A high-density urban neighborhood, Sherman Heights is named after Mathew Sherman who purchased the land in 1867 just after Alonzo Horton purchased much of the area in now Downtown San Diego. Sherman Heights is known for the beautiful historic building named the Villa Montezuma which was build in 1887 by world traveler, noted spiritualist and pianist, Jesse Shepard.

Sherman Heights is a historic district with primarily historic homes. Since the turn of the century up until today, Sherman Heights has had a variety of immigrants come from all over the world. In the 1920's a wave of German-American's came through Sherman Heights followed by waves of Japanese-Americans through the 1940s, African-American's through the 1970's and lastly a wave of Mexican-American's from then until today.