Palm Springs, CA
Coachella Valley desert luxury - celebrity homes and festival demand
Palm Springs and the Coachella Valley are among the highest-ADR STR markets in California outside of Napa and the Hamptons-equivalent Malibu. The Mid-Century Modern architecture, private pools, and proximity to Coachella/Stagecoach create a unique market that delivers extreme ADR spikes in April and strong snowbird demand from October through May. Palm Springs requires a STR permit and a transient occupancy tax remittance.
Across 108 active STR-viable listings analyzed this month, Palm Springs shows a 3.4% median cap rate at a $575K median list price, 40% occupancy, and $271/night. That ranks #26 of 57 markets in STRROI's live ranking. At typical prices, cash flow is tight: most listings only pencil out with a large down payment, a below-list purchase, or above-market nightly rates.
Palm Springs real estate market right now
As of October 12, 2026, STRROI is tracking 108 homes for sale in Palm Springs that could run as short-term rentals, at a median list price of $575,000. The middle half are priced between $325K and $1.1M. Homes here have been on the market 58 days on average, shorter than the 101 days typical across the 56 markets in STRROI's ranking, so well-priced homes here tend to go quickly.
These numbers cover the homes for sale STRROI analyzes as potential short-term rentals in Palm Springs, mainly ZIP 92262. They are not every home sale in the area, so they can differ from MLS-wide figures. Month-by-month price history starts Oct 2026 and fills in as the market is re-checked each month.
What's for sale in Palm Springs right now
Of the 108 homes for sale we analyzed in Palm Springs, 13 (12%) project positive monthly cash flow with 20% down at a 7.5% rate, and none rate Buy or better on STRROI's 1-10 scale. 3-bedroom homes are the most common (44 for sale, median $805K). Returns are strongest in 2-bedroom homes at a 3.5% median cap rate, and weakest in 5+ bedroom homes at 1.3%. By property type, manufactured homes lead at a 10.9% median cap rate across 14 listings.
- Weak: 37
- Avoid: 71
| Beds | For sale | Median price | Cap rate |
|---|---|---|---|
| 1 | 8 | $250K | 3.0% |
| 2 | 34 | $349K | 3.5% |
| 3 | 44 | $805K | 3.4% |
| 4 | 9 | $1.3M | 3.0% |
| 5+ | 13 | $3.5M | 1.3% |
| Type | For sale | Median price | Cap rate |
|---|---|---|---|
| Single-family homes | 41 | $1.1M | 2.5% |
| Condos | 40 | $359K | 3.6% |
| Manufactured homes | 14 | $136K | 10.9% |
| Multi-family | 7 | $1.5M | 3.9% |
| Townhouses | 6 | $537K | 3.4% |
Top-ranked homes for sale in Palm Springs this month
Scored 1-10 against real Airbnb comps. Addresses, photos and the full underwriting are in the app.
- #1Weak · 4/102 bd · 1 ba manufactured homeZIP 92262 · listed at $69K
- Cap rate
- 15.5%
- Cash flow
- +$503/mo
- Nightly
- $168 at 40%
- #2Weak · 4/103 bd · 2 ba manufactured homeZIP 92262 · listed at $133K
- Cap rate
- 12.8%
- Cash flow
- +$670/mo
- Nightly
- $242 at 40%
- #3Weak · 4/103 bd · 2 ba manufactured homeZIP 92262 · listed at $120K
- Cap rate
- 12.7%
- Cash flow
- +$594/mo
- Nightly
- $216 at 40%
How Palm Springs compares
Palm Springs ranks #3 of 6 West Coast markets in STRROI's live ranking; Napa Valley leads the region with a median cap rate of 5.5%. Its 3.4% cap rate is 0.5 points above the 2.9% median across all 57 ranked markets, and its $575K typical list price is cheaper than the West Coast median of $657K.
| Rank | Market | Cap rate | Typical price |
|---|---|---|---|
| #8 | Napa Valley, CA | 5.5% | $675K |
| #18 | Lake Tahoe, CA | 4.0% | $640K |
| #26 | Palm Springs, CA | 3.4% | $575K |
| #44 | Big Bear Lake, CA | 2.2% | $549K |
| #52 | Mammoth Lakes, CA | 1.6% | $999K |
| #54 | San Diego, CA | 1.3% | $2.1M |
Rank is national, by median cap rate across active STR-viable listings. Cash flow uses STRROI's default financing assumptions. See the full ranking
Estimated Annual Performance
* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.
Why Investors Choose Palm Springs
Palm Springs STR investing, answered
Is Palm Springs, CA a good short-term rental market?
Palm Springs is a West Coast STR market with a 3.4% median cap rate, 40% annual occupancy, and $271/night across STR-viable listings, based on 108 active listings. It ranks #26 of 57 markets by median cap rate in STRROI's live ranking. This month none of its 108 homes for sale rate Buy or better.
What is the average Airbnb occupancy rate in Palm Springs?
STR-viable properties in Palm Springs average about 40% occupancy across the year. Peak season is Oct - May (snowbird), Apr (Coachella). Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.
How much do short-term rentals earn in Palm Springs?
At $271/night and 40% occupancy, a typical Palm Springs STR grosses roughly $39,764 per year before expenses, leaving an estimated $23,858 in net operating income. Across analyzed listings the median cap rate is 3.4%. Individual results depend on property, amenities, and management.
What types of properties work best for STR in Palm Springs?
Among homes for sale right now, 2-bedroom homes post the strongest median cap rate by size (3.5%), and manufactured homes lead by property type (10.9%). With guests, the best-performing STR types here are Single Family, Mid-Century Modern, Pool Home, Condo. Matching the local guest profile and the amenities that drive bookings matters more than raw square footage.
How many homes for sale in Palm Springs cash flow as an Airbnb?
13 of 108 STR-viable listings (12%) project positive monthly cash flow after the mortgage, assuming 20% down at a 7.5% rate on a 30-year loan. The top-ranked listing this month is a 2-bedroom manufactured home in ZIP 92262 listed at $69K, projecting a 15.5% cap rate and +$503 a month.
What is the median home price in Palm Springs, CA right now?
The median list price of the 108 homes for sale STRROI tracks in Palm Springs is $575,000, and the middle half are priced between $325K and $1.1M. These are homes that could run as short-term rentals, mainly ZIP 92262, not every sale in the area. Against a 3.4% median cap rate, that price level sets the return baseline you'd underwrite against.
How long do homes stay on the market in Palm Springs?
Homes for sale in Palm Springs have been listed 58 days on average, shorter than the 101 days typical across the 56 markets in STRROI's ranking, so well-priced homes here tend to go quickly.
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.Stats sourced from 108 active listings · last updated Oct 12, 2026
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