West Coast4.6% avg cap rateLive · 41 active listings

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.

4.6%
Avg Cap Rate
Net operating income / price
41%
Avg Occupancy
Annual average
$464
Avg Nightly Rate
All property types
$1.8M
Avg List Price
STR-viable properties

41 active listings in Palm Springs are analyzed and ranked right now

Scored 1-10 against real Airbnb comps. See which properties rank highest and why.

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Estimated Annual Performance

Gross rental revenue
41% occ × $464/night
$68,591
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $27,436
Est. net operating income
Before mortgage & depreciation
$41,155
At $1.8M avg price
Implied cap rate
2.3%

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

Why Investors Choose Palm Springs

Coachella and Stagecoach weekends produce highest ADR of any California inland market
Mid-Century Modern architecture drives extraordinary listing photography
Private pool is near-mandatory - adds $150-300/night to base rate
Snowbird season Oct - May provides 7-month high-occupancy window
Peak season: Oct - May (snowbird), Apr (Coachella)
Top property types: Single Family, Mid-Century Modern, Pool Home, Condo
Primary zip: 92262, 92264, 92270, 92260

Palm Springs STR investing, answered

Is Palm Springs, CA a good short-term rental market?

Palm Springs is a West Coast STR market averaging a 4.6% cap rate, 41% annual occupancy, and $464/night across STR-viable listings, based on 41 active listings. 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.

What is the average Airbnb occupancy rate in Palm Springs?

STR-viable properties in Palm Springs average about 41% 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 $464/night and 41% occupancy, a typical Palm Springs STR grosses roughly $68,591 per year before expenses, leaving an estimated $41,155 in net operating income against a $1.8M average price, an implied 2.3% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in Palm Springs?

The strongest-performing STR property types in Palm Springs are Single Family, Mid-Century Modern, Pool Home, Condo. Coachella and Stagecoach weekends produce highest ADR of any California inland market. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in Palm Springs?

STR-viable listings in Palm Springs average around $1.8M. Primary STR ZIP codes include 92262, 92264, 92270. Combined with the market's 4.6% average cap rate, that price level sets the return baseline you'd underwrite against.

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 41 active listings · last updated Sep 1, 2026

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