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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 June 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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Take the Next Step

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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.