Palm Springs, CA Short-Term Rental ROI Calculator
Analyze your Airbnb investment with live Palm Springs market data. Pre-populated with real ADR, occupancy, and revenue benchmarks.
Investor Quick Take
Strengths
- Solid occupancy — 58% market average
- Premium ADR — $328/night average
- High revenue potential — $70K+ avg/yr
- STR-friendly regulations — low compliance burden
Risks
- High seasonality — significant off-season revenue drop
- High acquisition cost — median home $795K
Solid Market
Based on ADR, occupancy, and supply metrics
Palm Springs properties generate above-average revenue with $70K in annual income potential.
We've pre-populated this calculator with Palm Springs's market averages. Adjust the values to match your specific property.
Palm Springs Short-Term Rental Market Overview
Palm Springs's warm, dry climate and stunning desert landscape attract visitors seeking outdoor adventure, wellness retreats, and luxury experiences. The inverse seasonality — peak demand from October through April, slower in the intense summer heat — actually benefits long-term investors by avoiding the maintenance wear of summer vacation rushes.
The average STR in Palm Springs generates approximately $69,500 in annual revenue, with an average daily rate of $328 and a 58% occupancy rate across the year. These metrics position Palm Springs among the higher-performing US STR markets — particularly attractive to investors seeking premium nightly rates with a concentrated peak season.
Active listings in Palm Springs grew by 10% year-over-year, currently sitting at approximately 4,200 active STR units. This moderate growth rate suggests a market finding equilibrium between supply and demand, which typically supports stable occupancy and ADR. Investors should track supply trends quarterly using tools like AirDNA or Rabbu before committing capital.
Key considerations for Palm Springs investors: regulatory risk is rated low — Palm Springs currently has minimal STR regulation, making it an investor-friendly market from a compliance perspective. Monitor local policy, as regulations can change. Property management costs, cleaning turnover for short stays, and platform fee optimization are the primary levers operators use to improve net margin in this market.
Market Metrics
Palm Springs Airbnb Revenue by Property Size
| Property Size | Avg ADR | Avg Occupancy | Avg Annual Revenue | Est. Cap Rate Range |
|---|---|---|---|---|
| Studio | $164 | 58% | $35K | 2.0–2.8% |
| 1BR | $236 | 58% | $51K | 3.0–4.1% |
| 2BR | $354 | 58% | $78K | 4.6–6.2% |
| 3BR | $485 | 58% | $110K | 6.5–8.7% |
| 4BR+ | $689 | 58% | $156K | 9.2–12.4% |
Palm Springs STR Revenue Calendar
Seasonal Insight: Peak season runs February, March, and January. Expect up to 48% higher revenue during peak months. Plan for August and July as your slowest period — approximately 48% below the annual average.
Is Palm Springs a Good Market for Short-Term Rentals?
Why investors choose Palm Springs
- ✓High revenue ceiling: top-performing properties average $97K+ annually
- ✓Reliable occupancy: 58% market average provides predictable income baseline
- ✓Premium pricing power: Palm Springs's destination appeal supports $328/night average — significantly above national STR average of ~$180
- ✓Growing market: 10% annual listing growth signals strong investor and visitor confidence
Key risks to consider
- !High seasonality: Palm Springs has significant off-peak periods where revenue can drop 40–60% — cash reserves are essential
Palm Springs STR Regulatory Overview
ModeratePalm Springs has a well-established STR framework but requires a permit and imposes minimum stay requirements and rental caps in some zones.
Key Requirements
- ·STR registration required
- ·Minimum stay requirements in some zones
- ·Transient occupancy tax (10.5%)
- ·Neighbor notification requirements
Source: City of Palm Springs Finance Department · Last verified: 2026-01. Regulations change frequently — always verify current requirements with local authorities before investing.
Compare Palm Springs to Similar Markets
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| Metric | Palm Springs | Scottsdale | Sedona | Tucson |
|---|---|---|---|---|
| ADR | $328 | $267 | $398 | $142 |
| Occupancy | 58% | 58% | 71% | 52% |
| Avg Revenue | $70K | $57K | $103K | $27K |
| Median Home Value | $795K | $765K | $895K | $295K |
| Regulatory Risk | Low | Moderate | Low | Low |
Palm Springs Short-Term Rental FAQs
Is Palm Springs a good market for short-term rentals?+
Palm Springs, CA is one of the stronger US STR markets. With an average daily rate of $328 and 58% occupancy, the average listing earns approximately $69,500 per year. Market performance varies significantly by property type, location within the city, and management quality — this calculator helps you model your specific scenario.
What is the average Airbnb income in Palm Springs?+
The average STR listing in Palm Springs generates approximately $69,500 in gross annual revenue at a $328 average daily rate and 58% occupancy. Top-performing listings with premium amenities, strong reviews, and professional management can earn 30–50% above the market average. After platform fees (3–5%), cleaning costs, and other expenses, net revenue typically ranges 60–75% of gross.
What occupancy rate can I expect for an Airbnb in Palm Springs?+
The market-average occupancy in Palm Springs is approximately 58%. New listings typically underperform the market average for the first 3–6 months while accumulating reviews. Properties with professional photography, competitive pricing, and consistently high ratings can reach 70–76% occupancy. This market is highly seasonal — plan for meaningful variation between peak and off-peak months.
What are the STR regulations in Palm Springs?+
Regulatory risk in Palm Springs is rated Low. Palm Springs currently has minimal STR regulation, making it investor-friendly from a compliance standpoint. Always verify current requirements — local policies can change. Regulations change frequently; always confirm current rules with local authorities.
What type of property performs best as an Airbnb in Palm Springs?+
In Palm Springs, the highest-performing STR properties are typically 2–3 bedroom homes with private pools. Guests in Palm Springs prioritize privacy, unique ambiance, and well-equipped spaces. The most efficient segment by revenue-per-dollar-invested is typically the 2-bedroom category.
What is the best season for Airbnb in Palm Springs?+
Palm Springs sees peak STR demand during October through April. During peak season, top properties can command rates 48% above their annual average. The off-peak period sees materially lower rates and occupancy — conservative underwriting should assume 40–50% of peak revenue during the slowest months.
How much does it cost to buy an STR investment property in Palm Springs?+
The median home value in Palm Springs is approximately $795,000. With a 20% down payment, you'd invest roughly $183K in cash (including closing costs and setup). At the market-average revenue of $69,500/year, a property at median value would generate a gross revenue yield of approximately 8.7%. Use this calculator to model your specific purchase price, financing terms, and expense assumptions.
How does Palm Springs compare to other STR markets?+
Palm Springs performs above the national average for STR revenue. The $328 ADR is above the national STR average of roughly $185. For comparison, markets like Aspen and Malibu exceed $450 ADR but require significantly higher acquisition costs. Palm Springs offers a strong combination of revenue potential and market accessibility.
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