Southwest7.6% avg cap rate

Joshua Tree, CA

Desert design retreat — drive-to LA/SD market

Joshua Tree has emerged as one of the most Instagram-worthy STR markets in the country. Two-hour drive from LA and San Diego, it draws design-conscious travelers seeking desert architecture, dark sky stargazing, and national park access. Unique, design-forward homes dramatically outperform standard properties. ADR is high relative to purchase price, but CA STR regulation is evolving.

7.6%
Avg Cap Rate
Net operating income / price
65%
Avg Occupancy
Annual average
$355
Avg Nightly Rate
All property types
$440K
Median Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
65% occ × $355/night
$84,224
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
– $33,690
Est. net operating income
Before mortgage & depreciation
$50,534
At median price
Implied cap rate
11.5%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Joshua Tree

2-hour drive from 20M+ LA/SD metro residents
Design-forward properties earn 2-3× standard comps
Dark sky / stargazing demand drives midweek bookings
National park access year-round — shoulder demand strong
Peak season: Oct – May (avoids desert summer heat)
Top property types: Single Family, Desert Cabin, Unique/Design Home
Primary zip: 92252, 92277, 92256

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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