnel stationed nearby
Federal employees traveling on temporary duty

With this strategy, you’ll see higher occupancy—especially in the off-season—and more predictable income. Partnering with an expert like **West Coast HomeStays** ensures your listing is optimized, compliant, and guest-ready. Want to compare short- versus mid-term returns? Explore our analysis of the revenue potential of different rental strategies.

Per Diem Rates At A Glance

Below is a quick overview of the key components and authorities involved in setting U.S. government per diem rates.

Component	Governing Body (U.S.)	Purpose
Lodging	General Services Administration	Covers hotel or short-term rental accommodations
Meals & Incidental Expenses	Department of Defense	Funds daily meals and incidental charges
Incidentals	Office of Management & Budget	Accounts for small, miscellaneous expenses

By mastering these rate components, you can fine-tune your pricing, attract mid-term guests, and fill otherwise empty dates with ease.

What Are Government Per Diem Rates?

Ever wonder what government per diem rates are all about? Think of them as a daily allowance the federal government gives its employees for lodging, meals, and other small costs when they travel for work.

It's basically a pre-approved budget for official travel.

For short-term rental owners, these rates are a goldmine. They tell you exactly what a well-funded, reliable government traveler is authorized to spend on a place to stay.

How Per Diem Rates Work

Per diem isn't just one lump sum. It's broken down into three parts: lodging, meals, and incidental expenses.

The General Services Administration (GSA) is the agency that sets these rates every year, giving government agencies a clear guideline for reimbursing travel costs. If you want to dive deeper into how the GSA calculates these numbers, HospitalityNet has a great breakdown.

Rates aren't the same everywhere. While most of the U.S. has a standard rate, there are over 300 "non-standard areas"—usually major cities or high-cost destinations—that get their own, higher caps.

Lodging is the portion that covers a hotel room or, in our case, a short-term rental.
Meals cover breakfast, lunch, and dinner.
Incidentals take care of the small stuff like tips and parking.

San Diego is a prime example of a non-standard area. Its lodging cap is high enough to place it among the top 25 most expensive travel spots for federal employees.

City	Lodging Rate
San Diego	$217
Denver	$167
Miami	$210

Trying to keep up with these rates manually is a huge hassle, especially since they can change. At West Coast HomeStays, we use automated tools to check for updates weekly, ensuring your pricing is always optimized and you're not leaving money on the table.

Aligning your pricing with per diem rates opens up some serious advantages:

You attract reliable mid-term bookings, often for 14+ days.
These guests have premium spending power, so you can stop offering discounts.
Your property gets a green light from travel coordinators because it fits their budget.

“Per diem-focused pricing fills gaps and delivers consistent bookings, even in our off-season.” – San Diego landlord testimonial

🌟 Spotlight on West Coast HomeStays ✔ 20–30% revenue boost ✔ Hybrid STR + MTR strategy ✔ Five-star guest experiences 👉 Book a strategy call

Why These Rates Are a Game-Changer for Owners

When you set your nightly rate to match the official per diem cap, your property becomes an instant, no-brainer choice for government travelers. It's already budget-approved.

This is a core part of our strategy at West Coast HomeStays. We position our properties just under the official caps, which has helped our owners boost their revenue by 20–30% on average.

Think about it from a travel coordinator's perspective. When they see your rate is right at or slightly below the per diem limit, they see immediate value and a hassle-free booking. It’s a simple way to make your listing pop in a crowded market.

Government travelers are also ideal guests because they typically book mid-term stays lasting 10–30 days. This kind of consistency means less turnover, fewer cleaning fees, and more predictable income for you.

Because the rates are pre-vetted by government travel planners, the approval process is incredibly smooth. Guests also love the clear, all-inclusive pricing with no surprise fees.

By aligning with government per diem rates, you're not just setting a price—you're tapping into a steady stream of verified, high-quality guests. Next up, we’ll show you exactly how to find the official San Diego per diem numbers and use them to sharpen your pricing strategy.

How to Find and Use Per Diem Rates for San Diego

Alright, so you get the what and the why of per diem rates. Now for the fun part: finding the numbers for San Diego and actually using them to book more guests.

This isn't some complicated government secret. The data is public, easy to find, and gives you a powerful benchmark for pricing your short or mid-term rental. The goal is to make your property a no-brainer for a steady stream of reliable travelers.

The go-to source for this information in the U.S. is the General Services Administration (GSA). Think of them as the official scorekeepers who set the lodging, meal, and incidental expense rates for federal employees on the move. They make sure everyone is reimbursed fairly, which is great news for us.

Locating San Diego Per Diem Rates

Finding the exact rates for San Diego County takes just a few clicks on the GSA's website. You don't need a special login or account—it's all right there for the public.

Here’s the simple, three-step playbook:

Head over to the GSA Per Diem Look-Up Tool: Start by navigating to the GSA's official rates page.
Punch in Your Location: Type "San Diego" into the search bar, select "California," and let the tool work its magic. It will pull up the rates for the entire county.
Check Out the Current Rates: You'll see a clear breakdown of the lodging rate for each month. This is key, as the rates often change with the seasons to match local demand.

