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Palm Springs

Riverside County, CA

STR Investment Grade

Transparent Scoring
F
32/100
AVOID
Score Breakdown
💰Cash-on-Cash
10/35
🏠Affordability
2/25
📅Year-Round Income
15/15
🤝Landlord Friendly
2/10
📈Room to Grow
3/15
Cash-on-Cash
3.8%
Break-even
Median Home
$617K
Very Expensive
Room to Grow
3/15
Crowded Market
⚠️

STR Regulations Apply

Zoning restrictions; density caps in some areas

Palm Springs allows vacation rentals but with zoning restrictions and density limits. Registration and TOT collection required. Some neighborhoods have caps.

Permit: HardPermit Cap in Effect
Grade Impact: Base score of 32/100 would be grade F, but capped at F (32/100) due to regulation risk.
Verified data as of February 2026 · Regulations change frequently
📞 How to Verify
Call the Palm Springs City Clerk or Planning & Zoning Department and ask:
1. Are short-term rentals (under 30 days) allowed at [your address]?
2. What permits or licenses are required?
3. Are there owner-occupancy requirements?
4. Any caps on rental nights per year or number of permits?
Many cities have active short-term rentals operating legally with permits — restrictions don't always mean it's impossible.

Why Palm Springs?

Desert Market

What drives short-term rental demand here

🏜️
Desert Retreat

Unique landscapes and winter warmth attract snowbirds and adventure seekers during peak season.

🔥
High Demand Zone

Strong traveler demand supports a competitive market with proven revenue potential.

Will This Deal Work?

Investment Grade
F
Break-even
CoC: 3.8%
Can You Pay the Bills?
YES
Income covers mortgage
THE BOTTOM LINE

This market has STR regulations to be aware of. Many hosts operate successfully with proper permits. Research local ordinances before committing.

💵
$295
Avg ADR
📅
65%
Occupancy
💰
$5,753
Monthly Revenue
🏠
$617K
Median Price

Market estimates · Updated Feb 2026

📊 Income by Property Size

Monthly revenue estimates by bedroom count

1BR
$2,876
2BR
$4,602
3BR
$5,753
4BR
$7,479
5BR
$8,917
6BR+
$10,355
⭐ Best

🏠 Top Amenities for This Market

Add these to boost your revenue

MUST HAVEPool
+30%
MUST HAVEA/C
+20%
HIGH IMPACTHot Tub
+15%
HIGH IMPACTOutdoor Kitchen
+12%
NICE TO HAVEFire Pit
+8%

🎯 Your Next Steps

1
Search for 6BR+ properties
Best income potential at $10,355/month
2
Add a Pool
Boost revenue by +30%
3
Target $7,191/month
Top 25% performer income goal

📋 Regulation Status

RegulatedPermit: HardVerified Data

Regulations vary by city and county. Always verify local STR ordinances, permit requirements, and zoning laws before purchasing.

Research Comparable Listings

See active short-term rentals in this market

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Palm Springs, California is rated F for Airbnb investment with a score of 32/100 (AVOID). The market has an average daily rate (ADR) of $295, 65% occupancy, and estimated monthly STR revenue of $5,753. Median home value is $617,231 with a cash-on-cash return of 3.8%. STR regulation status: Regulated. Data powered by Edge by Teeco using estimated market data.