Palm Desert, California Short-Term Rental Market
Permit required in Palm Desert; Coachella Valley STRs averaged $379 ADR, 37.7% occupancy, $3,643 monthly revenue in September 2026.
Quick Answer: Palm Desert, 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 593 listings. market score is 44/100 (grade D).
Market data reflects the Coachella Valley regional market, which includes Palm Desert. Regulations, taxes, and permit details below are specific to Palm Desert.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Palm Desert short-term rental performance is reported here at the Coachella Valley level. The metrics below describe the Coachella Valley STR market, a region that also includes Indian Wells, Cathedral City, Indio and Palm Springs, and every performance figure on this page reflects that region rather than Palm Desert alone. As of September 2026, the Coachella Valley STR market averaged an all-listings ADR of $379, occupancy of 37.7% and average monthly revenue of $3,643 per listing. Entire places averaged $390 per night and $3,697 per month, while houses reached $4,264 per month and apartments $1,780. Year over year, occupancy rose 11.2% and ADR rose 5.3%, yet monthly revenue was essentially flat at negative 0.2%. September sits in the slow part of the calendar, so the month understates the yearly picture. The seasonal profile sums to $59,286 in annualized revenue, and 2026 year to date figures through September show 50.1% occupancy, a $440 ADR and $5,937 average monthly revenue.
Palm Desert has a population of 53,147 and is a core resort city in Greater Palm Springs. The region drew a record 14.5 million visitors in 2024 and generated $9.1 billion in economic impact, with tourism supporting roughly 1 in 4 local jobs. City-specific visitor counts are not published. Demand skews toward affluent leisure travelers, seasonal snowbird residents, golfers, luxury shoppers and cultural visitors, anchored by the El Paseo shopping district and The Living Desert Zoo and Gardens, with strong drive-in demand from Southern California plus fly-in domestic visitors. Peak season runs November through April, when the desert climate is mild, and summers are very hot and slower.
Bedroom, channel, listing-type and top-operator counts are tracked at a shared regional level rather than uniquely for Palm Desert, so this profile omits them.
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 Palm Desert 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 Palm Desert, so these counts are not Palm Desert-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 593 | 14,029 | ★ 4.49 |
| 2 | Evolve | 340 | 9,820 | ★ 4.71 |
| 3 | AvantStay | 252 | 5,366 | ★ 4.80 |
| 4 | Acme House | 188 | 6,138 | ★ 4.78 |
| 5 | Park Royal Indian Palms Intervals | 170 | 0 | ★ 0.00 |
What Kind of STR Should I Buy in Palm Desert?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Palm Desert 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 | 12.3% |
| both | 56.1% |
Home Value Trends (Palm Desert)
Typical home values, median sale prices, and the 10-year price trend for Palm Desert 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 Palm Desert — 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
Short-term rentals are legal in Palm Desert but are restricted by zoning and require a permit. An STR is defined as a rental of 27 consecutive nights or fewer. STRs are prohibited in R1 and R2 zones unless the owner qualifies for an On-Site Owner permit, which requires the owner to live on the property. STRs are allowed in RE zones for on-site or off-site owners, and in HPR and PR zones with an HOA approval letter or on-site owner status.
Operators need an annual Short-Term Rental Permit (On-site Owner or Off-site Owner types). The permit costs $29 for new or renewal applications, and renewals must be filed at least 30 days before expiration. There is no annual cap on rental nights, but a 3-night minimum stay applies. The city does not require a primary residence or general owner occupancy outside the zoning rules above.
Operators must pay a monthly 11% Transient Occupancy Tax plus a 1% Greater Palm Springs Tourism Business Improvement District assessment, 12% in total, on gross rent for stays of 27 nights or fewer. Monthly returns are required even for months with no rental income. Property management companies handling three or more STRs must hold an active city business license. Operators must follow the city noise ordinance (PDMC Ch. 9.24) and prevent nuisance behavior.
Enforcement is rated moderate. The city monitors online listings and may impose administrative fines or deny or revoke permits. It has cracked down on inaccurate bedroom counts: rooms without a code-compliant egress window or door cannot be advertised as bedrooms. The 1% assessment has applied since July 1, 2021.
Market Comparison
The Coachella Valley STR market shows a high-rate, seasonal profile. In September 2026 occupancy was 37.7% and ADR was $379. Entire homes at $390 and luxury listings at $929 sit above that all-listings rate.
The September snapshot is a seasonal low. On a 2026 year to date basis, occupancy is 50.1% and ADR is $440. March occupancy of 72.2% is the yearly peak, and the November to April window runs between 49.0% and 72.2% occupancy.
The pattern is a high-rate, seasonal market rather than a high-occupancy one. Owners must manage a long, hot summer trough. Year-over-year occupancy growth of 11.2% shows demand recovering from a low base, though revenue growth of negative 0.2% means rate and volume have not yet translated into higher monthly income.
Bedroom, channel, listing-type and top-operator data is tracked at a shared regional level rather than uniquely for Palm Desert, so this profile omits it.
Frequently Asked Questions About Palm Desert, California
Are short-term rentals legal in Palm Desert?
How much does a Palm Desert STR permit cost?
What taxes apply to Palm Desert short-term rentals?
What are average STR rates and occupancy in the Coachella Valley?
When is the best time to rent an STR in Palm Desert?
What does a home cost in Palm Desert?
How far ahead do guests book and how long do they stay?
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