The GSA tool is incredibly straightforward. You can search by city, state, or even zip code to get the numbers you need.

As you can see, the site lays out a month-by-month schedule. This makes it a breeze to adjust your own pricing strategy and stay competitive all year long.

Putting Per Diem Rates into Practice

Once you have that official lodging rate, the strategy is simple: set your property’s nightly price right at or just a hair below that number.

Doing this instantly makes your rental a budget-approved, hassle-free option for any government travelers or military personnel on temporary duty. They see your price, know it fits their allowance, and book. It’s that easy.

Smart pricing isn’t just about the highest number—it’s about the right number. Aligning with per diem rates signals value and reliability, filling your calendar with high-quality, mid-term stays.

This strategy also works for international travelers. The U.S. Department of State sets its own foreign per diem rates for government employees traveling abroad, creating a standardized global system. It's the same principle, just on a worldwide scale.

For you as a host, tapping into these rates takes the guesswork out of pricing. It gives you a solid, data-backed foundation to build from. If you want to dig even deeper, you can explore different Airbnb revenue forecasting tools to compare your potential earnings and see how this strategy stacks up against others.

Why Per Diem Rates Are a Goldmine for Landlords

Sure, you can understand what government per diem rates are. But seeing how they can completely transform your rental income? That's another level. For landlords, these daily allowances aren't just numbers on a government website—they represent a direct pipeline to a stable, profitable, and professional type of guest. This is where you shift your rental strategy from a seasonal gamble to a reliable, year-round asset.

Targeting government travelers gives you a massive advantage because they are dependable, professional, and often book longer mid-term stays. Unlike vacationers who pack their bags during peak seasons, government employees travel for work all year. This consistency is your ticket to filling those dreaded off-season gaps that can really hurt your bottom line.

By pricing your property at or just below the official per diem lodging rate, you immediately pop up on the radar as a budget-approved choice for these travelers and their coordinators.

The Power of Predictable Demand

Government and military personnel are always on the move for temporary duty assignments, training, and special projects—especially in a hub like San Diego. This creates a steady, predictable demand for housing that isn't chained to holidays or summer breaks.

Instead of fighting over the same pool of tourists, you tap into a professional market that needs quality housing for weeks or even months at a time. This kind of stability crushes vacancy rates and smooths out your revenue, giving you much more predictable cash flow.

Aligning with per diem rates removes pricing guesswork and positions your property as a trusted, pre-approved solution for a constant stream of high-quality guests.

This approach is a cornerstone of the hybrid STR and MTR strategy we live and breathe at West Coast HomeStays. We’ve seen firsthand that focusing on this demographic not only keeps our calendars full but also brings in guests who are respectful, responsible, and treat properties with care. For a deeper look at this model, you can read about our success with corporate and government contracts.

Key Benefits of a Per Diem Strategy

Leaning into a per diem pricing model unlocks several key benefits that directly impact your bottom line and cut down on management headaches.

Higher Occupancy Rates: Filling your property during shoulder seasons and off-peak months with mid-term government stays dramatically boosts your overall occupancy.
Reduced Turnover: Longer bookings mean fewer check-ins and check-outs. That translates to lower cleaning fees, less admin work, and reduced wear and tear on your property.
Premium Guests: Government travelers are professionals on official business. They are vetted, reliable, and typically require far less hand-holding than typical vacationers.
Simplified Bookings: Because your rate is already within their approved budget, the booking process is often faster and involves less back-and-forth negotiation.

By embracing this strategy, you position your San Diego rental to capture a lucrative, underserved market. It’s a savvy move that transforms your property into a high-performing investment, delivering consistent returns while you stay hands-off.

Setting Your Price to Attract Per Diem Guests

Knowing the official government per diem rates is the first step, but turning that number into a booked stay is where the real art lies. To make your property a no-brainer for government travelers, your pricing needs to be simple, all-inclusive, and immediately recognizable as "per diem friendly."

This isn’t just about matching a rate. It’s about stripping away every bit of friction from the booking process, both for the traveler and their administrative team back at the office.

The secret is to offer an all-inclusive rate that covers everything a mid-term guest could possibly need. Government travel policies are notoriously strict about extra fees, so bundling utilities, high-speed internet, and parking into one clean nightly rate is non-negotiable. This creates a transparent, easy-to-approve package that instantly stands out from typical vacation rentals littered with confusing add-on charges.

Creating a Per Diem Friendly Listing

To really capture this market, your property needs more than just the right price—it needs the right setup. Government employees and contractors are working professionals, and their needs are a world away from the typical vacationer. They’re looking for productivity and comfort, often for extended stays.

Here are the absolute must-have amenities that put a property at the top of the list for per diem guests:

Dedicated Workspace: This is a deal-breaker. A real desk and an ergonomic chair are infinitely more valuable than a quirky coffee machine.
Blazing-Fast Wi-Fi: Work depends on it. A reliable, high-speed internet connection is often the very first thing a business traveler looks for.
Fully Equipped Kitchen: For stays lasting weeks or months, a functional kitchen is crucial for preparing meals and staying within the "meals and incidentals" portion of their allowance.
Proximity to Key Locations: Being close to places like Naval Base San Diego, federal buildings, or major corporate headquarters is a huge advantage.

