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 $50,610/year with $453 ADR and 52% occupancy.

Top performers pull in $79,050+ per year.

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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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Overview of Palm Springs, CA

Located in the Sonoran Desert of Southern California, Palm Springs is known for its hot springs, stylish hotels, golf courses, and spas. The city serves as a prominent vacation destination, characterized by its mid-century modern architecture and scenic desert landscapes. Palm Springs spans approximately 94 square miles and has a population of roughly 48,000 residents. The nearest major city is Los Angeles, which is around 107 miles to the west, making Palm Springs a convenient getaway for those seeking a retreat from urban life.

Attractions and Landmarks

Palm Springs Aerial Tramway - As the world's largest rotating tramcar, it offers breathtaking views of the entire Coachella Valley. Visitors can travel over 8,500 feet from the desert floor to the alpine wilderness of Mount San Jacinto State Park. For more information, visit Palm Springs Aerial Tramway.
Palm Springs Art Museum - This museum features contemporary and modern art collections, including works by notable artists such as Picasso and Warhol. It provides cultural enrichment through various exhibits, performances, and art education programs. More details can be found on their website: Palm Springs Art Museum.
Indian Canyons - A natural preserve showcasing the rich history of the Agua Caliente Band of Cahuilla Indians. It's a popular spot for hiking, offering trails such as the Murray Canyon and Palm Canyon, renowned for their scenic views and waterfalls. Explore more at Indian Canyons.
The Living Desert Zoo and Gardens - Located a short drive from Palm Springs in nearby Palm Desert, this attraction focuses on desert plant and animal species from around the world. The facility includes a zoo, botanical garden, and wildlife park. More information can be accessed here: The Living Desert.

Appeal for Short Term Rentals

Palm Springs' appeal for short-term rentals is largely driven by its reputation as a premier vacation destination. Its year-round sunny weather and easy access to outdoor activities, along with an array of dining, shopping, and entertainment options, attract tourists from all over the globe. The city's mid-century modern homes and stylish accommodations provide unique and luxurious lodging options for renters. Additionally, Palm Springs hosts several major events, such as the Palm Springs International Film Festival and Coachella Valley Music and Arts Festival, which further boosts the demand for short-term rentals.

Given its mix of natural beauty, cultural venues, and high-profile events, Palm Springs remains a highly desirable location for short-term rentals, catering to a diverse range of visitors from weekend travelers to festival-goers.

Palm Springs, California

Challenging To Investors

STR Regulations for Palm Springs, California