Short-Term Rental Guide for Palm Springs, CA

Executive Overview

Short-term rentals ARE ALLOWED in Palm Springs, CA, but under strict regulatory framework. The City has implemented comprehensive vacation rental regulations through Ordinance 2075, adopted November 28, 2022. Vacation rentals and homesharing are permitted only as ancillary and secondary uses of residential property within the city limits, limited to single-family dwelling units and explicitly prohibited in apartments.

What do Airbnb hosts actually earn in Palm Springs?

Palm Springs hosts earn a median $50,710/year with $458 ADR and 53% occupancy.

Top performers pull in $79,408+ per year.

See the full Palm Springs market breakdown

How to Start a Short-Term Rental Business in Palm Springs

Initial Planning Phase

Property Verification
- Confirm your property is zoned for single-family residential use
- Verify the property is not located in an apartment complex
- Check neighborhood density percentages using the city's ONE-PS web map application
Neighborhood Cap Assessment
- Use the city's online tools to verify current VR density in your neighborhood
- Applications in neighborhoods at or above the 20% cap will be returned
- Consider applying for the waitlist if your neighborhood is capped

Application Process

Online Application Submission
- All applications are processed through the city's GovOS online portal
- Submit complete applications to establish "first in time, first in right" priority
- Applications received after October 18, 2022, are subject to neighborhood caps
Permit Types Available
- Standard Vacation Rental Certificate: Full operating privileges
- Junior Vacation Rental Certificate: Limited to 6 rental contracts per year, 50% of regular fee, not counted toward neighborhood caps
- Homeshare Certificate: For owner-occupied properties

Required Documents, Permits, Licenses, and Guidelines

Mandatory Permits and Licenses

Vacation Rental/Homeshare Registration Certificate
- Valid for one year from issuance
- Requires safety inspection during initial application and renewal
- Must display registration number in all advertisements
Transient Occupancy Tax (TOT) Certificate
- Separate application required
- Monthly tax remittance obligations
Business License
- General business license tax requirements apply

Operational Documentation Required

Safety Inspection Requirements
- Initial inspection during certificate application
- Renewal inspections required
- Compliance with habitability, health, and safety standards
Contract Summary Submission
- Required for owner-operated or agency-operated rentals
- Ongoing compliance reporting

Specific Regulations in Palm Springs

Neighborhood Density Caps

20% Cap System: The city has implemented neighborhood-based caps limiting vacation rental certificates to 20% of residential dwelling units within each organized neighborhood (ONE-PS boundaries).

Existing Certificates: Grandfathered even if neighborhood exceeds cap
New Applications: Returned if neighborhood at or above 20% cap
Waitlist System: Available for capped neighborhoods
Review Process: Based on "first in time, first in right" when permits become available

Rental Frequency Limitations

Annual Contract Limit: 26 rental contracts per year (reduced from 36)
- New applicants: Effective immediately
- Existing permits: Effective January 1, 2026
Junior Permits: Limited to 6 rental contracts per year

Occupancy and Parking Restrictions

Vehicle Limits by Bedroom Count:

Parking must comply with bedroom-based vehicle restrictions
Vehicles allowed in garage, driveway, or street
No blocking driveways or mailboxes permitted

Occupancy Limits:

Based on number of bedrooms
2 children age 12 or under permitted in addition to overnight occupancy limits

Noise and Behavior Regulations

No Outside Amplified Noise: Music must be fully contained within property at all times
Good Neighbor Policy: Mandatory compliance with city good neighbor brochure requirements
Event House Restrictions: Separate regulations apply for event houses

Property Type Restrictions

Permitted: Single-family dwelling units only
Prohibited: Apartments and multi-unit complexes
Homesharing: Allowed only when owner resides throughout rental period

State-Level Regulations (California)

State Tax Requirements

Transient Occupancy Tax obligations apply at state level
Tourism Business Improvement District (TBID) assessment: 1% on stays less than 28 days
Monthly reporting and remittance required

California General STR Laws

Compliance with state health and safety standards required
Standard landlord-tenant law exceptions for transient occupancy

Contact Information for Local Authority

Primary Contact

City of Palm Springs - Special Program Compliance Department

Address: 425 N. Civic Dr., Palm Springs, CA 92262
Phone: (760) 322-8382
Email: vacation.rentals@palmspringsca.gov

Complaint Hotline

Vacation Rental Hotline: (760) 322-8383

For active complaints during events
Non-emergency situations only
Include property address and disturbance description

Online Resources

Main VR Page: www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals-1098
Certificate Application: www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals/vacation-rental-certificate
Neighborhood Density Map: palmspringsca.maps.arcgis.com/apps/webappviewer/index.html?id=f1884aafedde4b9fb4fe7472735c52b9
Comprehensive Fee Schedule: www.palmspringsca.gov/home/showpublisheddocument/85567/638221815069730000

Key Source Links

Updated Fees (Effective December 1, 2025)

Vacation Rental - New/Annual Registration: $1,046
Junior Vacation Rental - New/Annual Registration: $523
Homeshare - New/Annual Registration: $261
Land Use Permit (LUP) for Estate Homes: $647
Administrative Appeals Board Appeal: $1,324
Transfer Fee: $222

Compliance and Enforcement

The city employs a robust enforcement mechanism including administrative citations with appeal processes. Operating without proper registration carries a $5,000 fine and permanent ineligibility for vacation rental operations in Palm Springs.

The Special Program Compliance Department maintains weekly updates on permit status, neighborhood percentages, and provides educational resources through regular stakeholder meetings and training sessions.

Next step

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Ask the AI Advisor 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.

Palm Springs, California

Challenging To Investors

STR Regulations for Palm Springs, California