Palm Springs, CA

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

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

Listings

2669 / 5305

Reliable / Active

Cap Rate

8%

Middle-Earners Gross Yield

Revenue

$50,710

Middle-Earners Revenue

Occupancy

53%

Middle-Earners Occupancy

Home Value

$627,703

Median Home Sale Price

Top Earners

$113,248

Top-Earners Revenue

Palm Springs

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Palm Springs.

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C

Challenging to Investors

Palm Springs Regulations

STRs are technically allowed but constrained by a 20% neighborhood cap, first‑in‑time priority, and an annual contract limit of 26, plus costly permitting (~$1,000+ each year, inspections, and TOT). Enforcement includes a $5,000 fine and permanent ineligibility, raising investor risk despite a supportive tone.

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About Palm Springs

Palm Springs is a sun-soaked desert resort city in Riverside County, California, set in the Coachella Valley and framed by the rugged peaks of the San Jacinto Mountains. With a year-round population of roughly 45,000 residents, the city has an outsized cultural footprint, drawing visitors with its mid-century modern architecture, palm-lined streets, and a long history as a playground for Hollywood figures and design enthusiasts. It serves as a major gateway to Joshua Tree National Park and the broader desert playground of the Coachella Valley, and sits about 100 miles southeast of Los Angeles, roughly a two-hour drive via Interstate 10.

One of the most iconic attractions is the Palm Springs Aerial Tramway, which climbs nearly 6,000 feet from the desert floor to the alpine wilderness of Mount San Jacinto State Park in about ten minutes. The rotating tram cars deliver visitors to cool pine forests and hiking trails that contrast sharply with the arid valley below, making it a year-round draw in a region where summer temperatures soar. The tram's valley station is just a few minutes from downtown, and the experience is often described as the equivalent of a ride from Mexico to Alaska in a matter of minutes.

Just south of the city lies Joshua Tree National Park, a sprawling 800,000-acre preserve where the Mojave and Colorado deserts meet. About a 45-minute to one-hour drive from central Palm Springs, the park is celebrated for its otherworldly rock formations, twisted namesake trees, and exceptionally dark night skies, which make it a favorite for stargazers, rock climbers, and hikers. Its proximity to the city means many visitors base themselves in Palm Springs while spending full days exploring the park's scenic drives and backcountry trails.

Closer to town, the Indian Canyons on the Agua Caliente Band of Cahuilla Indians' reservation offer miles of palm oases, hiking paths, and cultural sites just a short drive from the city center. Tahquitz Canyon and Palm Canyon, in particular, feature year-round streams and rock art, and they provide a quieter, cooler alternative to the more famous national park to the east. The canyon experiences and downtown's walkable shopping, dining, and gallery districts complement one another, giving visitors a mix of outdoor adventure and urban culture within a few miles of one another.

Together, these offerings make Palm Springs a compelling base for short-term rentals. The city blends resort amenities, distinctive architecture, and a vibrant food and arts scene with quick access to some of Southern California's most dramatic desert landscapes, drawing a steady mix of weekenders, festival-goers, snowbirds, and outdoor enthusiasts throughout the year.

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