The popular idea, like the (jazz City) idea is that San Francisco is the Gay Capital.
If referring to highest percentage of Gay/Lesbian population, the answer is Wilton Manors, FL. Population is just over 12000, however over 5.4% or residents identify as Lesbian/Gay. San Francisco ranks # 10. The list from city-data.com is as follows:
1.
Wilton Manors, FL (housing, pop. 12,909): 5.4%
2.
West Hollywood, CA (housing, pop. 36,514): 4.2%
3.
Palm Springs, CA (housing, pop. 47,806): 4.1%
4.
Russian River-Coastal, CA (housing, pop. 24,824): 4.0%
5.
Miami Shores, FL (housing, pop. 9,882): 3.3%
6.
Decatur, GA (housing, pop. 19,053): 3.2%
7.
Key West, FL (housing, pop. 23,262): 3.1%
8.
Northampton, MA (housing, pop. 28,592): 3.0%
9.
North Druid Hills, GA (housing, pop. 18,852): 2.9%
10.
San Francisco, CA (housing, pop. 744,041): 2.7%
Info from: http://www.city-data.com/top2/c11.html
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