Desert Hot Springs, California Short-Term Rental Market
Permit-capped Coachella Valley STR market ran $379 ADR, 37.7% occupancy and $3,643 monthly revenue in September 2026.
Quick Answer: Desert Hot Springs, California is an active short-term rental market. average occupancy in the Coachella Valley market area is 38%. average monthly revenue in the Coachella Valley market area is $3,643. average daily rate in the Coachella Valley market area is $379. the top operator in the Coachella Valley market area is Vacasa with 539 listings. market score is 44/100 (grade D).
Market data reflects the Coachella Valley regional market, which includes Desert Hot Springs. Regulations, taxes, and permit details below are specific to Desert Hot Springs.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Desert Hot Springs is a hot-springs wellness town of 33,438 residents in the Coachella Valley of Greater Palm Springs. The performance figures on this page describe the Coachella Valley STR market, because the same metric series spans the wider region. Read them as a regional benchmark for Desert Hot Springs, not a measurement of the city alone. Bedroom, channel and listing-type counts and top operator names are tracked at a shared regional level rather than uniquely for Desert Hot Springs, so this profile omits them.
In September 2026 the Coachella Valley STR market averaged an ADR of $379, occupancy of 37.7% and revenue of $3,643 per listing for the month. Entire-place ADR was $390. Compared with September 2025, occupancy was up 11.2%, ADR was up 5.3% and revenue per listing was down 0.2%, which leaves revenue essentially flat year over year.
The longer view is steadier. Through September 2026 the year to date averages 50.1% occupancy, a $440 ADR and $5,937 in monthly revenue. Full-year 2025 came in at 50.0% occupancy, a $417 ADR and $5,558 in monthly revenue. Occupancy peaked at 60.3% in 2021 and has settled near 50% since 2024, while ADR has climbed from $337 in 2020 to $440 this year.
Demand in Desert Hot Springs centers on its naturally occurring hot and cold mineral springs, which feed resorts and boutique spas such as Two Bunch Palms, Azure Palm Hot Springs and The Spring Resort & Spa. Many visitors also pass through on Highway 62 on the way to Joshua Tree National Park, which draws more than 3 million visitors a year. City-specific visitor counts are not published. Supply in the city is limited by a permit cap, covered in the regulatory section below.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 56% |
| Feb | 70% |
| Mar | 72% |
| Apr | 57% |
| May | 39% |
| Jun | 45% |
| Jul | 47% |
| Aug | 44% |
| Sep | 40% |
| Oct | 46% |
| Nov | 55% |
| Dec | 49% |
Month-by-month nightly rates and revenue figures for Desert Hot Springs are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Coachella Valley market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Coachella Valley market as a whole, which includes Desert Hot Springs, so these counts are not Desert Hot Springs-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 539 | 12,998 | ★ 4.48 |
| 2 | Evolve | 342 | 9,790 | ★ 4.71 |
| 3 | AvantStay | 252 | 5,340 | ★ 4.80 |
| 4 | Acme House | 187 | 6,136 | ★ 4.78 |
| 5 | Park Royal Indian Palms Intervals | 170 | 5 | ★ 5.00 |
What Kind of STR Should I Buy in Desert Hot Springs?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Desert Hot Springs are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 31.6% |
| vrbo | 12% |
| both | 56.4% |
Home Value Trends (Desert Hot Springs)
Typical home values, median sale prices, and the 10-year price trend for Desert Hot Springs are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Desert Hot Springs — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Desert Hot Springs allows short-term rentals but regulates them strictly, and enforcement severity is rated strict. A Vacation Rental Permit is required in one of three categories: General, Home Share and Primary Residence. The General category does not require owner occupancy.
The permit fee is $1,242 for a general permit and $932 for a primary-residence permit, renewed annually. Renewal must be filed 30 to 60 days before expiration, with no grace period after expiration. Applicants carry $1,000,000 in general liability insurance, and Airbnb platform coverage does not qualify. Owners or their agents must complete a City-certified training program before a permit is issued. Operators also collect and remit a 12% transient occupancy tax.
Supply is capped at 4% of housing parcels, which works out to about 368 permits based on 9,201 parcels in 2025. Existing rentals in good standing are grandfathered against the cap on renewal. Vacation rental parcels must be at least 250 feet apart citywide, a rule set by the February 19, 2026 amendment, with a stricter 500-foot separation kept in the Rolling Hills, DHS 41 and Hacienda Heights neighborhoods. Accessory dwelling units may not be used as short-term rentals, and properties in HOAs that prohibit rentals are denied.
The February 19, 2026 amendment also removed the low-volume exemption, so every vacation rental unit needs a valid permit, and permits end immediately on sale or transfer of ownership. Confirm current terms with the city before buying.
Market Comparison
In September 2026 the Coachella Valley STR market ran a $379 ADR and 37.7% occupancy, below its 2026 year-to-date averages of a $440 ADR and 50.1% occupancy. September is also the weakest month by revenue in the seasonal series, so this reading is a low-season snapshot and not a year-round benchmark.
Over the seasonal year, averaging the twelve monthly occupancy readings gives about 51.6%, with ADR running from $337 in August to $515 in April. February (69.7%) and March (72.2%) are the strongest months, with January at 55.7%.
The rate level reflects the resort and spa character of the Coachella Valley and the pull of the mineral springs, while summer demand is softer. Investors comparing this market with a more evenly booked destination should weigh a higher nightly rate and a sharper peak against lower occupancy outside winter and spring.
The Desert Hot Springs permit cap also limits new competing supply in the city, which is a structural difference from many uncapped markets. Operator names are tracked at a shared regional level rather than uniquely for Desert Hot Springs, so this profile omits them.
Frequently Asked Questions About Desert Hot Springs, California
Are short-term rentals legal in Desert Hot Springs?
How much does a Desert Hot Springs vacation rental permit cost?
What was the average ADR and occupancy in September 2026?
What is the best month for STR revenue in the Coachella Valley?
How much does a typical home cost in Desert Hot Springs?
How far apart must vacation rentals be in Desert Hot Springs?
How far ahead do guests book and how long do they stay?
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