Desert Hot Springs, CA

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Desert Hot Springs short-term rental market based on reliable data.

Listings

448 / 739

Reliable / Active

Cap Rate

10%

Middle-Earners Gross Yield

Revenue

$36,953

Middle-Earners Revenue

Occupancy

51%

Middle-Earners Occupancy

Home Value

$378,412

Median Home Sale Price

Top Earners

$104,068

Top-Earners Revenue

Desert Hot Springs

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Desert Hot Springs.

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C

Challenging to Investors

Desert Hot Springs Regulations

STRs are technically legal but constrained by strict caps (4% of parcels) and a 500‑foot separation rule; ADUs are prohibited and HOA authorization can veto permits. Permit costs are high (general permit ~$1,242 + taxes/insurance) and non‑transferable, with no grace period on renewals, all of which materially raise investor risk and compliance burden.

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About Desert Hot Springs

Desert Hot Springs is a small desert city in Riverside County, California, anchored at the northern gateway to the Coachella Valley. With a population of approximately 30,000, it has a laid-back, sun-drenched character shaped by its namesake natural hot mineral springs, which have drawn visitors for decades. The city is best known for its concentration of small resorts, motels, and spas that channel the geothermal waters into private pools and tubs, giving it a distinct wellness-focused identity within the region. It sits roughly 10 miles north of Palm Springs and functions as a quieter, more affordable alternative for travelers exploring the broader Coachella Valley and the high desert beyond.

Just outside town to the east and northeast lies Joshua Tree National Park, one of Southern California's most celebrated natural landscapes. Famous for its otherworldly rock formations, sprawling stands of twisted juniper and yucca trees, and some of the darkest night skies in the region, the park's nearest entrances are roughly 30 to 40 miles from Desert Hot Springs, typically a 45-minute to one-hour drive depending on which entrance visitors use. The park is a major draw for hiking, rock climbing, stargazing, and scenic driving, and its proximity makes Desert Hot Springs a practical base for guests who want to pair a soak in the mineral pools with a day exploring the high desert.

About 15 to 20 minutes south, the neighboring city of Palm Springs offers a full complement of mid-century modern architecture, restaurants, and shopping along Palm Canyon Drive and the surrounding streets. From there, visitors can ride the Palm Springs Aerial Tramway, which climbs nearly 6,000 feet from the desert floor up into the cool pine forests of the San Jacinto Mountains. The tramway is one of the area's marquee attractions, and on clear days the summit offers sweeping views of the valley below, the Salton Sea to the south, and the snowcapped peaks of the surrounding ranges in winter.

Roughly 30 miles to the southeast, the city of Palm Desert is home to The Living Desert Zoo and Gardens, a sprawling botanical garden and wildlife park focused on the deserts of the world. The drive from Desert Hot Springs takes approximately 40 to 50 minutes, and visitors typically spend a half day or more wandering its shaded trails, viewing giraffes, wolves, and cheetahs, and exploring model desert villages and native plant collections that showcase the region's natural heritage.

Together, these offerings position Desert Hot Springs as an appealing base for short-term rental owners. Guests can return from a hike among the Joshua Trees, a tram ride into the alpine forests, or an afternoon at the zoo to a private hot mineral pool of their own, all within a short drive and at price points generally more accessible than those of Palm Springs to the south.

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