Think of your property as a temporary home office. The goal is to create a seamless environment where a guest can live and work comfortably for 30 days or more.

"The most successful per diem rentals function like high-end corporate housing. They blend the comforts of home with the efficiencies of an office, making them an easy choice for government travel coordinators."

The West Coast HomeStays Advantage

This is where expert management becomes a game-changer. At West Coast HomeStays, we don't just set your price to the per diem rate and cross our fingers. We use a sophisticated dynamic pricing strategy that aligns perfectly with government standards while pushing your revenue to its maximum potential.

Our tools constantly monitor seasonal rate changes and local demand, ensuring your property is always priced for peak performance. We handle everything, from staging your rental with the right amenities to writing listing descriptions that speak directly to government travelers and travel managers.

By highlighting features like dedicated workspaces and proximity to key facilities, we make sure your property gets seen by the right people. This hands-off approach lets you tap into this lucrative market without getting tangled up in the details. To see more on our data-driven methods, check out our San Diego owner’s guide to revenue management.

How Per Diem Spending Boosts Local Economies

When a government employee books a stay in San Diego using their daily allowance, it does more than just fill a room. This spending acts like a powerful economic engine, injecting a steady stream of federal dollars directly into the local community. For a savvy property owner, understanding government per diem rates isn't just about pricing—it's about tapping into a significant and stable economic flow.

Every dollar spent on lodging goes straight to you, the property owner. But the money for meals and incidentals? That flows out to local restaurants, cafes, grocery stores, and small businesses all over town. It creates a ripple effect that supports jobs and stimulates growth across the city.

The Scale of Government Travel Spending

The financial impact of this travel is immense. Even as the U.S. government works to be more efficient, official travel for training, project management, and collaboration is a constant necessity. That means a reliable stream of visitors whose travel budgets are recession-resistant and not tied to the usual tourism seasons.

The sheer volume of this spending can be staggering. While local figures vary, the global picture shows just how significant per diems can be. For example, back in 2009, the Tanzanian government spent approximately US$390 million on per diems alone. That's enough to cover the annual salaries of 109,000 teachers. If you're curious about the details, you can read the full research on global per diem systems. This just goes to show that government-funded travel is a major economic driver, wherever it happens.

Why This Matters for San Diego Owners

For a San Diego property owner, this context is crucial. By aligning your rental with per diem standards, you're positioning it to capture a piece of this stable economic activity. You’re not just renting to an individual; you are serving a vast, well-funded system that continuously feeds the local economy.

By catering to per diem travelers, you transform your property from a simple rental into a key component of the local business ecosystem, benefiting from a consistent and reliable source of government-backed revenue.

This strategy ensures your rental both contributes to and benefits from the economic health of San Diego. It’s a win-win: the community thrives on the influx of federal funds, and your property enjoys higher occupancy and more predictable income from a professional class of travelers. This dependable market is a core focus for the team at West Coast HomeStays, as it provides our homeowners with a powerful defense against seasonal lulls.

Frequently Asked Questions About Per Diem Rentals

Diving into the world of government per diem rentals can feel a bit complex at first, but it's a fantastic way to secure steady, reliable income. Let's break down some of the most common questions we hear from property owners.

And if you're curious about how this strategy impacts your finances, don't forget to check out our in-depth rental property tax deductions checklist.

What makes West Coast HomeStays different from other managers?

Our expertise is in a proven hybrid model that blends short-term (STR) and mid-term (MTR) stays. Unlike others who focus only on vacationers, we specialize in securing 30+ day bookings from reliable government and corporate travelers, which keeps your calendar full year-round. This unique strategy is why our owners consistently see a 20-30% revenue lift.

Can you handle both short- and mid-term stays?

Absolutely. That’s our specialty. We strategically fill your off-season with longer mid-term rentals and optimize peak season with high-value short-term vacation bookings. This dynamic approach maximizes occupancy and creates predictable, hands-off income for you.

How quickly can my listing be optimized?

We move fast. From our initial consultation, we can typically have your property professionally photographed, your listing optimized with per diem-friendly language, and our dynamic pricing strategy implemented within 1-2 weeks. Our goal is to boost your earnings as quickly as possible.

What amenities do your San Diego homes include?

Our design-forward homes are packed with amenities that appeal to both vacationers and mid-term professional guests. Standard features include blazing-fast Wi-Fi, dedicated workspaces, fully equipped kitchens, premium linens, and smart-home technology for a five-star experience.

Do you help with design upgrades to boost nightly rates?

Yes, we do. Our team provides expert guidance on targeted design upgrades and amenity additions that deliver the highest return on investment. From creating a productive workspace to adding coastal-cool decor, we help transform your property to command higher nightly rates and attract premium guests.

If you’re ready for truly hands-off, higher-earning rentals in San Diego, West Coast HomeStays is the partner to trust.